NI Holdings, Inc. Reports Results for Second Quarter Ended June 30, 2025
NI Holdings (NASDAQ: NODK) reported challenging second quarter 2025 results, with direct written premiums declining to $109.5 million, down 7.6% from Q2 2024. The company faced significant headwinds, including a combined ratio of 125.1% (versus 113.7% in Q2 2024) and catastrophic losses of $20.0 million from severe storms in North Dakota.
Key financial metrics showed deterioration, with a net loss of ($12.1 million) and basic loss per share of ($0.57). The decline in premiums was primarily due to a strategic reduction in Non-Standard Auto (-56.4%), partially offset by growth in Home and Farm (8.1%). Despite challenges, net investment income showed strength, increasing 40.8% to $2.7 million, driven by higher reinvestment rates in the fixed income portfolio.
[ "Net investment income increased 40.8% to $2.7 million due to higher reinvestment rates", "Home and Farm segment grew 8.1% with higher rates and new business growth in North Dakota", "Geographic diversification showing positive results in South Dakota and Nebraska markets" ]NI Holdings (NASDAQ: NODK) ha riportato un secondo trimestre 2025 difficile, con i premi diretti contabilizzati in calo a $109.5 million, in diminuzione del 7.6% rispetto al Q2 2024. L鈥檃zienda ha affrontato forti venti contrari, tra cui un combined ratio del 125.1% (contro il 113.7% del Q2 2024) e perdite catastrofiche per $20.0 million causate da violente tempeste nel North Dakota.
Le principali grandezze finanziarie si sono deteriorate: perdita netta di ($12.1 million) e perdita base per azione di ($0.57). Il calo dei premi 猫 riconducibile in larga parte a una riduzione strategica dell鈥橝uto Non-Standard (-56.4%), parzialmente bilanciata dalla crescita del segmento Casa e Agricoltura (8.1%). Nonostante le difficolt脿, il reddito netto da investimenti ha mostrato solidit脿, aumentando del 40.8% a $2.7 million grazie a tassi di reinvestimento pi霉 elevati nel portafoglio a reddito fisso.
- Il reddito netto da investimenti 猫 aumentato del 40.8% a $2.7 million grazie a tassi di reinvestimento pi霉 alti.
- Il segmento Home and Farm 猫 cresciuto dell鈥�8.1% per effetto di tariffe pi霉 elevate e nuova produzione in North Dakota.
- La diversificazione geografica evidenzia risultati positivi nei mercati del South Dakota e del Nebraska.
NI Holdings (NASDAQ: NODK) present贸 unos resultados dif铆ciles en el segundo trimestre de 2025, con primas directas escritas que cayeron a $109.5 million, un descenso del 7.6% respecto al T2 2024. La compa帽铆a afront贸 vientos en contra significativos, incluyendo un combined ratio del 125.1% ( frente al 113.7% en T2 2024) y p茅rdidas catastr贸ficas de $20.0 million por fuertes tormentas en Dakota del Norte.
Las m茅tricas clave mostraron un deterioro, con una p茅rdida neta de ($12.1 million) y una p茅rdida b谩sica por acci贸n de ($0.57). La ca铆da de primas se debi贸 principalmente a una reducci贸n estrat茅gica del segmento Auto No Est谩ndar (-56.4%), parcialmente compensada por el crecimiento de Hogar y Agricultura (8.1%). A pesar de los retos, el ingreso neto por inversiones mostr贸 fortaleza, aumentando un 40.8% hasta $2.7 million impulsado por mayores tasas de reinversi贸n en la cartera de renta fija.
- El ingreso neto por inversiones aument贸 40.8% hasta $2.7 million debido a mayores tasas de reinversi贸n.
- El segmento Home and Farm creci贸 8.1% gracias a tarifas m谩s altas y a nuevo negocio en Dakota del Norte.
- La diversificaci贸n geogr谩fica muestra resultados positivos en los mercados de South Dakota y Nebraska.
NI Holdings (NASDAQ: NODK)電� 2025雲� 2攵勱赴鞐� 鞏措牑鞖� 鞁れ爜鞚� 氤搓碃頄堨姷雼堧嫟. 歆侅爲 鞚胳垬氤错棙耄岆姅 $109.5 million鞙茧 鞝勲厔 霃欔赴 雽�牍� 7.6% 臧愳唽頄堨姷雼堧嫟. 須岇偓電� 125.1%鞚� 瓴绊暕牍勳湪(combined ratio)(2024雲� 2攵勱赴 113.7% 雽�牍�)瓿� 雲胳姢雼れ綌韮�鞐愳劀 氚滌儩頃� 臧曤牓頃� 韽拲鞙茧 鞚疙暅 $20.0 million 攴滊鞚� 雽�攴滊 靻愳嫟 霌� 欷戨寑頃� 鞐拲鞐� 歆侂┐頄堨姷雼堧嫟.
頃奠嫭 鞛歆�響滊弰 鞎呿檾霅橃柎 靾滌啇鞁� ($12.1 million)瓿� 欤茧嫻 旮半掣 靻愳嫟 ($0.57)鞚� 旮半頄堨姷雼堧嫟. 氤错棙耄� 臧愳唽電� 欤茧 牍勴憸欷� 鞛愲彊彀�(Non-Standard Auto) 靷梾鞚� 鞝勲灥鞝� 於曥唽(-56.4%)鞐� 旮办澑頃橂┌, 欤柬儩 氚� 雴嶌梾(Home and Farm) 攵�氍�(8.1%)鞚� 靹膘灔鞚� 鞚茧秬 靸侅噭頄堨姷雼堧嫟. 鞏措牑鞗� 靻嶌棎靹滊弰 瓿犾爼靾橃澋 韽姼韽措Μ鞓れ潣 鞛埇鞛愳湪 靸侅姽鞐� 頌橃瀰鞏� 靾滍埇鞛愳垬鞚奠潃 40.8% 歃濌皜頃� $2.7 million鞙茧 鞏戫樃頃� 氇姷鞚� 氤挫榾鞀惦媹雼�.
- 鞛埇鞛愳湪 靸侅姽鞙茧 靾滍埇鞛愳垬鞚奠澊 40.8% 歃濌皜頃橃棳 $2.7 million鞚� 旮半頄堨姷雼堧嫟.
- Home and Farm 攵�氍胳潃 鞖旍湪 鞚胳儊 氚� 雲胳姢雼れ綌韮� 歆�鞐潣 鞁犼窚 靷梾鞙茧 8.1% 靹膘灔頄堨姷雼堧嫟.
- 歆�鞐� 雼る硛頇旊姅 靷毎鞀る嫟旖旐儉(South Dakota)鞕� 雱る笇霝橃姢旃�(Nebraska) 鞁滌灔鞐愳劀 旮嶌爼鞝� 瓴瓣臣毳� 氤挫澊瓿� 鞛堨姷雼堧嫟.
NI Holdings (NASDAQ: NODK) a publi茅 des r茅sultats difficiles pour le deuxi猫me trimestre 2025, avec des primes directes 茅mises en baisse 脿 $109.5 million, soit -7.6% par rapport au T2 2024. La soci茅t茅 a fait face 脿 des vents contraires importants, notamment un ratio combin茅 de 125.1% (contre 113.7% au T2 2024) et des pertes catastrophiques de $20.0 million dues 脿 de violentes temp锚tes dans le North Dakota.
Les indicateurs financiers cl茅s se sont d茅t茅rior茅s : perte nette de ($12.1 million) et perte de base par action de ($0.57). La baisse des primes s鈥檈xplique principalement par une r茅duction strat茅gique de l鈥橝uto Non-Standard (-56.4%), partiellement compens茅e par la croissance du segment Home and Farm (8.1%). Malgr茅 ces difficult茅s, le revenu net d鈥檌nvestissement a montr茅 de la solidit茅, augmentant de 40.8% 脿 $2.7 million gr芒ce 脿 des taux de r茅investissement plus 茅lev茅s dans le portefeuille 脿 revenu fixe.
- Le revenu net d鈥檌nvestissement a augment茅 de 40.8% 脿 $2.7 million en raison de taux de r茅investissement plus 茅lev茅s.
- Le segment Home and Farm a cru de 8.1% gr芒ce 脿 des tarifs plus 茅lev茅s et 脿 une nouvelle activit茅 dans le North Dakota.
- La diversification g茅ographique montre des r茅sultats positifs sur les march茅s du South Dakota et du Nebraska.
NI Holdings (NASDAQ: NODK) meldete schwierige Ergebnisse f眉r das zweite Quartal 2025: Die direkten Bruttobeitr盲ge sanken auf $109.5 million, ein R眉ckgang von 7.6% gegen眉ber Q2 2024. Das Unternehmen sah sich erheblichen Gegenwinden gegen眉ber, darunter eine Combined Ratio von 125.1% (vs. 113.7% im Q2 2024) und katastrophale Verluste in H枚he von $20.0 million durch schwere St眉rme in North Dakota.
Wesentliche Kennzahlen verschlechterten sich: ein Nettoverlust von ($12.1 million) und ein einfacher Verlust je Aktie von ($0.57). Der Pr盲mienr眉ckgang war vor allem auf eine strategische Reduzierung des Non-Standard-Auto-Gesch盲fts (-56.4%) zur眉ckzuf眉hren, teilweise ausgeglichen durch Wachstum im Bereich Home and Farm (8.1%). Trotz der Herausforderungen zeigte das Nettoanlageergebnis St盲rke und stieg um 40.8% auf $2.7 million, angetrieben durch h枚here Reinvestitionsraten im Rentenportfolio.
- Das Nettoanlageergebnis stieg um 40.8% auf $2.7 million dank h枚herer Reinvestitionsraten.
- Der Home-and-Farm-Bereich wuchs um 8.1% durch h枚here Tarife und Neugesch盲ft in North Dakota.
- Die geografische Diversifizierung liefert positive Ergebnisse in den M盲rkten South Dakota und Nebraska.
- None.
- Direct written premiums declined 7.6% to $109.5 million
- Combined ratio deteriorated to 125.1% from 113.7% year-over-year
- Catastrophic losses of $20.0 million from North Dakota storms exceeded reinsurance retention
- Net loss increased to ($12.1 million) from ($7.5 million) in continuing operations
- Unfavorable development of liability loss claims in Non-Standard Auto segment
Insights
NI Holdings reports concerning Q2 results with catastrophe losses, worsening combined ratio, and continued Non-Standard Auto challenges.
NI Holdings' Q2 2025 results reveal significant challenges with a combined ratio deteriorating to 125.1% from 113.7% year-over-year, indicating the company is paying out $1.25 in claims and expenses for every premium dollar collected. This concerning performance is driven by three primary factors:
First, a major catastrophe event in North Dakota exceeded the company's
Second, the company continues to experience unfavorable development in Non-Standard Auto liability claims, meaning they're discovering previous periods' claims are costing more than initially reserved. This pattern suggests potential ongoing underwriting or pricing deficiencies in this segment.
Third, direct written premiums decreased
The basic loss per share widened to
Management's comments acknowledge the challenges while highlighting geographic diversification benefits in South Dakota and Nebraska. However, the return on average equity at
FARGO, N.D., Aug. 08, 2025 (GLOBE NEWSWIRE) -- NI Holdings, Inc. (NASDAQ: NODK) announced today results for the quarter ended June 30, 2025.
Summary of Second Quarter 2025 Results 鈥� Continuing Operations
(All comparisons vs. continuing operations for the second quarter of 2024, unless noted otherwise)
- Direct written premiums of
$109.5 million compared to$118.5 million . This reduction was driven by Non-Standard Auto (-56.4% ) due to the continued impact of the strategic decision to significantly decrease our Non-Standard Auto premiums, partially offset by Home and Farm (8.1% ) driven by higher rate and insured values along with new business growth in North Dakota. - Combined ratio of
125.1% versus113.7% , primarily driven by higher unfavorable development of liability loss claims in Non-Standard Auto, decreased net earned premiums in Non-Standard Auto and a significant catastrophe event in North Dakota that exceeded the Company鈥檚$20M reinsurance retention. - Total pre-tax catastrophe losses, net of reinsurance, of
$20.0 million for the quarter and year-to-date, which adversely impacted the second quarter and year-to-date loss and loss adjustment expense ratios by 30.2 and 15.7 percentage points, respectively. - Net investment income increased
40.8% to$2.7 million , primarily driven by higher reinvestment rates in our fixed income portfolio and higher net realized gains. - Basic loss per share of (
$0.57) compared to ($0.36) .
| 听 | Three Months Ended June 30, | 听 | Six Months Ended June 30, | ||||
| Dollars in thousands, except per share data (unaudited) | 2025 | 2024 | Change | 听 | 2025 | 2024 | Change |
| Direct written premiums | ( | 听 | ( | ||||
| Net earned premiums | ( | 听 | ( | ||||
| Loss and LAE ratio | 9.8 pts | 听 | 4.2 pts | ||||
| Expense ratio | 1.6 pts | 听 | 1.3 pts | ||||
| Combined ratio | 11.4 pts | 听 | 5.5 pts | ||||
| Net loss attributable to NI Holdings | ( | 听 | ( | ||||
| Continuing operations | $(12,051) | $(7,478) | 61.2% | 听 | $(5,591) | $(543) | NM |
| Discontinued operations | - | $(996) | NM | 听 | - | $(1,512) | NM |
| Loss on sale of discontinued operations | - | $(11,148) | NM | 听 | - | $(11,148) | NM |
| Return on average equity | ( | ( | (6.6) pts | 听 | ( | ( | (4.1) pts |
| Basic loss per share | ( | 听 | ( | ||||
| Continuing operations | $(0.57) | $(0.36) | 58.3% | 听 | $(0.27) | $(0.03) | NM |
| NM = not meaningful听 听 | |||||||
| 听 | |||||||
Management Commentary
鈥淚 want to begin by acknowledging the impact the recent historic storms have had on our North Dakota communities,鈥� said Seth Daggett, President and Chief Executive Officer. 鈥淲e are committed to continuing to provide support to help our insureds navigate these difficult times, and together, we will rebuild stronger and move forward. Turning to results, the second quarter was negatively impacted by the catastrophe event in North Dakota, primarily in Home and Farm, offset by favorable weather conditions in South Dakota and Nebraska. The favorable results in South Dakota and Nebraska demonstrate the impact of underwriting changes and geographic diversification we have undertaken in recent years, and we continue to be pleased with the results of those actions.
Our high-quality investment portfolio continued to provide positive returns, benefiting from the higher reinvestment rates in our fixed income portfolio. Although we faced a challenging quarter, including further unfavorable prior year reserve development in Non-Standard Auto, we remain confident in the strength of our core business and our ability to provide appropriate returns over time.鈥�
Securities and Exchange Commission (SEC) Filings
The Company鈥檚 Quarterly Report on Form 10-Q and latest financial supplement can be found on the Company鈥檚 website at . The Company鈥檚 filings with the SEC can also be found at www.sec.gov.
About the Company
NI Holdings, Inc. is an insurance holding company. The Company is a North Dakota business corporation that is the stock holding company of Nodak Insurance Company and became such in connection with the conversion of Nodak Mutual Insurance Company from a mutual to stock form of organization and the creation of a mutual holding company. The conversion was consummated on March 13, 2017. Immediately following the conversion, all of the outstanding shares of common stock of Nodak Insurance Company were issued to Nodak Mutual Group, Inc., which then contributed the shares to NI Holdings in exchange for
Safe Harbor Statement
Some of the statements included in this news release, particularly those anticipating future financial performance, including investment performance and yields, business prospects, growth and operating strategies, the impact of underwriting changes and other strategic actions on operating results, our plans to increase investments in people and technology, enhance distribution management efforts, and focus on expense management initiatives, our ability to generate consistent profitable growth and create lasting value for our shareholders, and similar matters, are forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Actual results could vary materially. Factors that could cause actual results to vary materially include: our ability to maintain profitable operations, the adequacy of the loss and loss adjustment expense reserves, business and economic conditions, the changes in the international trade policies and the potential impact of such changes, interest rates, competition from various insurance and other financial businesses, terrorism, the availability and cost of reinsurance, adverse and catastrophic weather events, including the impacts of climate change, legal and judicial developments, changes in regulatory requirements, our ability to integrate and manage successfully the insurance companies we may acquire from time to time, the impact of inflation on our operating results, and other risks we describe in the periodic reports we file with the SEC. You should not place undue reliance on any such forward-looking statements. We disclaim any obligation to update such statements or to announce publicly the results of any revisions that we may make to any forward-looking statements to reflect the occurrence of anticipated or unanticipated events or circumstances after the date of such statements.
For a detailed discussion of the risk factors that could affect our actual results, please refer to the risk factors identified in our SEC reports, including, but not limited to our Annual Report on Form 10-K, as filed with the SEC.
Investor Relations Contact:
Matt Maki
Executive Vice President, Treasurer and Chief Financial Officer
701-212-5976
[email protected]
FAQ
What were NI Holdings (NODK) key financial results for Q2 2025?
How did catastrophic events impact NODK's Q2 2025 performance?
What drove NI Holdings' investment income growth in Q2 2025?
How did NODK's Non-Standard Auto segment perform in Q2 2025?
What was NODK's combined ratio for Q2 2025 and what caused its increase?
