FARGO, North Dakota, November 7, 2023 – NI Holdings, Inc. (NASDAQ: NODK) announced today results for the quarter ended September 30, 2023.

Summary of Third Quarter 2023 Results

(All comparisons vs. the third quarter of 2022, unless noted otherwise)

·         Direct written premiums of $81.2 million, flat to prior year, driven by increases in Non-Standard Auto (17.9%), Private Passenger Auto (10.4%) and Home and Farm (7.1%), offset by a decrease in Crop.

·         Net earned premiums of $90.8 million, up 1.4%.

·         Combined Ratio of 102.0% versus 114.4%, driven by lower weather-related losses in Home and Farm, lower loss frequency in Private Passenger Auto, and favorable crop growing conditions, offset by further reserve strengthening in Non-Standard Auto and Commercial to address elevated liability loss severity and the continued impact of higher inflationary-related loss costs.

·         Net investment income of $2.8 million versus $2.0 million and net investment loss of $1.2 million versus $2.9 million, driven by higher fixed income reinvestment rates and more favorable year-over-year equity market conditions.

·         Earnings per share of $0.01, compared to loss per share of $0.47.

·         The Company repurchased 310,385 shares of common stock at an average price of $12.86 per share for a total of $4.0 million.

Management Commentary

“During the third quarter, we began to benefit from our significant rate and underwriting actions implemented earlier this year, with our profitability showing improvement over the prior year,” said Michael J. Alexander, President, and Chief Executive Officer. “We certainly benefited from avoiding catastrophe losses during 2023, which allowed our Home and Farm segment to return to expected profitability, along with strong results from our multi-peril crop business. Although we are pleased with our progress and return to profitability, we continue to be challenged by the ongoing effects of elevated loss cost inflation impacting our industry. Our Non-Standard Auto and Commercial segments both experienced unfavorable prior year reserve development, driven by elevated loss severity as a result of inflation and other challenging market conditions. To that end, we remain focused on pursuing continued aggressive rate and underwriting actions, along with other strategic measures to improve our overall risk profile across all lines of business. Our results continue to be positively impacted by our investment portfolio, which is producing steadily rising returns, due to higher reinvestment rates and more favorable market conditions.

Overall, we remain positive regarding the outlook for our business, and our ability to execute the actions necessary to provide our shareholders with appropriate returns over time.”

Securities and Exchange Commission (SEC) Filings

The Company’s Quarterly Report on Form 10-Q and latest financial supplement can be found on the Company’s website at www.niholdingsinc.com. The Company’s filings with the SEC can also be found at Back to All News