1. Direct written premiums fell to $58.5M, down from $67.7M. 2. Non-Standard Auto premiums dropped 80%, impacting overall performance. 3. Net investment income rose 8.1% to $3.0M amidst market changes. 4. CEO Cindy Launer aims for better underwriting after strategic shifts. 5. Expectations for stability despite recent premium drops.
A significant decline in written premiums indicates a downturn in revenue streams, particularly with the decision to cease non-standard auto business. Historical cases suggest similar strategic shifts can lead to short-term investor concerns reflected in stock prices.
The article highlights critical financial changes and leadership intentions that could directly influence investor confidence and market behavior around NODK’s stock.
The immediate impacts on revenue growth and market perception could lead to short-term volatility in stock price, as seen with other companies that faced revenue declines after major operational changes.
FARGO, N.D., Nov. 07, 2025 (GLOBE NEWSWIRE) -- NI Holdings, Inc. (NASDAQ:NODK) announced today results for the quarter ended September 30, 2025.
Summary of Third Quarter 2025 Results – Continuing Operations
(All comparisons vs. continuing operations for the third quarter of 2024, unless noted otherwise)
| Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||
| Dollars in thousands, except per share data (unaudited) | 2025 | 2024 | Change | 2025 | 2024 | Change | ||||||||||||
| Direct written premiums | $58,458 | $67,704 | (13.7%) | $235,705 | $269,217 | (12.4%) | ||||||||||||
| Net earned premiums | $71,905 | $83,270 | (13.6%) | $212,407 | $238,323 | (10.9%) | ||||||||||||
| Loss and LAE ratio | 78.2% | 78.2% | 0.0 pts | 76.0% | 73.3% | 2.7 pts | ||||||||||||
| Expense ratio | 30.9% | 32.8% | (1.9) pts | 34.0% | 33.7% | 0.3 pts | ||||||||||||
| Combined ratio | 109.1% | 111.0% | (1.9) pts | 110.0% | 107.0% | 3.0 pts | ||||||||||||
| Net loss attributable to NI Holdings | $(1,666) | $(2,705) | (38.4%) | $(7,257) | $(15,908) | (54.4%) | ||||||||||||
| Continuing operations | $(1,666) | $(2,705) | (38.4%) | $(7,257) | $(3,248) | NM | ||||||||||||
| Discontinued operations | - | - | NM | - | $(1,512) | NM | ||||||||||||
| Loss on sale of discontinued operations | - | - | NM | - | $(11,148) | NM | ||||||||||||
| Return on average equity | (2.7%) | (4.5%) | 1.8 pts | (4.0%) | (1.9%) | (2.1) pts | ||||||||||||
| Basic loss per share | $(0.08) | $(0.13) | (38.5%) | $(0.35) | $(0.76) | (53.9%) | ||||||||||||
| Continuing operations | $(0.08) | $(0.13) | (38.5%) | $(0.35) | $(0.15) | NM | ||||||||||||
| NM = not meaningful | ||||||||||||||||||
Management Commentary
"First, I am thrilled to rejoin the company as CEO," said Cindy Launer, President and Chief Executive Officer. "I look forward to collaborating with our exceptional agents, employees and board to continue delivering outstanding service and products to our customers and communities. Turning to our third quarter results, our Non-Standard Auto segment was again impacted by adverse prior year development. In response, we made the strategic decision to stop writing non-standard auto business in Illinois, Arizona and South Dakota. While this will reduce future earned premiums, we believe this shift positions us for stronger underwriting performance and greater stability moving forward."
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 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 55% of the outstanding shares of common stock of NI Holdings. Nodak Insurance Company then became a wholly-owned stock subsidiary of NI Holdings. NI Holdings' financial statements are the consolidated financial results of NI Holdings; Nodak Insurance, including Nodak's wholly-owned subsidiaries American West Insurance Company, Primero Insurance Company, and Battle Creek Insurance Company; Direct Auto Insurance Company; and Westminster Insurance Company until the date of sale.
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
IR@nodakins.com
