NI Holdings, Inc. Reports Results for Second Quarter Ended June 30, 2023
August 08 2023 - 5:10PM
NI Holdings, Inc. (NASDAQ: NODK) announced today results for the
quarter ended June 30, 2023.
Summary of Second Quarter 2023
Results(All comparisons vs. the second quarter of 2022,
unless noted otherwise)
- Direct written premiums of $144.3
million, flat to prior year, driven by a 10.4% increase in Private
Passenger Auto, offset by a 13.8% decrease in Non-Standard
Auto.
- Net earned premiums of $94.2
million, up 11.4%.
- Combined Ratio of 114.0% versus
159.6%, driven by lower weather-related losses, offset by elevated
loss costs and further reserve strengthening due to continued high
levels of inflation.
- Net investment income of $2.5
million versus $2.0 million and net investment loss of $0.2 million
versus $11.1 million, driven by higher fixed income reinvestment
rates and more favorable equity market conditions,
respectively.
- Loss per share of $0.38 compared to
$2.15.
- The Company repurchased 192,065
shares of common stock at an average price of $13.55 per share for
a total of $2.6 million.
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
|
Dollars in thousands, except per share data(unaudited) |
2023 |
|
2022 |
|
Change |
|
2023 |
|
2022 |
|
Change |
|
Direct written premiums |
$144,250 |
|
$144,962 |
|
(0.5%) |
|
$234,806 |
|
$220,495 |
|
6.5% |
|
Net earned premiums |
$94,146 |
|
$84,496 |
|
11.4% |
|
$171,773 |
|
$154,083 |
|
11.5% |
|
Loss and LAE ratio |
82.3% |
|
128.5% |
|
(46.2 pts) |
|
79.4% |
|
96.5% |
|
(17.1 pts) |
|
Expense ratio |
31.7% |
|
31.1% |
|
0.6 pts |
|
33.8% |
|
32.2% |
|
1.6 pts |
|
Combined ratio |
114.0% |
|
159.6% |
|
(45.6 pts) |
|
113.2% |
|
128.7% |
|
(15.5 pts) |
|
Net income (loss) attributable
to NI Holdings |
($8,122) |
|
($45,910) |
|
82.3% |
|
($12,332) |
|
($44,001) |
|
72.0% |
|
Return on average equity |
(13.3%) |
|
(61.4%) |
|
48.1 pts |
|
(10.1%) |
|
(28.7%) |
|
18.6 pts |
|
Basic earnings (loss) per
share |
($0.38) |
|
($2.15) |
|
82.3% |
|
($0.58) |
|
($2.06) |
|
71.8% |
|
|
Management Commentary
“In the second quarter, we continued efforts to
take significant rate increases and underwriting actions to improve
our profitability,” said Michael J. Alexander, President and Chief
Executive Officer. “While we benefited from experiencing no
catastrophe losses, we continue to be challenged by elevated loss
costs driven by the inflationary environment. Although our rate and
underwriting actions slowed growth this quarter, our focus is on
profitability and we believe these and other future measures will
drive improved underwriting results over time. In regards to
investments, higher reinvestment rates, along with more favorable
equity market conditions have produced steadily rising returns in
our portfolio. Overall, we remain confident in the outlook for our
business and our ability to achieve appropriate returns for our
shareholders into the future.”
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 CompanyNI 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
and Primero Insurance Company, and its affiliate Battle Creek
Mutual Insurance Company; Direct Auto Insurance Company; and
Westminster Insurance Company.
Safe Harbor StatementSome 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 pricing and underwriting changes on
operating results, our ability to achieve returns 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,
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
Securities and Exchange Commission. 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: Seth
DaggettExecutive Vice President, Treasurer and Chief Financial
Officer701-298-4348IR@nodakins.com
NI (NASDAQ:NODK)
Historical Stock Chart
From Jul 2024 to Aug 2024
NI (NASDAQ:NODK)
Historical Stock Chart
From Aug 2023 to Aug 2024