NI Holdings, Inc. — Second Quarter 2026 Earnings Summary

Financial Performance

• Gross premiums written were $107.2 million for the quarter, a 4.1% decrease from $111.8 million in the prior year quarter; year-to-date gross premiums written were $164.7 million, down 8.3% from $179.6 million.
• Net premiums earned were $65.0 million for the quarter, a 10.9% decrease from $73.0 million in the prior year quarter; year-to-date net premiums earned were $120.1 million, down 14.5% from $140.5 million.
• The combined ratio improved to 107.7% from 125.1% in the prior year quarter; year-to-date combined ratio was 94.8%, down from 110.3%.
• Loss and LAE ratio decreased to 74.5% from 91.2% in the prior year quarter; year-to-date loss and LAE ratio was 59.7%, down from 74.8%.
• Expense ratio improved to 33.2% from 33.9% in the prior year quarter; year-to-date expense ratio was 35.1%, down from 35.5%.
• Net investment income was $2.8 million, a 10.7% decrease from $3.1 million in the prior year quarter; year-to-date net investment income was $5.5 million, down 8.7% from $6.0 million.
• Net investment gains were $2.1 million compared to a $0.4 million loss in the prior year quarter; year-to-date net investment gains were $3.8 million compared to $0.5 million.
• Net income was $0.1 million for the quarter compared to a net loss of $12.1 million in the prior year quarter; year-to-date net income was $12.7 million compared to a net loss of $5.6 million.
• Basic earnings per share were $0.01 for the quarter compared to a loss per share of $(0.57) in the prior year quarter; year-to-date basic earnings per share were $0.61 compared to $(0.27).
• Return on average equity was 0.2% for the quarter, an improvement of 19.6 percentage points from (19.4%) in the prior year quarter; year-to-date return on average equity was 10.3%, up 14.9 percentage points from (4.6%).
• Total pre-tax catastrophe losses were $15.0 million for the quarter, below reinsurance retention; prior year quarter total pre-tax catastrophe losses, net of reinsurance, were $20.0 million with $3.3 million in related reinstatement premiums.

Business Segments and Product Lines

• Non-Standard Auto gross premiums written decreased 98.9% due to the strategic decision to exit the majority of the segment.
• Private Passenger Auto gross premiums written decreased 8.0% due to lower renewal premiums and new business in South Dakota and Nebraska, partially offset by increased new business in North Dakota.
• "All Other" gross premiums written increased 46.7% due to increased assumed premiums from participation in catastrophe reinsurance programs for certain farm bureau insurance companies.
• Crop gross premiums written increased 8.8% due to increased new business.
• Improved prior year development on loss reserves in Non-Standard Auto contributed to the improved combined ratio.
• Improved growing conditions in the Crop segment contributed to the improved combined ratio.
• Higher non-catastrophe weather-related losses in Home and Farm segments partially offset the combined ratio improvement.

Management Commentary and Tone

• CEO Cindy Launer described the second quarter results as encouraging, noting the quarter is historically challenging and impacted by significant catastrophe events in both June 2025 and 2026.
• Management stated that favorable prior-year reserve development in Non-Standard Auto and lower losses from reduced exposure in that segment validate the strategic pivot away from the business.
• Management highlighted strong momentum in the North Dakota business, solid contributions from new assumed reinsurance business, and notable growth in the Crop segment despite top-line declines tied to strategic shifts.
• Management expressed confidence that the results reinforce the strategic trajectory and keep the company on the path toward creating lasting value for shareholders.

Other Key Points

• The company is an insurance holding company and the stock holding company of Nodak Insurance Company, which converted from a mutual to stock form on March 13, 2017.
• Consolidated financial statements include NI Holdings, Nodak Insurance, and its wholly-owned subsidiaries American West Insurance Company, Primero Insurance Company, Battle Creek Insurance Company, and Direct Auto Insurance Company.
• The company filed a Quarterly Report on Form 10-Q and latest financial supplement available at www.niholdingsinc.com and www.sec.gov.
• Forward-looking statements include risks related to maintaining profitable operations, adequacy of loss reserves, economic conditions, trade policies, interest rates, competition, terrorism, reinsurance availability, adverse weather events, climate change impacts, legal developments, regulatory changes, and inflation.