NI Holdings, Inc. — Third Quarter 2026 Earnings Summary

Financial Performance

• Gross premiums written decreased 7.2% year-over-year to $54.346 million for the quarter (vs. $58.586 million in Q3 2025) and 8.0% to $219.049 million for the nine months ended September 30, 2026 (vs. $238.180 million).
• Net premiums earned decreased 8.6% year-over-year to $65.756 million for the quarter (vs. $71.905 million) and 12.5% to $185.886 million for the nine-month period (vs. $212.407 million).
• Combined ratio improved 15.5 percentage points year-over-year to 93.6% for the quarter (vs. 109.1%) and 15.6 percentage points to 94.4% for the nine-month period (vs. 110.0%).
• Loss and loss adjustment expense ratio improved 14.1 percentage points to 64.1% for the quarter (vs. 78.2%) and 14.7 percentage points to 61.3% for the nine-month period (vs. 76.0%).
• Expense ratio improved 1.4 percentage points to 29.5% for the quarter (vs. 30.9%) and 0.9 percentage points to 33.1% for the nine-month period (vs. 34.0%).
• Net investment income decreased 10.7% year-over-year to $2.716 million for the quarter (vs. $3.040 million) and 9.3% to $8.181 million for the nine-month period (vs. $9.024 million).
• Net investment gains (losses) were $(93,000) for the quarter compared to $1.362 million in the prior year quarter; for the nine-month period, gains were $3.674 million compared to $1.821 million.
• Net income was $5.528 million for the quarter compared to a net loss of $1.666 million in the prior year quarter; for the nine-month period, net income was $18.182 million compared to a net loss of $7.257 million.
• Return on average equity improved 11.7 percentage points to 9.0% for the quarter (vs. -2.7%) and 14.0 percentage points to 10.0% for the nine-month period (vs. -4.0%).
• Basic earnings per share were $0.27 for the quarter compared to a loss of $(0.08) in the prior year quarter; for the nine-month period, earnings were $0.87 compared to a loss of $(0.35).

Guidance and Future Outlook

• Management expressed confidence in delivering more consistent, profitable performance and long-term shareholder value despite current challenges.
• The company anticipates continued progress in the runoff of the Non-Standard Auto segment.
• Forward-looking statements indicate potential impacts from international trade policies, interest rates, inflation, and adverse weather events on future results.

Business Segments and Product Lines

• Non-Standard Auto gross premiums written decreased 100.2% due to the strategic decision to exit the segment.
• Private Passenger Auto gross premiums written decreased 8.4% driven by lower new business and renewal premiums in South Dakota and Nebraska, and rate decreases in North Dakota, South Dakota, and Nebraska.
• All Other gross premiums written increased 50.6% due to increased assumed premiums from participation in catastrophe reinsurance programs for certain farm bureau insurance companies.
• Home and Farm gross premiums written increased 1.9% driven by strong renewal premiums, rate increases, and increased new business in North Dakota.
• Crop segment experienced higher losses due to drought conditions in North Dakota.
• Private Passenger Auto segment faced increased large loss activity and adverse prior year development on loss reserves.

Market and Competitive Landscape

• The company faces competition from various insurance and other financial businesses.
• Market trends include the impact of climate change on adverse and catastrophic weather events.
• The company operates in a landscape affected by changes in regulatory requirements and the availability and cost of reinsurance.

Risks and Challenges

• Risks include the adequacy of loss and loss adjustment expense reserves and the ability to maintain profitable operations.
• Business and economic conditions, including inflation, pose risks to operating results.
• Potential impacts of changes in international trade policies and terrorism are cited as risk factors.
• Legal and judicial developments and changes in regulatory requirements could affect results.
• The company faces risks related to integrating and managing acquired insurance companies.

Management Commentary and Tone

• Cindy Launer, President and CEO, stated the company delivered significantly improved underwriting results reflecting continued progress on strategic priorities.
• Management noted strong performance in Home and Farm in North Dakota and continued progress in the Non-Standard Auto runoff.
• Despite challenges in Crop and Private Passenger Auto, management expressed encouragement regarding momentum and positioning for long-term value creation.

Other Key Points

• The decrease in Non-Standard Auto premiums is a direct result of the company's strategic decision to exit that segment.
• Proceeds from maturities and sales of the fixed income portfolio were used to fund operating cash needs in the Non-Standard Auto segment, contributing to lower average portfolio balances and reduced investment income.
• Favorable prior year development on loss reserves in Non-Standard Auto and current year storms, along with lower weather-related losses in Home and Farm, were primary drivers for the improved combined ratio.
• NI Holdings, Inc. is the stock holding company for Nodak Insurance Company and its subsidiaries, including American West Insurance Company, Primero Insurance Company, Battle Creek Insurance Company, and Direct Auto Insurance Company.
• The company converted from a mutual to a stock form of organization on March 13, 2017.