NI Holdings (NODK) Q2 2025 earnings summary

Executive summary

• Net loss of $12,051 for Q2 2025, or ($0.57) per share, with net premiums earned of $73,005 and net investment income of $3,146.

• Direct written premiums declined 7.6% year-over-year to $109.5 million, mainly due to a 56.4% reduction in Non-Standard Auto premiums, partially offset by growth in Home and Farm.

• Underwriting loss of $18,376 and combined ratio of 125.1% for Q2 2025, driven by catastrophe losses and unfavorable prior year reserve development.

• Second quarter results were significantly impacted by a major catastrophe event in North Dakota, leading to elevated loss ratios and a combined ratio of 125.1%.

• Net investment income rose 40.8% to $2.7 million, driven by higher reinvestment rates and realized gains.

Financial highlights

• Net premiums earned decreased 14.3% year-over-year for Q2 2025; six-month decrease was 9.4%.

• Net investment income increased to $3,146 in Q2 2025 from $2,523 in Q2 2024, reflecting higher interest rates.

• Loss and loss adjustment expense ratio increased to 91.2% from 81.4% year-over-year.

• Expense ratio rose to 33.9% from 32.3% year-over-year.

• Return on average equity was (19.4)% for Q2 2025, compared to (12.8)% in Q2 2024.

Outlook and guidance

• Further reductions in Non-Standard Auto net earned premiums are expected due to strategic market exits.

• The One Big Beautiful Bill Act of 2025 is not expected to materially impact results.