NI Holdings (NODK) Q3 2025 earnings summary

Executive summary

• Net loss attributable to shareholders improved to $1.7 million for Q3 2025 from $2.7 million in Q3 2024, but year-to-date net loss widened to $7.3 million compared to $3.2 million in the prior year period.

• Net premiums earned declined 13.6% year-over-year to $71.9 million, primarily due to strategic exits from non-standard auto markets and lower premium volumes.

• Direct written premiums fell 13.7% year-over-year to $58.5 million, mainly due to an 80% decline in Non-Standard Auto after ceasing business in Illinois, Arizona, and South Dakota.

• Underwriting loss for Q3 2025 was $6.5 million, with a combined ratio of 109.1%, reflecting continued underwriting challenges, especially in the Non-Standard Auto segment.

• Net investment income increased to $3.0 million for the quarter, benefiting from higher interest rates.

Financial highlights

• Total revenues for Q3 2025 were $76.6 million, down from $89.0 million in Q3 2024.

• Net investment gains were $1.4 million for the quarter, compared to $2.4 million in the prior year.

• Operating cash flows for the nine months ended September 30, 2025, were negative $28.5 million, compared to positive $16.8 million in the prior year.

• Shareholders’ equity stood at $243.8 million as of September 30, 2025.

• Basic loss per share improved to $(0.08) from $(0.13) year-over-year.

Outlook and guidance

• Further reductions in net earned premiums are expected over the next twelve months due to the run-off of non-standard auto operations.

• Management anticipates improved underwriting performance from strategic exits but acknowledges potential short-term declines in premium volume and increased expense ratios.