NI Holdings, Inc. Reports Results for First Quarter Ended March 31, 2023
08 Mai 2023 - 10:15PM
NI Holdings, Inc. (NASDAQ: NODK) announced today results for the
quarter ended March 31, 2023.
Summary of First Quarter 2023
Results(All comparisons vs. the first quarter of 2022,
unless noted otherwise)
- Direct written premiums of $90.6
million, up 19.9%, driven by Non-Standard Auto up 52.0%, Commercial
up 19.9% and Private Passenger Auto up 10.7%
- Net earned premiums of $77.6
million, up 11.6%
- Combined ratio of 112.2% versus
91.3%, driven by elevated loss severity and unfavorable prior year
reserve development in Non-Standard Auto and Commercial
- Net investment gain of $1.4 million
and net investment income of $2.2 million, driven by improved
equity market conditions and higher fixed income reinvestment
rates, respectively
- Loss per share of $0.20 compared to
earnings per share of $0.09
- The Company repurchased 46,099
shares of common stock at an average price of $13.46 per share for
a total of $0.6 million during the quarter
|
Three Months Ended March 31, |
Dollars in thousands, except per share data(unaudited) |
2023 |
2022 |
Change |
Direct written premiums |
$90,556 |
$75,533 |
19.9% |
Net earned premiums |
$77,627 |
$69,587 |
11.6% |
Loss and LAE ratio |
75.8% |
57.7% |
18.1 pts |
Expense ratio |
36.4% |
33.6% |
2.8 pts |
Combined ratio |
112.2% |
91.3% |
20.9 pts |
Net income (loss) attributable
to NI Holdings |
($4,210) |
$1,909 |
nm |
Return on average equity |
(6.7%) |
2.3% |
(9.0 pts) |
Basic earnings (loss) per
share |
($0.20) |
$0.09 |
nm |
|
|
|
nm = not meaningful |
Management Commentary
“The first quarter proved to be challenging as
the company continued to experience elevated loss costs, winter
weather-related property losses, and unfavorable prior year reserve
development in both our Non-Standard Auto and Commercial segments,”
said Michael J. Alexander, President and Chief Executive Officer.
“Losses from winter storms that occurred in late 2022, including
Winter Storm Elliott, developed more than we initially expected and
impacted our results in early 2023. However, we continue to take
significant rate and underwriting actions, especially in the
Commercial segment, to improve our profitability. In our Home/Farm
segment, we continued to benefit from the actions we took
throughout 2022 to drive improved profitability in that segment.
Overall, the company achieved strong top-line growth this quarter,
led by the Non-Standard Auto segment, driven by the rate increases
implemented in 2022.
From an investment perspective, our net
investment income increased over 35% year-over-year as a result of
higher reinvestment rates and an increased allocation of private
placement debt and high dividend yield equities in our portfolio.
Our earnings also benefited from improved equity market conditions
in the first quarter.”
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, 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
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