NI Holdings, Inc.: Q2 FY2026 earnings call

What management said about Q2 FY2026, from the documents filed with the SEC on 7 August 2026: press release. The quarter’s numbers.

Key takeaways

Gross premiums written fell 4.1%: Gross premiums written were $107,191 thousand against $111,828 thousand a year earlier, a 4.1% decline. The six-month figure fell 8.3%. Source
Combined ratio improved to 107.7%: The combined ratio was 107.7%, against 125.1% a year earlier. The six-month combined ratio was 94.8%, against 110.3%. Source
Basic EPS of $0.01 versus loss: Basic earnings per share were $0.01, compared with a basic loss of $(0.57) a year earlier. Net income was $146 thousand against a $(12,051) thousand loss. Source
Non-Standard Auto premiums fell 98.9%: Non-Standard Auto gross premiums written declined 98.9% against the prior-year quarter. Source
Catastrophe loss of $15.0 million: Pre-tax catastrophe loss was $15.0 million, below the reinsurance retention. It added 23.1 points to the quarter's loss and LAE ratio and 12.5 points year to date. Source
Non-Standard Auto reserves developed favorably: Prior-year loss reserves in Non-Standard Auto developed favorably this quarter, against unfavorable development a year earlier. Source
Net investment income fell 10.7%: Net investment income was $2.8 million, down 10.7%, mainly because the average fixed income portfolio balance was lower. Source

“Despite these catastrophe events and headwinds from increased non-catastrophe weather, we delivered improved year-over-year results”
Cindy Launer, President and Chief Executive Officer

What changed from last quarter

New: Non-Standard Auto exit scope: the Q1 release cited ceasing writing in Illinois, Arizona and South Dakota; the Q2 release describes an exit from the majority of the segment. Source

Results and growth drivers

Gross premiums written fell 4.1%: Gross premiums written were $107,191 thousand against $111,828 thousand a year earlier, a 4.1% decline. The six-month figure fell 8.3%. Source
Combined ratio improved to 107.7%: The combined ratio was 107.7%, against 125.1% a year earlier. The six-month combined ratio was 94.8%, against 110.3%. Source
Basic EPS of $0.01 versus loss: Basic earnings per share were $0.01, compared with a basic loss of $(0.57) a year earlier. Net income was $146 thousand against a $(12,051) thousand loss. Source
Return on equity rose to 0.2%: Return on average equity was 0.2%, against (19.4%) a year earlier. The six-month figure was 10.3%, against (4.6%). Source

Segments and premium mix

Non-Standard Auto premiums fell 98.9%: Non-Standard Auto gross premiums written declined 98.9% against the prior-year quarter. Source
Private Passenger Auto premiums down 8.0%: Private Passenger Auto gross premiums written fell 8.0% on lower renewal premiums and new business in South Dakota and Nebraska. Increased North Dakota new business partly offset this. Source
All Other premiums up 46.7%: All Other gross premiums written rose 46.7%, from higher assumed premiums on catastrophe reinsurance programs of certain farm bureau insurance companies. Source
Crop premiums up 8.8%: Crop gross premiums written rose 8.8% on increased new business. Source

“validating our decision to strategically pivot away from that business”
Cindy Launer, President and Chief Executive Officer

Catastrophe losses and reserve development

Catastrophe loss of $15.0 million: Pre-tax catastrophe loss was $15.0 million, below the reinsurance retention. It added 23.1 points to the quarter's loss and LAE ratio and 12.5 points year to date. Source
Prior-year catastrophe cost was higher: The prior-year quarter carried $20.0 million of catastrophe loss net of reinsurance and $3.3 million of reinstatement premiums, which added 30.2 points to that quarter's ratio. Source
Non-Standard Auto reserves developed favorably: Prior-year loss reserves in Non-Standard Auto developed favorably this quarter, against unfavorable development a year earlier. Source

Costs, margins and growing conditions

Expense ratio slightly lower: The expense ratio was 33.2% for the quarter, against 33.9%. For the six months it was 35.1%, against 35.5%. Source
Crop conditions improved; Home and Farm weather rose: Growing conditions improved in Crop, while higher non-catastrophe weather-related losses in Home and Farm partly offset the gain. Source
Net premiums earned declined: Net premiums earned were $65,017 thousand, down 10.9%. Six-month net premiums earned were $120,130 thousand, down 14.5%. Source

Investment income

Net investment income fell 10.7%: Net investment income was $2.8 million, down 10.7%, mainly because the average fixed income portfolio balance was lower. Source
Investment gains swung to positive: Net investment gains were $2,063 thousand for the quarter, against a $(410) thousand loss a year earlier. Source

Management view and strategic direction

Management credits Non-Standard Auto pivot: Management said lower losses from the smaller Non-Standard Auto book supported the result and validated the pivot away from that business. Source
Path toward shareholder value restated: Management said the results keep the company on its strategic path toward lasting value for shareholders. Source
Top-line declines tied to strategy: Management tied the top-line declines to its strategic shifts. Source

Figures management reported

Figure	Reported
Combined ratio Source	107.7% for the quarter; 94.8% for the six months
Catastrophe losses Source	$15.0 million pre-tax, quarter
Investment income Source	$2.8 million net investment income, quarter
Prior-year reserve development Source	favorable in Non-Standard Auto; no dollar amount given

Risks management discussed

External: Management cited significant catastrophe events in June 2025 and June 2026 as a pressure on the second quarter. Source
External: Non-catastrophe weather-related losses in Home and Farm rose and offset part of the quarter's improvement. Source
Financial: Net investment income declined because the average fixed income portfolio balance was lower. Source

Earlier plans management reported on

Not stated: In the first quarter, management described the premium decline from exiting Non-Standard Auto as expected.

Other quarters

Summarised with AI from the documents the company filed with the SEC. Every point is checked against the filing before it is shown: management’s own words word for word, figures against the line or table row they come from. A point that fails the check is left out. Source opens the filing at that line.

As filed with the SEC

Open the filing on EDGAR

NI Holdings, Inc. Reports Results for Second Quarter Ended June 30, 2026

FARGO, North Dakota, August 7, 2026 - NI Holdings, Inc. (NASDAQ: NODK) announced today results for the quarter ended June 30, 2026.

Summary of Second Quarter 2026 Results

(All comparisons vs. the second quarter of 2025, unless noted otherwise)

Gross premiums written of $107.2 million compared to $111.8 million in the prior year quarter. This decrease was driven by Non-Standard Auto (-98.9%) reflecting the continued impact of the Company’s strategic decision to exit the majority of the segment, as well as a decline in Private Passenger Auto (-8.0%) due to lower renewal premiums and new business in South Dakota and Nebraska, partially offset by increased new business in North Dakota. These declines were partially offset by All Other (+46.7%) due to increased assumed premiums from participation on catastrophe reinsurance programs of certain farm bureau insurance companies, and Crop (+8.8%) due to increased new business.
Combined ratio of 107.7%, versus 125.1% in the prior year quarter. The improvement was primarily driven by lower catastrophe losses, favorable prior year development on loss reserves in Non-Standard Auto during the current year quarter compared to unfavorable prior year development in the prior year quarter, and improved growing conditions in Crop, partially offset by higher non-catastrophe weather-related losses in Home and Farm.
Total pre-tax catastrophe loss of $15.0 million for the quarter, which was below our reinsurance retention and adversely impacted the second quarter and year-to-date loss and loss adjustment expense ratios by 23.1 and 12.5 percentage points, respectively. This compares to total pre-tax catastrophe loss, net of reinsurance, of $20.0 million and $3.3 million of related reinstatement premiums in the prior year quarter, which adversely impacted the prior year quarter and prior year-to-date loss and loss adjustment expense ratios by 30.2 and 15.7 percentage points, respectively.
Net investment income of $2.8 million, down 10.7% from the prior year quarter, primarily due to a lower average fixed income portfolio balance.
Basic earnings per share of $0.01, compared to basic loss per share of $(0.57) in the prior year quarter, reflecting improved profitability for the quarter.

	Three Months Ended June 30,			Six Months Ended June 30,
Dollars in thousands, except per share data (unaudited)	2026	2025	Change	2026	2025	Change
Gross premiums written	$107,191	$111,828	(4.1%)	$164,703	$179,594	(8.3%)
Net premiums earned	$65,017	$73,005	(10.9%)	$120,130	$140,502	(14.5%)
Loss and LAE ratio	74.5%	91.2%	(16.7) pts	59.7%	74.8%	(15.1) pts
Expense ratio	33.2%	33.9%	(0.7) pts	35.1%	35.5%	(0.4) pts
Combined ratio	107.7%	125.1%	(17.4) pts	94.8%	110.3%	(15.5) pts
Net investment income	$2,810	$3,146	(10.7%)	$5,465	$5,984	(8.7%)
Net investment gains (losses)	$2,063	$(410)	NM	$3,767	$459	NM
Net income	$146	$(12,051)	NM	$12,654	$(5,591)	NM
Return on average equity	0.2%	(19.4%)	19.6 pts	10.3%	(4.6%)	14.9 pts
Basic earnings per share	$0.01	$(0.57)	NM	$0.61	$(0.27)	NM
NM = not meaningful

Management Commentary

“Our second quarter results are encouraging, especially given that the second quarter is historically our most challenging, a reality underscored by significant catastrophe events that impacted the company in both June 2025 and 2026,” said Cindy Launer, President and Chief Executive Officer. “Despite these catastrophe events and headwinds from increased non-catastrophe weather, we delivered improved year-over-year results, driven in part by favorable prior-year reserve development in Non-Standard Auto, alongside lower losses from our reduced exposure in the segment, validating our decision to strategically pivot away from that business. Furthermore, despite top-line declines tied to our strategic shifts, we are seeing strong momentum in our North Dakota business, solid contributions from our new assumed reinsurance business, and notable growth in our Crop segment.

These strong quarterly results reinforce our strategic trajectory, setting a solid foundation for the remainder of the year and keeping us on the path toward creating lasting value for our shareholders.”

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 Company

NI 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, Primero Insurance Company, and Battle Creek Insurance Company; and Direct Auto Insurance Company.

Safe Harbor Statement

Forward-looking statements notice

Some of the statements included in this news release, particularly those anticipating future financial performance, business prospects, growth and operating strategies, the impact of exiting the Non-Standard Auto segment and other strategic actions on operating results, our ability to continue to improve performance, our ability to create long-term value for our shareholders, 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, the changes in the international trade policies and the potential impact of such changes, 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 SEC. 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: Matt Maki

Executive Vice President, Treasurer and Chief Financial Officer 701-212-5976 IR@nodakins.com