NI Holdings Returns to Profit as Underwriting Improves
The insurance provider reported basic earnings per share of $0.01 for the second quarter ended June 30, 2026.
NI Holdings (NODK) reported a return to profitability for the second quarter of 2026, reversing a loss from the prior-year period. The insurance provider saw a significant improvement in its underwriting discipline despite a contraction in total premiums.
The quarter was marked by a strategic pivot as the company exited the majority of its Non-Standard Auto segment. This shift contributed to a decline in overall volume but improved the company's risk profile and bottom line.
Basic earnings per share were $0.01 in the second quarter, compared to a basic loss per share of $(0.57) in the same period last year. The return on average equity improved 19.6 percentage points to 0.2%, up from a negative 19.4% in the prior-year quarter.
Gross premiums written decreased 4.1% to $107.2 million from $111.8 million in the second quarter of 2025. Net premiums earned declined 10.9% to $65.0 million from $73.0 million.
Underwriting performance improved as the combined ratio fell 17.4 percentage points to 107.7%, compared to 125.1% in the prior-year period. This was driven by a 16.7 percentage point decrease in the loss and LAE ratio, which fell to 74.5% from 91.2%. The expense ratio also decreased 0.7 percentage points to 33.2%.
Segment results were mixed. Non-Standard Auto gross premiums written plummeted 98.9% following the strategic exit. Private Passenger Auto gross premiums written declined 8.0% due to lower renewal premiums and new business in Nebraska and South Dakota. Conversely, Crop gross premiums written rose 8.8% on new business, and the All Other category increased 46.7% due to higher assumed premiums from catastrophe reinsurance programs.
Catastrophe losses remained a factor, though they were lower than the previous year. Pre-tax catastrophe loss for the quarter was $15.0 million, impacting the loss and LAE ratio by 23.1 percentage points, compared to a $20.0 million loss that impacted the ratio by 30.2 percentage points in the prior year.
Net investment income decreased 10.7% to $2.8 million due to a lower average fixed income portfolio balance.