NI Holdings Combined Ratio Falls Below 100 During Auto Runoff

The Tip Desk · November 6, 2026 · 3 min read

The insurer posted a 93.6% combined ratio in the third quarter and net income of $5.53 million, or $0.27 a share, after a year-earlier loss.

NI Holdings, Inc. (NODK) reported a 93.6% combined ratio for the quarter ended September 30, 2026, down from 109.1% a year earlier, as the North Dakota insurance holding company continued to exit Non-Standard Auto and Home and Farm weather losses eased.

Net income was $5.53 million, or $0.27 a share, compared with a $1.67 million loss, or $0.08 a share, in the year-ago quarter. Return on average equity was 9.0%.

Gross premiums written were $54.35 million, down 7.2% from $58.59 million a year earlier. Non-Standard Auto premiums fell 100.2% on the strategic exit. Private Passenger Auto declined 8.4% on lower new business and renewals in South Dakota and Nebraska and rate decreases in North Dakota, South Dakota and Nebraska. All Other rose 50.6% on assumed premiums from catastrophe reinsurance programs of certain farm bureau insurers. Home and Farm rose 1.9% on renewals, rate increases and new business in North Dakota.

The company said the combined-ratio improvement was driven primarily by favorable prior-year development on Non-Standard Auto loss reserves, compared with unfavorable development a year earlier, plus favorable current-year storm development and lower weather-related losses in Home and Farm. Those gains were slightly offset by higher Crop losses from drought in North Dakota and increased large-loss activity and adverse prior-year development in Private Passenger Auto.

The sequential turn was sharper. In the second quarter the combined ratio was 107.7% and the company recorded $15.0 million of pre-tax catastrophe losses that hit the loss-and-LAE ratio by 23.1 points. Third-quarter commentary no longer cited catastrophe losses. Net income in the second quarter was $146 thousand, or $0.01 a share.

Net premiums earned were $65.76 million. The loss and loss adjustment expense ratio was 64.1%, down from 78.2% a year earlier. The expense ratio was 29.5%.

Net investment income was $2.72 million, down 10.7% from $3.04 million a year earlier, which the company attributed to a lower average fixed-income portfolio as proceeds from maturities and sales funded operating cash needs in Non-Standard Auto. Net investment results were a $93 thousand loss, versus $1.36 million of gains a year earlier.

President and Chief Executive Officer Cindy Launer said the company delivered significantly improved underwriting results and continued progress on strategic priorities. She said Home and Farm in North Dakota was performing strongly and Non-Standard Auto runoff continued. She said the company was encouraged by momentum and believed it was well positioned to deliver more consistent, profitable performance.

For the nine months ended September 30, 2026, gross premiums written were $219.05 million, down 8.0% from $238.18 million a year earlier. Net premiums earned were $185.89 million. The combined ratio was 94.4%, versus 110.0% a year earlier. Net income was $18.18 million, or $0.87 a share, compared with a $7.26 million loss, or $0.35 a share, a year earlier. Return on average equity was 10.0%.

The year-over-year combined-ratio improvement was 15.5 points in the third quarter, after 17.4 points in the second quarter and 14.7 points in the first. The absolute combined ratio was 79.7% in the first quarter and 107.7% in the second. Gross premiums written had declined 15.1% year over year in the first quarter and 4.1% in the second. Non-Standard Auto premiums had fallen 99.8% in the first quarter and 98.9% in the second.

The company said it is the stock holding company of Nodak Insurance Company, with consolidated results that include Nodak’s wholly owned subsidiaries American West Insurance Company, Primero Insurance Company and Battle Creek Insurance Company, and Direct Auto Insurance Company.