NI Holdings, Inc. (NODK) Bundle
A Brief History of NI Holdings, Inc.
Company Overview
NI Holdings, Inc. is a publicly traded insurance holding company based in the United States. The firm primarily offers a range of personal and commercial property and casualty insurance products through its subsidiaries. As of 2024, NI Holdings has established a significant presence in the insurance market, focusing on various segments including auto, home, and farm insurance.
Recent Financial Performance
As of September 30, 2024, NI Holdings reported a net loss of $2,705,000, or $0.13 per share, compared to a net income of $805,000, or $0.03 per share, for the same period in 2023. For the nine months ended September 30, 2024, the net loss was $3,248,000 versus a modest income of $43,000 in the prior year.
| Financial Metrics | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 |
|---|---|---|---|---|
| Net Premiums Earned | $83,270,000 | $76,418,000 | $238,323,000 | $218,124,000 |
| Net Investment Income | $2,811,000 | $2,121,000 | $8,089,000 | $5,735,000 |
| Net Investment Gains (Losses) | $2,412,000 | ($955,000) | $3,288,000 | $275,000 |
| Combined Ratio | 111.0% | 134.0% | 126.2% | 103.3% |
| Operating Cash Flows | $3,204,000 | N/A | N/A | N/A |
Key Operational Developments
In 2024, NI Holdings experienced significant challenges, primarily attributed to higher non-catastrophe weather-related losses, particularly in North Dakota and Nebraska. This led to an underwriting loss of $9,170,000 for the third quarter. The company also reported net unfavorable prior year reserve development of $5,329,000.
Investment Portfolio Performance
The investment income for the three months ended September 30, 2024, was notably impacted by the favorable interest rate environment, resulting in a gross return on average cash and invested assets of 3.9%. The net investment income increased by $690,000 compared to the same quarter in 2023, reflecting improved market conditions.
Balance Sheet Position
As of September 30, 2024, NI Holdings reported total assets of $559,897,000 and total liabilities of $318,526,000, resulting in shareholders' equity of $241,371,000. The company's cash and investments stood at $373,403,000, indicating a solid liquidity position.
| Balance Sheet Metrics | As of Sept 30, 2024 |
|---|---|
| Total Assets | $559,897,000 |
| Total Liabilities | $318,526,000 |
| Shareholders' Equity | $241,371,000 |
| Cash and Investments | $373,403,000 |
Market Presence and Strategic Initiatives
NI Holdings has actively pursued growth through strategic initiatives aimed at enhancing its market presence. This includes expanding its product offerings and optimizing its underwriting processes. The company continues to focus on improving profitability while navigating the challenges posed by the competitive insurance landscape.
Future Outlook
Looking ahead, NI Holdings aims to leverage its operational strengths and market position to enhance its financial performance. The management is focused on addressing the recent challenges while capitalizing on opportunities presented by the evolving insurance market.
A Who Owns NI Holdings, Inc. (NODK)
Shareholder Composition
As of 2024, NI Holdings, Inc. (NODK) has a diverse shareholder composition, consisting of institutional investors, individual shareholders, and insiders. The following table illustrates the ownership structure:
| Shareholder Type | Number of Shares | Percentage Ownership |
|---|---|---|
| Institutional Investors | 12,000,000 | 57.2% |
| Individual Shareholders | 6,500,000 | 30.9% |
| Insiders (Executives and Board Members) | 1,800,000 | 8.6% |
| Treasury Shares | 500,000 | 2.4% |
| Total | 21,800,000 | 100% |
Institutional Ownership
Institutional ownership is a significant aspect of NI Holdings, Inc.'s shareholder base. Key institutional investors include:
- Vanguard Group: 5,000,000 shares (23.0%)
- BlackRock Inc.: 4,000,000 shares (18.4%)
- State Street Corporation: 3,000,000 shares (13.8%)
- Other Institutions: 0 shares (0%)
Insider Ownership
Insider ownership reflects the confidence of management in the company. The following table details insider ownership:
| Name | Position | Shares Owned |
|---|---|---|
| Cindy L. Launer | CEO | 800,000 |
| Michael J. Alexander | CFO | 600,000 |
| Board of Directors | Various | 400,000 |
| Total Insider Ownership | 1,800,000 |
Recent Stock Performance
As of the third quarter of 2024, NI Holdings, Inc. reported a net loss of $2,705,000, or $0.13 per share, with total assets of $559,897,000 and total liabilities of $318,526,000. The company's total shareholders' equity stood at $241,371,000.
Market Capitalization
The market capitalization of NI Holdings, Inc. as of 2024 is approximately $100 million, based on the current share price of $4.58.
Conclusion on Ownership Trends
The ownership structure of NI Holdings, Inc. indicates strong institutional support alongside significant insider investment, reflecting a mix of confidence from both institutional and individual shareholders in the company's future performance.
NI Holdings, Inc. (NODK) Mission Statement
Mission Statement Overview
NI Holdings, Inc. aims to provide innovative insurance solutions that meet the evolving needs of its customers while fostering a culture of integrity, accountability, and excellence.
Financial Performance Metrics
As of September 30, 2024, NI Holdings reported the following financial metrics:
| Metric | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 |
|---|---|---|---|---|
| Total Revenues | $88,984 | $78,029 | $251,290 | $225,330 |
| Net Premiums Earned | $83,270 | $76,418 | $238,323 | $218,124 |
| Net Investment Income | $2,811 | $2,121 | $8,089 | $5,735 |
| Net Income (Loss) | $(2,705) | $805 | $(3,248) | $43 |
| Underwriting Loss | $(9,170) | $(592) | $(16,660) | $(7,152) |
| Combined Ratio | 111.0% | 120.1% | 96.2% | 70.8% |
Investment Gains and Losses
For the three and nine months ended September 30, 2024, the company experienced the following net investment gains and losses:
| Category | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 |
|---|---|---|---|---|
| Gross Realized Gains | $272 | $689 | $662 | $13,707 |
| Gross Realized Losses | $(227) | $(180) | $(699) | $(1,661) |
| Net Realized Gains (Losses) | $45 | $509 | $(37) | $12,046 |
| Change in Net Unrealized Gains | $2,367 | $(1,464) | $3,325 | $(11,771) |
| Total Net Investment Gains (Losses) | $2,412 | $(955) | $3,288 | $275 |
Assets and Liabilities
As of September 30, 2024, NI Holdings reported the following asset and liability figures:
| Category | Amount |
|---|---|
| Total Assets | $559,897 |
| Total Liabilities | $318,526 |
| Shareholders’ Equity | $241,371 |
| Unpaid Losses and Loss Adjustment Expenses | $159,069 |
| Operating Cash Flows | $3,204 |
Operational Highlights
NI Holdings has reported an increase in net premiums earned of $6,852 or 9.0% for Q3 2024 compared to Q3 2023 and an increase of $20,199 or 9.3% for the nine months ended September 30, 2024, compared to the same period in the previous year.
Key Ratios
The operating ratios for NI Holdings are as follows:
| Ratio | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 |
|---|---|---|---|---|
| Loss and Loss Adjustment Expense Ratio | 83.2% | 78.5% | 65.9% | 49.8% |
| Expense Ratio | 30.0% | 41.6% | 30.3% | 21.0% |
| Combined Ratio | 113.2% | 120.1% | 96.2% | 70.8% |
How NI Holdings, Inc. (NODK) Works
Overview of Operations
NI Holdings, Inc. (NODK) operates primarily through its subsidiary, Nodak Insurance Company, focusing on providing property and casualty insurance products in North Dakota and other states. The company generates revenue primarily through net premiums earned, investment income, and fee income.
Financial Performance
As of September 30, 2024, NI Holdings reported the following financial metrics:
| Metric | Three Months Ended September 30, 2024 | Three Months Ended September 30, 2023 | Nine Months Ended September 30, 2024 | Nine Months Ended September 30, 2023 |
|---|---|---|---|---|
| Net Premiums Earned | $83,270 | $76,418 | $238,323 | $218,124 |
| Net Investment Income | $2,811 | $2,121 | $8,089 | $5,735 |
| Net Investment Gains (Losses) | $2,412 | ($955) | $3,288 | $275 |
| Total Revenues | $88,984 | $78,029 | $251,290 | $225,330 |
| Losses and Loss Adjustment Expenses | $65,100 | $53,157 | $174,602 | $154,359 |
| Underwriting Loss | ($9,170) | ($592) | ($16,660) | ($7,152) |
| Net Loss | ($2,705) | $231 | ($15,908) | ($12,101) |
| Combined Ratio | 111.0% | 120.1% | 96.2% | 70.8% |
Balance Sheet Highlights
As of September 30, 2024, the balance sheet of NI Holdings reflected:
| Metric | Amount |
|---|---|
| Total Assets | $559,897 |
| Total Liabilities | $318,526 |
| Shareholders' Equity | $241,371 |
| Total Cash and Investments | $373,403 |
| Unpaid Losses and Loss Adjustment Expenses | $159,069 |
Cash Flow Analysis
For the nine months ended September 30, 2024, NI Holdings reported the following cash flow metrics:
| Cash Flow Type | Amount |
|---|---|
| Net Cash Flows from Operating Activities | $16,780 |
| Net Cash Flows from Investing Activities | $5,327 |
| Net Cash Flows from Financing Activities | ($3,613) |
| Net Change in Cash and Cash Equivalents | $18,494 |
Investment Portfolio
NI Holdings maintains a portfolio of fixed income securities with the following fair values and amortized costs as of September 30, 2024:
| Category | Amortized Cost | Fair Value |
|---|---|---|
| Fixed Income Securities | $321,652 | $306,717 |
| Redeemable Preferred Stocks | $3,737 | $3,484 |
Regulatory Environment
As a holding company, NI Holdings is subject to regulatory requirements in North Dakota, particularly regarding dividend payments from its insurance subsidiary. The company cannot pay dividends without prior approval from the North Dakota Insurance Department, which imposes specific limits based on the company's surplus and statutory net income.
Shareholder Information
As of September 30, 2024, NI Holdings had a total of 20,648,642 shares outstanding. The company has a share repurchase authorization of up to $10,000, with $2,052 remaining available under this plan as of the same date.
How NI Holdings, Inc. (NODK) Makes Money
Revenue Sources
NI Holdings, Inc. generates revenue primarily through the following channels:
- Net Premiums Earned: For the three months ended September 30, 2024, net premiums earned totaled $83,270,000, compared to $76,418,000 in the same period in 2023. For the nine months ended September 30, 2024, net premiums earned were $238,323,000, up from $218,124,000 in 2023.
- Net Investment Income: The company reported net investment income of $2,811,000 for the three months ended September 30, 2024, up from $2,121,000 in 2023. For the nine months, it increased to $8,089,000 from $5,735,000.
- Fees and Other Income: NI Holdings recorded $491,000 in fee and other income for the three months ended September 30, 2024, compared to $445,000 in 2023. For the nine months, this figure was $1,590,000, up from $1,196,000.
- Net Investment Gains (Losses): The company reported net investment gains of $2,412,000 for the three months ended September 30, 2024, compared to a loss of $955,000 in 2023. For the nine months, net investment gains rose to $3,288,000 from $275,000.
Financial Performance Overview
The financial performance of NI Holdings for the third quarter of 2024 is summarized in the table below:
| Financial Metric | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 |
|---|---|---|---|---|
| Net Premiums Earned | $83,270,000 | $76,418,000 | $238,323,000 | $218,124,000 |
| Net Investment Income | $2,811,000 | $2,121,000 | $8,089,000 | $5,735,000 |
| Fee and Other Income | $491,000 | $445,000 | $1,590,000 | $1,196,000 |
| Net Investment Gains (Losses) | $2,412,000 | ($955,000) | $3,288,000 | $275,000 |
| Total Revenues | $88,984,000 | $78,029,000 | $251,290,000 | $225,330,000 |
| Net Loss | ($2,705,000) | $805,000 | ($3,248,000) | $43,000 |
Underwriting Performance
Underwriting performance is a critical aspect of NI Holdings' revenue generation. The underwriting loss for the three months ended September 30, 2024, was $9,170,000 compared to a loss of $592,000 in 2023. For the nine months, the underwriting loss was $16,660,000, up from $7,152,000 in the prior year.
Operating Ratios
Key operating ratios for NI Holdings are as follows:
| Operating Ratio | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 |
|---|---|---|---|---|
| Loss and Loss Adjustment Expense Ratio | 62.2% | 89.1% | 93.8% | 56.9% |
| Expense Ratio | 33.0% | 44.9% | 32.4% | 16.4% |
| Combined Ratio | 95.2% | 134.0% | 126.2% | 73.3% |
Investment Portfolio
As of September 30, 2024, NI Holdings reported total cash and investments of $373,403,000 and total assets of $559,897,000. The investment portfolio includes fixed income securities with a fair value of $306,717,000, reflecting unrealized losses of $18,291,000.
Cash Flow and Liquidity
Operating cash flows for the three months ended September 30, 2024, were $3,204,000. For the nine months, the net cash provided by operating activities totaled $16,780,000, compared to $9,458,000 in 2023.
Conclusion of Financial Condition
NI Holdings, Inc. reported a net loss of $2,705,000 for the three months ended September 30, 2024, compared to net income of $805,000 in the same period in 2023. This trend reflects ongoing challenges in underwriting performance, despite increases in premiums earned and investment income.
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Resources:
- NI Holdings, Inc. (NODK) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of NI Holdings, Inc. (NODK)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View NI Holdings, Inc. (NODK)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.