NI Holdings, Inc. reported a net income of $6.6 million, or $0.31 per share, for the fiscal year ending December 31, 2024, a decrease from the $19.8 million, or $0.93 per share, reported in 2023. The company's total revenues increased to $325.2 million, up from $304 million in the previous year, primarily driven by a 6.2% rise in net premiums earned, which reached $310.1 million compared to $292.1 million in 2023. However, the company faced an underwriting loss of $2.3 million, attributed to increased losses and loss adjustment expenses totaling $207.5 million, which rose from $186.5 million in 2023.
Significant operational changes included the sale of Westminster American Insurance Company on June 30, 2024, which has since been classified as discontinued operations. This sale impacted the company's financials, resulting in a loss of $11.1 million on the transaction. The company also experienced a goodwill impairment charge of $2.6 million related to its Non-Standard Auto segment, reflecting challenges in expected future performance. The total assets of NI Holdings decreased to $526.5 million from $654.9 million in 2023, largely due to the divestiture of Westminster.
In terms of customer engagement, NI Holdings reported a total of 216 employees as of December 31, 2024, with an employee turnover rate of 29%, up from 22.7% in 2023. The company’s insurance products are distributed through a network of 63 exclusive agents in North Dakota and independent agents across other states, with a focus on enhancing relationships with these agents to drive growth. The company also emphasized its commitment to improving its claims service and expanding its product offerings in existing and new markets.
Looking ahead, NI Holdings aims to capitalize on growth opportunities through strategic acquisitions and enhancements to its distribution network. The company plans to maintain a conservative approach to capital management, ensuring sufficient liquidity to meet its obligations while exploring avenues for profitable growth. The outlook remains cautious, with management acknowledging potential challenges from market conditions, regulatory changes, and the impact of economic factors such as inflation on underwriting profitability.
About NI Holdings, Inc.
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