NI Holdings, Inc. reported its financial results for the third quarter and nine months ended September 30, 2024, highlighting significant changes in revenue, profitability, and strategic developments compared to the previous fiscal period.
For the three months ended September 30, 2024, NI Holdings generated total revenues of $88.984 million, an increase from $78.029 million in the same period of 2023. Net premiums earned rose to $83.270 million, up from $76.418 million year-over-year. However, total expenses also increased significantly to $92.440 million from $77.010 million, leading to a net loss of $2.705 million, compared to a net income of $0.805 million in Q3 2023. The underwriting loss for the quarter was $(9.170) million, a notable decline from $(0.592) million in the prior year, resulting in a combined ratio of 111.0%, up from 100.8%.
For the nine-month period, total revenues increased to $251.290 million from $225.330 million, with net premiums earned rising to $238.323 million from $218.124 million. Despite this growth, the company reported a net loss of $15.908 million for the nine months, compared to a loss of $12.101 million in the same period of 2023. The underwriting loss for the nine months was $(16.660) million, compared to $(7.152) million in the previous year, reflecting a combined ratio of 107.0%, up from 103.3%.
Strategically, NI Holdings sold its subsidiary Westminster American Insurance Company on June 30, 2024, for a cash purchase price of $10.500 million, with a post-closing payment of $1.772 million. This sale significantly impacted the company's operations and financial results, as Westminster represented a substantial portion of the Commercial segment. The company also reported a restatement of financial results related to this sale, which included an increased loss on the sale of discontinued operations.
As of September 30, 2024, total cash and investments amounted to $373.403 million, up from $354.425 million at the end of 2023. Total assets decreased to $559.897 million from $654.886 million, while total liabilities fell to $318.526 million from $404.487 million. Shareholders' equity also decreased to $241.371 million from $250.399 million.
In terms of operational performance, net investment income for the three months ended September 30, 2024, was $2.811 million, an increase from $2.121 million in Q3 2023, driven by a higher interest rate environment. The company reported net investment gains of $2.412 million for the quarter, compared to a loss of $(1.227) million in the same period last year.
Overall, NI Holdings faced challenges in profitability despite revenue growth, influenced by increased expenses and strategic changes, including the sale of a key subsidiary.
About NI Holdings, Inc.
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