NI Holdings, Inc. (NODK) SEC Filings & Earnings Calls

Non-standard auto runoff

“We anticipate further reductions in net premiums earned in the near term as a result of the decisions to run off these non-standard auto operations.” · word for word

Negative operating cash flow

“For the six months ended June 30, 2026, net cash used by operating activities totaled $955 compared to net cash provided of $16,289 a year ago.” · word for word

Catastrophe loss exposure

“These decreases were primarily driven by lower catastrophe losses and corresponding ceded premiums earned, favorable prior year development on loss reserves in the current year, and growth in net premiums earned, partially offset by increased non-catastrophe weather-related losses.” · word for word

Catastrophe loss exposure remains significant; $15M pre-tax loss in Q2 2026 below retention but still material.

“Total pre-tax catastrophe loss of $15.0 million for the quarter, which was below our reinsurance retention and adversely impacted the second quarter loss and loss adjustment expense ratios by 23.1 percentage points.” · word for word

Top-line decline from strategic exit of Non-Standard Auto segment continues.

“Gross premiums written decreased 4.1% driven by Non-Standard Auto (-98.9%).”

Premium decline from Non-Standard Auto exit; growth in other segments may not fully offset.

“Gross premiums written decreased 15.1% due to Non-Standard Auto runoff.”

Non-Standard Auto runoff execution risk

“We anticipate further reductions in net earned premiums in the near term as a result of the decisions to run off these non-standard auto operations.” · word for word

Premium decline from strategic exits

“Net premiums earned for the three months ended March 31, 2026, decreased $12,384, or 18.3%, compared to the three months ended March 31, 2025.” · word for word

CEO succession and transition risk

“Mr. Daggett's employment as President and Chief Executive Officer was terminated without cause on October 10, 2025.” · word for word

PSU performance failure indicates potential misalignment with long-term value creation

“Our adjusted book value per share decreased 7.2% from $13.06 to $12.12 over the performance period to fall short of the threshold goal of $16.85.” · word for word

Concentrated ownership by parent company

“Nodak Mutual Group, Inc. owns approximately 61% of NI Holdings, Inc.” · word for word

Non-standard auto market exit reduces premium base

“The Company made the strategic decision to stop writing non-standard auto business for Primero in Nevada during 2024 and in Arizona and South Dakota during the third quarter of 2025, and existing policies will be non-renewed.” · word for word

Concentration in North Dakota market

“North Dakota $176,346 (60.9% of total direct premiums written)”

Dependence on NDFB license agreement

“The current license agreement between the NDFB and Nodak Insurance renewed on October 1, 2025, with an expiration date of September 30, 2026.” · word for word

Unfavorable prior year reserve development in Non-Standard Auto segment

“unfavorable prior year reserve development in the Non-Standard Auto segment” · word for word

Catastrophe event in North Dakota exceeding reinsurance retention

“historic second-quarter catastrophe event in North Dakota, which exceeded the Company’s $20 million reinsurance retention” · word for word

Increased severity on liability claims in Private Passenger Auto

“increased severity on liability claims and related current year reserve strengthening in the Private Passenger Auto segment” · word for word

Continued adverse prior year loss reserve development in Non-Standard Auto segment, contributing 11.2 points to combined ratio.

“Unfavorable prior year loss reserve development in Non-Standard Auto contributing 11.2 pts to the combined ratio.”

Strategic exit from Non-Standard Auto in three states will reduce future earned premiums, creating near-term revenue headwind.

“Strategic decision to stop writing non-standard auto business in Illinois, Arizona and South Dakota will reduce future earned premiums.”

Non-Standard Auto Reserve Adequacy

“The net loss and loss adjustment expense ratio increased 52.5 percentage points ... driven by higher unfavorable prior year development on liability loss reserves due to higher loss frequency and severity.” · word for word

Strategic Execution Risk

“Strategic decisions such as these are based on information, estimates, and assumptions available to us at the time they are made. However, such information may prove to be inaccurate or incomplete, and the anticipated benefits of these actions... may not be realized as expected, or at all.” · word for word

Tariff Exposure

“Trade policies, including tariffs, could adversely impact our financial condition and operating results.” · word for word