NI Holdings, Inc. has exited non-standard auto insurance in Illinois, Arizona, and South Dakota, signaling a planned scale-back from higher-risk markets that resulted in a 13.7% drop in direct written premiums to $58.5 million in the third quarter.
The decrease was primarily driven by an 80% reduction in non-standard auto premiums tied to the company’s withdrawal from those states. The decline was partially offset by a 10.1% increase in home and farm insurance, supported by rate changes, growth in North Dakota, and higher insured property values. However, retention and new business activity in Nebraska were lower during the period.
The insurer’s combined ratio improved to 109.1% from 111% a year earlier. Unfavorable prior-year loss reserve development in non-standard auto accounted for 11.2 points of the ratio. The loss and loss adjustment expense ratio remained unchanged at 78.2%, while the expense ratio declined to 30.9% from 32.8%.
Net earned premiums decreased by 13.6% to $71.9 million from $83.3 million in the previous year. The company posted a net loss of $1.67 million, or $0.08 per basic share, compared with a $2.7 million loss, or $0.13 per share, in the same period last year.
Net investment income rose 8.1% to $3 million, driven by higher reinvestment rates in fixed-income assets. Net investment gains fell 43.5% to $1.4 million, mainly due to lower unrealized gains on equity securities, partially offset by higher realized gains.
For the nine months ended September 30, NI Holdings reported $235.7 million in direct written premiums, down 12.4% from $269.2 million in 2024. The company’s net loss for the period was $7.26 million, compared with $15.9 million a year ago. Return on average equity improved to -2.7% from -4.5%.
President and CEO Cindy Launer said the non-standard auto segment continued to experience pressure from prior-year loss development. She stated that discontinuing this business line was part of a move to achieve steadier underwriting performance.
Launer, who recently returned to lead the company, said she aims to collaborate with NI Holdings’ agents, employees, and board to maintain consistent operations and service delivery.
The company’s full quarterly report and Form 10-Q filing are available on its website and through the Securities and Exchange Commission.
