NI Holdings, Inc.

What they do

NI Holdings became the holding company for Nodak Insurance in a 2017 mutual-to-stock conversion and IPO, issuing 10,350,000 shares at $10.00 per share for net proceeds of $93,145. Through Nodak Insurance it owns Nodak Agency, American West, Primero, Battle Creek, and Tri-State, Ltd, and directly owns Direct Auto; Westminster was sold to Scott Insurance Holdings on June 30, 2024. Nodak Mutual Group, Inc. holds 60% of NI Holdings' common stock. It writes private passenger and non-standard auto, home and farm, crop, and other lines, with multi-peril crop premium rates set by the RMA.

Revenue drivers

• Home and Farm — The largest line in the second quarter of 2026 at $26.1 million of net premiums earned, up from $21.3 million a year earlier, driven in part by higher non-catastrophe weather-related losses in the quarter.
• Private Passenger Auto — Second-quarter 2026 net premiums earned of $22.1 million, down 3.6% year over year, with declines tied to lower renewal premiums and new business in South Dakota and Nebraska partly offset by increased new business in North Dakota.
• Crop — Second-quarter 2026 net premiums earned of $10.5 million; multi-peril crop rates are set by the RMA, premium is generally written in the second quarter and earned through the fourth quarter, and results are affected by the federal risk-sharing arrangement.
• Non-Standard Auto — Second-quarter 2026 net premiums earned fell to $0.9 million from $14.5 million a year earlier as the company continued its strategic decision to exit the majority of the segment.

Recent performance

For the second quarter of 2026, NI Holdings reported net income of $146, or $0.01 per share diluted, compared with a net loss of $12,051, or $(0.57) per share, in the prior-year quarter. Net premiums earned declined 10.9% to $65.0 million, but the combined ratio improved to 107.7% from 125.1%, helped by lower catastrophe losses and $6,077 of favorable prior-year reserve development versus unfavorable development a year earlier. Pre-tax catastrophe losses were $15.0 million, below the reinsurance retention, and added 23.1 points to the quarterly loss and LAE ratio. For the six months ended June 30, 2026, net income was $12,654 versus a net loss of $5,591 a year earlier, with a 94.8% combined ratio versus 110.3%. Full-year 2025 produced a net loss of $10,413, a 109.9% combined ratio, and $30,330 of unfavorable prior-year reserve development.

Strategy

Management is exiting the majority of the Non-Standard Auto segment, citing favorable prior-year reserve development there and lower losses from reduced exposure as validation of that pivot. The company is emphasizing its North Dakota business, new assumed reinsurance participation on catastrophe programs of certain farm bureau insurance companies, and growth in Crop. CEO Cindy Launer said the second-quarter results, despite catastrophe events and higher non-catastrophe weather, set a foundation for the remainder of the year. Top-line declines are expected from the strategic shifts, with growth pursued in the remaining lines.

Risks

• Catastrophe and severe weather exposure — NI Holdings writes a significant amount of business in North Dakota, so severe weather there has an outsized effect, and second-quarter 2026 pre-tax catastrophe losses of $15.0 million added 23.1 points to the loss and LAE ratio.
• Adverse reserve development — Full-year 2025 included $30,330 of net unfavorable prior-year reserve development, which contributed to the underwriting loss and combined ratio of 109.9%.
• Geographic and line concentration — The company's concentration in North Dakota and in crop and farm business means results are tied to regional weather and commodity conditions, and multi-peril crop rates are set by the RMA rather than by the company.
• Premium decline from Non-Standard Auto exit — Gross premiums written fell 4.1% to $107.2 million in the second quarter of 2026 and net premiums earned fell 14.5% in the first half, driven largely by the Non-Standard Auto exit.

Outlook

Management called the second-quarter 2026 results encouraging and said they reinforce its strategic trajectory, set a solid foundation for the remainder of the year, and keep it on a path toward creating lasting shareholder value. It pointed to momentum in North Dakota, contributions from new assumed reinsurance business, and growth in Crop. However, catastrophe events and increased non-catastrophe weather remain headwinds, and revenue is declining as the Non-Standard Auto business is wound down.