NI Holdings, Inc. Reports Results for Fourth Quarter and Year Ended December 31, 2022
Summary of Year-End 2022 Results
(All comparisons vs. year-end 2021, unless noted otherwise)
- Direct written premiums of
$88.1 million , up 16.9% compared to prior year quarter and full year direct written premiums of$389.7 million , up 13.9% compared to prior year - Direct written premium growth across all segments compared to prior year, led by Non-Standard Auto up 26.8%, Crop up 22.2% and Commercial up 15.3%
- Net earned premiums of
$84.7 million , up 8.6% compared to prior year quarter and full year net earned premiums of$328.3 million up 9.6% compared to prior year - Combined Ratio of 119.9% for full year 2022 versus 104.3% for prior year, driven by elevated loss costs as a result of higher inflation and an increase in catastrophe events in the current year
- Total pre-tax catastrophe losses, net of reinsurance, of
$68.5 million year-to-date, which adversely impacted the year-to-date combined ratio by 21.2 percentage points - Net investment losses of
$13.1 million year-to-date, driven by unfavorable equity market conditions - Earnings per share of
$0.04 compared to$0.29 for the quarter, and loss per share of$2.49 compared to earnings per share of$0.39 for the year - The Company repurchased 95,741 shares of common stock at an average price of
$13.68 per share for a total of$1.3 million during the quarter and 269,160 shares of common stock at an average price of$15.53 for a total of$4.1 million during the year
| Three Months Ended |
Year Ended |
|||||||||||
| Dollars in thousands, except per share data (unaudited) |
2022 | 2021 | Change | 2022 | 2021 | Change | ||||||
| Direct written premiums | 16.9% | 13.9% | ||||||||||
| Net earned premiums | 8.6% | 9.6% | ||||||||||
| Loss and LAE ratio | 78.9% | 65.2% | 13.7 pts | 89.7% | 72.2% | 17.5 pts | ||||||
| Expense ratio | 30.6% | 33.5% | (2.9 pts) | 30.2% | 32.1% | (1.9 pts) | ||||||
| Combined ratio | 109.4% | 98.6% | 10.8 pts | 119.9% | 104.3% | 15.6 pts | ||||||
| Net income (loss) attributable to |
(85.5%) | ( |
nm | |||||||||
| Return on average equity | 1.4% | 7.2% | (5.8 pts) | (17.9%) | 2.4% | (20.3 pts) | ||||||
| Basic earnings (loss) per share | (86.2%) | ( |
nm | |||||||||
| nm = not meaningful | ||||||||||||
Management Commentary
“In the fourth quarter our Commercial segment continued to be challenged by increased frequency and severity of fire losses in addition to freeze losses related to Winter Storm Elliott, while all of our segments were impacted by elevated industrywide loss costs,” said
For the year, 2022 proved to be challenging for the company. We faced elevated loss costs as a result of inflation, record weather-related losses, and difficult equity markets. Despite these challenging conditions, we saw an improvement in our results late in the year, driven by our earlier rate and underwriting actions. We remain committed to continuing to take these actions as long as necessary to build upon that momentum throughout 2023.”
The Company’s Annual Report on Form 10-K and latest financial supplement can be found on the Company’s website at www.niholdingsinc.com. The Company’s filings with the
About the Company
Safe Harbor Statement
Some of the statements included in this news release, particularly those anticipating future financial performance, including investment performance and yields, business prospects, growth and operating strategies, the impact of pricing and underwriting changes on operating results, and similar matters, are forward-looking statements within the meaning of the
For a detailed discussion of the risk factors that could affect our actual results, please refer to the risk factors identified in our
Investor Relations Contact:
Executive Vice President, Treasurer and Chief Financial Officer
701-298-4348
IR@nodakins.com
Source: NI Holdings, Inc.
