NI Holdings, Inc. Reports Third Quarter 2022 Results
Summary of Third Quarter 2022 Results
(All comparisons vs. the third quarter of 2021, unless noted otherwise)
- Direct written premiums increased 17.8% to
$81.1 million, driven by our Non-Standard Auto and Commercial segments.
- Net earned premiums increased 9.0% to
- Combined Ratio of 114.4% versus 110.8%, driven by elevated loss costs as a result of higher inflation, a catastrophe loss event in
North Dakotaduring the current quarter, and development of the catastrophe events that occurred during the second quarter of 2022.
- Total pre-tax catastrophe losses, net of reinsurance, of
$19.6 millionfor the quarter and $68.7 millionyear-to-date, which adversely impacted the third quarter and year-to-date combined ratios by 22.7 and 28.5 percentage points, respectively.
- Net investment losses of
$2.9 millionfor the quarter and $19.5 millionyear-to-date, driven by unfavorable equity market conditions.
- Loss per share of
$0.47compared to loss per share of $0.22.
- The Company repurchased 62,175 shares of common stock at an average price of
$15.11per share for a total of $0.9 millionduring the quarter.
|Three Months Ended
||Nine Months Ended
|Dollars in thousands, except per share data (unaudited)||2022||2021||Change||2022||2021||Change|
|Direct written premiums||17.8%||13.0%|
|Net earned premiums||9.0%||9.9%|
|Loss and LAE ratio||88.1%||80.0%||8.1 pts||93.5%||74.7%||18.8 pts|
|Expense ratio||26.3%||30.8%||(4.5 pts)||30.0%||31.7%||(1.7 pts)|
|Combined ratio||114.4%||110.8%||3.6 pts||123.5%||106.4%||17.1 pts|
|Net income (loss) attributable to
|Return on average equity||(15.4%)||(5.5%)||(9.9 pts)||(24.3%)||0.9%||(25.2 pts)|
|Basic earnings (loss) per share||(
|nm = not meaningful|
“We are pleased with the premium growth we experienced across all segments this quarter,” said
From an investment perspective, our earnings were once again negatively impacted by the challenging equity market conditions along with our shareholders’ equity continuing to be adversely impacted by the rising interest rate environment. However, we are beginning to benefit from higher interest rates as our portfolio turns over and we reinvest in higher yielding securities.
Despite these difficult market conditions, we remain committed to pursuing profitable growth opportunities, taking meaningful rate and underwriting actions, and maintaining a high-quality and conservatively managed investment portfolio.”
The Company’s Quarterly Report on Form 10-Q 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:
Source: NI Holdings, Inc.