NI Holdings Inc

Previous wording

2024 Second Quarter Consolidated Results of Continuing Operations

Current wording

2024 Third Quarter Consolidated Results of Continuing Operations

Previous wording

2024 Second Quarter Consolidated Financial Condition

Current wording

2024 Third Quarter Consolidated Financial Condition

Previous wording

Our consolidated net loss from continuing operations was $7,478 for the three months ended June 30, 2024, compared to net loss from continuing operations of $2,576 for the three months ended June 30, 2023. Our consolidated net loss from continuing operations was $543 for the six months ended June 30, 2024, compared to net loss from continuing operations of $762 for the six months ended June 30, 2023.

Current wording

Our consolidated net loss from continuing operations was $2,705 for the three months ended September 30, 2024, compared to net income from continuing operations of $805 for the three months ended September 30, 2023. Our consolidated net loss from continuing operations was $3,248 for the nine months ended September 30, 2024, compared to net income from continuing operations of $43 for the nine months ended September 30, 2023.

Previous wording

Our net premiums earned for the three months ended June 30, 2024, increased $6,334, or 8.0%, compared to the three months ended June 30, 2023. Net premiums earned for the six months ended June 30, 2024, increased $13,347, or 9.4%, compared to the six months ended June 30, 2023.

Current wording

Our net premiums earned for the three months ended September 30, 2024, increased $6,852, or 9.0%, compared to the three months ended September 30, 2023. Net premiums earned for the nine months ended September 30, 2024, increased $20,199, or 9.3%, compared to the nine months ended September 30, 2023.

Previous wording

Private Passenger Auto – Net premiums earned for the second quarter of 2024 increased $1,928, or 9.4%, compared to the same period in 2023. Net premiums earned for the first six months of 2024 increased $4,376, or 10.9% from the first six months of 2023. Results were driven by new business growth in North Dakota as well as significant rate increases in North Dakota, South Dakota, and Nebraska, partially offset by lower new business and retention levels in South Dakota and Nebraska as a result of underwriting actions taken to improve profitability.

Current wording

Private Passenger Auto – Net premiums earned for the third quarter of 2024 increased $1,377, or 6.5%, compared to the same period in 2023. Net premiums earned for the first nine months of 2024 increased $5,754, or 9.4% from the first nine months of 2023. Results were driven by new business growth in North Dakota as well as significant rate increases in North Dakota, South Dakota, and Nebraska, partially offset by lower new business and retention levels in South Dakota and Nebraska as a result of underwriting actions taken to improve profitability.

Previous wording

Non-Standard Auto – Net premiums earned for the second quarter of 2024 increased $5,098, or 23.6%, compared to the same period in 2023. Net premiums earned for the first six months of 2024 increased $9,207, or 21.7% from the first six months of 2023. Results were driven by new business growth in Illinois and Arizona as well as significant rate increases in the Chicago market where our non-standard auto business is concentrated, partially offset by lower retention compared to prior year periods.

Current wording

Non-Standard Auto – Net premiums earned for the third quarter of 2024 increased $1,770, or 8.4%, compared to the same period in 2023. Net premiums earned for the first nine months of 2024 increased $10,979, or 17.2% from the first nine months of 2023. Results were driven by prior period new business growth in Illinois and Arizona as well as significant rate increases in the Chicago market where our non-standard auto business is concentrated, partially offset by lower retention compared to prior year periods.

Previous wording

Home and Farm – Net premiums earned for the second quarter of 2024 increased $1,510, or 7.4%, compared to the same period in 2023. Net premiums earned for the first six months of 2024 increased $2,934, or 7.3% from the first six months of 2023. Results were driven by new business growth in North Dakota, rate increases, and increased insured property values, which were primarily the result of higher inflationary factors. These increases were partially offset by lower retention rates and new business levels in Nebraska and South Dakota as a result of underwriting actions taken to improve profitability.

Current wording

Home and Farm – Net premiums earned for the third quarter of 2024 increased $2,170, or 10.2%, compared to the same period in 2023. Net premiums earned for the first nine months of 2024 increased $5,103, or 8.3% from the first nine months of 2023. Results were driven by new business growth in North Dakota, rate increases, and increased insured property values, which were primarily the result of higher inflationary factors. These increases were partially offset by lower retention rates and new business levels in Nebraska and South Dakota as a result of underwriting actions taken to improve profitability.

Previous wording

Crop**–** Net premiums earned for the second quarter of 2024, decreased $2,358, or 17.7%, compared to the same period in 2023. Net premiums earned for the first six months of 2024 decreased $3,183, or 25.2% from the first six months of 2023. The year-to-date decrease was driven by lower commodity prices in the current year.

Current wording

Crop**–** Net premiums earned for the third quarter of 2024, increased $1,139, or 11.7%, compared to the same period in 2023. Net premiums earned for the first nine months of 2024 decreased $2,043, or 9.1% from the first nine months of 2023. The increase in the third quarter of 2024 was driven by the recognition during the prior year quarter of a reduction in the acres insured for the prior year. The year-to-date decrease was driven by lower commodity prices in the current year.

Previous wording

All Other – Net premiums earned for the second quarter of 2024, increased $156, or 5.4%, compared to the same period in 2023. Net premiums earned for the first six months of 2024 increased $13, or 0.2%, from the first six months of 2023. Results were drive by rate and insured value increases for the commercial and excess lines of business, partially offset by the continued run-off of our participation in an assumed domestic and international reinsurance pool of business.

Current wording

All Other – Net premiums earned for the third quarter of 2024, increased $396, or 13.7%, compared to the same period in 2023. Net premiums earned for the first nine months of 2024 increased $406, or 4.6%, from the first nine months of 2023. Results were driven by rate and insured value increases for the commercial and excess lines of business, partially offset by the continued run-off of our participation in an assumed domestic and international reinsurance pool of business.

Previous wording

Our net losses and loss adjustment expenses for the three months ended June 30, 2024, increased $9,281, or 15.4%, compared to the three months ended June 30, 2023. Our net losses and loss adjustment expenses for the six months ended June 30, 2024, increased $8,300, or 8.2%, compared to the six months ended June 30, 2023.

Current wording

Our net losses and loss adjustment expenses for the three months ended September 30, 2024, increased $11,943, or 22.5%, compared to the three months ended September 30, 2023. Our net losses and loss adjustment expenses for the nine months ended September 30, 2024, increased $20,243, or 13.1%, compared to the nine months ended September 30, 2023.

Previous wording

Private Passenger Auto – The net loss and loss adjustment expense ratio decreased 3.1 percentage points and 15.8 percentage points in the three- and six-month periods ended June 30, 2024, respectively, compared to the same periods in 2023. These decreases were driven by the earned premium growth as well as lower levels of weather-related losses in the current year due to the mild winter in the Midwest compared to elevated winter weather-related losses in the prior year. Both periods were affected by elevated loss costs due to continued high levels of inflation.

Current wording

Private Passenger Auto – The net loss and loss adjustment expense ratio decreased 16.0 percentage points and 15.8 percentage points in the three- and nine-month periods ended September 30, 2024, respectively, compared to the same periods in 2023. The decrease in the third quarter of 2024 was driven by improved loss frequency in Nebraska and South Dakota during the current year quarter. The year-to-date decrease was driven by the improved loss frequency in the current year quarter as well as lower levels of weather-related losses in the current year due to the mild winter in the Midwest compared to elevated winter weather-related losses in the prior year. Both periods were positively affected by earned premium growth.

Previous wording

Non-Standard Auto – The net loss and loss adjustment expense ratio increased 6.9 percentage points in the three-month period ended June 30, 2024, compared to the same period in 2023. This increase was driven by elevated loss severity as a result of inflationary factors as well as unfavorable prior year loss reserve development. The net loss and loss adjustment expense ratio decreased 3.4 percentage points in the six-month period ended June 30, 2024, compared to the same period in 2023. This decrease was primarily driven by earned premium growth resulting from new business growth and significant rate increases.

Current wording

Non-Standard Auto – The net loss and loss adjustment expense ratio increased 0.4 percentage points in the three-month period ended September 30, 2024, compared to the same period in 2023. Although the year-over-year ratios were relatively consistent, the current year quarter was impacted by unfavorable prior year reserve development related to elevated bodily injury losses. The net loss and loss adjustment expense ratio decreased 2.6 percentage points in the nine-month period ended September 30, 2024, compared to the same period in 2023. This decrease was primarily driven by earned premium growth resulting from new business growth and significant rate increases.

Previous wording

Home and Farm – The net loss and loss adjustment expense ratio increased 12.7 percentage points and 13.0 percentage points in the three- and six-month periods ended June 30, 2024, respectively, compared to the same periods in 2023. These increases in net loss and loss adjustment expense ratios were driven by higher non-catastrophe weather-related losses in South Dakota and Nebraska during 2024 compared to the prior year.

Current wording

Home and Farm – The net loss and loss adjustment expense ratio increased 27.9 percentage points and 18.3 percentage points in the three- and nine-month periods ended September 30, 2024, respectively, compared to the same periods in 2023. These increases in net loss and loss adjustment expense ratios were driven by higher non-catastrophe weather-related losses in North Dakota and Nebraska during 2024 compared to the prior year partially offset by earned premium growth in the current year.

Previous wording

Crop – The net loss and loss adjustment expense ratio increased 5.0 percentage points and 2.0 percentage points in the three- and six-month periods ended June 30, 2024, respectively, compared to the same periods in 2023. These increases were driven by slightly less favorable crop growing conditions compared to the prior year.

Current wording

Crop – The net loss and loss adjustment expense ratio increased 19.0 percentage points and 9.0 percentage points in the three- and nine-month periods ended September 30, 2024, respectively, compared to the same periods in 2023. These increases were driven by slightly less favorable crop growing conditions compared to the prior year.

Previous wording

All Other – The net loss and loss adjustment expense ratio decreased 7.2 percentage points in the three-month period ended June 30, 2024, compared to the same period in 2023. This decrease was driven by improved loss experience related to the commercial business. The net loss and loss adjustment expense ratio increased 11.2 percentage points in the six-month period ended June 30, 2024, compared to the same period in 2023. This increase was driven by slightly elevated large loss experience compared to the prior year.

Current wording

All Other – The net loss and loss adjustment expense ratio increased 71.1 percentage points and 31.8 percentage points in the three- and nine-month period ended September 30, 2024, compared to the same period in 2023. These increases were driven by elevated large loss experience compared to the prior year. The negative loss and loss adjustment expense ratio for the third quarter of 2023 was the result of an inter-segment reclassification of a large loss during the quarter.

Previous wording

The expense ratio is calculated by dividing other underwriting and general expenses and amortization of deferred policy acquisition costs by net premiums earned. The expense ratio measures a company’s operational efficiency in producing, underwriting, and administering its insurance business. The overall expense ratio increased 1.4 percentage points and 1.0 percentage points in the three-and six-month periods ended June 30, 2024, respectively, compared to the same periods in 2023. The increase in the amortization of deferred policy acquisition costs is due to higher deferrable costs resulting from significant premium growth compared to the prior year, including significant growth in the Non-Standard Auto segment which generally pays higher agent commissions than our other segments.

Current wording

The expense ratio is calculated by dividing other underwriting and general expenses and amortization of deferred policy acquisition costs by net premiums earned. The expense ratio measures a company’s operational efficiency in producing, underwriting, and administering its insurance business. The overall expense ratio increased 1.6 percentage points and 1.2 percentage points in the three-and nine-month periods ended September 30, 2024, respectively, compared to the same periods in 2023. The increase in the amortization of deferred policy acquisition costs is due to higher deferrable costs resulting from significant premium growth compared to the prior year, including significant growth in the Non-Standard Auto segment which generally pays higher agent commissions than our other segments. The increase in the other underwriting and general expenses is due to the costs incurred in the current quarter associated with the execution of the separation agreement with our former Chief Executive Officer.

Previous wording

The total underwriting loss increased $6,207, or 112.8%, for the three-month period ended June 30, 2024, compared to the same period in 2023. The total underwriting loss increased $930, or 14.2%, for the six-month period ended June 30, 2024, compared to the same period in 2023. These results were driven by the factors discussed in the Loss and Loss Adjustment Expenses as well as the Underwriting and General Expenses and Expense Ratio sections above.

Current wording

The total underwriting loss increased $8,578 for the three-month period ended September 30, 2024, compared to the same period in 2023. The total underwriting loss increased $9,508 for the nine-month period ended September 30, 2024, compared to the same period in 2023. These results were driven by the factors discussed in the Loss and Loss Adjustment Expenses as well as the Underwriting and General Expenses and Expense Ratio sections above.

Previous wording

The overall combined ratio increased 6.6 percentage points in the three-month period ended June 30, 2024, compared to the same period in 2023. The overall combined ratio increased 0.2 percentage points in the six-month period ended June 30, 2024, compared to the same period in 2023. These results were driven by the factors discussed in the Loss and Loss Adjustment Expenses as well as the Underwriting and General Expenses and Expense Ratio sections above.

Current wording

The overall combined ratio increased 10.2 percentage points in the three-month period ended September 30, 2024, compared to the same period in 2023. The overall combined ratio increased 3.7 percentage points in the nine-month period ended September 30, 2024, compared to the same period in 2023. These results were driven by the factors discussed in the Loss and Loss Adjustment Expenses as well as the Underwriting and General Expenses and Expense Ratio sections above.

Previous wording

We had fee and other income of $695 and $1,099 for the three and six months ended June 30, 2024, respectively, compared to $490 and $751 for the three and six months ended June 30, 2023, respectively. Fee income is largely attributable to the Non-Standard Auto segment and is a key component in measuring its profitability. Fee and other income on this business increased to $340 and $690 for the three and six months ended June 30, 2024, respectively, from $239 and $471 for the three and six months ended June 30, 2023, respectively, driven by growth in this segment.

Current wording

We had fee and other income of $491 and $1,590 for the three and nine months ended September 30, 2024, respectively, compared to $445 and $1,196 for the three and nine months ended September 30, 2023, respectively. Fee income is largely attributable to the Non-Standard Auto segment and is a key component in measuring its profitability. Fee and other income on this business increased to $281 and $971 for the three and nine months ended September 30, 2024, respectively, from $278 and $748 for the three and nine months ended September 30, 2023, respectively, driven by growth in this segment.

Previous wording

Net investment income increased $600 for the three months ended June 30, 2024, compared to the three months ended June 30, 2023. Net investment income increased $1,664 for the six months ended June 30, 2024, compared to the six months ended June 30, 2023. These increases were primarily driven by the higher interest rate environment which resulted in higher reinvestment rates in our fixed income portfolio.

Current wording

Net investment income increased $690 for the three months ended September 30, 2024, compared to the three months ended September 30, 2023. Net investment income increased $2,354 for the nine months ended September 30, 2024, compared to the nine months ended September 30, 2023. These increases were primarily driven by the higher interest rate environment which resulted in higher reinvestment rates in our fixed income portfolio.

Previous wording

Gross and net return on average cash and invested assets increased year-over-year, primarily driven by the favorable interest rate environment that resulted in significantly higher net investment income on a slightly increased average fixed income securities balance (measured at fair value). In addition, the increase in investments in high dividend yield equities resulted in relatively consistent year-over-year net investment income despite a reduction in the average equities balance (measured at fair value). The increase in average cash and invested assets was driven by higher operating cash flows during 2023 and the first six months of 2024.

Current wording

Gross and net return on average cash and invested assets increased year-over-year, primarily driven by the favorable interest rate environment that resulted in significantly higher net investment income on an increased average balance of fixed income securities as well as cash and cash equivalents (measured at fair value). In addition, the increase in investments in high dividend yield equities resulted in relatively consistent year-over-year dividend income despite a reduction in the average equities balance (measured at fair value). The increase in average cash and invested assets was driven by changes in the fair value of fixed income securities due to the interest rate environment as well as higher operating cash flows during the first nine months of 2024.

Previous wording

We had net realized gains of $9 and losses of $82 for the three and six months ended June 30, 2024, respectively, compared to net unrealized losses of $98 and gains of $11,537 for the three and six months ended June 30, 2023, respectively. The elevated net realized gains in the six months ended June 30, 2023, were the result of a strategic liquidation of a portfolio of equity securities. The gross realized gains from the sale of these securities were largely offset by the elimination of the unrealized gain position of these securities. No credit impairment losses were reported during any of the periods presented.

Current wording

We had net realized gains of $45 and losses of $37 for the three and nine months ended September 30, 2024, respectively, compared to net realized gains of $509 and $12,046 for the three and nine months ended September 30, 2023, respectively. The elevated net realized gains in the nine months ended September 30, 2023, were the result of a strategic liquidation of a portfolio of equity securities. The gross realized gains from the sale of these securities were largely offset by the elimination of the unrealized gain position of these securities. No credit impairment losses were reported during any of the periods presented.

Previous wording

We experienced a decrease of $589 and an increase of $958 in net unrealized gains on equity securities during the three and six months ended June 30, 2024, respectively, attributable to overall favorable equity markets during the current year partially offset by unfavorable equity markets during the current quarter. We experienced a decrease in net unrealized gains on equity securities of $75 and $10,307 during the three and six months ended June 30, 2023, respectively. The decrease in unrealized gains on equity securities during the six months ended June 30, 2023, was driven by the equity portfolio liquidation noted above, offset by the impact of changes in fair value attributable to favorable equity markets during the quarter.

Current wording

We experienced an increase of $2,367 and $3,325 in net unrealized gains on equity securities during the three and nine months ended September 30, 2024, respectively, attributable to overall favorable equity markets during the current quarter and year-to-date. We experienced a decrease in net unrealized gains on equity securities of $1,464 and $11,771 during the three and nine months ended September 30, 2023, respectively. The decrease in unrealized gains on equity securities during the nine months ended September 30, 2023, was driven by the equity portfolio liquidation noted above and the impact of changes in fair value attributable to equity market volatility.

Previous wording

Our fixed income securities are classified as available for sale because we will, from time to time, make sales of securities that are not impaired, consistent with our investment goals and policies. The fixed income portion of the portfolio experienced net unrealized losses of $923 and net unrealized losses of $2,730 during the three and six months ended June 30, 2024, respectively, compared to net unrealized losses of $2,766 and net unrealized gains of $2,977 during the three and six months ended June 30, 2023, respectively. The changes were primarily the result of changes in U.S. interest rates. The change in the fair value of fixed income securities is not reflected in net income; rather it is reflected as a separate component (net of income taxes) of other comprehensive income.

Current wording

Our fixed income securities are classified as available for sale because we will, from time to time, make sales of securities that are not impaired, consistent with our investment goals and policies. The fixed income portion of the portfolio experienced net unrealized gains of $11,138 and $8,848 during the three and nine months ended September 30, 2024, respectively, compared to net unrealized losses of $8,718 and $5,741 during the three and nine months ended September 30, 2023, respectively. The changes were primarily the result of changes in U.S. interest rates. The change in the fair value of fixed income securities is not reflected in net income; rather it is reflected as a separate component (net of income taxes) of other comprehensive income.

Previous wording

For the three months ended June 30, 2024, we had a pre-tax loss of $9,070 compared to a pre-tax loss of $3,261 for the three months ended June 30, 2023. The year-over-year change was largely attributable to higher non-catastrophe weather-related losses for Home and Farm in the states of South Dakota and Nebraska as well as unfavorable prior year loss reserve development for Non-Standard Auto, partially offset by higher net investment income.

Current wording

For the three months ended September 30, 2024, we had a pre-tax loss of $3,456 compared to a pre-tax income of $1,019 for the three months ended September 30, 2023. The year-over-year change was largely attributable to higher non-catastrophe weather-related losses for Home and Farm in the states of North Dakota and Nebraska, unfavorable prior year loss reserve development for Non-Standard Auto, and expenses incurred related to the separation agreement with our former Chief Executive Officer, partially offset by net earned premium growth, improved loss experience for Private Passenger Auto, and higher net investment income.

Previous wording

For the six months ended June 30, 2024, we had a pre-tax loss of $237 compared to pre-tax loss of $965 for the six months ended June 30, 2023. The year-over-year improvement was largely attributable to higher levels of net investment income as well as lower levels of winter weather-related losses for Private Passenger Auto in the current year, partially offset by higher non-catastrophe weather-related losses for Home and Farm in the states of South Dakota and Nebraska.

Current wording

For the nine months ended September 30, 2024, we had a pre-tax loss of $3,693 compared to pre-tax income of $54 for the nine months ended September 30, 2023. The year-over-year change was largely attributable to higher non-catastrophe weather-related losses for Home and Farm in the states of North Dakota and Nebraska, unfavorable prior year loss reserve development for Non-Standard Auto, and expenses incurred related to the separation agreement with our former Chief Executive Officer, partially offset by net earned premium growth, improved loss experience for Private Passenger Auto, and higher net investment income.

Previous wording

We recorded an income tax benefit of $1,592 for the three months ended June 30, 2024, compared to an income tax benefit of $685 for the three months ended June 30, 2023. Our effective tax rate for the second quarter of 2024 was 17.6% compared to an effective tax rate of 21.0% for the second quarter of 2023.

Current wording

We recorded an income tax benefit of $751 for the three months ended September 30, 2024, compared to an income tax expense of $214 for the three months ended September 30, 2023. Our effective tax rate for the third quarter of 2024 was 21.7% compared to an effective tax rate of 21.0% for the third quarter of 2023.

Previous wording

We recorded an income tax expense of $306 for the six months ended June 30, 2024, compared to income tax benefit of $203 for the six months ended June 30, 2023. Our effective tax rate for the first six months of 2024 was 42.0% compared to an effective tax rate of 21.0% for the first six months of 2023. The effective tax rate for the first six months of 2024 was impacted by a $346 current quarter valuation allowance on net operating loss carryforwards established as a result of the Battle Creek demutualization.

Current wording

We recorded an income tax benefit of $445 for the nine months ended September 30, 2024, compared to income tax expense of $11 for the nine months ended September 30, 2023. Our effective tax rate for the first nine months of 2024 (excluding tax effects related to the loss on the sale of Westminster) was 12.0% compared to an effective tax rate of 20.4% for the first nine months of 2023. The effective tax rate for the first nine months of 2024 was impacted by a $346 valuation allowance on net operating loss carryforwards established as a result of the Battle Creek demutualization.

Previous wording

For the three months ended June 30, 2024, we had a net loss before non-controlling interest of $7,478 compared to a net loss of $2,576 for the three months ended June 30, 2023. The year-over-year change was largely attributable to higher non-catastrophe weather-related losses for Home and Farm in the states of South Dakota and Nebraska as well as unfavorable prior year loss reserve development for Non-Standard Auto, partially offset by higher net investment income.

Current wording

For the three months ended September 30, 2024, we had a net loss before non-controlling interest of $2,705 compared to net income of $805 for the three months ended September 30, 2023. The year-over-year change was largely attributable to higher non-catastrophe weather-related losses for Home and Farm in the states of North Dakota and Nebraska, unfavorable prior year loss reserve development for Non-Standard Auto, and expenses incurred related to the separation agreement with our former Chief Executive Officer, partially offset by net earned premium growth, improved loss experience for Private Passenger Auto, and higher net investment income.

Previous wording

For the six months ended June 30, 2024, we had a net loss before non-controlling interest of $543 compared to net loss of $762 for the six months ended June 30, 2023. The year-over-year improvement was largely attributable to higher levels of net investment income as well as lower levels of winter weather-related losses for Private Passenger Auto in the current year, partially offset by higher non-catastrophe weather-related losses for Home and Farm in the states of South Dakota and Nebraska.

Current wording

For the nine months ended September 30, 2024, we had a net loss before non-controlling interest of $3,248 compared to net income of $43 for the nine months ended September 30, 2023. The year-over-year change was largely attributable to higher non-catastrophe weather-related losses for Home and Farm in the states of North Dakota and Nebraska, unfavorable prior year loss reserve development for Non-Standard Auto, and expenses incurred related to the separation agreement with our former Chief Executive Officer, partially offset by net earned premium growth, improved loss experience for Private Passenger Auto, and higher net investment income.

Previous wording

For the three months ended June 30, 2024, we had annualized return on average equity, after non-controlling interest, of (12.7)% compared to annualized return on average equity, after non-controlling interest, of (4.5)% for the three months ended June 30, 2023.

Current wording

For the three months ended September 30, 2024, we had annualized return on average equity, after non-controlling interest, of (4.5)% compared to annualized return on average equity, after non-controlling interest, of 1.3% for the three months ended September 30, 2023.

Previous wording

For the six months ended June 30, 2024, we had annualized return on average equity, after non-controlling interest, of (0.5)% compared to annualized return on average equity, after non-controlling interest, of (0.3)% for the six months ended June 30, 2023.

Current wording

For the nine months ended September 30, 2024, we had annualized return on average equity, after non-controlling interest, of (1.9)% compared to annualized return on average equity, after non-controlling interest, of 0.2% for the nine months ended September 30, 2023.

Previous wording

The change in cash and cash equivalents for continuing and discontinued operations for the six months ended June 30, 2024 and 2023, were as follows:

Current wording

The change in cash and cash equivalents for continuing and discontinued operations for the nine months ended September 30, 2024 and 2023, were as follows:

Previous wording

For the six months ended June 30, 2024, net cash provided by operating activities totaled $34,760 compared to $19,887 a year ago. This change was primarily driven by lower levels of loss and loss adjustment payments in the current year.

Current wording

For the nine months ended September 30, 2024, net cash provided by operating activities totaled $16,780 compared to $9,458 a year ago. This change was primarily driven by lower levels of loss and loss adjustment payments in the current year partially offset by higher levels of tax payments (net of refunds) in the current year.

Previous wording

For the six months ended June 30, 2024, net cash used by investing activities totaled $3,776 compared to net cash provided of $1,117 a year ago. This change was primarily attributable to a decrease in sales of equity securities compared to the prior year partially offset by the proceeds from the sale of Westminster in the current year.

Current wording

For the nine months ended September 30, 2024, net cash provided by investing activities totaled $5,327 compared to net cash used of $2,021 a year ago. This change was primarily attributable to the proceeds from the sale of Westminster in the current year partially offset by an increase in net cash outflows for investment activities in the current year.

Previous wording

For the six months ended June 30, 2024, net cash used by financing activities totaled $202 compared to $3,397 a year ago. This decrease in cash used was attributable to a reduction in share repurchases in the current year.

Current wording

For the nine months ended September 30, 2024, net cash used by financing activities totaled $3,613 compared to $7,454 a year ago. This decrease in cash used was attributable to a reduction in share repurchases in the current year partially offset by the final pooling settlement between Nodak Insurance and Westminster.

Previous wording

There is no amount available for payment of dividends from Nodak Insurance to NI Holdings during 2024 without the prior approval of the North Dakota Insurance Department. Prior to its payment of any dividend, Nodak Insurance will be required to provide notice of the dividend to the North Dakota Insurance Department. This notice must be provided to the North Dakota Insurance Department 30 days prior to the payment of an extraordinary dividend and 10 days prior to the payment of an ordinary dividend. The North Dakota Insurance Department has the power to limit or prohibit dividend payments if an insurance company is in violation of any law or regulation. These restrictions or any subsequently imposed restrictions may affect our future liquidity. No dividends were declared or paid by Nodak Insurance during the six months ended June 30, 2024, or the year ended December 31, 2023.

Current wording

There is no amount available for payment of dividends from Nodak Insurance to NI Holdings during 2024 without the prior approval of the North Dakota Insurance Department. Prior to its payment of any dividend, Nodak Insurance will be required to provide notice of the dividend to the North Dakota Insurance Department. This notice must be provided to the North Dakota Insurance Department 30 days prior to the payment of an extraordinary dividend and 10 days prior to the payment of an ordinary dividend. The North Dakota Insurance Department has the power to limit or prohibit dividend payments if an insurance company is in violation of any law or regulation. These restrictions or any subsequently imposed restrictions may affect our future liquidity. No dividends were declared or paid by Nodak Insurance during the nine months ended September 30, 2024, or the year ended December 31, 2023.

Previous wording

Direct Auto re-domesticated from Illinois to North Dakota during 2021 and is now subject to the same dividend restrictions as Nodak Insurance. The amount available for payment of dividends from Direct Auto to NI Holdings during 2024 without the prior approval of the North Dakota Insurance Department is approximately $90 as of December 31, 2023. No dividends were declared or paid by Direct Auto during the six months ended June 30, 2024, or the year ended December 31, 2023.

Current wording

Direct Auto re-domesticated from Illinois to North Dakota during 2021 and is now subject to the same dividend restrictions as Nodak Insurance. The amount available for payment of dividends from Direct Auto to NI Holdings during 2024 without the prior approval of the North Dakota Insurance Department is approximately $90 as of December 31, 2023. No dividends were declared or paid by Direct Auto during the nine months ended September 30, 2024, or the year ended December 31, 2023.

Previous wording

Westminster re-domesticated from Maryland to North Dakota during 2021 and was subject to the same dividend restrictions as Nodak Insurance. The amount available for payment of dividends from Westminster to NI Holdings during 2024 without the prior approval of the North Dakota Insurance Department was approximately $1,200 as of December 31, 2023. No dividends were declared or paid by Westminster during the six months ended June 30, 2024, or the year ended December 31, 2023. Westminster was sold on June 30, 2024. For additional information see Part I, Item 1, Note 19 “Discontinued Operations” of this Quarterly Report on Form 10-Q.

Current wording

Westminster re-domesticated from Maryland to North Dakota during 2021 and was subject to the same dividend restrictions as Nodak Insurance. Westminster was sold on June 30, 2024. No dividends were declared or paid by Westminster to NI Holdings during the nine months ended September 30, 2024, or the year ended December 31, 2023. For additional information see Part I, Item 1, Note 19 “Discontinued Operations” of this Quarterly Report on Form 10-Q.