NI Holdings, Inc.
For the period ended Jun 30, 2026. Filed Aug 7, 2026.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2026 · Filed Aug 7, 2026
NODK$15.33-0.4%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2026-03-31; filed 2026-05-08.
0001174947-26-000570
Item 2. - Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-06-30; filed 2026-08-07.
0001174947-26-000777
Item 2. - Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 65 previous paragraphs and 67 current paragraphs.
26 unchanged; 25 reworded; 16 added; 14 removed; 0 previous and 0 current paragraphs rearranged.
Tables are not compared: 24 previous and 14 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (16)
Current report
Our consolidated net income (loss) was $146 and ($12,051) for the three months ended June 30, 2026 and 2025, respectively. Our consolidated net income (loss) was $12,654 and ($5,591) for the six months ended June 30, 2026 and 2025, respectively.
Current report
Net premiums earned for the three months ended June 30, 2026, decreased $7,988, or 10.9%, compared to the three months ended June 30, 2025. Net premiums earned for the six months ended June 30, 2026, decreased 20,372, or 14.5%, compared to the six months ended June 30, 2025.
Current report
Home and Farm – Net premiums earned for the second quarter of 2026 increased $4,807, or 22.6%, compared to the same period in 2025. Net premiums earned for the first six months of 2026 increased $6,781, or 15.1% from the first six months of 2025. Results were driven by higher renewal premiums, increased new business and rate increases in North Dakota, as well as lower ceded premiums earned compared to the prior year due to the significant catastrophe event in North Dakota during the second quarter of 2025.
Current report
Home and Farm – The net loss and loss adjustment expense ratio decreased 18.2 percentage points and 7.0 percentage points in the three- and six-month periods ended June 30, 2026, respectively, compared to the same periods in 2025. These decreases were primarily driven by lower catastrophe losses and corresponding ceded premiums earned, favorable prior year development on loss reserves in the current year, and growth in net premiums earned, partially offset by increased non-catastrophe weather-related losses.
Current report
Crop – The net loss and loss adjustment expense ratio decreased 6.1 percentage points and 6.2 percentage points in the three- and six-month periods ended June 30, 2026, respectively, compared to the same periods in 2025. These decreases were primarily driven by expected improved growing conditions for multi-peril crop insurance.
Current report
All Other – The net loss and loss adjustment expense ratio increased 7.3 percentage points and decreased 6.6 percentage points in the three- and six-month period ended June 30, 2026, compared to the same period in 2025. The current quarter increase was driven by favorable development on loss reserves in the prior year related to the run-off of our participation in an assumed domestic and international reinsurance pool of business. The year-to-date decrease was driven by increased net premiums earned due to the Company’s participation on reinsurance pools of certain farm bureau reinsurance companies as well as favorable development on loss reserves in the current year for the commercial lines of business.
Current report
Net investment income decreased $336 for the three months ended June 30, 2026, compared to the three months ended June 30, 2025. Net investment income decreased $519 for the six months ended June 30, 2026, compared to the six months ended June 30, 2025. These decreases were primarily the result of a lower averaged fixed income asset base and a small decrease in yield.
Current report
Income (Loss) before Income Taxes
Current report
For the three months ended June 30, 2026, we had a pre-tax income of $230 compared to a pre-tax loss of $15,324 for the three months ended June 30, 2025. For the six months ended June 30, 2026, we had a pre-tax income of $15,940 compared to pre-tax loss of $7,575 for the six months ended June 30, 2025. These year-over-year changes were largely attributable to favorable prior year development on loss reserves for Non-Standard Auto and Home and Farm in the current year compared to unfavorable prior year development on loss reserves for Non-Standard Auto in the prior year, lower catastrophe losses and corresponding ceded premiums earned, strong results for the assumed business with certain farm bureau insurance companies within All Other, and higher net investment gains. These were partially offset by increased non-catastrophe weather-related losses in Home and Farm.
Current report
Income Tax Expense (Benefit)
Current report
We recorded income tax expense of $84 for the three months ended June 30, 2026, compared to income tax benefit of $3,273 for the three months ended June 30, 2025. Our effective tax rate for the second quarter of 2026 was 36.5% compared to an effective tax rate of 21.4% for the second quarter of 2025. The current quarter effective tax rate was impacted by a slight increase in the year-to-date effective tax rate.
Current report
Net Income (Loss)
Current report
For the three months ended June 30, 2026, we had a net income of $146 compared to net loss of $12,051 for the three months ended June 30, 2025. For the six months ended June 30, 2026, we had a net income of $12,654 compared to net loss of $5,591 for the six months ended June 30, 2025. These year-over-year changes were largely attributable to favorable prior year development on loss reserves for Non-Standard Auto and Home and Farm in the current year compared to unfavorable prior year development on loss reserves for Non-Standard Auto in the prior year, lower catastrophe losses and corresponding ceded premiums earned, strong results for the assumed business with certain farm bureau insurance companies within All Other, and higher net investment gains. These were partially offset by increased non-catastrophe weather-related losses in Home and Farm.
Current report
For the six months ended June 30, 2026, we had annualized return on average equity of 10.3% compared to (4.6)% for the six months ended June 30, 2025.
Current report
For the six months ended June 30, 2026, net cash used by operating activities totaled $955 compared to net cash provided of $16,289 a year ago. This change was primarily driven by lower levels of premium collections in the current year, partially offset by higher levels of net investment gains in the current year.
Current report
For the six months ended June 30, 2026, net cash provided by investing activities totaled $3,362 compared to net cash used of $10,246 a year ago. The net cash provided in the current year was driven by cash inflows from net sales of equity securities. The net cash used in the prior year was attributable to cash outflows for net purchases of fixed income securities.
Removed paragraphs (14)
Previous report
Our consolidated net income was $12,508 and $6,460 for the three months ended March 31, 2026 and 2025, respectively.
Previous report
Net premiums earned for the three months ended March 31, 2026, decreased $12,384, or 18.3%, compared to the three months ended March 31, 2025.
Previous report
Home and Farm – Net premiums earned for the three months ended March 31, 2026, increased $1,973, or 8.3%, compared to the same period in 2025. Results were driven by new business growth in North Dakota and South Dakota, rate increases, and increased insured property values. These increases were partially offset by lower homeowners renewal premiums in South Dakota and Nebraska as a result of underwriting actions taken to improve profitability.
Previous report
Non-Standard Auto – The net loss and loss adjustment expense ratio increased 19.6 percentage points in the three-month period ended March 31, 2026, compared to the same period in 2025. This increase was primarily driven by significant strategic reductions in net earned premium in the current year quarter while continuing to incur expenses necessary to adjust and settle claims.
Previous report
Crop – The net losses and loss adjustment expenses during the first quarter of any year are typically the result of the current year settlement of prior crop year claims. The majority of crop insurance losses and loss adjustment expenses are generally incurred in the last three quarters of the calendar year.
Previous report
All Other – The net loss and loss adjustment expense ratio decreased 21.4 percentage points in the three-month period ended March 31, 2026, compared to the same period in 2025. This decrease was primarily driven by the strong results in the current year quarter related to the Company’s decision to participate on the catastrophe reinsurance programs of certain farm bureau insurance companies.
Previous report
Net investment income decreased $183 for the three months ended March 31, 2026, compared to the three months ended March 31, 2025. This decrease was primarily driven by earning slightly lower yields on a lower average invested assets in the current year, partially offset by lower investment expenses.
Previous report
Income before Income Taxes
Previous report
For the three months ended March 31, 2026, we had pre-tax income of $15,710 compared to a pre-tax income of $7,749 for the three months ended March 31, 2025. This change was attributable to the lower frequency of losses for Private Passenger Auto, impact of the strategic decision to exit the majority of the Non-Standard Auto segment, strong results for the assumed business within the All Other segment, favorable prior year development on loss reserves, and more favorable market conditions for equity investments.
Previous report
Income Tax Expense
Previous report
Net Income
Previous report
For the three months ended March 31, 2026, we had net income of $12,508 compared to net income of $6,460 for the three months ended March 31, 2025. This change was attributable to the lower frequency of losses for Private Passenger Auto, impact of the strategic decision to exit the majority of the Non-Standard Auto segment, strong results for the assumed business within the All Other segment, favorable prior year development on loss reserves, and more favorable market conditions for equity investments.
Previous report
For the three months ended March 31, 2026, net cash used by operating activities totaled $1,867 compared to net cash provided of $9,888 in the prior year quarter. This change was primarily driven by lower levels of cash received for premiums in the current year quarter due to the strategic decision during the third quarter of 2025 to stop writing non-standard auto business in Illinois, Arizona, and South Dakota.
Previous report
For the three months ended March 31, 2026, net cash provided by investing activities totaled $8,934 compared to net cash used of $3,459 in the prior year quarter. This change was due to the combination of higher proceeds from maturities and sales of fixed income securities and lower purchase of fixed income securities during the current year quarter compared to the prior year quarter.
Reworded paragraphs (25)
Previous wording
2026 First Quarter Consolidated Results of Operations
Current wording
2026 Second Quarter Consolidated Results of Operations
Previous wording
2026 First Quarter Consolidated Financial Condition
Current wording
2026 Second Quarter Consolidated Financial Condition
Previous wording
The major components of our revenues and net income for the two periods are shown below:
Current wording
The major components of our revenues and net loss are shown below:
Previous wording
Private Passenger Auto – Net premiums earned for the three months ended March 31, 2026, decreased $362, or 1.6%, compared to the same period in 2025. Results were driven by lower renewal premiums in South Dakota and Nebraska as a result of underwriting actions taken in recent periods, partially offset by new business growth in North Dakota.
Current wording
Private Passenger Auto – Net premiums earned for the second quarter of 2026 decreased $829, or 3.6%, compared to the same period in 2025. Net premiums earned for the first six months of 2026 decreased $1,191, or 2.6% from the first six months of 2025. Results were driven by lower new business and renewal premiums in South Dakota and Nebraska, partially offset by new business growth in North Dakota.
Previous wording
Non-Standard Auto – Net premiums earned for the three months ended March 31, 2026, decreased $15,649, or 85.7%, compared to the same period in 2025. This decrease was driven by strategic decision during the third quarter of 2025 to stop writing non-standard auto business in Illinois, Arizona, and South Dakota, with existing policies being non-renewed. We anticipate further reductions in net earned premiums in the near term as a result of the decisions to run off these non-standard auto operations.
Current wording
Non-Standard Auto – Net premiums earned for the second quarter of 2026 decreased $13,563, or 93.5%, compared to the same period in 2025. Net premiums earned for the first six months of 2026 decreased $29,212, or 89.2% from the first six months of 2025. These decreases were driven by the strategic decision during the third quarter of 2025 to stop writing non-standard auto business in Illinois, Arizona, and South Dakota, with existing policies being non-renewed. We anticipate further reductions in net premiums earned in the near term as a result of the decisions to run off these non-standard auto operations.
Previous wording
Crop – Net premiums earned for the first quarter of any year are typically the result of prior crop year premium adjustments that correspond to the current year settlement of prior crop year claims. The majority of crop insurance premiums are generally written in the second quarter and earned ratably over the remainder of the calendar year.
Current wording
Crop– Net premiums earned for the second quarter of 2026, decreased $204, or 1.9%, compared to the same period in 2025. Net premiums earned for the first six months of 2026 decreased $498, or 4.8% from the first six months of 2025. The decrease in both periods was primarily the result of prior crop year premium adjustments that correspond to the current year settlement of prior crop year claims.
Previous wording
All Other – Net premiums earned for the three months ended March 31, 2026, increased $1,948, or 60.1%, compared to the same period in 2025 primarily driven by the Company’s decision to participate on the catastrophe reinsurance programs of certain farm bureau insurance companies.
Current wording
All Other – Net premiums earned for the second quarter of 2026, increased $1,801, or 50.7%, compared to the same period in 2025. Net premiums earned for the first six months of 2026 increased $3,748, or 55.1%, from the first six months of 2025. Results were primarily driven by the Company’s decision to participate on the catastrophe reinsurance programs of certain farm bureau insurance companies.
Previous wording
Our net losses and loss adjustment expenses for the three months ended March 31, 2026, decreased $15,169, or 39.4%, compared to the three months ended March 31, 2025.
Current wording
Our net losses and loss adjustment expenses for the three months ended June 30, 2026, decreased $18,190, or 27.3%, compared to the three months ended June 30, 2025. Our net losses and loss adjustment expenses for the six months ended June 30, 2026, decreased $33,359, or 31.7%, compared to the six months ended June 30, 2025.
Previous wording
Private Passenger Auto – The net loss and loss adjustment expense ratio decreased 13.4 percentage points in the three-month period ended March 31, 2026, compared to the same period in 2025. This decrease was driven by lower frequency of losses as well as favorable prior year development on loss reserves in the current year quarter.
Current wording
Private Passenger Auto – The net loss and loss adjustment expense ratio decreased 2.4 percentage points and 7.9 percentage points in the three- and six-month periods ended June 30, 2026, respectively, compared to the same periods in 2025. The decrease in the three-month period was driven by lower weather-related losses in North Dakota due to the significant catastrophe event in North Dakota during the second quarter of 2025. The decrease over the six-month period also benefited from lower frequency of losses as well as favorable prior year development during the first quarter of the year. Both periods were partially offset by lower net premiums earned.
Previous wording
Home and Farm – The net loss and loss adjustment expense ratio decreased 1.0 percentage point in the three-month period ended March 31, 2026, compared to the same period in 2025. This decrease in the current year quarter was driven by favorable prior year development on loss reserves and rate increases impacting net premiums earned.
Current wording
Non-Standard Auto – The net loss and loss adjustment expense ratio decreased 278.0 percentage points and 66.0 percentage points in the three- and six-month periods ended June 30, 2026, respectively, compared to the same period in 2025. These decreases were primarily driven by favorable prior year development on loss reserves in the current year.
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 remained consistent in the three-month period ended March 31, 2026, compared to the same period in 2025. The decrease in the amortization of deferred policy acquisition costs is due to lower deferrable costs resulting from the strategic reduction in premium for the Non-Standard Auto segment, which generally pays higher agent commissions than our other segments. Other underwriting and general expenses were consistent with the prior year quarter and reflect strategic investments in human capital and technology during the current year.
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 decreased 0.7 percentage points and decreased 0.4 percentage points in the three-and six-month periods ended June 30, 2026, respectively, compared to the same periods in 2025. The decrease in the amortization of deferred policy acquisition costs is due to lower deferrable costs resulting from the strategic reduction in premium for the Non-Standard Auto segment, which generally pays higher agent commissions than our other segments. Other underwriting and general expenses increased year-over-year, primarily due to strategic investments in the business.
Previous wording
The total underwriting gain increased $7,409 to a gain of $11,221 for the three-month period ended March 31, 2026, from a gain of $3,812 for the three-month period ended March 31, 2025. These results were driven by the factors discussed in the Net Premiums Earned, Loss and Loss Adjustment Expenses, and the Underwriting and General Expenses and Expense Ratio sections above.
Current wording
The total underwriting loss decreased $13,389 for the three-month period ended June 30, 2026, compared to the same period in 2025. The total underwriting income increased $20,798 for the six-month period ended June 30, 2026, compared to the same period in 2025. 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 decreased 14.7 percentage points in the three-month period ended March 31, 2026, compared to the same period in 2025. These results were driven by the factors discussed in the Net Premiums Earned, Loss and Loss Adjustment Expenses, and the Underwriting and General Expenses and Expense Ratio sections above.
Current wording
The overall combined ratio decreased 17.4 percentage points in the three-month period ended June 30, 2026, compared to the same period in 2025. The overall combined ratio decreased 15.5 percentage points in the six-month period ended June 30, 2026, compared to the same period in 2025. 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
Gross and net return on average cash and invested assets decreased year-over-year, primarily driven by consistent yields on a lower average fixed income securities balance (measured at fair value) and lower returns on cash and other short-term investments, partially offset by lower investment expenses. The decrease in average cash and invested assets was driven by a decrease in the fixed income securities balance in 2026 as proceeds from maturities and sales were used to fund operating cash needs.
Current wording
Gross return on average cash and invested assets decreased year-over-year and net return on average cash and invested assets was flat, primarily driven by consistent yields on a lower average fixed income securities balance (measured at fair value) and lower returns on cash and other short-term investments, partially offset by lower investment expenses. The decrease in average cash and invested assets was driven by a decrease in the fixed income securities balance in 2026 as proceeds from maturities and sales were used to fund operating cash needs.
Previous wording
We had net realized gains of $141 for the three months ended March 31, 2026, compared to net realized gains of $326 for the three months ended March 31, 2025, which were the result of routine portfolio management decisions. No credit impairment losses were reported during any of the periods presented.
Current wording
We had net realized gains of $1,530 and $1,671 for the three and six months ended June 30, 2026, respectively, compared to net realized gains of $107 and $433 for the three and six months ended June 30, 2025, respectively. The elevated net realized gains in the six months ended June 30, 2026, were driven by sales of fixed income securities that were executed to raise cash for operational liquidity related to claim payments in the Non-Standard Auto segment. No credit impairment losses were reported during any of the periods presented.
Previous wording
We experienced an increase in net unrealized gains on equity securities of $1,563 and $543 during the three months ended March 31, 2026 and 2025, respectively, driven by the impact of changes in fair value attributable to favorable equity markets during these periods.
Current wording
We experienced an increase of $533 and $2,096 in net unrealized gains on equity securities during the three and six months ended June 30, 2026, respectively. We experienced a decrease of net unrealized gains on equity securities of $517 and an increase of $26 during the three and six months ended June 30, 2025, respectively. These results were driven by the impact of changes in fair value attributable to overall favorable equity markets during those periods.
Previous wording
Our fixed income securities are classified as available for sale because we will, from time to time, execute 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 $2,411 during the three months ended March 31, 2026, compared to net unrealized gains of $3,313 during the three months ended March 31, 2025. The change was 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, execute 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 $141 and net unrealized losses of $2,270 during the three and six months ended June 30, 2026, respectively, compared to net unrealized gains of $1,469 and $4,782 during the three and six months ended June 30, 2025, 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
We had fee and other income of $130 for the three months ended March 31, 2026, compared to $230 for the three months ended March 31, 2025. The decrease in the current year was driven by strategic reductions in non-standard auto premiums that typically generate the majority of the fee income.
Current wording
We had fee and other income of $344 and $474 for the three and six months ended June 30, 2026, respectively, compared to $316 and $546 for the three and six months ended June 30, 2025, respectively. These decreases were driven by strategic reductions in the premiums that generate fee income and write-offs of uncollectable premiums receivable.
Previous wording
We recorded income tax expense of $3,202 for the three months ended March 31, 2026, compared to income tax expense of $1,289 for the three months ended March 31, 2025. Our effective tax rate for the three months ended March 31, 2026, was 20.4%, which reflects the impact of tax-exempt investment income on the calculation of the Company’s income tax provision. The effective tax rate was 16.6% for the three months ended March 31, 2025, which was impacted by a change in the recorded valuation allowance.
Current wording
We recorded income tax expense of $3,286 for the six months ended June 30, 2026, compared to income tax benefit of $1,984 for the six months ended June 30, 2025. Our effective tax rate for the six months ended June 30, 2026 was 20.6%, which reflects the impact of tax-exempt investment income on the calculation of the Company’s income tax provision. The effective tax rate was 26.2% for the six months ended June 30, 2025, which was impacted by a change in the recorded valuation allowance.
Previous wording
For the three months ended March 31, 2026, we had annualized return on average equity of 20.4% compared to 10.4% for the three months ended March 31, 2025.
Current wording
For the three months ended June 30, 2026, we had annualized return on average equity of 0.2% compared to (19.4)% for the three months ended June 30, 2025.
Previous wording
We also have a $3,000 line of credit with Wells Fargo Bank, N.A. The terms of the line of credit include a floating interest rate of 2.25% above the daily simple secured overnight financing rate. There were no outstanding amounts during the three months ended March 31, 2026, or the year ended December 31, 2025. This line of credit is scheduled to expire on December 11, 2026.
Current wording
We also have a $3,000 line of credit with Wells Fargo Bank, N.A. The terms of the line of credit include a floating interest rate of 2.25% above the daily simple secured overnight financing rate. There were no outstanding amounts during the six months ended June 30, 2026, or the year ended December 31, 2025. This line of credit is scheduled to expire on December 11, 2026.
Previous wording
The change in cash and cash equivalents for the three months ended March 31, 2026 and 2025, were as follows:
Current wording
The change in cash and cash equivalents for the six months ended June 30, 2026 and 2025, were as follows:
Previous wording
For the three months ended March 31, 2026, net cash used by financing activities totaled $1,065 compared to $157 a year ago. This increase in cash used was attributable to an increase in share repurchases in the current year quarter.
Current wording
For the six months ended June 30, 2026, net cash used by financing activities totaled $2,513 compared to net cash used of $189 a year ago. This change was primary driven by net cash outflows for share repurchases.
Previous wording
The amount available for payment of dividends from Nodak Insurance to NI Holdings during 2026 without the prior approval of the North Dakota Insurance Department is approximately $6,730 as of December 31, 2025. No dividends were declared or paid by Nodak Insurance during the three months ended March 31, 2026, or the year ended December 31, 2025.
Current wording
The amount available for payment of dividends from Nodak Insurance to NI Holdings during 2026 without the prior approval of the North Dakota Insurance Department is approximately $6,730 as of December 31, 2025. No dividends were declared or paid by Nodak Insurance during the six months ended June 30, 2026, or the year ended December 31, 2025.
Previous wording
The amount available for payment of dividends from Direct Auto to NI Holdings during 2026 without the prior approval of the North Dakota Insurance Department is approximately $3,829 as of December 31, 2025. No dividends were declared or paid by Direct Auto during the three months ended March 31, 2026, or the year ended December 31, 2025.
Current wording
The amount available for payment of dividends from Direct Auto to NI Holdings during 2026 without the prior approval of the North Dakota Insurance Department is approximately $3,829 as of December 31, 2025. No dividends were declared or paid by Direct Auto during the six months ended June 30, 2026, or the year ended December 31, 2025.