NI Holdings, Inc.

Previous wording

2026 Second Quarter Consolidated Results of Operations

Current wording

2026 Third Quarter Consolidated Results of Operations

Previous wording

2026 Second Quarter Consolidated Financial Condition

Current wording

2026 Third Quarter Consolidated Financial Condition

Previous wording

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 wording

Our consolidated net income (loss) was $5,528 and ($1,666) for the three months ended September 30, 2026 and 2025, respectively. Our consolidated net income (loss) was $18,182 and ($7,257) for the nine months ended September 30, 2026 and 2025, respectively.

Previous 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.

Current wording

Private Passenger Auto – Net premiums earned for the third quarter of 2026 decreased $1,327, or 5.7%, compared to the same period in 2025. Net premiums earned for the first nine months of 2026 decreased $2,518, or 3.7% from the first nine months of 2025. Results were driven by lower new business and renewal premiums in South Dakota and Nebraska and the impact of rate decreases in North Dakota, South Dakota and Nebraska, partially offset by increased new business year to date in North Dakota.

Previous 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.

Current wording

Non-Standard Auto – Net premiums earned for the third quarter of 2026 decreased $10,521, or 96.9%, compared to the same period in 2025. Net premiums earned for the first nine months of 2026 decreased $39,733, or 91.1% from the first nine months of 2025. These decreases were driven by the strategic decisions to stop writing non-standard auto business in Illinois, Arizona, and South Dakota during the third quarter of 2025 and in North Dakota during the third quarter of 2026, 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

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 wording

Home and Farm – Net premiums earned for the third quarter of 2026 increased $2,963, or 12.5%, compared to the same period in 2025. Net premiums earned for the first nine months of 2026 increased $9,744, or 14.2% from the first nine months of 2025. Results were driven by higher renewal premiums, increased new business and rate increases in North Dakota, partially offset by lower new business in South Dakota and Nebraska. Results were also impacted by lower ceded premiums earned compared to the prior year due to the significant catastrophe event in North Dakota during the second quarter of 2025.

Previous 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.

Current wording

All Other – Net premiums earned for the third quarter of 2026, increased $1,455, or 37.9%, compared to the same period in 2025. Net premiums earned for the first nine months of 2026 increased $5,201, or 48.9%, from the first nine 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 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.

Current wording

Our net losses and loss adjustment expenses for the three months ended September 30, 2026, decreased $14,059, or 25.0%, compared to the three months ended September 30, 2025. Our net losses and loss adjustment expenses for the nine months ended September 30, 2026, decreased $47,418, or 29.4%, compared to the nine months ended September 30, 2025.

Previous 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.

Current wording

Private Passenger Auto – The net loss and loss adjustment expense ratio increased 24.1 percentage points and 2.6 percentage points in the three- and nine-month periods ended September 30, 2026, respectively, compared to the same periods in 2025. The increases in the three- and nine-month periods were driven by increased large loss experience in South Dakota and adverse prior year development on loss reserves in North Dakota, partially offset by lower severity in Nebraska. The nine-month period also benefited from lower frequency of losses during the first and second quarters of the year. Both periods were adversely impacted by lower earned premiums.

Previous wording

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 wording

Home and Farm – The net loss and loss adjustment expense ratio decreased 19.0 percentage points and 11.1 percentage points in the three- and nine-month periods ended September 30, 2026, respectively, compared to the same periods in 2025. The three-month period decrease was driven by favorable development on loss reserves for current year storms as well as lower weather-related losses in North Dakota, offset by increased weather-related losses in Nebraska. The nine-month period decrease was primarily driven by lower catastrophe losses and corresponding ceded premiums earned, as well as favorable prior year development on loss reserves. Both periods benefited from growth in net premiums earned and were impacted by increased non-catastrophe weather related losses, primarily in Nebraska.

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 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.

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 1.4 percentage points and 0.9 percentage points in the three- and nine-month periods ended September 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 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.

Current wording

The total underwriting gain increased $10,712 for the three-month period ended September 30, 2026, compared to the same period in 2025. The total underwriting income increased $31,510 for the nine-month period ended September 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 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.

Current wording

The overall combined ratio decreased 15.5 percentage points in the three-month period ended September 30, 2026, compared to the same period in 2025. The overall combined ratio decreased 15.6 percentage points in the nine-month period ended September 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

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 wording

Net investment income decreased $324 for the three months ended September 30, 2026, compared to the three months ended September 30, 2025. Net investment income decreased $843 for the nine months ended September 30, 2026, compared to the nine months ended September 30, 2025. These decreases were primarily the result of a lower average fixed income asset base and a small decrease in yield.

Previous 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.

Current 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 in the Non-Standard Auto segment.

Previous 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.

Current wording

We had net realized gains of $1,239 and $2,910 for the three and nine months ended September 30, 2026, respectively, compared to net realized gains of $811 and $1,244 for the three and nine months ended September 30, 2025, respectively. The elevated net realized gains in the nine months ended September 30, 2026, were driven by sales of 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 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.

Current wording

We experienced a decrease of $1,332 and an increase of $764 in net unrealized gains on equity securities during the three and nine months ended September 30, 2026, respectively. These results were driven by the sale of equity securities that were executed to raise cash for operational liquidity related to claim payments in the Non-Standard Auto segment as well as 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 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.

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 losses of $11,628 and $13,897 during the three and nine months ended September 30, 2026, respectively, compared to net unrealized gains of $3,895 and $8,677 during the three and nine months ended September 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 $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.

Current wording

We had fee and other income of $198 and $672 for the three and nine months ended September 30, 2026, respectively, compared to $261 and $807 for the three and nine months ended September 30, 2025, respectively. These decreases were driven by strategic reductions in the premiums that generate fee income and write-offs of uncollectible premiums receivable.

Previous wording

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 wording

For the three months ended September 30, 2026, we had pre-tax income of $7,012 compared to a pre-tax loss of $1,858 for the three months ended September 30, 2025. For the nine months ended September 30, 2026, we had pre-tax income of $22,952 compared to a pre-tax loss of $9,433 for the nine months ended September 30, 2025. These year-over-year changes were largely attributable to favorable prior year development on loss reserves for Non-Standard Auto 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, and strong results for the assumed business with certain farm bureau insurance companies within All Other. These were partially offset by increased non-catastrophe weather-related losses in Home and Farm, drought conditions impacting multi-peril crop insurance, and lower net earned premiums in Private Passenger Auto.

Previous wording

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 wording

We recorded income tax expense of $1,484 for the three months ended September 30, 2026, compared to income tax benefit of $192 for the three months ended September 30, 2025. Our effective tax rate for the third quarter of 2026 was 21.2% compared to an effective tax rate of 10.3% for the third quarter of 2025.

Previous 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.

Current wording

We recorded income tax expense of $4,770 for the nine months ended September 30, 2026, compared to income tax benefit of $2,176 for the nine months ended September 30, 2025. Our effective tax rate for the nine months ended September 30, 2026 was 20.8%, which reflects the impact of tax-exempt investment income on the calculation of the Company’s income tax provision. The effective tax rate was 23.1% for the nine months ended September 30, 2025, which was impacted by a change in the recorded valuation allowance.

Previous wording

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 wording

For the three months ended September 30, 2026, we had a net income of $5,528 compared to net loss of $1,666 for the three months ended September 30, 2025. For the nine months ended September 30, 2026, we had a net income of $18,182 compared to net loss of $7,257 for the nine months ended September 30, 2025. These year-over-year changes were largely attributable to favorable prior year development on loss reserves for Non-Standard Auto 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, and strong results for the assumed business with certain farm bureau insurance companies within All Other. These were partially offset by increased non-catastrophe weather-related losses in Home and Farm, drought conditions impacting multi-peril crop insurance, and lower net earned premiums in Private Passenger Auto.

Previous 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.

Current wording

For the three months ended September 30, 2026, we had annualized return on average equity of 9.0% compared to (2.7)% for the three months ended September 30, 2025.

Previous wording

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 wording

For the nine months ended September 30, 2026, we had annualized return on average equity of 10.0% compared to (4.0)% for the nine months ended September 30, 2025.

Previous wording

We expect to generate sufficient funds from our operations and maintain a high degree of liquidity in our investment portfolio to meet the demands of claim settlements and operating expenses for the foreseeable future. Our primary sources of funds are premium collections, investment earnings, and fixed income maturities.

Current wording

We expect to generate sufficient funds from our operations and maintain a high degree of liquidity in our investment portfolio to meet the demands of claim settlements and operating expenses for the foreseeable future, with the exception of our Non-Standard Auto segment which may be required to sell securities to fund claim payments in future periods. Our primary sources of funds are premium collections, investment earnings, and fixed income maturities, supplemented by sales of securities when necessary.

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 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.

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 nine months ended September 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 six months ended June 30, 2026 and 2025, were as follows:

Current wording

The change in cash and cash equivalents for the nine months ended September 30, 2026 and 2025, were as follows:

Previous wording

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 wording

For the nine months ended September 30, 2026, net cash used by operating activities totaled $16,006 compared to net cash used of $28,511 a year ago. This change was primarily driven by lower levels of claim payments, higher investment gains, and lower taxes paid, partially offset by lower levels of premium collections, in the current year.

Previous wording

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.

Current wording

For the nine months ended September 30, 2026, net cash provided by investing activities totaled $13,454 compared to net cash provided of $3,621 a year ago. The net cash provided in both periods was driven by cash inflows from net sales of equity and fixed income securities.

Previous 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.

Current wording

For the nine months ended September 30, 2026, net cash used by financing activities totaled $4,135 compared to net cash used of $1,387 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 six months ended June 30, 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 was approximately $6,730 as of December 31, 2025. The Nodak Insurance Board of Directors declared and Nodak Insurance paid dividends of $3,000 to NI Holdings during the nine months ended September 30, 2026. No dividends were declared or paid by Nodak Insurance during 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 six months ended June 30, 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 was approximately $3,829 as of December 31, 2025. The Direct Auto Board of Directors declared and Direct Auto paid dividends of $2,000 to NI Holdings during the nine months ended September 30, 2026. No dividends were declared or paid by Direct Auto during the year ended December 31, 2025.