NI Holdings, Inc. Reports Results for Fourth Quarter and Year Ended December 31, 2022
March 08 2023 - 4:34PM
NI Holdings, Inc. (NASDAQ: NODK) announced today results for the
year ended December 31, 2022.
Summary of Year-End 2022
Results(All comparisons vs. year-end 2021, unless noted
otherwise)
- Direct written premiums of $88.1
million, up 16.9% compared to prior year quarter and full year
direct written premiums of $389.7 million, up 13.9% compared to
prior year
- Direct written premium growth
across all segments compared to prior year, led by Non-Standard
Auto up 26.8%, Crop up 22.2% and Commercial up 15.3%
- Net earned premiums of $84.7
million, up 8.6% compared to prior year quarter and full year net
earned premiums of $328.3 million up 9.6% compared to prior
year
- Combined Ratio of 119.9% for full
year 2022 versus 104.3% for prior year, driven by elevated loss
costs as a result of higher inflation and an increase in
catastrophe events in the current year
- Total pre-tax catastrophe losses,
net of reinsurance, of $68.5 million year-to-date, which adversely
impacted the year-to-date combined ratio by 21.2 percentage
points
- Net investment losses of $13.1
million year-to-date, driven by unfavorable equity market
conditions
- Earnings per share of $0.04
compared to $0.29 for the quarter, and loss per share of $2.49
compared to earnings per share of $0.39 for the year
- The Company repurchased 95,741
shares of common stock at an average price of $13.68 per share for
a total of $1.3 million during the quarter and 269,160 shares of
common stock at an average price of $15.53 for a total of $4.1
million during the year
|
Three Months Ended December 31, |
|
Year Ended December 31, |
|
Dollars in thousands, except per share data(unaudited) |
2022 |
|
2021 |
|
Change |
|
2022 |
|
2021 |
|
Change |
|
Direct written premiums |
$88,064 |
|
$75,338 |
|
16.9% |
|
$389,706 |
|
$342,215 |
|
13.9% |
|
Net earned premiums |
$84,675 |
|
$78,000 |
|
8.6% |
|
$328,290 |
|
$299,589 |
|
9.6% |
|
Loss and LAE ratio |
78.9% |
|
65.2% |
|
13.7 pts |
|
89.7% |
|
72.2% |
|
17.5 pts |
|
Expense ratio |
30.6% |
|
33.5% |
|
(2.9 pts) |
|
30.2% |
|
32.1% |
|
(1.9 pts) |
|
Combined ratio |
109.4% |
|
98.6% |
|
10.8 pts |
|
119.9% |
|
104.3% |
|
15.6 pts |
|
Net income (loss) attributable
to NI Holdings |
$890 |
|
$6,128 |
|
(85.5%) |
|
($53,096) |
|
$8,416 |
|
nm |
|
Return on average equity |
1.4% |
|
7.2% |
|
(5.8 pts) |
|
(17.9%) |
|
2.4% |
|
(20.3 pts) |
|
Basic earnings (loss) per
share |
$0.04 |
|
$0.29 |
|
(86.2%) |
|
($2.49) |
|
$0.39 |
|
nm |
|
nm = not meaningful |
Management Commentary
“In the fourth quarter our Commercial segment
continued to be challenged by increased frequency and severity of
fire losses in addition to freeze losses related to Winter Storm
Elliott, while all of our segments were impacted by elevated
industrywide loss costs,” said Michael J. Alexander, President and
Chief Executive Officer. “We were pleased with the performance in
our Private Passenger Auto and Home/Farm segments during the
quarter as our earlier underwriting actions and rate increases have
started to drive improved performance in those segments. The
company continued its strong growth this quarter, led by the
Non-Standard Auto segment, as a result of new business growth and
rate increases implemented earlier this year.
For the year, 2022 proved to be challenging for
the company. We faced elevated loss costs as a result of inflation,
record weather-related losses, and difficult equity markets.
Despite these challenging conditions, we saw an improvement in our
results late in the year, driven by our earlier rate and
underwriting actions. We remain committed to continuing to take
these actions as long as necessary to build upon that momentum
throughout 2023.”
Securities and Exchange Commission (SEC)
FilingsThe Company’s Annual Report on Form 10-K and latest
financial supplement can be found on the Company’s website at
www.niholdingsinc.com. The Company’s filings with the SEC can also
be found at www.sec.gov.
About the CompanyNI Holdings,
Inc. is an insurance holding company. The company is a North Dakota
business corporation that is the stock holding company of Nodak
Insurance Company and became such in connection with the conversion
of Nodak Mutual Insurance Company from a mutual to stock form of
organization and the creation of a mutual holding company. The
conversion was consummated on March 13, 2017. Immediately following
the conversion, all of the outstanding shares of common stock of
Nodak Insurance Company were issued to Nodak Mutual Group, Inc.,
which then contributed the shares to NI Holdings in exchange for
55% of the outstanding shares of common stock of NI Holdings. Nodak
Insurance Company then became a wholly-owned stock subsidiary of NI
Holdings. NI Holdings’ financial statements are the consolidated
financial results of NI Holdings; Nodak Insurance, including
Nodak’s wholly-owned subsidiaries American West Insurance Company
and Primero Insurance Company, and its affiliate Battle Creek
Mutual Insurance Company; Direct Auto Insurance Company; and
Westminster Insurance Company.
Safe Harbor StatementSome of
the statements included in this news release, particularly those
anticipating future financial performance, including investment
performance and yields, business prospects, growth and operating
strategies, the impact of pricing and underwriting changes on
operating results, and similar matters, are forward-looking
statements within the meaning of the U.S. Private Securities
Litigation Reform Act of 1995. Actual results could vary
materially. Factors that could cause actual results to vary
materially include: our ability to maintain profitable operations,
the adequacy of the loss and loss adjustment expense reserves,
business and economic conditions, interest rates, competition from
various insurance and other financial businesses, terrorism, the
availability and cost of reinsurance, adverse and catastrophic
weather events, including the impacts of climate change, legal and
judicial developments, changes in regulatory requirements, our
ability to integrate and manage successfully the insurance
companies we may acquire from time to time, the impact of inflation
on our operating results, and other risks we describe in the
periodic reports we file with the Securities and Exchange
Commission. You should not place undue reliance on any such
forward-looking statements. We disclaim any obligation to update
such statements or to announce publicly the results of any
revisions that we may make to any forward-looking statements to
reflect the occurrence of anticipated or unanticipated events or
circumstances after the date of such statements.
For a detailed discussion of the risk factors
that could affect our actual results, please refer to the risk
factors identified in our SEC reports, including, but not limited
to our Annual Report on Form 10-K, as filed with the SEC.
Investor Relations Contact: Seth
DaggettExecutive Vice President, Treasurer and Chief Financial
Officer701-298-4348IR@nodakins.com
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