Form 8-K - Current report
08 August 2023 - 10:02PM
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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities
Exchange Act of 1934
Date of Report (Date of earliest event
reported): August 8,
2023
NI Holdings, Inc. |
(Exact name of registrant as specified in its charter) |
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North Dakota |
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001-37973 |
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81-2683619 |
(State or other jurisdiction of incorporation) |
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(Commission File Number) |
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(IRS Employer Identification No.) |
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1101 First Avenue North
Fargo, North Dakota |
(Address of principal executive offices) |
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58102 |
(Zip code) |
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(701) 298-4200 |
(Registrant’s telephone number, including area code) |
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N/A |
(Former name or former address, if changed since last report.) |
Check the appropriate box below if the Form 8-K filing is intended
to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction
A.2 below):
[ ] |
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
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[ ] |
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
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[ ] |
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
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[ ] |
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Securities registered pursuant to Section
12(b) of the Securities Exchange Act of 1934:
Title of each class |
Trading Symbol(s) |
Name of each exchange on which registered |
Common Stock, $0.01 par value per share |
NODK |
Nasdaq Capital Market |
Indicate by check mark whether the registrant is an emerging growth
company as defined in as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2
of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).
Emerging growth company [ ]
If an emerging growth company, indicate by check mark if the registrant
has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided
pursuant to Section 13(a) of the Exchange Act. [ ]
| Item 2.02. | Results of Operations and Financial Condition. |
On August 8, 2023, the Company issued a press release announcing
its financial results for the quarter ended June 30, 2023. A copy of the press release is attached hereto as Exhibit 99.1 and is incorporated
herein in its entirety by reference.
The information in this Item 2.02 and the Exhibit attached hereto
is furnished and shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended,
nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, except as shall be expressly
set forth by specific reference in such document or filing.
| Item 9.01. | Financial Statements and Exhibits. |
(d) Exhibits
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|
Exhibit Number |
Description |
99.1 |
Press Release dated August 8, 2023. |
104 |
Cover Page Interactive Data File – the cover page XBRL tags are embedded within the Inline XBRL document. |
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
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NI Holdings, Inc. |
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Date: August 8, 2023 |
By: |
/s/ Michael J. Alexander |
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Michael J. Alexander |
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President and Chief Executive Officer |
NI Holdings, Inc. Reports Results for Second Quarter
Ended June 30, 2023
FARGO, North Dakota, August 8, 2023 –
NI Holdings, Inc. (NASDAQ: NODK) announced today results for the quarter ended June 30, 2023.
Summary of Second Quarter 2023 Results
(All comparisons vs. the second quarter of 2022,
unless noted otherwise)
| · | Direct written premiums of $144.3 million, flat
to prior year, driven by a 10.4% increase in Private Passenger Auto, offset by a 13.8% decrease in Non-Standard Auto. |
| · | Net earned premiums of $94.2 million, up 11.4%.
|
| · | Combined Ratio of 114.0% versus 159.6%, driven
by lower weather-related losses, offset by elevated loss costs and further reserve strengthening due to continued high levels of inflation.
|
| · | Net investment income of $2.5 million versus
$2.0 million and net investment loss of $0.2 million versus $11.1 million, driven by higher fixed income reinvestment rates and more favorable
equity market conditions, respectively. |
| · | Loss per share of $0.38 compared to $2.15. |
| · | The Company repurchased 192,065 shares of common
stock at an average price of $13.55 per share for a total of $2.6 million. |
| |
Three Months Ended June 30, | |
Six Months Ended June 30, |
Dollars in thousands, except per share data (unaudited) | |
2023 | |
2022 | |
Change | |
2023 | |
2022 | |
Change |
Direct written premiums | |
$144,250 | |
$144,962 | |
(0.5%) | |
$234,806 | |
$220,495 | |
6.5% |
Net earned premiums | |
$94,146 | |
$84,496 | |
11.4% | |
$171,773 | |
$154,083 | |
11.5% |
Loss and LAE ratio | |
82.3% | |
128.5% | |
(46.2 pts) | |
79.4% | |
96.5% | |
(17.1 pts) |
Expense ratio | |
31.7% | |
31.1% | |
0.6 pts | |
33.8% | |
32.2% | |
1.6 pts |
Combined ratio | |
114.0% | |
159.6% | |
(45.6 pts) | |
113.2% | |
128.7% | |
(15.5 pts) |
Net income (loss) attributable to NI Holdings | |
($8,122) | |
($45,910) | |
82.3% | |
($12,332) | |
($44,001) | |
72.0% |
Return on average equity | |
(13.3%) | |
(61.4%) | |
48.1 pts | |
(10.1%) | |
(28.7%) | |
18.6 pts |
Basic earnings (loss) per share | |
($0.38) | |
($2.15) | |
82.3% | |
($0.58) | |
($2.06) | |
71.8% |
Management Commentary
“In the second quarter, we continued efforts
to take significant rate increases and underwriting actions to improve our profitability,” said Michael J. Alexander, President
and Chief Executive Officer. “While we benefited from experiencing no catastrophe losses, we continue to be challenged by elevated
loss costs driven by the inflationary environment. Although our rate and underwriting actions slowed growth this quarter, our focus is
on profitability and we believe these and other future measures will drive improved underwriting results over time. In regards to investments,
higher reinvestment rates, along with more favorable equity market conditions have produced steadily rising returns in our portfolio.
Overall, we remain confident in the outlook for our business and our ability to achieve appropriate returns for our shareholders into
the future.”
Securities and Exchange Commission (SEC) Filings
The Company’s Quarterly Report on Form 10-Q
and latest financial supplement can be found on the Company’s website at www.niholdingsinc.com. The Company’s filings
with the SEC can also be found at www.sec.gov.
About the Company
NI 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 Statement
Some of the statements included in this news release,
particularly those anticipating future financial performance, including investment performance and yields, business prospects, growth
and operating strategies, the impact of pricing and underwriting changes on operating results, our ability to achieve returns for our
shareholders, 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 Daggett
Executive Vice President, Treasurer and Chief Financial
Officer
701-298-4348
IR@nodakins.com
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