NI Holdings, Inc. reported a net loss of $10.4 million, or $0.50 per share, for the fiscal year ending December 31, 2025, a significant decline from the net income of $6.6 million, or $0.31 per share, recorded in 2024. The company's total revenues decreased to $285.1 million from $325.2 million in the previous year, primarily driven by a 12.7% drop in net premiums earned, which fell to $270.7 million from $310.1 million. This decline was attributed to strategic decisions to exit non-standard auto insurance markets in several states, resulting in a substantial reduction in premiums from that segment.
The company's underwriting performance deteriorated, with an underwriting loss of $26.7 million and a combined ratio of 109.9%, indicating that expenses exceeded revenues. This was a marked increase from the previous year's combined ratio of 100.7%. The underwriting loss was exacerbated by $30.3 million in unfavorable prior year reserve development, particularly in the non-standard auto segment, which faced higher-than-expected claims costs. In contrast, the private passenger auto segment showed resilience, with a slight increase in premiums earned, reflecting improved retention and new business growth in North Dakota.
Strategically, NI Holdings has made significant changes, including the sale of its subsidiary Westminster American Insurance Company in June 2024, which has since been classified as discontinued operations. The company has also ceased writing non-standard auto business in several states, including Illinois and Arizona, as part of a broader effort to streamline operations and focus on more profitable lines. As of December 31, 2025, the company had total assets of $506 million and total liabilities of $265.7 million, resulting in shareholders' equity of $240.3 million.
Operationally, NI Holdings reported a total employee headcount of 172, with a turnover rate that increased to 39.5% in 2025, up from 29% in 2024. This rise in turnover was largely linked to the strategic exit from non-standard auto coverage. The company continues to emphasize its relationship with the North Dakota Farm Bureau, which remains a key distribution channel for its insurance products. Looking ahead, NI Holdings anticipates focusing on enhancing agency relationships and expanding its product offerings in existing markets, while also considering strategic acquisitions to support growth objectives.
About NI Holdings, Inc.
NI Holdings is a North Dakota-based insurance holding company specializing in property and casualty insurance. It owns subsidiaries offering auto, home, farm, and crop insurance primarily in the Midwest and select states. The company leverages strong agency relationships, disciplined underwriting, and reinsurance strategies to provide competitive coverage, focusing on profitability, risk management, and long-term value creation for policyholders and shareholders.
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