NI Holdings, a leading insurance holding company, reported strong financial results for the fourth quarter and year ending December 31, 2024. The company posted a fourth-quarter net income of $9.9 million, representing a 16.2% return on average equity. This was largely driven by excellent underwriting results in the Private Passenger Auto and Home and Farm segments, despite some challenges in its Non-Standard Auto business.
The company’s combined ratio for the fourth quarter was 80.0%, up 1.3 percentage points from the previous year, reflecting solid underwriting performance. However, the full-year combined ratio increased to 100.7%, up from 97.0% in 2023. This increase was attributed to unfavorable prior year reserve development in Non-Standard Auto and higher non-catastrophe weather-related losses in North Dakota and Nebraska.
For the full year, net investment income surged by 36.2% to $10.9 million, primarily driven by higher fixed income reinvestment rates. Direct written premiums for the quarter totaled $73.1 million, down 7.9% compared to the prior year, but the company saw a slight 0.3% growth in full-year premiums, totaling $342.3 million. This growth was driven by increased premiums in the Private Passenger Auto and Home and Farm segments, despite a decline in Non-Standard Auto.
Earnings per share for the fourth quarter were $0.47, down from $0.92 in the previous year, and $0.31 for the full year, compared to $0.93 in 2023.
Seth Daggett, newly appointed President and CEO, expressed confidence in the company’s performance and future outlook. “I am excited to continue building on our strong foundation, partnering with our talented team to drive long-term success,” said Daggett.
Looking ahead, NI Holdings plans to focus on a comprehensive long-term strategy, emphasizing investments in technology, distribution management, and expense control. The company is committed to improving its risk profile and achieving consistent, profitable growth in the coming years.