NI Holdings (NODK) investor relations material

Executive summary

• Net income for Q1 2026 was $12,508, up 93.6% from $6,460 in Q1 2025, with EPS of $0.60 basic and diluted, reflecting improved underwriting and investment results.

• Net premiums earned decreased 18.3% year-over-year to $55,113, mainly due to the strategic exit from non-standard auto lines.

• Gross premiums written declined 15.1% year-over-year to $57.5 million, mainly due to the exit from Non-Standard Auto and lower Private Passenger Auto renewals.

• Underwriting gain rose to $11,221 from $3,812, and the combined ratio improved to 79.7% from 94.4%.

• Management highlighted disciplined underwriting and favorable prior year reserve development as key drivers of performance.

Financial highlights

• Net investment income was $2,655, down 6.4% from $2,838 year-over-year, due to lower yields and invested assets.

• Net investment gains increased to $1,704 from $869, driven by favorable equity market performance.

• Operating cash flows were negative at ($1,867), compared to $9,888 in the prior year, reflecting lower premium receipts.

• Return on average equity for Q1 2026 was 20.4%, up from 10.4% in Q1 2025.

• Combined ratio improved to 79.7% from 94.4%, driven by strong underwriting and favorable reserve development.

Outlook and guidance

• Further reductions in non-standard auto premiums are expected as runoff continues.

• Management anticipates continued strong capital and liquidity positions, with sufficient funds to meet claims and operating needs.

• Management expressed confidence in continued performance improvement and long-term shareholder value through disciplined underwriting and focus on core strengths.