Cover
Cover - shares | 3 Months Ended | |
Mar. 31, 2024 | Apr. 30, 2024 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Entity Interactive Data Current | Yes | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2024 | |
Document Fiscal Year Focus | 2024 | |
Document Fiscal Period Focus | Q1 | |
Entity Information [Line Items] | ||
Entity Registrant Name | NI HOLDINGS, INC. | |
Entity Central Index Key | 0001681206 | |
Entity File Number | 001-37973 | |
Entity Tax Identification Number | 81-2683619 | |
Entity Incorporation, State or Country Code | ND | |
Current Fiscal Year End Date | --12-31 | |
Entity Current Reporting Status | Yes | |
Entity Shell Company | false | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Contact Personnel [Line Items] | ||
Entity Address, Address Line One | 1101 First Avenue North | |
Entity Address, City or Town | Fargo | |
Entity Address, State or Province | ND | |
Entity Address, Postal Zip Code | 58102 | |
Entity Phone Fax Numbers [Line Items] | ||
City Area Code | (701) | |
Local Phone Number | 298-4200 | |
Entity Listings [Line Items] | ||
Title of 12(b) Security | Common Stock, $0.01 par value per share | |
Trading Symbol | NODK | |
Security Exchange Name | NASDAQ | |
Entity Common Stock, Shares Outstanding | 20,629,454 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Assets: | ||
Cash and cash equivalents | $ 68,518 | $ 56,693 |
Fixed income securities, at fair value (net of allowance for expected credit losses of $0 at March 31, 2024 and December 31, 2023) | 349,772 | 347,731 |
Equity securities, at fair value | 29,650 | 27,767 |
Other investments | 2,006 | 2,006 |
Total cash and investments | 449,946 | 434,197 |
Premiums and agents' balances receivable (net of allowance for expected credit losses of $224 at March 31, 2024, and $402 at December 31, 2023) | 79,706 | 74,058 |
Deferred policy acquisition costs | 36,565 | 34,120 |
Reinsurance premiums receivable | 2,985 | 4,061 |
Reinsurance recoverables on losses (net of allowance for expected credit losses of $0 at March 31, 2024 and December 31, 2023) | 49,484 | 48,969 |
Accrued investment income | 2,923 | 2,763 |
Property and equipment, net | 9,708 | 9,897 |
Deferred income taxes | 8,313 | 8,413 |
Receivable from Federal Crop Insurance Corporation | 13,913 | 17,404 |
Goodwill and other intangibles | 9,933 | 10,039 |
Other assets | 11,049 | 10,965 |
Total assets | 674,525 | 654,886 |
Liabilities: | ||
Unpaid losses and loss adjustment expenses | 225,006 | 217,119 |
Unearned premiums | 171,418 | 164,100 |
Income tax payable | 2,454 | 88 |
Accrued expenses and other liabilities | 19,801 | 23,180 |
Total liabilities | 418,679 | 404,487 |
Shareholders’ equity: | ||
Common stock, $0.01 par value, authorized: 25,000,000 shares; issued: 23,000,000 shares; and outstanding: 2024 – 20,629,454 shares, 2023 – 20,599,908 shares | 230 | 230 |
Additional paid-in capital | 96,320 | 96,294 |
Unearned employee stock ownership plan shares | (698) | (698) |
Retained earnings | 218,451 | 208,376 |
Accumulated other comprehensive loss, net of income taxes | (23,858) | (21,384) |
Treasury stock, at cost, 2024 – 2,300,751 shares, 2023 – 2,330,297 shares | (34,599) | (35,177) |
Non-controlling interest | 2,758 | |
Total shareholders’ equity | 255,846 | 250,399 |
Total liabilities and shareholders’ equity | $ 674,525 | $ 654,886 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Statement of Financial Position [Abstract] | ||
Net of allowance for expected credit losses (in Dollars) | $ 0 | $ 0 |
Premiums and agents' balances receivable net of allowance for expected credit losses (in Dollars) | 224 | 402 |
Reinsurance recoverables on losses net of allowance for expected credit losses (in Dollars) | $ 0 | $ 0 |
Common stock, par value (in Dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 25,000,000 | 25,000,000 |
Common stock, shares issued | 23,000,000 | 23,000,000 |
Common stock, shares outstanding | 20,629,454 | 20,599,908 |
Treasury stock, shares | 2,300,751 | 2,330,297 |
Consolidated Statements of Oper
Consolidated Statements of Operations (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Revenues: | ||
Net premiums earned | $ 85,557 | $ 77,627 |
Fee and other income | 412 | 274 |
Net investment income | 3,553 | 2,239 |
Net investment gains | 1,828 | 1,416 |
Total revenues | 91,350 | 81,556 |
Expenses: | ||
Losses and loss adjustment expenses | 52,209 | 58,825 |
Amortization of deferred policy acquisition costs | 20,663 | 18,588 |
Other underwriting and general expenses | 10,298 | 9,656 |
Total expenses | 83,170 | 87,069 |
Income (loss) before income taxes | 8,180 | (5,513) |
Income tax expense (benefit) | 1,761 | (1,013) |
Net income (loss) | 6,419 | (4,500) |
Net loss attributable to non-controlling interest | (290) | |
Net income (loss) attributable to NI Holdings, Inc. | $ 6,419 | $ (4,210) |
Earnings (loss) per common share: | ||
Basic (in Dollars per share) | $ 0.31 | $ (0.2) |
Diluted (in Dollars per share) | $ 0.3 | $ (0.2) |
Share data: | ||
Weighted average common shares outstanding used in basic per common share calculations (in Shares) | 20,932,774 | 21,368,956 |
Dilutive securities (in Shares) | 113,305 | |
Weighted average common shares used in diluted per common share calculations (in Shares) | 21,046,079 | 21,368,956 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Net income (loss) | $ 6,419 | $ (4,500) |
Other comprehensive income (loss), before income taxes: | ||
Holding gains (losses) on investments | (1,817) | 5,722 |
Reclassification adjustment for net realized losses included in net income (loss) | 10 | 299 |
Other comprehensive income (loss), before income taxes | (1,807) | 6,021 |
Income tax benefit (expense) related to items of other comprehensive income (loss) | 407 | (1,368) |
Other comprehensive income (loss), net of income taxes | (1,400) | 4,653 |
Comprehensive income (loss) | 5,019 | 153 |
Attributable to NI Holdings, Inc. | ||
Net income (loss) | 6,419 | (4,210) |
Other comprehensive income (loss), before income taxes: | ||
Holding gains (losses) on investments | (1,817) | 5,444 |
Reclassification adjustment for net realized losses included in net income (loss) | 10 | 299 |
Other comprehensive income (loss), before income taxes | (1,807) | 5,743 |
Income tax benefit (expense) related to items of other comprehensive income (loss) | 407 | (1,305) |
Other comprehensive income (loss), net of income taxes | (1,400) | 4,438 |
Comprehensive income (loss) | 5,019 | 228 |
Attributable to Non- Controlling Interest | ||
Net income (loss) | (290) | |
Other comprehensive income (loss), before income taxes: | ||
Holding gains (losses) on investments | 278 | |
Reclassification adjustment for net realized losses included in net income (loss) | ||
Other comprehensive income (loss), before income taxes | 278 | |
Income tax benefit (expense) related to items of other comprehensive income (loss) | (63) | |
Other comprehensive income (loss), net of income taxes | 215 | |
Comprehensive income (loss) | $ (75) |
Consolidated Statements of Chan
Consolidated Statements of Changes in Shareholders’ Equity (Unaudited) - USD ($) $ in Thousands | Common Stock | Additional Paid-in Capital | Unearned Employee Stock Ownership Plan Shares | Retained Earnings | Accumulated Other Comprehensive Loss, Net of Income Taxes | Treasury Stock | Non-Controlling Interest | Total |
Balance at Dec. 31, 2022 | $ 230 | $ 95,671 | $ (941) | $ 214,121 | $ (29,286) | $ (28,818) | $ 2,230 | $ 253,207 |
Battle Creek demutualization | ||||||||
Net income (loss) | (4,210) | (290) | (4,500) | |||||
Other comprehensive income (loss), net of income taxes | 4,438 | 215 | 4,653 | |||||
Purchase of treasury stock | (621) | (621) | ||||||
Share-based compensation | 505 | 505 | ||||||
Issuance of vested award shares | (608) | (201) | 636 | (173) | ||||
Balance at Mar. 31, 2023 | 230 | 95,568 | (941) | 209,710 | (24,848) | (28,803) | 2,155 | 253,071 |
Balance at Dec. 31, 2023 | 230 | 96,294 | (698) | 208,376 | (21,384) | (35,177) | 2,758 | 250,399 |
Battle Creek demutualization | 3,832 | (1,074) | (2,758) | |||||
Net income (loss) | 6,419 | 6,419 | ||||||
Other comprehensive income (loss), net of income taxes | (1,400) | (1,400) | ||||||
Purchase of treasury stock | ||||||||
Share-based compensation | 581 | 581 | ||||||
Issuance of vested award shares | (555) | (176) | 578 | (153) | ||||
Balance at Mar. 31, 2024 | $ 230 | $ 96,320 | $ (698) | $ 218,451 | $ (23,858) | $ (34,599) | $ 255,846 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Cash flows from operating activities: | ||
Net income (loss) | $ 6,419 | $ (4,500) |
Adjustments to reconcile net income (loss) to net cash flows from operating activities: | ||
Net investment gains | (1,828) | (1,416) |
Deferred income tax expense (benefit) | 507 | (2,874) |
Depreciation of property and equipment | 243 | 182 |
Amortization of intangibles | 106 | 118 |
Share-based compensation | 581 | 505 |
Amortization of deferred policy acquisition costs | 20,663 | 18,588 |
Deferral of policy acquisition costs | (23,108) | (20,170) |
Net amortization of premiums and discounts on investments | 187 | 290 |
Gain on sale of property and equipment | (21) | |
Changes in operating assets and liabilities: | ||
Premiums and agents’ balances receivable | (5,648) | (2,329) |
Reinsurance premiums receivable / payable | 1,076 | (2,121) |
Reinsurance recoverables on losses | (515) | (8,067) |
Accrued investment income | (160) | 102 |
Federal Crop Insurance Corporation receivable / payable | 3,491 | 1,428 |
Other assets | (84) | 79 |
Unpaid losses and loss adjustment expenses | 7,887 | 14,331 |
Unearned premiums | 7,318 | 4,954 |
Income tax recoverable / payable | 2,366 | 1,967 |
Accrued expenses and other liabilities | (3,355) | (5,397) |
Net cash flows from operating activities | 16,146 | (4,351) |
Cash flows from investing activities: | ||
Proceeds from maturities and sales of fixed income securities | 7,348 | 11,380 |
Proceeds from sales of equity securities | 2,963 | 30,389 |
Purchases of fixed income securities | (11,393) | (19,486) |
Purchases of equity securities | (3,009) | (2,618) |
Purchases of property and equipment | (52) | (293) |
Proceeds from sales of property and equipment | 56 | |
Net cash flows from investing activities | (4,143) | 19,428 |
Cash flows from financing activities: | ||
Purchases of treasury stock | (621) | |
Principal repayments of finance leases | (25) | |
Issuance of vested award shares | (153) | (173) |
Net cash flows from financing activities | (178) | (794) |
Net increase in cash and cash equivalents | 11,825 | 14,283 |
Cash and cash equivalents at beginning of period | 56,693 | 47,002 |
Cash and cash equivalents at end of period | 68,518 | 61,285 |
Federal and state income taxes paid (net of refunds received) | $ (887) |
Organization
Organization | 3 Months Ended |
Mar. 31, 2024 | |
Organization [Abstract] | |
Organization | 1. Organization NI Holdings is a North Dakota business corporation that is the stock holding company of Nodak Insurance and became such in connection with the conversion of Nodak Mutual 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 were issued to Nodak Mutual Group, which then contributed the shares to NI Holdings in exchange for 55% of the outstanding shares of common stock of NI Holdings. Nodak Insurance then became a wholly-owned stock subsidiary of NI Holdings. Prior to completion of the conversion, NI Holdings conducted no business and had no assets or liabilities. As a result of the conversion, NI Holdings became the holding company for Nodak Insurance and its existing subsidiaries. These unaudited consolidated financial statements include the financial position and results of operations of NI Holdings and the following other entities: Nodak Insurance Company Nodak Insurance is the largest domestic property and casualty insurance company in North Dakota, offering private passenger auto, homeowners, farmowners, commercial multi-peril, crop hail, and Federal multi-peril crop insurance coverages through its captive agents in the state. Nodak Agency, Inc. Nodak Agency is an inactive shell corporation. American West Insurance Company American West is a property and casualty insurance company licensed in eight states in the Midwest and Western regions of the United States (“U.S.”). American West began writing policies in 2002 and primarily writes private passenger auto, homeowners, and farm coverages in South Dakota. American West also writes private passenger auto coverage in North Dakota, as well as crop hail and Federal multi-peril crop insurance coverages in Minnesota and South Dakota. Primero Insurance Company Primero is a wholly-owned subsidiary of Tri-State, Ltd. Tri-State, Ltd. is an inactive shell corporation 100% owned by Nodak Insurance. Primero is a property and casualty insurance company writing non-standard auto coverage in the states of Nevada, Arizona, North Dakota, and South Dakota. Primero was acquired by Nodak Insurance in 2014. Battle Creek Insurance Company Battle Creek is a property and casualty insurance company writing private passenger auto, homeowners, and farm coverages solely in the state of Nebraska. Battle Creek became affiliated with Nodak Insurance in 2011 and, prior to January 2, 2024, was controlled by Nodak Insurance via a surplus note. On January 2, 2024, Battle Creek issued 300,000 shares of its common stock to Nodak Insurance at a $10.00 per share par value and became a 100% wholly-owned subsidiary of Nodak Insurance. Because we concluded that we controlled Battle Creek prior to January 2, 2024, we consolidated the financial statements of Battle Creek, and Battle Creek’s policyholders’ interest in Battle Creek was reflected as a non-controlling interest in shareholders’ equity in our Consolidated Balance Sheets for NI Holdings (“Consolidated Balance Sheets”) and its net income or loss was excluded from net income or loss attributed to NI Holdings in our Consolidated Statements of Operations for NI Holdings (“Consolidated Statements of Operations”). Subsequent to January 2, 2024, Battle Creek is fully consolidated in our Consolidated Balance Sheets and Consolidated Statements of Operations and, as such, no longer reflect a non-controlling interest. Direct Auto Insurance Company Direct Auto is a property and casualty insurance company licensed in Illinois. Direct Auto began writing non-standard auto coverage in 2007, and was acquired by NI Holdings on August 31, 2018, via a stock purchase agreement. Westminster American Insurance Company Westminster is a property and casualty insurance company licensed in 18 states and the District of Columbia. Westminster is headquartered in Owings Mills, Maryland and underwrites commercial multi-peril insurance in the states of Delaware, Georgia, Kentucky, Maryland, New Jersey, North Carolina, Pennsylvania, South Carolina, Tennessee, Virginia, West Virginia, and the District of Columbia. Westminster was acquired by NI Holdings on January 1, 2020, via a stock purchase agreement. Nodak Insurance markets and distributes its policies through its captive agents, while all other companies utilize the independent agent distribution channel. Additionally, all of the Company’s insurance subsidiary and affiliate companies are rated “A” Excellent by A.M. Best Company, Inc. (“AM Best”), a global credit rating agency specializing in the insurance industry. The same executive management team provides oversight and strategic direction for the entire organization. Nodak Insurance provides common product oversight, pricing practices, and underwriting standards, as well as underwriting and claims administration, to itself, American West, and Battle Creek. Primero, Direct Auto, and Westminster personnel manage the day-to-day operations of their respective companies. |
Basis of Presentation and Accou
Basis of Presentation and Accounting Policies | 3 Months Ended |
Mar. 31, 2024 | |
Basis of Presentation and Accounting Policies [Abstract] | |
Basis of Presentation and Accounting Policies | 2. Basis of Presentation and Accounting Policies Basis of Presentation The accompanying unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. All material intercompany transactions and balances have been eliminated. These financial statements should be read in conjunction with the financial statements and notes thereto included in our 2023 Annual Report. The Consolidated Balance Sheet at December 31, 2023, has been derived from the audited consolidated financial statements at that date but does not include all of the information and footnotes required by GAAP for complete financial statements. The preparation of the interim unaudited consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the interim unaudited consolidated financial statements and the reported amounts of revenues, claims, and expenses during the reporting period. Actual results could differ from those estimates. Operating results for the interim period ended March 31, 2024, are not necessarily indicative of the results that may be expected for the year ended December 31, 2024. Our 2023 Annual Report describes the accounting policies and estimates that are critical to the understanding of our results of operations, financial condition, and liquidity. The accounting policies and estimation processes described in the 2023 Annual Report were consistently applied to the unaudited consolidated financial statements as of and for the three months ended March 31, 2024 and 2023. Recent Accounting Pronouncements Adopted For information regarding accounting pronouncements that the Company adopted during the periods presented, see Item II, Part 8, Note 2 “Recent Accounting Pronouncements” section of the 2023 Annual Report. Not Yet Adopted Improvements to Reportable Segment Disclosures – In November 2023, the Financial Accounting Standards Board (“FASB”) issued guidance related to improving disclosures for reportable segments primarily through enhanced disclosures about significant segment expenses that are provided to the chief operating decision maker (“CODM”). This guidance also requires disclosure of the title and position of the CODM and an explanation of how the CODM uses the reported measures of segment profit or loss in assessing segment performance and deciding how to allocate resources. The amendments in this update are effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. We are currently evaluating the impact of the new standard on our consolidated financial statements, which is expected to result in enhanced disclosures. Improvements to Income Tax Disclosures – In December 2023, the FASB issued guidance related to improving income tax disclosures. This guidance requires that an entity, on an annual basis, disclose additional income tax information, primarily related to the rate reconciliation and income taxes paid. The guidance is intended to enhance the transparency and decision usefulness of income tax disclosures. The amendments in this update are effective for annual periods beginning after December 15, 2024. We are currently evaluating the impact of the new standard on our consolidated financial statements, which is expected to result in enhanced disclosures. |
Investments
Investments | 3 Months Ended |
Mar. 31, 2024 | |
Investments [Abstract] | |
Investments | 3. Investments The amortized cost and estimated fair value of fixed income securities as of March 31, 2024, and December 31, 2023, were as follows: March 31, 2024 Cost or Allowance for Gross Gross Fair Value Fixed income securities: U.S. Government and agencies $ 12,493 $ — $ 5 $ (801 ) $ 11,697 Obligations of states and political subdivisions 56,491 — 240 (4,978 ) 51,753 Corporate securities 153,966 — 149 (11,303 ) 142,812 Residential mortgage-backed securities 66,825 — 86 (6,412 ) 60,499 Commercial mortgage-backed securities 32,779 — 119 (3,742 ) 29,156 Asset-backed securities 53,278 — 176 (3,729 ) 49,725 Redeemable preferred stocks 4,747 — — (617 ) 4,130 Total fixed income securities $ 380,579 $ — $ 775 $ (31,582 ) $ 349,772 December 31, 2023 Cost or Allowance for Gross Gross Fair Value Fixed income securities: U.S. Government and agencies $ 10,998 $ — $ — $ (736 ) $ 10,262 Obligations of states and political subdivisions 55,769 — 408 (4,716 ) 51,461 Corporate securities 152,630 — 442 (10,856 ) 142,216 Residential mortgage-backed securities 66,362 — 180 (5,379 ) 61,163 Commercial mortgage-backed securities 33,532 — 148 (4,241 ) 29,439 Asset-backed securities 52,692 — 142 (3,805 ) 49,029 Redeemable preferred stocks 4,747 — — (586 ) 4,161 Total fixed income securities $ 376,730 $ — $ 1,320 $ (30,319 ) $ 347,731 The amortized cost and estimated fair value of fixed income securities by contractual maturity are shown below. Actual maturities could differ from contractual maturities because issuers may have the right to call or prepay these securities. March 31, 2024 Amortized Cost Fair Value Due to mature: One year or less $ 13,067 $ 12,822 After one year through five years 75,475 71,868 After five years through ten years 85,017 77,531 After ten years 49,391 44,041 Mortgage / asset-backed securities 152,882 139,380 Redeemable preferred stocks 4,747 4,130 Total fixed income securities $ 380,579 $ 349,772 December 31, 2023 Amortized Cost Fair Value Due to mature: One year or less $ 9,612 $ 9,436 After one year through five years 75,794 72,602 After five years through ten years 86,185 79,281 After ten years 47,806 42,620 Mortgage / asset-backed securities 152,586 139,631 Redeemable preferred stocks 4,747 4,161 Total fixed income securities $ 376,730 $ 347,731 Fixed income securities with a fair value of $7,569 at March 31, 2024, and $6,403 at December 31, 2023, were deposited with various state regulatory agencies as required by law. The Company has not pledged any assets to secure any obligations. The investment category and duration of the Company’s gross unrealized losses on fixed income securities are shown below. Investments with unrealized losses are categorized with a duration of greater than 12 months when all positions of a security have continually been in a loss position for at least 12 months. March 31, 2024 Less than 12 Months Greater than 12 months Total Fair Unrealized Fair Unrealized Fair Unrealized Fixed income securities: U.S. Government and agencies $ 1,235 $ (10 ) $ 8,808 $ (791 ) $ 10,043 $ (801 ) Obligations of states and political subdivisions 6,293 (154 ) 37,359 (4,824 ) 43,652 (4,978 ) Corporate securities 22,275 (321 ) 108,426 (10,982 ) 130,701 (11,303 ) Residential mortgage-backed securities 13,391 (310 ) 34,005 (6,102 ) 47,396 (6,412 ) Commercial mortgage-backed securities 2,061 (36 ) 24,269 (3,706 ) 26,330 (3,742 ) Asset-backed securities 7,424 (37 ) 26,545 (3,692 ) 33,969 (3,729 ) Redeemable preferred stocks — — 4,130 (617 ) 4,130 (617 ) Total fixed income securities $ 52,679 $ (868 ) $ 243,542 $ (30,714 ) $ 296,221 $ (31,582 ) December 31, 2023 Less than 12 Months Greater than 12 months Total Fair Unrealized Fair Unrealized Fair Unrealized Fixed income securities: U.S. Government and agencies $ — $ — $ 9,018 $ (736 ) $ 9,018 $ (736 ) Obligations of states and political subdivisions 5,239 (359 ) 36,194 (4,357 ) 41,433 (4,716 ) Corporate securities 8,018 (93 ) 110,117 (10,763 ) 118,135 (10,856 ) Residential mortgage-backed securities 12,054 (104 ) 33,341 (5,275 ) 45,395 (5,379 ) Commercial mortgage-backed securities 2,678 (5 ) 23,713 (4,236 ) 26,391 (4,241 ) Asset-backed securities 4,463 (18 ) 30,200 (3,787 ) 34,663 (3,805 ) Redeemable preferred stocks — — 4,161 (586 ) 4,161 (586 ) Total fixed income securities $ 32,452 $ (579 ) $ 246,744 $ (29,740 ) $ 279,196 $ (30,319 ) We, along with our investment advisor, frequently review our investment portfolio for declines in fair value that could be indicative of credit losses. Beginning on December 31, 2022, credit losses are recognized through an allowance account. We consider a number of factors when determining if an allowance for credit losses is necessary, including payment and default history, credit spreads, credit ratings and rating actions, and probability of default. We determine the credit loss component of fixed income investments by utilizing discounted cash flow modeling to determine the present value of the security and comparing the present value with the amortized cost of the security. We did not recognize any credit losses for fixed income securities at the time of adoption of the new credit loss accounting standard and have not recognized any credit losses for fixed income securities since adoption of the credit loss standard. Therefore, there was no beginning balance, activity, or ending balance of credit losses as of and during the three months ended March 31, 2024 and 2023. See Item II, Part 8, Note 3 “Summary of Significant Accounting Policies” section of the 2023 Annual Report for additional information. Net investment income consisted of the following: Three Months Ended March 31, 2024 2023 Fixed income securities $ 3,518 $ 2,630 Equity securities 327 320 Real estate 158 150 Cash and cash equivalents 508 52 Total gross investment income 4,511 3,152 Investment expenses 958 913 Net investment income $ 3,553 $ 2,239 Net investment gains consisted of the following: Three Months Ended March 31, 2024 2023 Gross realized gains: Fixed income securities $ 9 $ — Equity securities 226 12,731 Total gross realized gains 235 12,731 Gross realized losses, excluding credit impairment losses: Fixed income securities (19 ) (299 ) Equity securities (346 ) (846 ) Total gross realized losses, excluding credit impairment losses (365 ) (1,145 ) Net realized gains (losses) (130 ) 11,586 Change in net unrealized gains on equity securities 1,958 (10,170 ) Net investment gains $ 1,828 $ 1,416 |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2024 | |
Fair Value Measurements [Abstract] | |
Fair Value Measurements | 4. Fair Value Measurements The Company uses fair value measurements to record fair value adjustments to certain assets to determine fair value disclosures. Investment securities available for sale are recorded at fair value on a recurring basis. Additionally, from time to time, we may be required to record other assets or liabilities at fair value on a nonrecurring basis. These nonrecurring fair value adjustments typically involve application of lower-of-cost-or-market accounting or write-downs of individual assets. Accounting guidance on fair value measurements and disclosures establishes a fair value hierarchy that prioritizes the inputs to valuation methods used to measure fair value. The three levels of the fair value hierarchy are as follows: Level 1: Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities. Level 2 Quoted prices in markets that are not active, or inputs that are observable either directly or indirectly, for substantially the full term of the asset or liability. Level 2 includes fixed income securities with quoted prices that are traded less frequently than exchange traded instruments. Valuation techniques include matrix pricing which is a mathematical technique used widely in the industry to value fixed income securities without relying exclusively on quoted market prices for the specific securities but rather by relying on the securities’ relationship to other benchmark quoted prices. Level 3 Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (i.e., supported with little or no market activity). The Company bases its fair values on the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. It is our policy to maximize the use of observable inputs and minimize the use of unobservable inputs when developing fair value measurements, in accordance with the fair value hierarchy. Fair value measurements for assets where there exists limited or no observable market data and, therefore, are based primarily upon the estimates of the Company or other third-parties, are often calculated based on the characteristics of the asset, the economic and competitive environment, and other such factors. Management uses its best judgment in estimating the fair value of the Company’s financial instruments; however, there are inherent limitations in any estimation technique. Therefore, for substantially all financial instruments, the fair value estimates herein are not necessarily indicative of the amounts which could have been realized in a sale transaction on the dates indicated. The estimated fair value amounts have been measured as of their respective period-end and have not been re-evaluated or updated for purposes of our consolidated financial statements subsequent to those respective dates. As such, the estimated fair values of these financial instruments subsequent to the respective reporting dates may be different than the amounts reported at each period-end. Additionally, changes in the underlying assumptions used, including discount rates and estimates of future cash flows, could significantly affect the results of current or future valuations. The Company uses quoted values and other data provided by an independent pricing service in its process for determining fair values of its investments. The evaluations of such pricing services represent an exit price and a good faith opinion as to what a buyer in the marketplace would pay for a security in a current sale. This pricing service provides us with one quote per instrument. For fixed income securities that have quoted prices in active markets, market quotations are provided. For fixed income securities that do not trade on a daily basis, the independent pricing service prepares estimates of fair value using a wide array of observable inputs including relevant market information, benchmark curves, benchmarking of like securities, sector groupings, and matrix pricing. The observable market inputs that the Company’s independent pricing service utilizes may include benchmark yields, reported trades, broker-dealer quotes, issuer spreads, two-sided markets, benchmark securities, market bids/offers, and other reference data on markets, industry, and the economy. Additionally, the independent pricing service uses an option-adjusted spread model to develop prepayment and interest rate scenarios. Should the independent pricing service be unable to provide a fair value estimate, we would first attempt to obtain a fair value estimate from our third-party investment advisor who utilizes different independent pricing services. If unsuccessful, we would attempt to obtain a non-binding fair value estimate from a number of broker-dealers and would review this estimate in conjunction with a fair value estimate reported by an independent business news service or other sources. In instances where only one broker-dealer provides a fair value for a fixed income security, we would use that estimate. In instances where the Company would be able to obtain fair value estimates from more than one broker-dealer, we would review the range of estimates and select the most appropriate value based on the facts and circumstances. Should neither the independent pricing service nor a broker-dealer provide a fair value estimate, we would develop a fair value estimate based on cash flow analyses and other valuation techniques that utilize certain unobservable inputs. Accordingly, the Company classifies such a security as a Level 3 investment. The fair value estimates of our investments provided by the independent pricing service at each period-end were utilized, among other resources, in reaching a conclusion as to the fair value of its investments. Management reviews the reasonableness of the pricing provided by the independent pricing service by employing various analytical procedures. We also use information from our third-party investment advisor who utilizes different independent pricing services to further validate the reasonableness of the valuation of our fixed income portfolio. If, after this review, management does not believe the pricing for any security is a reasonable estimate of fair value, then it will seek to resolve the discrepancy through discussions with the independent pricing service. In its review, management did not identify any such discrepancies and no adjustments were made to the estimates provided by the independent pricing service for the three-month period ended March 31, 2024, or the year ended December 31, 2023. The classification within the fair value hierarchy is then confirmed based on the final conclusions from the pricing review. The valuation of money market accounts and equity securities are generally based on Level 1 inputs, which use the market-approach valuation technique. The valuation of certain cash equivalents and our fixed income securities generally incorporates significant Level 2 inputs using the market and income approach techniques. We may assign a lower level to inputs typically considered to be Level 2 based on our assessment of liquidity and relative level of uncertainty surrounding inputs. There were no assets or liabilities classified at Level 3 at March 31, 2024, or December 31, 2023. The following tables set forth our assets which are measured on a recurring basis by the level within the fair value hierarchy in which fair value measurements fall: March 31, 2024 Total Level 1 Level 2 Level 3 Fixed income securities: U.S. Government and agencies $ 11,697 $ — $ 11,697 $ — Obligations of states and political subdivisions 51,753 — 51,753 — Corporate securities 142,812 — 142,812 — Residential mortgage-backed securities 60,499 — 60,499 — Commercial mortgage-backed securities 29,156 — 29,156 — Asset-backed securities 49,725 — 49,725 — Redeemable preferred stock 4,130 — 4,130 — Total fixed income securities 349,772 — 349,772 — Equity securities: Common stock 27,651 27,651 — — Non-redeemable preferred stock 1,999 1,999 — — Total equity securities 29,650 29,650 — — Money market accounts and cash equivalents 33,098 26,837 6,261 — Total assets at fair value $ 412,520 $ 56,487 $ 356,033 $ — December 31, 2023 Total Level 1 Level 2 Level 3 Fixed income securities: U.S. Government and agencies $ 10,262 $ — $ 10,262 $ — Obligations of states and political subdivisions 51,461 — 51,461 — Corporate securities 142,216 — 142,216 — Residential mortgage-backed securities 61,163 — 61,163 — Commercial mortgage-backed securities 29,439 — 29,439 — Asset-backed securities 49,029 — 49,029 — Redeemable preferred stock 4,161 — 4,161 — Total fixed income securities 347,731 — 347,731 — Equity securities: Common stock 25,890 25,890 — — Non-redeemable preferred stock 1,877 1,877 — — Total equity securities 27,767 27,767 — — Money market accounts and cash equivalents 25,596 19,412 6,184 — Total assets at fair value $ 401,094 $ 47,179 $ 353,915 $ — There were no liabilities measured at fair value on a recurring basis at March 31, 2024, or December 31, 2023. |
Reinsurance
Reinsurance | 3 Months Ended |
Mar. 31, 2024 | |
Reinsurance [Abstract] | |
Reinsurance | 5. Reinsurance External Reinsurance The Company’s consolidated financial statements reflect the effects of assumed and ceded reinsurance transactions. Assumed reinsurance refers to the acceptance of certain insurance risks that other insurance companies have underwritten. Ceded reinsurance involves transferring certain insurance risks (along with the related written and earned premiums) the Company has underwritten to other insurance companies who agree to share these risks. The Company reinsures a portion of the risks it underwrites, through these ceded reinsurance agreements, in order to control its exposure to losses. Our ceded reinsurance is placed either on an automatic basis under general reinsurance contracts known as treaties or through facultative contracts placed on substantial individual risks. These contracts do not relieve the Company from its obligations to policyholders. During the three-month period ended March 31, 2024, the Company maintained property catastrophe reinsurance protection covering $133,000 in excess of a $20,000 retention. With the exception of Westminster, per risk excess of loss treaties provided coverage of $4,000 in excess of $1,000 for property risks and $11,000 in excess of $1,000 for casualty risks. For Westminster, per risk excess of loss treaties provided coverage of $4,000 in excess of $2,000 for property risks and $11,000 in excess of $2,000 for casualty risks. Additionally, facultative contracts are in place to provide coverage up to $20,000 in excess of $5,000 per property. Aggregate stop loss reinsurance agreements were placed for both crop hail and multi-peril crop coverage. The crop hail aggregate attached at a 100% net loss ratio providing 50 points of cover. The multi-peril crop aggregate attached at a 105% net loss ratio providing 45 points of cover. In addition to the aggregate covers, underlying multi-peril crop reinsurance was provided through the Federal Crop Insurance Corporation (“FCIC”). For the year ended December 31, 2023, the Company’s catastrophe retention and retention limit were consistent with those for the three-month period ended March 31, 2024. In addition, limits, retentions, and attachment points in our other reinsurance contracts were also consistent with those for the three-month period ended March 31, 2024 (with the exception of Westminster for which per risk excess of loss treaties provided coverage of $4,000 in excess of $1,000 for property risks and $11,000 in excess of $1,000 for casualty risks). The Company actively monitors and evaluates the financial condition of the reinsurers and develops estimates of the uncollectible amounts due from reinsurers. Beginning on December 31, 2022, credit losses are recognized through an allowance account developed using a new credit loss model (current expected credit losses or “CECL”). See the Part II, Item 8, Note 2 “Recent Accounting Pronouncements” section of the 2023 Annual Report for additional information. Credit loss estimates are made based on periodic evaluation of balances due from reinsurers, changes in reinsurer credit standing, judgments regarding reinsurers’ solvency, known disputes, reporting characteristics of the underlying reinsured business, historical experience, current economic conditions, and the state of reinsurer relations in general. Collection risk is mitigated by entering into reinsurance arrangements only with reinsurers that have strong credit ratings and statutory surplus above certain levels. At March 31, 2024, and December 31, 2023, management has concluded that it is not necessary to record an allowance for expected credit losses related to reinsurance recoverables. All of our significant reinsurance partners are rated “A-” (Excellent) or better by AM Best, and there is no history of write-offs. A reconciliation of direct to net premiums on both a written and an earned basis is as follows: Three Months Ended March 31, 2024 Premiums Written Premiums Earned Direct premium $ 102,657 $ 94,900 Assumed premium 137 151 Ceded premium (9,807 ) (9,494 ) Net premiums $ 92,987 $ 85,557 Three Months Ended March 31, 2023 Premiums Written Premiums Earned Direct premium $ 90,556 $ 85,474 Assumed premium 399 576 Ceded premium (8,459 ) (8,423 ) Net premiums $ 82,496 $ 77,627 A reconciliation of direct to net losses and loss adjustment expenses is as follows: Three Months Ended March 31, 2024 2023 Direct losses and loss adjustment expenses $ 54,654 $ 70,861 Assumed losses and loss adjustment expenses 45 90 Ceded losses and loss adjustment expenses (2,490 ) (12,126 ) Net losses and loss adjustment expenses $ 52,209 $ 58,825 If 100% of our ceded reinsurance was cancelled as of March 31, 2024, or December 31, 2023, no ceded commissions would need to be returned to the reinsurers. Reinsurance contracts are typically effective from January 1 through December 31 each year. Intercompany Reinsurance Pooling Arrangement Effective January 1, 2020, all of our insurance subsidiary and affiliate companies entered into an intercompany reinsurance pooling agreement. Nodak Insurance is the lead company of the pool, and assumes the net premiums, net losses, and underwriting expenses from each of the other five companies. Nodak Insurance then retrocedes balances back to each company, while retaining its own share of the pool’s net underwriting results, based on individual pool percentages established in the respective pooling agreement. This arrangement allows each insurance company to rely upon the capacity of the pool’s total statutory capital and surplus. As a result, they are evaluated by AM Best on a group basis and hold a single combined financial strength rating, long-term issuer credit rating, and financial size category. For the three months ended March 31, 2024, and the year ended December 31, 2023, the pooling share percentages by insurance company were: Pool Percentage Nodak Insurance Company 66.0% American West Insurance Company 7.0% Primero Insurance Company 3.0% Battle Creek Insurance Company 2.0% Direct Auto Insurance Company 13.0% Westminster American Insurance Company 9.0% Total 100.0% |
Deferred Policy Acquisition Cos
Deferred Policy Acquisition Costs | 3 Months Ended |
Mar. 31, 2024 | |
Deferred Policy Acquisition Costs [Abstract] | |
Deferred Policy Acquisition Costs | 6. Deferred Policy Acquisition Costs Expenses directly related to successfully acquired insurance policies, primarily commissions, premium taxes and underwriting costs, are deferred and amortized over the terms of the policies. We update our acquisition cost assumptions periodically to reflect actual experience, and we evaluate the costs for recoverability. The table below shows the deferred policy acquisition costs and asset reconciliation: Three Months Ended March 31, 2024 2023 Balance, beginning of period $ 34,120 $ 29,768 Deferral of policy acquisition costs 23,108 20,170 Amortization of deferred policy acquisition costs (20,663 ) (18,588 ) Balance, end of period $ 36,565 $ 31,350 |
Unpaid Losses and Loss Adjustme
Unpaid Losses and Loss Adjustment Expenses | 3 Months Ended |
Mar. 31, 2024 | |
Unpaid Losses and Loss Adjustment Expenses [Abstract] | |
Unpaid Losses and Loss Adjustment Expenses | 7. Unpaid Losses and Loss Adjustment Expenses Activity in the liability for unpaid losses and loss adjustment expenses is summarized as follows: Three Months Ended March 31, 2024 2023 Balance, beginning of period: Liability for unpaid losses and loss adjustment expenses $ 217,119 $ 190,459 Reinsurance recoverables on losses 48,969 37,575 Net balance, beginning of period 168,150 152,884 Incurred related to: Current year 50,925 48,854 Prior years 1,284 9,971 Total incurred 52,209 58,825 Paid related to: Current year 12,940 14,528 Prior years 31,897 38,033 Total paid 44,837 52,561 Balance, end of period: Liability for unpaid losses and loss adjustment expenses 225,006 204,790 Reinsurance recoverables on losses 49,484 45,642 Net balance, end of period $ 175,522 $ 159,148 During the three months ended March 31, 2024, the Company’s incurred reported losses and loss adjustment expenses included $1,284 of net unfavorable development on prior accident years, primarily attributable to Direct Auto and Primero, which was partially offset by favorable development on prior accident years for Nodak Insurance and Battle Creek. During the three months ended March 31, 2023, the Company’s incurred reported losses and loss adjustment expenses included $9,971 of net unfavorable development on prior accident years, primarily attributable to Direct Auto and Westminster. Changes in unpaid losses and loss adjustment expense reserves are generally the result of ongoing analysis of recent loss development trends. As additional information becomes known regarding individual claims, original estimates are increased or decreased accordingly. |
Property and Equipment
Property and Equipment | 3 Months Ended |
Mar. 31, 2024 | |
Property and Equipment [Abstract] | |
Property and Equipment | 8. Property and Equipment Property and equipment consisted of the following: March 31, 2024 December 31, 2023 Estimated Useful Life Cost: Land $ 1,403 $ 1,403 indefinite Building and improvements 14,558 14,538 10 – 43 years Electronic data processing equipment 1,441 1,441 5 – 7 years Furniture and fixtures 2,953 2,953 5 – 7 years Automobiles 1,353 1,319 2 – 3 years Gross cost 21,708 21,654 Accumulated depreciation (12,000 ) (11,757 ) Total property and equipment, net $ 9,708 $ 9,897 Depreciation expense was $243 and $182 for the three months ended March 31, 2024 and 2023, respectively |
Goodwill and Other Intangibles
Goodwill and Other Intangibles | 3 Months Ended |
Mar. 31, 2024 | |
Goodwill and Other Intangibles [Abstract] | |
Goodwill and Other Intangibles | 9. Goodwill and Other Intangibles Goodwill The following table presents the carrying amount of the Company’s goodwill and related impairment by segment: Three Months Ended March 31, 2024 Year Ended December 31, 2023 Non-standard Commercial Total Non-standard Commercial Total Goodwill, original recorded value $ 2,628 $ 6,756 $ 9,384 $ 2,628 $ 6,756 $ 9,384 Accumulated impairment losses at the beginning of the period — (6,756 ) (6,756 ) — — — Goodwill, beginning of period 2,628 — 2,628 2,628 6,756 9,384 Impairment recognized during the period — — — — (6,756 ) (6,756 ) Goodwill, end of period $ 2,628 $ — $ 2,628 $ 2,628 $ — $ 2,628 Based on the qualitative analyses performed for the goodwill related to our non-standard auto segment, we concluded that goodwill was not impaired as of March 31, 2024, or December 31, 2023. During the fourth quarter of 2023, we performed a quantitative assessment of the goodwill related to the Westminster acquisition, which is allocated to our commercial segment, and concluded that the goodwill was fully impaired as of December 31, 2023, resulting in a non-cash impairment charge of $6,756. See the Part II, Item 8, Note 10 “Goodwill and Other Intangibles” section of the 2023 Annual Report for additional information. Other Intangible Assets The following table presents the carrying amount of the Company’s other intangible assets: March 31, 2024 Gross Carrying Accumulated Net Subject to amortization: Trade names $ 748 $ 461 $ 287 Distribution network 6,700 1,582 5,118 Total subject to amortization 7,448 2,043 5,405 Not subject to amortization: State insurance licenses 1,900 — 1,900 Total $ 9,348 $ 2,043 $ 7,305 December 31, 2023 Gross Carrying Accumulated Net Subject to amortization: Trade names $ 748 $ 448 $ 300 Distribution network 6,700 1,489 5,211 Total subject to amortization 7,448 1,937 5,511 Not subject to amortization: State insurance licenses 1,900 — 1,900 Total $ 9,348 $ 1,937 $ 7,411 We determined during our reviews that other indefinite-lived intangible assets and finite-lived intangible assets were not impaired as of March 31, 2024, or December 31, 2023. Amortization expense was $106 and $118 for the three months ended March 31, 2024 and 2023, respectively. Other intangible assets that have finite lives, including trade names and distribution networks, are amortized over their useful lives. As of March 31, 2024, the estimated amortization of other intangible assets with finite lives for each of the five years in the period ending December 31, 2028, and thereafter is as follows: Year ending December 31, 2024 (nine months remaining) $ 317 2025 422 2026 422 2027 422 2028 422 Thereafter 3,400 Total other intangible assets with finite lives $ 5,405 |
Royalties, Dividends, and Affil
Royalties, Dividends, and Affiliations | 3 Months Ended |
Mar. 31, 2024 | |
Royalties, Dividends, and Affiliations [Abstract] | |
Royalties, Dividends, and Affiliations | 10. Royalties, Dividends, and Affiliations North Dakota Farm Bureau Nodak Insurance was organized by the North Dakota Farm Bureau (“NDFB”) to provide insurance protection for its members. We have a royalty agreement with the NDFB that recognizes the use of their trademark and provides royalties to the NDFB based on the premiums written on Nodak Insurance’s policies. Royalties paid to the NDFB were $403 and $357 during the three months ended March 31, 2024 and 2023, respectively. Royalty amounts payable of $150 and $131 were accrued as a liability to the NDFB at March 31, 2024, and December 31, 2023, respectively. Dividends State insurance laws require our insurance subsidiaries to maintain certain minimum capital and surplus amounts on a statutory basis. Our insurance subsidiaries are subject to regulations that restrict the payment of dividends from statutory surplus and may require prior approval from their domiciliary insurance regulatory authorities. Our insurance subsidiaries are also subject to risk-based capital requirements that may further affect their ability to pay dividends. Our insurance subsidiaries statutory capital and surplus at December 31, 2023, exceeded the amount of statutory capital and surplus necessary to satisfy risk-based capital requirements by a significant margin. For information regarding the availability of subsidiaries to pay dividends to NI Holdings during 2024, see Item II, Part 8, Note 12 “Related Party Transactions” section of the 2023 Annual Report. Battle Creek Prior to January 2, 2024, we consolidated the financial statements of Battle Creek, and Battle Creek’s policyholders’ interest in Battle Creek was reflected as a non-controlling interest in shareholders’ equity in our Consolidated Balance Sheets. Subsequent to January 2, 2024, Battle Creek is fully consolidated in our Consolidated Balance Sheets. The following table discloses the standalone balance sheet of Battle Creek, prior to intercompany eliminations, to illustrate the impact of including Battle Creek in our December 31, 2023, Consolidated Balance Sheet prior to demutualization: December 31, 2023 Assets: Cash and cash equivalents $ 2,621 Investments 15,394 Premiums and agents’ balances receivable 5,953 Deferred policy acquisition costs 682 Reinsurance recoverables on losses (2) 6,918 Accrued investment income 85 Income tax recoverable 225 Deferred income taxes 706 Property and equipment 306 Other assets 97 Total assets $ 32,987 Liabilities: Unpaid losses and loss adjustment expenses $ 4,276 Unearned premiums 3,269 Notes payable (1) 3,000 Pooling payable (1) 5,932 Reinsurance losses payable (2) 13,275 Accrued expenses and other liabilities 477 Total liabilities 30,229 Equity: Non-controlling interest 2,758 Total equity 2,758 Total liabilities and equity $ 32,987 (1) Amount fully eliminated in consolidation. (2) Amount partly eliminated in consolidation. |
Benefit Plans
Benefit Plans | 3 Months Ended |
Mar. 31, 2024 | |
Benefit Plans [Abstract] | |
Benefit Plans | 11. Benefit Plans Nodak Insurance sponsors a 401(k) plan with an automatic and matching contribution for eligible employees at Nodak Insurance, Primero, and Direct Auto. Nodak Insurance also contributes an additional elective amount of employee compensation as a profit-sharing contribution for eligible employees. Westminster also sponsors a separate 401(k) plan. American West and Battle Creek have no employees. The Company reported expenses related to these plans totaling $210 and $189 during the three months ended March 31, 2024 and 2023, respectively. All fees associated with the plans are deducted from the eligible employee accounts. The Company also offers a non-qualified deferred compensation plan to key executives of the Company (as designated by the Board of Directors). The Company’s policy is to fund the plan by amounts that represent the excess of the maximum contribution allowed by the Employee Retirement Income Security Act over the key executives’ allowable 401(k) contribution. The plan also allows employee-directed deferral of key executives’ compensation or incentive payments. The Company reported expenses related to this plan totaling $173 and $22 during the three months ended March 31, 2024 and 2023, respectively. In connection with our initial public offering (“IPO”) in March 2017, the Company established its Employee Stock Ownership Plan (the “ESOP”) within the meaning of Internal Revenue Code Section 4975(e)(7) and invests solely in common stock of the Company. Upon establishment of the ESOP, Nodak Insurance loaned $2,400 to the ESOP’s related trust (the “ESOP Trust”). The ESOP loan was for a period of ten years, bearing interest at the long-term Applicable Federal Rate effective on the closing date of the offering (2.79% annually). The ESOP Trust used the proceeds of the loan to purchase shares in our IPO, which resulted in the ESOP Trust owning approximately 1.0% of the Company’s authorized shares. The ESOP has purchased the shares for investment and not for resale. The shares purchased by the ESOP Trust in the offering are held in a suspense account as collateral for the ESOP loan. Nodak Insurance makes semi-annual cash contributions to the ESOP in amounts no smaller than the amounts required for the ESOP Trust to make its loan payments to Nodak Insurance. While the ESOP makes two loan payments per year, a pre-determined portion of the shares are released from the suspense account and allocated to participant accounts at the end of the calendar year. This release and allocation occurs on an annual basis over the ten-year term of the ESOP loan. Nodak Insurance has a lien on the shares of common stock of the Company held by the ESOP to secure repayment of the loan from the ESOP to Nodak Insurance. If the ESOP is terminated as a result of a change in control of the Company, the ESOP may be required to pay the costs of terminating the plan. It is anticipated that the only assets held by the ESOP will be shares of the Company’s common stock. Participants in the ESOP cannot direct the investment of any assets allocated to their accounts. The ESOP participants are employees of Nodak Insurance. The employees of Primero, Direct Auto, and Westminster do not participate in the ESOP. Each employee of Nodak Insurance automatically becomes a participant in the ESOP if such employee is at least 21 years old, has completed a minimum of one thousand hours of service with Nodak Insurance, and has completed an Eligibility Computation Period. Employees are not permitted to make any contributions to the ESOP. Participants in the ESOP receive annual reports from the Company showing the number of shares of common stock of the Company allocated to the participants’ accounts and the market value of those shares. The shares are allocated to participants based on compensation as provided for in the ESOP. In connection with the establishment of the ESOP, the Company created a contra-equity account on the Consolidated Balance Sheet equal to the ESOP’s basis in the shares. The basis of those shares was set at $10.00 per share as part of the IPO. As shares are released from the ESOP suspense account, the contra-equity account is credited, which reduces the impact of the contra-equity account on the Company’s Consolidated Balance Sheets over time. The Company records compensation expense related to the shares released, equal to the number of shares released from the suspense account multiplied by the average market value of the Company’s stock during the period. The Company recognized compensation expense related to the ESOP of $84 and $82 during the three months ended March 31, 2024 and 2023, respectively, related to the ESOP. Through March 31, 2024, and December 31, 2023, the Company had released and allocated 170,205 ESOP shares to participants, with a remainder of 69,795 ESOP shares in suspense at March 31, 2024 and December 31, 2023. Using the Company’s quarter-end market price of $15.15 per share, the fair value of the unearned ESOP shares was $1,057 at March 31, 2024. |
Line of Credit
Line of Credit | 3 Months Ended |
Mar. 31, 2024 | |
Line of Credit [Abstract] | |
Line of Credit | 12. Line of Credit NI Holdings has a $3,000 line of credit with Wells Fargo Bank, N.A. The terms of the line of credit include a floating interest rate of 2.50% above the daily simple secured overnight financing rate. There were no |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2024 | |
Income Taxes [Abstract] | |
Income Taxes | 13. Income Taxes As of January 2, 2024, Battle Creek became a 100% wholly-owned subsidiary of Nodak Insurance and will be included in the Company’s consolidated federal income tax returns beginning in 2024. For tax years 2023 and prior, Battle Creek has filed or will file its federal income tax returns on a stand-alone basis. At March 31, 2024, and December 31, 2023, we had no No At March 31, 2024, and December 31, 2023, the Company, other than Battle Creek, had no Battle Creek had net operating loss carryforwards of $3,756 at December 31, 2023. These net operating loss carryforwards expire through 2032 |
Leases
Leases | 3 Months Ended |
Mar. 31, 2024 | |
Leases [Abstract] | |
Leases | 14. Leases Primero leases a facility in Spearfish, South Dakota under a non-cancellable operating lease expiring in 2028, and leases a facility in Las Vegas, Nevada on a month-to-month basis. Direct Auto leases a facility in Chicago, Illinois under a non-cancellable operating lease expiring in 2029. Nodak Insurance leases a facility in Fargo, North Dakota under a non-cancellable operating lease expiring in 2024. In addition, Nodak Insurance leases server equipment under a non-cancellable finance lease expiring in 2026. Effective for the year ended December 31, 2022, the Company adopted the updated guidance for leases. See Part II, Item 8, Note 2 “Recent Accounting Pronouncements” section of the 2023 Annual Report for additional information. We determine whether a contract is or contains a lease at the inception of the contract. A contract will be deemed to be or contain a lease if the contract conveys the right to control and directs the use of identified property or equipment for a period of time in exchange for consideration. We generally must also have the right to obtain substantially all of the economic benefits from the use of the property and equipment. Lease assets and liabilities are recognized at the lease commencement date based on the present value of lease payments over the lease term. To determine the present value of lease payments not yet paid, we estimate incremental borrowing rates based on the floating interest rate on our Line of Credit with Wells Fargo Bank, N.A. at the lease commencement date, as rates are not implicitly stated in most leases. Lease liabilities are included in accrued expenses and other liabilities and right-of-use assets are included in other assets in the Consolidated Balance Sheets. There were expenses of $122 and $98 related to these leases during the three months ended March 31, 2024 and 2023, respectively. Additional information regarding the Company’s leases are as follows: As of and For the Three Months Ended March 31, 2024 2023 Operating lease cost $ 96 $ 98 Finance lease cost: Amortization of right-of-use assets 20 — Interest on lease liabilities 6 — Finance lease cost 26 — Total lease cost $ 122 $ 98 Other information on leases: Cash payments included in operating cash flows from operating leases $ 101 $ 101 Cash payments included in operating cash flows from finance leases 6 — Cash payments included in financing cash flows from finance leases 25 — Right-of-use assets obtained in exchange for new operating lease liabilities — — Right-of-use assets obtained in exchange for new finance lease liabilities — — Weighted average discount rate – operating leases 3.94% 3.25% Weighted average discount rate – finance leases 8.50% — Weighted average remaining lease term in years – operating leases 5.1 years 6.1 years Weighted average remaining lease term in years – finance leases 2.6 years — The following table presents the contractual maturities of the Company’s operating leases for each of the five years in the period ending December 31, 2028, and thereafter, reconciled to the Company’s operating lease liability at March 31, 2024: Year ending December 31, Operating Leases Finance Leases Total 2024 (nine months remaining) $ 283 $ 90 $ 373 2025 347 120 467 2026 351 100 451 2027 356 — 356 2028 331 — 331 Thereafter 178 — 178 Total undiscounted lease payments 1,846 310 2,156 Less: present value adjustment 167 31 198 Lease liability at March 31, 2024 $ 1,679 $ 279 $ 1,958 |
Contingencies
Contingencies | 3 Months Ended |
Mar. 31, 2024 | |
Contingencies [Abstract] | |
Contingencies | 15. Contingencies We have been named as a defendant in various lawsuits relating to our insurance operations. Contingent liabilities arising from litigation, income taxes, and other matters are not considered to be material to our financial position. |
Common and Preferred Stock
Common and Preferred Stock | 3 Months Ended |
Mar. 31, 2024 | |
Common and Preferred Stock [Abstract] | |
Common and Preferred Stock | 16. Common and Preferred Stock Common Stock Changes in the number of common stock shares outstanding were as follows: Three Months Ended March 31, 2024 2023 Shares outstanding, beginning of period 20,599,908 21,076,255 Treasury shares repurchased through stock repurchase authorization — (46,099 ) Issuance of treasury shares for vesting of restricted stock units 29,546 32,199 Shares outstanding, end of period 20,629,454 21,062,355 The changes in the number of common shares outstanding excludes certain non-forfeitable stock award shares that are included in the weighted average common shares outstanding used in basic earnings per common share calculations. The net loss per diluted common share for the three months ended March 31, 2023, excluded the weighted average effects of 61,290 shares of stock awards since the impacts of these potential shares of common stock were anti-dilutive. On May 9, 2022, our Board of Directors approved an authorization for the repurchase of up to approximately $10,000 of the Company’s outstanding common stock. During the three months ended March 31, 2024, we did not The cost of this treasury stock is a reduction of shareholders’ equity within our Consolidated Balance Sheets. Preferred Stock The Company’s Articles of Incorporation provide authority to issue up to five million shares of preferred stock. No preferred shares are issued or outstanding. |
Share-Based Compensation
Share-Based Compensation | 3 Months Ended |
Mar. 31, 2024 | |
Share-Based Compensation [Abstract] | |
Share-Based Compensation | 17. Share-Based Compensation The NI Holdings, Inc. 2020 Stock and Incentive Plan (the “Plan”) is designed to promote the interests of the Company and its shareholders by aiding the Company in attracting and retaining employees, officers, consultants, independent contractors, advisors, and non-employee directors capable of assuring the future success of the Company, to offer such persons incentives to put forth maximum efforts for the success of the Company’s business and to afford such persons an opportunity to acquire an ownership interest in the Company, thereby aligning the interests of such persons with the Company’s shareholders. The Plan provides for the grant of nonqualified stock options, incentive stock options, restricted stock units (“RSUs”), stock appreciation rights, dividend equivalents, and performance share units (“PSUs”) to employees, officers, consultants, advisors, non-employee directors, and independent contractors designated by the Compensation Committee of the Board of Directors (the “Compensation Committee”). Awards made under the Plan are based upon, among other things, a participant’s level of responsibility and performance within the Company. The total aggregate number of shares of common stock that may be issued under the Plan shall not exceed 1,000,000 shares, subject to adjustments as provided in the Plan. No eligible participant may be granted any awards for more than 100,000 shares in the aggregate in any calendar year, subject to adjustment in accordance with the Plan. The aggregate amount payable pursuant to all performance awards denominated in cash to any eligible person in any calendar year is limited to $1,000 in value. Directors who are not also employees of the Company may not be granted awards denominated in shares that exceed $150 in any calendar year. Restricted Stock Units The Compensation Committee has awarded RSUs to non-employee directors and select executives. RSUs are promises to issue actual shares of common stock at the end of a vesting period. The RSUs granted to executives under the Plan are based on salary. RSUs granted prior to 2024 vest equally over a five-year period. Effective for executive grants in 2024, the RSUs vest equally over a three-year period. The RSUs granted to non-employee directors vest 100% on the date of the next annual meeting of shareholders following the grant date. Dividend equivalents on RSUs are accrued during the vesting period and paid in cash at the end of the vesting period but are subject to forfeiture until the underlying shares become vested. Participants do not have voting rights with respect to RSUs. The Company recognizes stock-based compensation costs for RSUs based on the grant date fair value. The compensation costs are normally expensed over the vesting periods to each vesting date; however, the cost of RSUs granted to executives are expensed immediately if the executive has met certain retirement criteria and the RSUs become non-forfeitable. Estimated forfeitures are included in the determination of compensation costs. No forfeitures are currently estimated. A summary of the Company’s outstanding and unearned RSUs is presented below: RSUs Weighted-Average Units outstanding and unearned at January 1, 2023 115,360 $ 17.00 RSUs granted during 2023 85,000 13.76 RSUs earned during 2023 (53,780 ) 16.32 Units outstanding and unearned at December 31, 2023 146,580 15.37 RSUs granted during 2024 79,800 14.19 RSUs earned during 2024 (42,820 ) 15.59 Units outstanding and unearned at March 31, 2024 183,560 14.81 The following table shows the impact of RSU activity to the Company’s financial results: Three Months Ended March 31, 2024 2023 RSU compensation expense $ 396 $ 302 Income tax benefit (90 ) (69 ) RSU compensation expense, net of income taxes $ 306 $ 233 At March 31, 2024, there was $1,627 of unrecognized compensation cost related to outstanding RSUs. That cost is expected to be recognized over a weighted-average period of 1.62 years. Performance Share Units The Compensation Committee has awarded PSUs to select executives. PSUs are promises to issue actual shares of common stock at the end of a vesting period, if certain performance conditions are met. The PSUs granted to employees under the Plan are based on salary and, prior to 2024, include a three-year adjusted book value cumulative growth target with threshold and stretch goals The Company recognizes stock-based compensation costs for PSUs based on the grant date fair value over the performance period of the awards. Estimated forfeitures are included in the determination of compensation costs. The current cost estimates represent the Company’s forecasted performance against cumulative growth targets. A summary of the Company’s outstanding PSUs is presented below: PSUs Weighted-Average Units outstanding at January 1, 2023 190,000 $ 17.00 PSUs granted during 2023 (at target) 87,400 13.85 PSUs earned during 2023 — — Performance adjustment (1) (63,600 ) 14.26 Forfeitures — — Units outstanding at December 31, 2023 213,800 16.53 PSUs granted during 2024 (at target) 79,800 14.19 PSUs earned during 2024 — — Performance adjustment (1) (64,600 ) 18.64 Forfeitures — — Units outstanding at March 31, 2024 229,000 15.12 (1) The following table shows the impact of PSU activity to the Company’s financial results: Three Months Ended March 31, 2024 2023 PSU compensation expense $ 185 $ 138 Income tax benefit (42 ) (31 ) PSU compensation expense, net of income taxes $ 143 $ 107 The cost estimates for PSU grants represent initial target awards until we can reasonably forecast the financial performance of each PSU award grant. At the end of the performance period, we will reflect a performance adjustment, which may be either an increase or decrease from the initial target awards. The actual number of shares to be issued at the end of the performance period will range from 0% to 150% of the initial target awards. As of December 31, 2023, the previously recognized compensation expense related to the PSU awards granted during 2022 and 2021 was eliminated due to the Company's expectation that the threshold performance goal will not be met. At March 31, 2024, there was $1,776 of unrecognized compensation cost related to outstanding PSUs. That cost is expected to be recognized over a weighted-average period of 2.50 years. |
Allowance for Expected Credit L
Allowance for Expected Credit Losses | 3 Months Ended |
Mar. 31, 2024 | |
Allowance for Expected Credit Losses [Abstract] | |
Allowance for Expected Credit Losses | 18. Allowance for Expected Credit Losses Premiums Receivable The following table presents the balances of premiums and agents’ balances receivable, net of the allowance for expected credit losses as of March 31, 2024 and 2023, and the changes in the allowance for expected credit losses for the three months ended March 31, 2024 and 2023. As of and For the Three Months As of and For the Three Months Ended Premiums and Allowance for Premiums and Allowance for Balance, beginning of period $ 74,058 $ 402 $ 62,173 $ 425 Current period charge for expected credit losses (117 ) 90 Write-offs of uncollectible premiums receivable (61 ) (70 ) Balance, end of period $ 79,706 $ 224 $ 64,502 $ 445 |
Segment Information
Segment Information | 3 Months Ended |
Mar. 31, 2024 | |
Segment Information [Abstract] | |
Segment Information | 19. Segment Information We have six reportable operating segments, which consist of private passenger auto, non-standard auto, home and farm, crop, commercial, and all other (which primarily consists of assumed reinsurance and our excess liability business). We operate only in the U.S., and no single customer or agent provides 10 percent or more of our revenues. The following tables provide available information of these segments for the three-month periods ended March 31, 2024 and 2023. For purposes of evaluating profitability of the non-standard auto segment, we combine the policy fees paid by the insured with the underwriting gain or loss as its primary measure. As a result, these fees are allocated to the non-standard auto segment (included in fee and other income) in the tables below. The remaining fee and other income amounts are not allocated to any segment. We do not assign or allocate all line items in our Consolidated Statement of Operations or Consolidated Balance Sheets to our operating segments. Those line items include net investment income, net investment gains, fee and other income excluding non-standard auto, and income tax expense (benefit) within the Unaudited Consolidated Statement of Operations. For the Consolidated Balance Sheets, those items include cash and investments, property and equipment, other assets, accrued expenses and other liabilities, income taxes recoverable or payable, and shareholders’ equity. Three Months Ended March 31, 2024 Private Non-Standard Home and Crop Commercial All Other Total Direct premiums earned $ 23,225 $ 25,058 $ 24,245 $ (204 ) $ 21,182 $ 1,394 $ 94,900 Assumed premiums earned — — — — — 151 151 Ceded premiums earned (1,123 ) (69 ) (2,831 ) (1,345 ) (4,044 ) (82 ) (9,494 ) Net premiums earned 22,102 24,989 21,414 (1,549 ) 17,138 1,463 85,557 Direct losses and loss adjustment expenses 11,409 16,869 12,782 (1,962 ) 13,976 1,580 54,654 Assumed losses and loss adjustment expenses — — — — — 45 45 Ceded losses and loss adjustment expenses (116 ) — (601 ) 405 (1,075 ) (1,103 ) (2,490 ) Net losses and loss adjustment expenses 11,293 16,869 12,181 (1,557 ) 12,901 522 52,209 Gross margin 10,809 8,120 9,233 8 4,237 941 33,348 Underwriting and general expenses 6,989 10,266 6,665 1 6,081 959 30,961 Underwriting gain (loss) 3,820 (2,146 ) 2,568 7 (1,844 ) (18 ) 2,387 Fee and other income 350 412 (1,796 ) Net investment income 3,553 Net investment gains 1,828 Income (loss) before income taxes 8,180 Income tax expense (benefit) 1,761 Net income (loss) 6,419 Net loss attributable to non-controlling interest — Net income (loss) attributable to NI Holdings, Inc. $ 6,419 Operating Ratios: Loss and loss adjustment expense ratio 51.1% 67.5% 56.9% n/a 75.3% 35.7% 61.0% Expense ratio 31.6% 41.1% 31.1% n/a 35.5% 65.6% 36.2% Combined ratio 82.7% 108.6% 88.0% n/a 110.8% 101.3% 97.2% Balances at March 31, 2024: Premiums and agents’ balances receivable $ 24,562 $ 22,720 $ 10,269 $ — $ 21,374 $ 781 $ 79,706 Deferred policy acquisition costs 6,295 12,978 8,621 — 8,191 480 36,565 Reinsurance recoverables on 88 — 2,970 33 43,139 3,254 49,484 Receivable from Federal Crop Insurance Corporation — — — 13,913 — — 13,913 Goodwill and other intangibles — 2,728 — — 7,205 — 9,933 Unpaid losses and loss adjustment expenses 25,610 65,228 20,124 92 105,904 8,048 225,006 Unearned premiums 36,095 42,641 48,751 — 41,139 2,792 171,418 Three Months Ended March 31, 2023 Private Non-Standard Home and Crop Commercial All Other Total Direct premiums earned $ 20,541 $ 20,971 $ 22,433 $ (10 ) $ 20,230 $ 1,309 $ 85,474 Assumed premiums earned — — — — — 576 576 Ceded premiums earned (888 ) (92 ) (2,442 ) (715 ) (4,213 ) (73 ) (8,423 ) Net premiums earned 19,653 20,879 19,991 (725 ) 16,017 1,812 77,627 Direct losses and loss adjustment expenses 15,624 17,038 9,523 (669 ) 29,322 23 70,861 Assumed losses and loss adjustment expenses — — — — — 90 90 Ceded losses and loss adjustment expenses 1 — (804 ) (104 ) (11,208 ) (11 ) (12,126 ) Net losses and loss adjustment expenses 15,625 17,038 8,719 (773 ) 18,114 102 58,825 Gross margin 4,028 3,841 11,272 48 (2,097 ) 1,710 18,802 Underwriting and general expenses 6,418 8,994 6,205 32 6,086 509 28,244 Underwriting gain (loss) (2,390 ) (5,153 ) 5,067 16 (8,183 ) 1,201 (9,442 ) Fee and other income 232 274 (4,921 ) Net investment income 2,239 Net investment gains 1,416 Income (loss) before income taxes (5,513 ) Income tax expense (benefit) (1,013 ) Net income (loss) (4,500 ) Net loss attributable to non-controlling interest (290 ) Net income (loss) attributable to NI Holdings, Inc. $ (4,210 ) Operating Ratios: Loss and loss adjustment expense ratio 79.5% 81.6% 43.6% n/a 113.1% 5.6% 75.8% Expense ratio 32.7% 43.1% 31.1% n/a 38.0% 28.1% 36.4% Combined ratio 112.2% 124.7% 74.7% n/a 151.1% 33.7% 112.2% Balances at March 31, 2023: Premiums and agents’ balances receivable $ 21,743 $ 16,642 $ 8,954 $ 93 $ 16,301 $ 769 $ 64,502 Deferred policy acquisition costs 5,309 10,716 7,279 — 7,616 430 31,350 Reinsurance recoverables on 1,280 — 5,845 51 37,669 797 45,642 Receivable from Federal Crop Insurance Corporation — — — 14,034 — — 14,034 Goodwill and other intangibles — 2,748 — — 14,384 — 17,132 Unpaid losses and loss adjustment expenses 27,366 50,876 29,165 421 89,296 7,666 204,790 Unearned premiums 32,378 33,711 44,446 — 39,975 2,957 153,467 |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2024 | |
Subsequent Events [Abstract] | |
Subsequent Events | 20. Subsequent Events On May 7, 2024, NI Holdings signed an agreement to sell its wholly-owned commercial insurance subsidiary, Westminster American Insurance Company, to a private party. The total consideration for the sale is $10,500 in cash, with proceeds planned to be used for general corporate purposes. The transaction was unanimously approved by the NI Holdings Board of Directors and is expected to close in 2024, subject to regulatory approval and other closing conditions. |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Pay vs Performance Disclosure | ||
Net Income (Loss) | $ 6,419 | $ (4,210) |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Mar. 31, 2024 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Accounting Policies, by Policy
Accounting Policies, by Policy (Policies) | 3 Months Ended |
Mar. 31, 2024 | |
Basis of Presentation and Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. All material intercompany transactions and balances have been eliminated. These financial statements should be read in conjunction with the financial statements and notes thereto included in our 2023 Annual Report. The Consolidated Balance Sheet at December 31, 2023, has been derived from the audited consolidated financial statements at that date but does not include all of the information and footnotes required by GAAP for complete financial statements. The preparation of the interim unaudited consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the interim unaudited consolidated financial statements and the reported amounts of revenues, claims, and expenses during the reporting period. Actual results could differ from those estimates. Operating results for the interim period ended March 31, 2024, are not necessarily indicative of the results that may be expected for the year ended December 31, 2024. Our 2023 Annual Report describes the accounting policies and estimates that are critical to the understanding of our results of operations, financial condition, and liquidity. The accounting policies and estimation processes described in the 2023 Annual Report were consistently applied to the unaudited consolidated financial statements as of and for the three months ended March 31, 2024 and 2023. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Adopted For information regarding accounting pronouncements that the Company adopted during the periods presented, see Item II, Part 8, Note 2 “Recent Accounting Pronouncements” section of the 2023 Annual Report. Not Yet Adopted Improvements to Reportable Segment Disclosures – In November 2023, the Financial Accounting Standards Board (“FASB”) issued guidance related to improving disclosures for reportable segments primarily through enhanced disclosures about significant segment expenses that are provided to the chief operating decision maker (“CODM”). This guidance also requires disclosure of the title and position of the CODM and an explanation of how the CODM uses the reported measures of segment profit or loss in assessing segment performance and deciding how to allocate resources. The amendments in this update are effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. We are currently evaluating the impact of the new standard on our consolidated financial statements, which is expected to result in enhanced disclosures. Improvements to Income Tax Disclosures – In December 2023, the FASB issued guidance related to improving income tax disclosures. This guidance requires that an entity, on an annual basis, disclose additional income tax information, primarily related to the rate reconciliation and income taxes paid. The guidance is intended to enhance the transparency and decision usefulness of income tax disclosures. The amendments in this update are effective for annual periods beginning after December 15, 2024. We are currently evaluating the impact of the new standard on our consolidated financial statements, which is expected to result in enhanced disclosures. |
Investments (Tables)
Investments (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Investments [Abstract] | |
Schedule of Amortized Cost and Estimated Fair Value of Fixed Income Securities | The amortized cost and estimated fair value of fixed income securities as of March 31, 2024, and December 31, 2023, were as follows: March 31, 2024 Cost or Allowance for Gross Gross Fair Value Fixed income securities: U.S. Government and agencies $ 12,493 $ — $ 5 $ (801 ) $ 11,697 Obligations of states and political subdivisions 56,491 — 240 (4,978 ) 51,753 Corporate securities 153,966 — 149 (11,303 ) 142,812 Residential mortgage-backed securities 66,825 — 86 (6,412 ) 60,499 Commercial mortgage-backed securities 32,779 — 119 (3,742 ) 29,156 Asset-backed securities 53,278 — 176 (3,729 ) 49,725 Redeemable preferred stocks 4,747 — — (617 ) 4,130 Total fixed income securities $ 380,579 $ — $ 775 $ (31,582 ) $ 349,772 December 31, 2023 Cost or Allowance for Gross Gross Fair Value Fixed income securities: U.S. Government and agencies $ 10,998 $ — $ — $ (736 ) $ 10,262 Obligations of states and political subdivisions 55,769 — 408 (4,716 ) 51,461 Corporate securities 152,630 — 442 (10,856 ) 142,216 Residential mortgage-backed securities 66,362 — 180 (5,379 ) 61,163 Commercial mortgage-backed securities 33,532 — 148 (4,241 ) 29,439 Asset-backed securities 52,692 — 142 (3,805 ) 49,029 Redeemable preferred stocks 4,747 — — (586 ) 4,161 Total fixed income securities $ 376,730 $ — $ 1,320 $ (30,319 ) $ 347,731 |
Schedule of Contractual Maturity | The amortized cost and estimated fair value of fixed income securities by contractual maturity are shown below. Actual maturities could differ from contractual maturities because issuers may have the right to call or prepay these securities. March 31, 2024 Amortized Cost Fair Value Due to mature: One year or less $ 13,067 $ 12,822 After one year through five years 75,475 71,868 After five years through ten years 85,017 77,531 After ten years 49,391 44,041 Mortgage / asset-backed securities 152,882 139,380 Redeemable preferred stocks 4,747 4,130 Total fixed income securities $ 380,579 $ 349,772 December 31, 2023 Amortized Cost Fair Value Due to mature: One year or less $ 9,612 $ 9,436 After one year through five years 75,794 72,602 After five years through ten years 86,185 79,281 After ten years 47,806 42,620 Mortgage / asset-backed securities 152,586 139,631 Redeemable preferred stocks 4,747 4,161 Total fixed income securities $ 376,730 $ 347,731 |
Schedule of Gross Unrealized Losses on Fixed Income Securities | The investment category and duration of the Company’s gross unrealized losses on fixed income securities are shown below. Investments with unrealized losses are categorized with a duration of greater than 12 months when all positions of a security have continually been in a loss position for at least 12 months. March 31, 2024 Less than 12 Months Greater than 12 months Total Fair Unrealized Fair Unrealized Fair Unrealized Fixed income securities: U.S. Government and agencies $ 1,235 $ (10 ) $ 8,808 $ (791 ) $ 10,043 $ (801 ) Obligations of states and political subdivisions 6,293 (154 ) 37,359 (4,824 ) 43,652 (4,978 ) Corporate securities 22,275 (321 ) 108,426 (10,982 ) 130,701 (11,303 ) Residential mortgage-backed securities 13,391 (310 ) 34,005 (6,102 ) 47,396 (6,412 ) Commercial mortgage-backed securities 2,061 (36 ) 24,269 (3,706 ) 26,330 (3,742 ) Asset-backed securities 7,424 (37 ) 26,545 (3,692 ) 33,969 (3,729 ) Redeemable preferred stocks — — 4,130 (617 ) 4,130 (617 ) Total fixed income securities $ 52,679 $ (868 ) $ 243,542 $ (30,714 ) $ 296,221 $ (31,582 ) December 31, 2023 Less than 12 Months Greater than 12 months Total Fair Unrealized Fair Unrealized Fair Unrealized Fixed income securities: U.S. Government and agencies $ — $ — $ 9,018 $ (736 ) $ 9,018 $ (736 ) Obligations of states and political subdivisions 5,239 (359 ) 36,194 (4,357 ) 41,433 (4,716 ) Corporate securities 8,018 (93 ) 110,117 (10,763 ) 118,135 (10,856 ) Residential mortgage-backed securities 12,054 (104 ) 33,341 (5,275 ) 45,395 (5,379 ) Commercial mortgage-backed securities 2,678 (5 ) 23,713 (4,236 ) 26,391 (4,241 ) Asset-backed securities 4,463 (18 ) 30,200 (3,787 ) 34,663 (3,805 ) Redeemable preferred stocks — — 4,161 (586 ) 4,161 (586 ) Total fixed income securities $ 32,452 $ (579 ) $ 246,744 $ (29,740 ) $ 279,196 $ (30,319 ) |
Schedule of Net Investment Income | Net investment income consisted of the following: Three Months Ended March 31, 2024 2023 Fixed income securities $ 3,518 $ 2,630 Equity securities 327 320 Real estate 158 150 Cash and cash equivalents 508 52 Total gross investment income 4,511 3,152 Investment expenses 958 913 Net investment income $ 3,553 $ 2,239 |
Schedule of Net Investment Gains | Net investment gains consisted of the following: Three Months Ended March 31, 2024 2023 Gross realized gains: Fixed income securities $ 9 $ — Equity securities 226 12,731 Total gross realized gains 235 12,731 Gross realized losses, excluding credit impairment losses: Fixed income securities (19 ) (299 ) Equity securities (346 ) (846 ) Total gross realized losses, excluding credit impairment losses (365 ) (1,145 ) Net realized gains (losses) (130 ) 11,586 Change in net unrealized gains on equity securities 1,958 (10,170 ) Net investment gains $ 1,828 $ 1,416 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Fair Value Measurements [Abstract] | |
Schedule of Assets Which are Measured on a Recurring Basis | The following tables set forth our assets which are measured on a recurring basis by the level within the fair value hierarchy in which fair value measurements fall: March 31, 2024 Total Level 1 Level 2 Level 3 Fixed income securities: U.S. Government and agencies $ 11,697 $ — $ 11,697 $ — Obligations of states and political subdivisions 51,753 — 51,753 — Corporate securities 142,812 — 142,812 — Residential mortgage-backed securities 60,499 — 60,499 — Commercial mortgage-backed securities 29,156 — 29,156 — Asset-backed securities 49,725 — 49,725 — Redeemable preferred stock 4,130 — 4,130 — Total fixed income securities 349,772 — 349,772 — Equity securities: Common stock 27,651 27,651 — — Non-redeemable preferred stock 1,999 1,999 — — Total equity securities 29,650 29,650 — — Money market accounts and cash equivalents 33,098 26,837 6,261 — Total assets at fair value $ 412,520 $ 56,487 $ 356,033 $ — December 31, 2023 Total Level 1 Level 2 Level 3 Fixed income securities: U.S. Government and agencies $ 10,262 $ — $ 10,262 $ — Obligations of states and political subdivisions 51,461 — 51,461 — Corporate securities 142,216 — 142,216 — Residential mortgage-backed securities 61,163 — 61,163 — Commercial mortgage-backed securities 29,439 — 29,439 — Asset-backed securities 49,029 — 49,029 — Redeemable preferred stock 4,161 — 4,161 — Total fixed income securities 347,731 — 347,731 — Equity securities: Common stock 25,890 25,890 — — Non-redeemable preferred stock 1,877 1,877 — — Total equity securities 27,767 27,767 — — Money market accounts and cash equivalents 25,596 19,412 6,184 — Total assets at fair value $ 401,094 $ 47,179 $ 353,915 $ — |
Reinsurance (Tables)
Reinsurance (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Reinsurance [Abstract] | |
Schedule of Reconciliation of Direct to Net Premiums on Both a Written and an Earned Basis | A reconciliation of direct to net premiums on both a written and an earned basis is as follows: Three Months Ended March 31, 2024 Premiums Written Premiums Earned Direct premium $ 102,657 $ 94,900 Assumed premium 137 151 Ceded premium (9,807 ) (9,494 ) Net premiums $ 92,987 $ 85,557 Three Months Ended March 31, 2023 Premiums Written Premiums Earned Direct premium $ 90,556 $ 85,474 Assumed premium 399 576 Ceded premium (8,459 ) (8,423 ) Net premiums $ 82,496 $ 77,627 |
Schedule of Reconciliation of Direct to Net Losses and Loss Adjustment Expenses | A reconciliation of direct to net losses and loss adjustment expenses is as follows: Three Months Ended March 31, 2024 2023 Direct losses and loss adjustment expenses $ 54,654 $ 70,861 Assumed losses and loss adjustment expenses 45 90 Ceded losses and loss adjustment expenses (2,490 ) (12,126 ) Net losses and loss adjustment expenses $ 52,209 $ 58,825 |
Schedule of Pooling Share Percentages by Insurance Company | For the three months ended March 31, 2024, and the year ended December 31, 2023, the pooling share percentages by insurance company were: Pool Percentage Nodak Insurance Company 66.0% American West Insurance Company 7.0% Primero Insurance Company 3.0% Battle Creek Insurance Company 2.0% Direct Auto Insurance Company 13.0% Westminster American Insurance Company 9.0% Total 100.0% |
Deferred Policy Acquisition C_2
Deferred Policy Acquisition Costs (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Deferred Policy Acquisition Costs [Abstract] | |
Schedule of Deferred Policy Acquisition Costs and Asset Reconciliation | The table below shows the deferred policy acquisition costs and asset reconciliation: Three Months Ended March 31, 2024 2023 Balance, beginning of period $ 34,120 $ 29,768 Deferral of policy acquisition costs 23,108 20,170 Amortization of deferred policy acquisition costs (20,663 ) (18,588 ) Balance, end of period $ 36,565 $ 31,350 |
Unpaid Losses and Loss Adjust_2
Unpaid Losses and Loss Adjustment Expenses (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Unpaid Losses and Loss Adjustment Expenses [Abstract] | |
Schedule of Activity in the Liability for Unpaid Losses and Loss Adjustment Expenses | Activity in the liability for unpaid losses and loss adjustment expenses is summarized as follows: Three Months Ended March 31, 2024 2023 Balance, beginning of period: Liability for unpaid losses and loss adjustment expenses $ 217,119 $ 190,459 Reinsurance recoverables on losses 48,969 37,575 Net balance, beginning of period 168,150 152,884 Incurred related to: Current year 50,925 48,854 Prior years 1,284 9,971 Total incurred 52,209 58,825 Paid related to: Current year 12,940 14,528 Prior years 31,897 38,033 Total paid 44,837 52,561 Balance, end of period: Liability for unpaid losses and loss adjustment expenses 225,006 204,790 Reinsurance recoverables on losses 49,484 45,642 Net balance, end of period $ 175,522 $ 159,148 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Property and Equipment [Abstract] | |
Schedule of Property and Equipment | Property and equipment consisted of the following: March 31, 2024 December 31, 2023 Estimated Useful Life Cost: Land $ 1,403 $ 1,403 indefinite Building and improvements 14,558 14,538 10 – 43 years Electronic data processing equipment 1,441 1,441 5 – 7 years Furniture and fixtures 2,953 2,953 5 – 7 years Automobiles 1,353 1,319 2 – 3 years Gross cost 21,708 21,654 Accumulated depreciation (12,000 ) (11,757 ) Total property and equipment, net $ 9,708 $ 9,897 |
Goodwill and Other Intangibles
Goodwill and Other Intangibles (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Goodwill and Other Intangibles [Abstract] | |
Schedule of Goodwill by Segment | The following table presents the carrying amount of the Company’s goodwill and related impairment by segment: Three Months Ended March 31, 2024 Year Ended December 31, 2023 Non-standard Commercial Total Non-standard Commercial Total Goodwill, original recorded value $ 2,628 $ 6,756 $ 9,384 $ 2,628 $ 6,756 $ 9,384 Accumulated impairment losses at the beginning of the period — (6,756 ) (6,756 ) — — — Goodwill, beginning of period 2,628 — 2,628 2,628 6,756 9,384 Impairment recognized during the period — — — — (6,756 ) (6,756 ) Goodwill, end of period $ 2,628 $ — $ 2,628 $ 2,628 $ — $ 2,628 |
Schedule of Other Intangible Assets | The following table presents the carrying amount of the Company’s other intangible assets: March 31, 2024 Gross Carrying Accumulated Net Subject to amortization: Trade names $ 748 $ 461 $ 287 Distribution network 6,700 1,582 5,118 Total subject to amortization 7,448 2,043 5,405 Not subject to amortization: State insurance licenses 1,900 — 1,900 Total $ 9,348 $ 2,043 $ 7,305 December 31, 2023 Gross Carrying Accumulated Net Subject to amortization: Trade names $ 748 $ 448 $ 300 Distribution network 6,700 1,489 5,211 Total subject to amortization 7,448 1,937 5,511 Not subject to amortization: State insurance licenses 1,900 — 1,900 Total $ 9,348 $ 1,937 $ 7,411 |
Schedule of Amortization of Other Intangible Assets with Finite Lives | As of March 31, 2024, the estimated amortization of other intangible assets with finite lives for each of the five years in the period ending December 31, 2028, and thereafter is as follows: Year ending December 31, 2024 (nine months remaining) $ 317 2025 422 2026 422 2027 422 2028 422 Thereafter 3,400 Total other intangible assets with finite lives $ 5,405 |
Royalties, Dividends, and Aff_2
Royalties, Dividends, and Affiliations (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Royalties, Dividends, and Affiliations [Abstract] | |
Schedule of Impact of Including Battle Creek in our Consolidated Balance Sheets and Statements of Operations | The following table discloses the standalone balance sheet of Battle Creek, prior to intercompany eliminations, to illustrate the impact of including Battle Creek in our December 31, 2023, Consolidated Balance Sheet prior to demutualization: December 31, 2023 Assets: Cash and cash equivalents $ 2,621 Investments 15,394 Premiums and agents’ balances receivable 5,953 Deferred policy acquisition costs 682 Reinsurance recoverables on losses (2) 6,918 Accrued investment income 85 Income tax recoverable 225 Deferred income taxes 706 Property and equipment 306 Other assets 97 Total assets $ 32,987 Liabilities: Unpaid losses and loss adjustment expenses $ 4,276 Unearned premiums 3,269 Notes payable (1) 3,000 Pooling payable (1) 5,932 Reinsurance losses payable (2) 13,275 Accrued expenses and other liabilities 477 Total liabilities 30,229 Equity: Non-controlling interest 2,758 Total equity 2,758 Total liabilities and equity $ 32,987 (1) Amount fully eliminated in consolidation. (2) Amount partly eliminated in consolidation. |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Leases [Abstract] | |
Schedule of Operating Leases | Additional information regarding the Company’s leases are as follows: As of and For the Three Months Ended March 31, 2024 2023 Operating lease cost $ 96 $ 98 Finance lease cost: Amortization of right-of-use assets 20 — Interest on lease liabilities 6 — Finance lease cost 26 — Total lease cost $ 122 $ 98 Other information on leases: Cash payments included in operating cash flows from operating leases $ 101 $ 101 Cash payments included in operating cash flows from finance leases 6 — Cash payments included in financing cash flows from finance leases 25 — Right-of-use assets obtained in exchange for new operating lease liabilities — — Right-of-use assets obtained in exchange for new finance lease liabilities — — Weighted average discount rate – operating leases 3.94% 3.25% Weighted average discount rate – finance leases 8.50% — Weighted average remaining lease term in years – operating leases 5.1 years 6.1 years Weighted average remaining lease term in years – finance leases 2.6 years — |
Schedule of Contractual Maturities of Operating Leases | The following table presents the contractual maturities of the Company’s operating leases for each of the five years in the period ending December 31, 2028, and thereafter, reconciled to the Company’s operating lease liability at March 31, 2024: Year ending December 31, Operating Leases Finance Leases Total 2024 (nine months remaining) $ 283 $ 90 $ 373 2025 347 120 467 2026 351 100 451 2027 356 — 356 2028 331 — 331 Thereafter 178 — 178 Total undiscounted lease payments 1,846 310 2,156 Less: present value adjustment 167 31 198 Lease liability at March 31, 2024 $ 1,679 $ 279 $ 1,958 |
Common and Preferred Stock (Tab
Common and Preferred Stock (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Common and Preferred Stock [Abstract] | |
Schedule of Changes in the Number of Common Stock Shares Outstanding | Changes in the number of common stock shares outstanding were as follows: Three Months Ended March 31, 2024 2023 Shares outstanding, beginning of period 20,599,908 21,076,255 Treasury shares repurchased through stock repurchase authorization — (46,099 ) Issuance of treasury shares for vesting of restricted stock units 29,546 32,199 Shares outstanding, end of period 20,629,454 21,062,355 |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Share-Based Compensation [Abstract] | |
Schedule of Restricted Stock Outstanding | A summary of the Company’s outstanding and unearned RSUs is presented below: RSUs Weighted-Average Units outstanding and unearned at January 1, 2023 115,360 $ 17.00 RSUs granted during 2023 85,000 13.76 RSUs earned during 2023 (53,780 ) 16.32 Units outstanding and unearned at December 31, 2023 146,580 15.37 RSUs granted during 2024 79,800 14.19 RSUs earned during 2024 (42,820 ) 15.59 Units outstanding and unearned at March 31, 2024 183,560 14.81 |
Schedule of RSU Activity | The following table shows the impact of RSU activity to the Company’s financial results: Three Months Ended March 31, 2024 2023 RSU compensation expense $ 396 $ 302 Income tax benefit (90 ) (69 ) RSU compensation expense, net of income taxes $ 306 $ 233 |
Schedule of Performance Stock Outstanding | A summary of the Company’s outstanding PSUs is presented below: PSUs Weighted-Average Units outstanding at January 1, 2023 190,000 $ 17.00 PSUs granted during 2023 (at target) 87,400 13.85 PSUs earned during 2023 — — Performance adjustment (1) (63,600 ) 14.26 Forfeitures — — Units outstanding at December 31, 2023 213,800 16.53 PSUs granted during 2024 (at target) 79,800 14.19 PSUs earned during 2024 — — Performance adjustment (1) (64,600 ) 18.64 Forfeitures — — Units outstanding at March 31, 2024 229,000 15.12 (1) |
Schedule of PSU Activity | The following table shows the impact of PSU activity to the Company’s financial results: Three Months Ended March 31, 2024 2023 PSU compensation expense $ 185 $ 138 Income tax benefit (42 ) (31 ) PSU compensation expense, net of income taxes $ 143 $ 107 |
Allowance for Expected Credit_2
Allowance for Expected Credit Losses (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Allowance for Expected Credit Losses [Abstract] | |
Schedule of Allowance for Expected Credit Losses | The following table presents the balances of premiums and agents’ balances receivable, net of the allowance for expected credit losses as of March 31, 2024 and 2023, and the changes in the allowance for expected credit losses for the three months ended March 31, 2024 and 2023. As of and For the Three Months As of and For the Three Months Ended Premiums and Allowance for Premiums and Allowance for Balance, beginning of period $ 74,058 $ 402 $ 62,173 $ 425 Current period charge for expected credit losses (117 ) 90 Write-offs of uncollectible premiums receivable (61 ) (70 ) Balance, end of period $ 79,706 $ 224 $ 64,502 $ 445 |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Segment Information [Abstract] | |
Schedule of Revenue by Insurance Product Line | For the Consolidated Balance Sheets, those items include cash and investments, property and equipment, other assets, accrued expenses and other liabilities, income taxes recoverable or payable, and shareholders’ equity. Three Months Ended March 31, 2024 Private Non-Standard Home and Crop Commercial All Other Total Direct premiums earned $ 23,225 $ 25,058 $ 24,245 $ (204 ) $ 21,182 $ 1,394 $ 94,900 Assumed premiums earned — — — — — 151 151 Ceded premiums earned (1,123 ) (69 ) (2,831 ) (1,345 ) (4,044 ) (82 ) (9,494 ) Net premiums earned 22,102 24,989 21,414 (1,549 ) 17,138 1,463 85,557 Direct losses and loss adjustment expenses 11,409 16,869 12,782 (1,962 ) 13,976 1,580 54,654 Assumed losses and loss adjustment expenses — — — — — 45 45 Ceded losses and loss adjustment expenses (116 ) — (601 ) 405 (1,075 ) (1,103 ) (2,490 ) Net losses and loss adjustment expenses 11,293 16,869 12,181 (1,557 ) 12,901 522 52,209 Gross margin 10,809 8,120 9,233 8 4,237 941 33,348 Underwriting and general expenses 6,989 10,266 6,665 1 6,081 959 30,961 Underwriting gain (loss) 3,820 (2,146 ) 2,568 7 (1,844 ) (18 ) 2,387 Fee and other income 350 412 (1,796 ) Net investment income 3,553 Net investment gains 1,828 Income (loss) before income taxes 8,180 Income tax expense (benefit) 1,761 Net income (loss) 6,419 Net loss attributable to non-controlling interest — Net income (loss) attributable to NI Holdings, Inc. $ 6,419 Operating Ratios: Loss and loss adjustment expense ratio 51.1% 67.5% 56.9% n/a 75.3% 35.7% 61.0% Expense ratio 31.6% 41.1% 31.1% n/a 35.5% 65.6% 36.2% Combined ratio 82.7% 108.6% 88.0% n/a 110.8% 101.3% 97.2% Balances at March 31, 2024: Premiums and agents’ balances receivable $ 24,562 $ 22,720 $ 10,269 $ — $ 21,374 $ 781 $ 79,706 Deferred policy acquisition costs 6,295 12,978 8,621 — 8,191 480 36,565 Reinsurance recoverables on 88 — 2,970 33 43,139 3,254 49,484 Receivable from Federal Crop Insurance Corporation — — — 13,913 — — 13,913 Goodwill and other intangibles — 2,728 — — 7,205 — 9,933 Unpaid losses and loss adjustment expenses 25,610 65,228 20,124 92 105,904 8,048 225,006 Unearned premiums 36,095 42,641 48,751 — 41,139 2,792 171,418 Three Months Ended March 31, 2023 Private Non-Standard Home and Crop Commercial All Other Total Direct premiums earned $ 20,541 $ 20,971 $ 22,433 $ (10 ) $ 20,230 $ 1,309 $ 85,474 Assumed premiums earned — — — — — 576 576 Ceded premiums earned (888 ) (92 ) (2,442 ) (715 ) (4,213 ) (73 ) (8,423 ) Net premiums earned 19,653 20,879 19,991 (725 ) 16,017 1,812 77,627 Direct losses and loss adjustment expenses 15,624 17,038 9,523 (669 ) 29,322 23 70,861 Assumed losses and loss adjustment expenses — — — — — 90 90 Ceded losses and loss adjustment expenses 1 — (804 ) (104 ) (11,208 ) (11 ) (12,126 ) Net losses and loss adjustment expenses 15,625 17,038 8,719 (773 ) 18,114 102 58,825 Gross margin 4,028 3,841 11,272 48 (2,097 ) 1,710 18,802 Underwriting and general expenses 6,418 8,994 6,205 32 6,086 509 28,244 Underwriting gain (loss) (2,390 ) (5,153 ) 5,067 16 (8,183 ) 1,201 (9,442 ) Fee and other income 232 274 (4,921 ) Net investment income 2,239 Net investment gains 1,416 Income (loss) before income taxes (5,513 ) Income tax expense (benefit) (1,013 ) Net income (loss) (4,500 ) Net loss attributable to non-controlling interest (290 ) Net income (loss) attributable to NI Holdings, Inc. $ (4,210 ) Operating Ratios: Loss and loss adjustment expense ratio 79.5% 81.6% 43.6% n/a 113.1% 5.6% 75.8% Expense ratio 32.7% 43.1% 31.1% n/a 38.0% 28.1% 36.4% Combined ratio 112.2% 124.7% 74.7% n/a 151.1% 33.7% 112.2% Balances at March 31, 2023: Premiums and agents’ balances receivable $ 21,743 $ 16,642 $ 8,954 $ 93 $ 16,301 $ 769 $ 64,502 Deferred policy acquisition costs 5,309 10,716 7,279 — 7,616 430 31,350 Reinsurance recoverables on 1,280 — 5,845 51 37,669 797 45,642 Receivable from Federal Crop Insurance Corporation — — — 14,034 — — 14,034 Goodwill and other intangibles — 2,748 — — 14,384 — 17,132 Unpaid losses and loss adjustment expenses 27,366 50,876 29,165 421 89,296 7,666 204,790 Unearned premiums 32,378 33,711 44,446 — 39,975 2,957 153,467 |
Organization (Details)
Organization (Details) - Nodak Insurance [Member] - $ / shares | 3 Months Ended | |
Mar. 31, 2024 | Jan. 02, 2024 | |
Organization [Line Items] | ||
Percentage of shares exchanged | 55% | |
Ownership percentage | 100% | 100% |
Shares issued (in Shares) | 300,000 | |
Par value per share (in Dollars per share) | $ 10 |
Investments (Details)
Investments (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Investments [Abstract] | ||
Fixed income securities with a fair value | $ 7,569 | $ 6,403 |
Investments (Details) - Schedul
Investments (Details) - Schedule of Amortized Cost and Estimated Fair Value of Fixed Income Securities - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Fixed income securities: | ||
Cost or Amortized Cost | $ 380,579 | $ 376,730 |
Allowance for Expected Credit Losses | ||
Gross Unrealized Gains | 775 | 1,320 |
Gross Unrealized Losses | (31,582) | (30,319) |
Fair Value | 349,772 | 347,731 |
Redeemable preferred stocks [Member] | ||
Fixed income securities: | ||
Cost or Amortized Cost | 4,747 | 4,747 |
Allowance for Expected Credit Losses | ||
Gross Unrealized Gains | ||
Gross Unrealized Losses | (617) | (586) |
Fair Value | 4,130 | 4,161 |
U.S. Government and agencies [Member] | ||
Fixed income securities: | ||
Cost or Amortized Cost | 12,493 | 10,998 |
Allowance for Expected Credit Losses | ||
Gross Unrealized Gains | 5 | |
Gross Unrealized Losses | (801) | (736) |
Fair Value | 11,697 | 10,262 |
Obligations of states and political subdivisions [Member] | ||
Fixed income securities: | ||
Cost or Amortized Cost | 56,491 | 55,769 |
Allowance for Expected Credit Losses | ||
Gross Unrealized Gains | 240 | 408 |
Gross Unrealized Losses | (4,978) | (4,716) |
Fair Value | 51,753 | 51,461 |
Corporate securities [Member] | ||
Fixed income securities: | ||
Cost or Amortized Cost | 153,966 | 152,630 |
Allowance for Expected Credit Losses | ||
Gross Unrealized Gains | 149 | 442 |
Gross Unrealized Losses | (11,303) | (10,856) |
Fair Value | 142,812 | 142,216 |
Residential mortgage-backed securities [Member] | ||
Fixed income securities: | ||
Cost or Amortized Cost | 66,825 | 66,362 |
Allowance for Expected Credit Losses | ||
Gross Unrealized Gains | 86 | 180 |
Gross Unrealized Losses | (6,412) | (5,379) |
Fair Value | 60,499 | 61,163 |
Commercial mortgage-backed securities [Member] | ||
Fixed income securities: | ||
Cost or Amortized Cost | 32,779 | 33,532 |
Allowance for Expected Credit Losses | ||
Gross Unrealized Gains | 119 | 148 |
Gross Unrealized Losses | (3,742) | (4,241) |
Fair Value | 29,156 | 29,439 |
Asset-backed securities [Member] | ||
Fixed income securities: | ||
Cost or Amortized Cost | 53,278 | 52,692 |
Allowance for Expected Credit Losses | ||
Gross Unrealized Gains | 176 | 142 |
Gross Unrealized Losses | (3,729) | (3,805) |
Fair Value | $ 49,725 | $ 49,029 |
Investments (Details) - Sched_2
Investments (Details) - Schedule of Contractual Maturity - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Due to mature: | ||
Amortized Cost, Due to mature One year or less | $ 13,067 | $ 9,612 |
Fair Value, Due to mature One year or less | 12,822 | 9,436 |
Amortized Cost, Due to mature After one year through five years | 75,475 | 75,794 |
Fair Value, Due to mature After one year through five years | 71,868 | 72,602 |
Amortized Cost, Due to mature After five years through ten years | 85,017 | 86,185 |
Fair Value, Due to mature After five years through ten years | 77,531 | 79,281 |
Amortized Cost, Due to mature After ten years | 49,391 | 47,806 |
Fair Value, Due to mature After ten years | 44,041 | 42,620 |
Amortized Cost, Due to mature Mortgage / asset-backed securities | 152,882 | 152,586 |
Fair Value, Due to mature Mortgage / asset-backed securities | 139,380 | 139,631 |
Amortized Cost, Due to mature Redeemable preferred stocks | 4,747 | 4,747 |
Fair Value, Due to mature Redeemable preferred stocks | 4,130 | 4,161 |
Amortized Cost, Due to mature, Total fixed income securities | 380,579 | 376,730 |
Fair Value, Due to mature, Total fixed income securities | $ 349,772 | $ 347,731 |
Investments (Details) - Sched_3
Investments (Details) - Schedule of Gross Unrealized Losses on Fixed Income Securities - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Fixed income securities: | ||
Less than 12 months Fair Value | $ 52,679 | $ 32,452 |
Less than 12 months Unrealized Losses | (868) | (579) |
Greater than 12 months Fair Value | 243,542 | 246,744 |
Greater than 12 months Unrealized Losses | (30,714) | (29,740) |
Fair Value, Total | 296,221 | 279,196 |
Unrealized Losses, Total | (31,582) | (30,319) |
Fixed Income Securities [Member] | U.S. Government and agencies [Member] | ||
Fixed income securities: | ||
Less than 12 months Fair Value | 1,235 | |
Less than 12 months Unrealized Losses | (10) | |
Greater than 12 months Fair Value | 8,808 | 9,018 |
Greater than 12 months Unrealized Losses | (791) | (736) |
Fair Value, Total | 10,043 | 9,018 |
Unrealized Losses, Total | (801) | (736) |
Fixed Income Securities [Member] | Obligations of states and political subdivisions [Member] | ||
Fixed income securities: | ||
Less than 12 months Fair Value | 6,293 | 5,239 |
Less than 12 months Unrealized Losses | (154) | (359) |
Greater than 12 months Fair Value | 37,359 | 36,194 |
Greater than 12 months Unrealized Losses | (4,824) | (4,357) |
Fair Value, Total | 43,652 | 41,433 |
Unrealized Losses, Total | (4,978) | (4,716) |
Fixed Income Securities [Member] | Corporate securities [Member] | ||
Fixed income securities: | ||
Less than 12 months Fair Value | 22,275 | 8,018 |
Less than 12 months Unrealized Losses | (321) | (93) |
Greater than 12 months Fair Value | 108,426 | 110,117 |
Greater than 12 months Unrealized Losses | (10,982) | (10,763) |
Fair Value, Total | 130,701 | 118,135 |
Unrealized Losses, Total | (11,303) | (10,856) |
Fixed Income Securities [Member] | Residential mortgage-backed securities [Member] | ||
Fixed income securities: | ||
Less than 12 months Fair Value | 13,391 | 12,054 |
Less than 12 months Unrealized Losses | (310) | (104) |
Greater than 12 months Fair Value | 34,005 | 33,341 |
Greater than 12 months Unrealized Losses | (6,102) | (5,275) |
Fair Value, Total | 47,396 | 45,395 |
Unrealized Losses, Total | (6,412) | (5,379) |
Fixed Income Securities [Member] | Commercial mortgage-backed securities [Member] | ||
Fixed income securities: | ||
Less than 12 months Fair Value | 2,061 | 2,678 |
Less than 12 months Unrealized Losses | (36) | (5) |
Greater than 12 months Fair Value | 24,269 | 23,713 |
Greater than 12 months Unrealized Losses | (3,706) | (4,236) |
Fair Value, Total | 26,330 | 26,391 |
Unrealized Losses, Total | (3,742) | (4,241) |
Fixed Income Securities [Member] | Asset-backed securities [Member] | ||
Fixed income securities: | ||
Less than 12 months Fair Value | 7,424 | 4,463 |
Less than 12 months Unrealized Losses | (37) | (18) |
Greater than 12 months Fair Value | 26,545 | 30,200 |
Greater than 12 months Unrealized Losses | (3,692) | (3,787) |
Fair Value, Total | 33,969 | 34,663 |
Unrealized Losses, Total | (3,729) | (3,805) |
Redeemable preferred stocks [Member] | Fixed Income Securities [Member] | ||
Fixed income securities: | ||
Less than 12 months Fair Value | ||
Less than 12 months Unrealized Losses | ||
Greater than 12 months Fair Value | 4,130 | 4,161 |
Greater than 12 months Unrealized Losses | (617) | (586) |
Fair Value, Total | 4,130 | 4,161 |
Unrealized Losses, Total | $ (617) | $ (586) |
Investments (Details) - Sched_4
Investments (Details) - Schedule of Net Investment Income - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Schedule of Net Investment Income [Line Items] | ||
Total gross investment income | $ 4,511 | $ 3,152 |
Investment expenses | 958 | 913 |
Net investment income | 3,553 | 2,239 |
Fixed income securities [Member] | ||
Schedule of Net Investment Income [Line Items] | ||
Total gross investment income | 3,518 | 2,630 |
Equity securities [Member] | ||
Schedule of Net Investment Income [Line Items] | ||
Total gross investment income | 327 | 320 |
Real estate [Member] | ||
Schedule of Net Investment Income [Line Items] | ||
Total gross investment income | 158 | 150 |
Cash and cash equivalents [Member] | ||
Schedule of Net Investment Income [Line Items] | ||
Total gross investment income | $ 508 | $ 52 |
Investments (Details) - Sched_5
Investments (Details) - Schedule of Net Investment Gains - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Gross realized gains: | ||
Total gross realized gains | $ 235 | $ 12,731 |
Gross realized losses, excluding credit impairment losses: | ||
Total gross realized losses, excluding credit impairment losses | (365) | (1,145) |
Net realized gains (losses) | (130) | 11,586 |
Change in net unrealized gains on equity securities | 1,958 | (10,170) |
Net investment gains | 1,828 | 1,416 |
Fixed income securities [Member] | ||
Gross realized gains: | ||
Total gross realized gains | 9 | |
Gross realized losses, excluding credit impairment losses: | ||
Total gross realized losses, excluding credit impairment losses | (19) | (299) |
Equity securities [Member] | ||
Gross realized gains: | ||
Total gross realized gains | 226 | 12,731 |
Gross realized losses, excluding credit impairment losses: | ||
Total gross realized losses, excluding credit impairment losses | $ (346) | $ (846) |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - Schedule of Assets Which are Measured on a Recurring Basis - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Fixed income securities: | ||
Total fixed income securities | $ 349,772 | $ 347,731 |
Equity securities: | ||
Total equity securities | 29,650 | 27,767 |
Money market accounts and cash equivalents | 33,098 | 25,596 |
Total assets at fair value | 412,520 | 401,094 |
Fair Value, Inputs, Level 1 [Member] | ||
Fixed income securities: | ||
Total fixed income securities | ||
Equity securities: | ||
Total equity securities | 29,650 | 27,767 |
Money market accounts and cash equivalents | 26,837 | 19,412 |
Total assets at fair value | 56,487 | 47,179 |
Fair Value, Inputs, Level 2 [Member] | ||
Fixed income securities: | ||
Total fixed income securities | 349,772 | 347,731 |
Equity securities: | ||
Total equity securities | ||
Money market accounts and cash equivalents | 6,261 | 6,184 |
Total assets at fair value | 356,033 | 353,915 |
Fair Value, Inputs, Level 3 [Member] | ||
Fixed income securities: | ||
Total fixed income securities | ||
Equity securities: | ||
Total equity securities | ||
Money market accounts and cash equivalents | ||
Total assets at fair value | ||
U.S. Government and agencies [Member] | ||
Fixed income securities: | ||
Total fixed income securities | 11,697 | 10,262 |
U.S. Government and agencies [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fixed income securities: | ||
Total fixed income securities | ||
U.S. Government and agencies [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fixed income securities: | ||
Total fixed income securities | 11,697 | 10,262 |
U.S. Government and agencies [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fixed income securities: | ||
Total fixed income securities | ||
Obligations of states and political subdivisions [Member] | ||
Fixed income securities: | ||
Total fixed income securities | 51,753 | 51,461 |
Obligations of states and political subdivisions [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fixed income securities: | ||
Total fixed income securities | ||
Obligations of states and political subdivisions [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fixed income securities: | ||
Total fixed income securities | 51,753 | 51,461 |
Obligations of states and political subdivisions [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fixed income securities: | ||
Total fixed income securities | ||
Corporate securities [Member] | ||
Fixed income securities: | ||
Total fixed income securities | 142,812 | 142,216 |
Corporate securities [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fixed income securities: | ||
Total fixed income securities | ||
Corporate securities [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fixed income securities: | ||
Total fixed income securities | 142,812 | 142,216 |
Corporate securities [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fixed income securities: | ||
Total fixed income securities | ||
Residential mortgage-backed securities [Member] | ||
Fixed income securities: | ||
Total fixed income securities | 60,499 | 61,163 |
Residential mortgage-backed securities [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fixed income securities: | ||
Total fixed income securities | ||
Residential mortgage-backed securities [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fixed income securities: | ||
Total fixed income securities | 60,499 | 61,163 |
Residential mortgage-backed securities [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fixed income securities: | ||
Total fixed income securities | ||
Commercial mortgage-backed securities [Member] | ||
Fixed income securities: | ||
Total fixed income securities | 29,156 | 29,439 |
Commercial mortgage-backed securities [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fixed income securities: | ||
Total fixed income securities | ||
Commercial mortgage-backed securities [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fixed income securities: | ||
Total fixed income securities | 29,156 | 29,439 |
Commercial mortgage-backed securities [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fixed income securities: | ||
Total fixed income securities | ||
Asset-backed securities [Member] | ||
Fixed income securities: | ||
Total fixed income securities | 49,725 | 49,029 |
Asset-backed securities [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fixed income securities: | ||
Total fixed income securities | ||
Asset-backed securities [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fixed income securities: | ||
Total fixed income securities | 49,725 | 49,029 |
Asset-backed securities [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fixed income securities: | ||
Total fixed income securities | ||
Redeemable preferred stocks [Member] | ||
Fixed income securities: | ||
Total fixed income securities | 4,130 | 4,161 |
Redeemable preferred stocks [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fixed income securities: | ||
Total fixed income securities | ||
Redeemable preferred stocks [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fixed income securities: | ||
Total fixed income securities | 4,130 | 4,161 |
Redeemable preferred stocks [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fixed income securities: | ||
Total fixed income securities | ||
Non-redeemable preferred stocks [Member] | ||
Equity securities: | ||
Total equity securities | 1,999 | 1,877 |
Non-redeemable preferred stocks [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Equity securities: | ||
Total equity securities | 1,999 | 1,877 |
Non-redeemable preferred stocks [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Equity securities: | ||
Total equity securities | ||
Non-redeemable preferred stocks [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Equity securities: | ||
Total equity securities | ||
Common stock [Member] | ||
Equity securities: | ||
Total equity securities | 27,651 | 25,890 |
Common stock [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Equity securities: | ||
Total equity securities | 27,651 | 25,890 |
Common stock [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Equity securities: | ||
Total equity securities | ||
Common stock [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Equity securities: | ||
Total equity securities |
Reinsurance (Details)
Reinsurance (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2024 | Dec. 31, 2023 | |
Reinsurance [Line Items] | ||
Reinsurance retention policy, amount retained | $ 133,000 | |
Reinsurance coverage excess amount | 20,000 | |
Reinsurance risk excess of loss | 20,000 | $ 4,000 |
Excess property risks | 1,000 | 1,000 |
Reinsurance coverage property risk | 5,000 | 11,000 |
Reinsurance coverage excess of casualty risks | $ 2,000 | $ 1,000 |
Ceded reinsurance percentage | 100% | 100% |
Multi-Peril Crop [Member] | ||
Reinsurance [Line Items] | ||
Reinsurance risk excess of loss | $ 4,000 | |
Reinsurance coverage property risk | $ 11,000 | |
Net loss ratio percentage | 105% | |
Crop [Member] | ||
Reinsurance [Line Items] | ||
Net loss ratio percentage | 100% | |
External Reinsurance [Member] | ||
Reinsurance [Line Items] | ||
Reinsurance risk excess of loss | $ 4,000 | |
Excess property risks | 2,000 | |
Reinsurance coverage property risk | 11,000 | |
Reinsurance coverage excess of casualty risks | $ 1,000 |
Reinsurance (Details) - Schedul
Reinsurance (Details) - Schedule of Reconciliation of Direct to Net Premiums on Both a Written and an Earned Basis - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Premiums Written [Member] | ||
Schedule of Reconciliation of Direct to Net Premiums on Both a Written and an Earned Basis [Line Items] | ||
Premiums Written, Direct premium | $ 102,657 | $ 90,556 |
Premiums Written, Assumed premium | 137 | 399 |
Premiums Written, Ceded premium | (9,807) | (8,459) |
Premiums Written, Net premiums | 92,987 | 82,496 |
Premiums Earned [Member] | ||
Schedule of Reconciliation of Direct to Net Premiums on Both a Written and an Earned Basis [Line Items] | ||
Premiums Earned, Direct premium | 94,900 | 85,474 |
Premiums Earned, Assumed premium | 151 | 576 |
Premiums Earned, Ceded premium | (9,494) | (8,423) |
Premiums Earned, Net premiums | $ 85,557 | $ 77,627 |
Reinsurance (Details) - Sched_2
Reinsurance (Details) - Schedule of Reconciliation of Direct to Net Losses and Loss Adjustment Expenses - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Schedule of Reconciliation of Direct to Net Losses and Loss Adjustment Expenses [Abstract] | ||
Direct losses and loss adjustment expenses | $ 54,654 | $ 70,861 |
Assumed losses and loss adjustment expenses | 45 | 90 |
Ceded losses and loss adjustment expenses | (2,490) | (12,126) |
Net losses and loss adjustment expenses | $ 52,209 | $ 58,825 |
Reinsurance (Details) - Sched_3
Reinsurance (Details) - Schedule of Pooling Share Percentages by Insurance Company | Mar. 31, 2024 |
Schedule of Pooling Share Percentages by Insurance Company [Line Items] | |
Pool Percentage | 100% |
Nodak Insurance Company [Member] | |
Schedule of Pooling Share Percentages by Insurance Company [Line Items] | |
Pool Percentage | 66% |
American West Insurance Company [Member] | |
Schedule of Pooling Share Percentages by Insurance Company [Line Items] | |
Pool Percentage | 7% |
Primero Insurance Company [Member] | |
Schedule of Pooling Share Percentages by Insurance Company [Line Items] | |
Pool Percentage | 3% |
Battle Creek Insurance Company [Member] | |
Schedule of Pooling Share Percentages by Insurance Company [Line Items] | |
Pool Percentage | 2% |
Direct Auto Insurance Company [Member] | |
Schedule of Pooling Share Percentages by Insurance Company [Line Items] | |
Pool Percentage | 13% |
Westminster American Insurance Company [Member] | |
Schedule of Pooling Share Percentages by Insurance Company [Line Items] | |
Pool Percentage | 9% |
Deferred Policy Acquisition C_3
Deferred Policy Acquisition Costs (Details) - Schedule of Deferred Policy Acquisition Costs and Asset Reconciliation - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Deferred Policy Acquisition Costs [Abstract] | ||
Balance, beginning of period | $ 34,120 | $ 29,768 |
Deferral of policy acquisition costs | 23,108 | 20,170 |
Amortization of deferred policy acquisition costs | (20,663) | (18,588) |
Balance, end of period | $ 36,565 | $ 31,350 |
Unpaid Losses and Loss Adjust_3
Unpaid Losses and Loss Adjustment Expenses (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Unpaid Losses and Loss Adjustment Expenses [Abstract] | ||
Incurred reported losses and loss adjustment expenses | $ 1,284 | $ 9,971 |
Unpaid Losses and Loss Adjust_4
Unpaid Losses and Loss Adjustment Expenses (Details) - Schedule of Activity in the Liability for Unpaid Losses and Loss Adjustment Expenses - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Balance, beginning of period: | ||
Liability for unpaid losses and loss adjustment expenses | $ 217,119 | $ 190,459 |
Reinsurance recoverables on losses | 48,969 | 37,575 |
Net balance, beginning of period | 168,150 | 152,884 |
Incurred related to: | ||
Current year | 50,925 | 48,854 |
Prior years | 1,284 | 9,971 |
Total incurred | 52,209 | 58,825 |
Paid related to: | ||
Current year | 12,940 | 14,528 |
Prior years | 31,897 | 38,033 |
Total paid | 44,837 | 52,561 |
Balance, end of period: | ||
Liability for unpaid losses and loss adjustment expenses | 225,006 | 204,790 |
Reinsurance recoverables on losses | 49,484 | 45,642 |
Net balance, end of period | $ 175,522 | $ 159,148 |
Property and Equipment (Details
Property and Equipment (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Property and Equipment [Abstract] | ||
Depreciation expense | $ 243 | $ 182 |
Property and Equipment (Detai_2
Property and Equipment (Details) - Schedule of Property and Equipment - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Cost: | ||
Property and equipment, Gross cost | $ 21,708 | $ 21,654 |
Accumulated depreciation | (12,000) | (11,757) |
Total property and equipment, net | 9,708 | 9,897 |
Land [Member] | ||
Cost: | ||
Property and equipment, Gross cost | 1,403 | 1,403 |
Building and improvements [Member] | ||
Cost: | ||
Property and equipment, Gross cost | 14,558 | 14,538 |
Electronic data processing equipment [Member] | ||
Cost: | ||
Property and equipment, Gross cost | 1,441 | 1,441 |
Furniture and fixtures [Member] | ||
Cost: | ||
Property and equipment, Gross cost | 2,953 | 2,953 |
Automobiles [Member] | ||
Cost: | ||
Property and equipment, Gross cost | $ 1,353 | $ 1,319 |
Minimum [Member] | Building and improvements [Member] | ||
Cost: | ||
Estimated Useful Life | 10 years | |
Minimum [Member] | Electronic data processing equipment [Member] | ||
Cost: | ||
Estimated Useful Life | 5 years | |
Minimum [Member] | Furniture and fixtures [Member] | ||
Cost: | ||
Estimated Useful Life | 5 years | |
Minimum [Member] | Automobiles [Member] | ||
Cost: | ||
Estimated Useful Life | 2 years | |
Maximum [Member] | Building and improvements [Member] | ||
Cost: | ||
Estimated Useful Life | 43 years | |
Maximum [Member] | Electronic data processing equipment [Member] | ||
Cost: | ||
Estimated Useful Life | 7 years | |
Maximum [Member] | Furniture and fixtures [Member] | ||
Cost: | ||
Estimated Useful Life | 7 years | |
Maximum [Member] | Automobiles [Member] | ||
Cost: | ||
Estimated Useful Life | 3 years |
Goodwill and Other Intangible_2
Goodwill and Other Intangibles (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | |
Goodwill and Other Intangibles [Abstract] | |||
Impairment charges | $ 6,756 | ||
Amortization expense | $ 106 | $ 118 |
Goodwill and Other Intangible_3
Goodwill and Other Intangibles (Details) - Schedule of Goodwill by Segment - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2024 | Dec. 31, 2023 | |
Goodwill [Line Items] | ||
Goodwill, original recorded value | $ 9,384 | $ 9,384 |
Accumulated impairment losses at the beginning of the period | (6,756) | |
Goodwill, beginning of period | 2,628 | 9,384 |
Impairment recognized during the period | (6,756) | |
Goodwill, end of period | 2,628 | 2,628 |
Non-standard Auto [Member] | ||
Goodwill [Line Items] | ||
Goodwill, original recorded value | 2,628 | 2,628 |
Accumulated impairment losses at the beginning of the period | ||
Goodwill, beginning of period | 2,628 | 2,628 |
Impairment recognized during the period | ||
Goodwill, end of period | 2,628 | 2,628 |
Commercial [Member] | ||
Goodwill [Line Items] | ||
Goodwill, original recorded value | 6,756 | 6,756 |
Accumulated impairment losses at the beginning of the period | (6,756) | |
Goodwill, beginning of period | 6,756 | |
Impairment recognized during the period | (6,756) | |
Goodwill, end of period |
Goodwill and Other Intangible_4
Goodwill and Other Intangibles (Details) - Schedule of Other Intangible Assets - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Subject to amortization: | ||
Gross Carrying Amount | $ 9,348 | $ 9,348 |
Accumulated Amortization | 2,043 | 1,937 |
Net | 7,305 | 7,411 |
Trade Names [Member] | ||
Subject to amortization: | ||
Gross Carrying Amount | 748 | 748 |
Accumulated Amortization | 461 | 448 |
Net | 287 | 300 |
Distribution Network [Member] | ||
Subject to amortization: | ||
Gross Carrying Amount | 6,700 | 6,700 |
Accumulated Amortization | 1,582 | 1,489 |
Net | 5,118 | 5,211 |
Subject to Amortization [Member] | ||
Subject to amortization: | ||
Gross Carrying Amount | 7,448 | 7,448 |
Accumulated Amortization | 2,043 | 1,937 |
Net | 5,405 | 5,511 |
State insurance licenses [Member] | ||
Subject to amortization: | ||
Gross Carrying Amount | 1,900 | 1,900 |
Accumulated Amortization | ||
Net | $ 1,900 | $ 1,900 |
Goodwill and Other Intangible_5
Goodwill and Other Intangibles (Details) - Schedule of Amortization of Other Intangible Assets with Finite Lives $ in Thousands | Mar. 31, 2024 USD ($) |
Schedule of Amortization of Other Intangible Assets with Finite Lives [Abstract] | |
2024 (nine months remaining) | $ 317 |
2025 | 422 |
2026 | 422 |
2027 | 422 |
2028 | 422 |
Thereafter | 3,400 |
Total other intangible assets with finite lives | $ 5,405 |
Royalties, Dividends, and Aff_3
Royalties, Dividends, and Affiliations (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | |
Royalties, Dividends, and Affiliations [Line Items] | |||
Payment of royalties | $ 403 | $ 357 | |
NDFB [Member] | |||
Royalties, Dividends, and Affiliations [Line Items] | |||
Royalty amounts payable accrued | $ 150 | $ 131 |
Royalties, Dividends, and Aff_4
Royalties, Dividends, and Affiliations (Details) - Schedule of Impact of Including Battle Creek in our Consolidated Balance Sheets and Statements of Operations - Battle Creek [Member] $ in Thousands | Dec. 31, 2023 USD ($) | |
Assets: | ||
Cash and cash equivalents | $ 2,621 | |
Investments | 15,394 | |
Premiums and agents’ balances receivable | 5,953 | |
Deferred policy acquisition costs | 682 | |
Reinsurance recoverables on losses | 6,918 | [1] |
Accrued investment income | 85 | |
Income tax recoverable | 225 | |
Deferred income taxes | 706 | |
Property and equipment | 306 | |
Other assets | 97 | |
Total assets | 32,987 | |
Liabilities: | ||
Unpaid losses and loss adjustment expenses | 4,276 | |
Unearned premiums | 3,269 | |
Notes payable | 3,000 | [2] |
Pooling payable | 5,932 | [2] |
Reinsurance losses payable | 13,275 | [1] |
Accrued expenses and other liabilities | 477 | |
Total liabilities | 30,229 | |
Equity: | ||
Non-controlling interest | 2,758 | |
Total equity | 2,758 | |
Total liabilities and equity | $ 32,987 | |
[1]Amount partly eliminated in consolidation.[2]Amount fully eliminated in consolidation. |
Benefit Plans (Details)
Benefit Plans (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | |
Benefit Plans [Line Items] | |||
Company reported expenses | $ 210 | $ 189 | |
Deferred compensation plan expenses | 173 | 22 | |
Debt from ESOP | $ 2,400 | ||
Percentage of ESOP in authorized shares | 1% | ||
Per share price (in Dollars per share) | $ 10 | ||
Distribution of employee stock ownership plan shares | $ 84 | $ 82 | |
ESOP shares were released and allocated (in Shares) | 170,205 | 170,205 | |
ESOP shares in suspense (in Shares) | 69,795 | 69,795 | |
Market price (in Dollars per share) | $ 15.15 | ||
Fair value of unearned ESOP shares | $ 1,057 | ||
ESOP Loan [Member] | |||
Benefit Plans [Line Items] | |||
Debt term | 10 years | ||
Interest rate | 2.79% |
Line of Credit (Details)
Line of Credit (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2024 | Dec. 31, 2023 | |
Line of Credit [Line Items] | ||
Line of credit with Wells Fargo Bank | $ 3,000 | |
Floating interest rate | 2.50% | |
Outstanding amount | ||
Line of credit expiration date | Dec. 13, 2024 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2024 | Dec. 31, 2023 | Jan. 02, 2024 | |
Income Taxes [Line Items] | |||
Unrecognized tax benefits | |||
Unrecognized accrued interest and penalties | |||
Uncertain tax positions | |||
Interest and penalties were recognized | |||
Operating loss carryforwards | 3,756 | ||
Net operating losses, alternative minimum tax credits, or capital losses | |||
Net operating loss carryforwards expiration year | 2032 | ||
Nodak Insurance [Member] | |||
Income Taxes [Line Items] | |||
Percentage of wholly-owned subsidiary of nodak insurance | 100% | 100% |
Leases (Details)
Leases (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Leases [Line Items] | ||
Leases expenses (in Dollars) | $ 122 | $ 98 |
Spearfish [Member] | ||
Leases [Line Items] | ||
Operating lease expire term | 2028 years | |
Chicago [Member] | ||
Leases [Line Items] | ||
Operating lease expire term | 2029 years | |
Fargo [Member] | ||
Leases [Line Items] | ||
Operating lease expire term | 2024 years |
Leases (Details) - Schedule of
Leases (Details) - Schedule of Operating Leases - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Leases [Abstract] | ||
Operating lease cost | $ 96 | $ 98 |
Finance lease cost: | ||
Amortization of right-of-use assets | 20 | |
Interest on lease liabilities | 6 | |
Finance lease cost | 26 | |
Total lease cost | 122 | 98 |
Other information on leases: | ||
Cash payments included in operating cash flows from operating leases | 101 | 101 |
Cash payments included in operating cash flows from finance leases | 6 | |
Cash payments included in financing cash flows from finance leases | 25 | |
Right-of-use assets obtained in exchange for new operating lease liabilities | ||
Right-of-use assets obtained in exchange for new finance lease liabilities | ||
Weighted average discount rate – operating leases | 3.94% | 3.25% |
Weighted average discount rate – finance leases | 8.50% | |
Weighted average remaining lease term in years – operating leases | 5 years 1 month 6 days | 6 years 1 month 6 days |
Weighted average remaining lease term in years – finance leases | 2 years 7 months 6 days |
Leases (Details) - Schedule o_2
Leases (Details) - Schedule of Contractual Maturities of Operating Leases $ in Thousands | Dec. 31, 2023 USD ($) |
Schedule of Contractual Maturities of Operating Leases [Abstract] | |
Operating Leases - 2024 (nine months remaining) | $ 283 |
Finance Leases - 2024 (nine months remaining) | 90 |
Lease liability - 2024 (nine months remaining) | 373 |
Operating Leases - 2025 | 347 |
Finance Leases - 2025 | 120 |
Lease liability - 2025 | 467 |
Operating Leases - 2026 | 351 |
Finance Leases - 2026 | 100 |
Lease liability - 2026 | 451 |
Operating Leases - 2027 | 356 |
Finance Leases - 2027 | |
Lease liability - 2027 | 356 |
Operating Leases - 2028 | 331 |
Finance Leases - 2028 | |
Lease liability - 2028 | 331 |
Operating Leases - Thereafter | 178 |
Finance Leases - Thereafter | |
Lease liability - Thereafter | 178 |
Operating Leases - Total undiscounted lease payments | 1,846 |
Finance Leases - Total undiscounted lease payments | 310 |
Lease liability - Total undiscounted lease payments | 2,156 |
Operating Leases - Less: present value adjustment | 167 |
Finance Leases - Less: present value adjustment | 31 |
Lease liability - Less: present value adjustment | 198 |
Operating Leases - Lease liability at March 31, 2024 | 1,679 |
Finance Leases - Lease liability at March 31, 2024 | 279 |
Lease liability at March 31, 2024 | $ 1,958 |
Common and Preferred Stock (Det
Common and Preferred Stock (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | May 09, 2022 | |
Common and Preferred Stock [Line Items] | |||
Weighted average excluded from net loss per diluted common shares | 61,290 | ||
Shares repurchased | 46,099 | ||
Excise tax percentage | 1% | ||
Remains authorization | $ 2,052 | ||
Board of Directors [Member] | |||
Common and Preferred Stock [Line Items] | |||
Stock repurchase program, authorized amount | $ 10,000 | ||
Common Stock [Member] | |||
Common and Preferred Stock [Line Items] | |||
Shares repurchased | |||
Common stock authorization | $ 621 |
Common and Preferred Stock (D_2
Common and Preferred Stock (Details) - Schedule of Changes in the Number of Common Stock Shares Outstanding - shares | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Schedule of Changes in the Number of Common Stock Shares Outstanding [Abstract] | ||
Shares outstanding, beginning of period | 20,599,908 | 21,076,255 |
Treasury shares repurchased through stock repurchase authorization | (46,099) | |
Issuance of treasury shares for vesting of restricted stock units | 29,546 | 32,199 |
Shares outstanding, end of period | 20,629,454 | 21,062,355 |
Share-Based Compensation (Detai
Share-Based Compensation (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2024 USD ($) shares | |
Share-Based Payment Arrangement [Member] | |
Share-Based Compensation [Line Items] | |
Share issued (in Shares) | shares | 1,000,000 |
Shares granted (in Shares) | shares | 100,000 |
Outstanding, aggregate intrinsic value | $ 1,000 |
Restricted Stock [Member] | |
Share-Based Compensation [Line Items] | |
Percentage of RSU granted to non-employee directors per year | 100% |
Total unrecognized compensation cost | $ 1,627 |
Total unrecognized compensation cost, weighted average period | 1 year 7 months 13 days |
Performance Shares [Member] | |
Share-Based Compensation [Line Items] | |
Total unrecognized compensation cost | $ 1,776 |
Total unrecognized compensation cost, weighted average period | 2 years 6 months |
Minimum [Member] | Performance Shares [Member] | |
Share-Based Compensation [Line Items] | |
Percentage of RSU granted to employees per year | 0% |
Maximum [Member] | Performance Shares [Member] | |
Share-Based Compensation [Line Items] | |
Percentage of RSU granted to employees per year | 150% |
Director [Member] | Share-Based Payment Arrangement [Member] | |
Share-Based Compensation [Line Items] | |
Share granted not exceed | $ 150 |
Share-Based Compensation (Det_2
Share-Based Compensation (Details) - Schedule of Restricted Stock Outstanding - RSUs [Member] - $ / shares | 3 Months Ended | 12 Months Ended |
Mar. 31, 2024 | Dec. 31, 2023 | |
Schedule of Restricted Stock Outstanding [Line Items] | ||
RSUs, Units outstanding and unearned at beginning | 146,580 | 115,360 |
Weighted-Average Grant-Date Fair Value Per Share, Units outstanding and unearned at beginning | $ 15.37 | $ 17 |
RSUs granted | 79,800 | 85,000 |
Weighted-Average Grant-Date Fair Value Per Share, RSUs granted | $ 14.19 | $ 13.76 |
RSUs earned | (42,820) | (53,780) |
Weighted-Average Grant-Date Fair Value Per Share, RSUs earned | $ 15.59 | $ 16.32 |
RSUs, Units outstanding and unearned at ending | 183,560 | 146,580 |
Weighted-Average Grant-Date Fair Value Per Share, Units outstanding and unearned at ending | $ 14.81 | $ 15.37 |
Share-Based Compensation (Det_3
Share-Based Compensation (Details) - Schedule of RSU Activity - RSU [Member] - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Schedule of RSU Activity [Line Items] | ||
RSU compensation expense | $ 396 | $ 302 |
Income tax benefit | (90) | (69) |
RSU compensation expense, net of income taxes | $ 306 | $ 233 |
Share-Based Compensation (Det_4
Share-Based Compensation (Details) - Schedule of Performance Stock Outstanding - PSUs [Member] - $ / shares | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2024 | Dec. 31, 2023 | ||
Schedule of Performance Stock Outstanding [Line Items] | |||
PSUs, Units outstanding and unearned at beginning | 213,800 | 190,000 | |
Weighted-Average Grant-Date Fair Value Per Share, Units outstanding and unearned at beginning | $ 16.53 | $ 17 | |
PSUs granted during (at target) | 79,800 | 87,400 | |
Weighted-Average Grant-Date Fair Value Per Share, PSUs granted during (at target) | $ 14.19 | $ 13.85 | |
PSUs earned during | |||
Weighted-Average Grant-Date Fair Value Per Share, PSUs earned during | |||
PSUs, Performance adjustment | [1] | (64,600) | (63,600) |
Weighted-Average Grant-Date Fair Value Per Share, Performance adjustment | [1] | $ 18.64 | $ 14.26 |
PSUs, Forfeitures | |||
Weighted-Average Grant-Date Fair Value Per Share, Forfeitures | |||
PSUs, Units outstanding and unearned at ending | 229,000 | 213,800 | |
Weighted-Average Grant-Date Fair Value Per Share, Units outstanding and unearned at ending | $ 15.12 | $ 16.53 | |
[1]Represents the change in PSUs issued based upon the attainment of performance goals established by the Company. |
Share-Based Compensation (Det_5
Share-Based Compensation (Details) - Schedule of PSU Activity - PSU [Member] - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Schedule of PSU Activity [Line Items] | ||
PSU compensation expense | $ 185 | $ 138 |
Income tax benefit | (42) | (31) |
PSU compensation expense, net of income taxes | $ 143 | $ 107 |
Allowance for Expected Credit_3
Allowance for Expected Credit Losses (Details) - Schedule of Allowance for Expected Credit Losses - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Premiums and Agents’ Balances Receivable, Net of Allowance for Expected Credit Losses [Member] | ||
Schedule of Allowance for Expected Credit Losses [Line Items] | ||
Balance, beginning of period | $ 74,058 | $ 62,173 |
Balance, end of period | 79,706 | 64,502 |
Allowance for Expected Credit Losses [Member] | ||
Schedule of Allowance for Expected Credit Losses [Line Items] | ||
Balance, beginning of period | 402 | 425 |
Current period charge for expected credit losses | (117) | 90 |
Write-offs of uncollectible premiums receivable | (61) | (70) |
Balance, end of period | $ 224 | $ 445 |
Segment Information (Details)
Segment Information (Details) | 3 Months Ended |
Mar. 31, 2024 | |
Segment Information [Abstract] | |
Reportable operating segments | 6 |
Segment Information (Details) -
Segment Information (Details) - Schedule of Revenue by Insurance Product Line - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | |
Schedule of Revenue by Insurance Product Line [Line Items] | |||
Direct premiums earned | $ 94,900 | $ 85,474 | |
Assumed premiums earned | 151 | 576 | |
Ceded premiums earned | (9,494) | (8,423) | |
Net premiums earned | 85,557 | 77,627 | |
Direct losses and loss adjustment expenses | 54,654 | 70,861 | |
Assumed losses and loss adjustment expenses | 45 | 90 | |
Ceded losses and loss adjustment expenses | (2,490) | (12,126) | |
Net losses and loss adjustment expenses | 52,209 | 58,825 | |
Gross margin | 33,348 | 18,802 | |
Underwriting and general expenses | 30,961 | 28,244 | |
Underwriting gain (loss) | 2,387 | (9,442) | |
Fee and other income | 412 | 274 | |
Total | 412 | 274 | |
Net investment income | 3,553 | 2,239 | |
Net investment gains | 1,828 | 1,416 | |
Income (loss) before income taxes | 8,180 | (5,513) | |
Income tax expense (benefit) | 1,761 | (1,013) | |
Net income (loss) | 6,419 | (4,500) | |
Net loss attributable to non-controlling interest | (290) | ||
Net income (loss) attributable to NI Holdings, Inc. | $ 6,419 | $ (4,210) | |
Operating Ratios: | |||
Loss and loss adjustment expense ratio | 61% | 75.80% | |
Expense ratio | 36.20% | 36.40% | |
Combined ratio | 97.20% | 112.20% | |
Balances at March 31, 2024: | |||
Premiums and agents’ balances receivable | $ 79,706 | $ 64,502 | |
Deferred policy acquisition costs | 36,565 | 31,350 | |
Reinsurance recoverables on losses | 49,484 | 45,642 | $ 48,969 |
Receivable from Federal Crop Insurance Corporation | 13,913 | 14,034 | |
Goodwill and other intangibles | 9,933 | 17,132 | 10,039 |
Unpaid losses and loss adjustment expenses | 225,006 | 204,790 | 217,119 |
Unearned premiums | 171,418 | 153,467 | $ 164,100 |
Private Passenger Auto [Member] | |||
Schedule of Revenue by Insurance Product Line [Line Items] | |||
Direct premiums earned | 23,225 | 20,541 | |
Assumed premiums earned | |||
Ceded premiums earned | (1,123) | (888) | |
Net premiums earned | 22,102 | 19,653 | |
Direct losses and loss adjustment expenses | 11,409 | 15,624 | |
Assumed losses and loss adjustment expenses | |||
Ceded losses and loss adjustment expenses | (116) | 1 | |
Net losses and loss adjustment expenses | 11,293 | 15,625 | |
Gross margin | 10,809 | 4,028 | |
Underwriting and general expenses | 6,989 | 6,418 | |
Underwriting gain (loss) | $ 3,820 | $ (2,390) | |
Operating Ratios: | |||
Loss and loss adjustment expense ratio | 51.10% | 79.50% | |
Expense ratio | 31.60% | 32.70% | |
Combined ratio | 82.70% | 112.20% | |
Balances at March 31, 2024: | |||
Premiums and agents’ balances receivable | $ 24,562 | $ 21,743 | |
Deferred policy acquisition costs | 6,295 | 5,309 | |
Reinsurance recoverables on losses | 88 | 1,280 | |
Receivable from Federal Crop Insurance Corporation | |||
Goodwill and other intangibles | |||
Unpaid losses and loss adjustment expenses | 25,610 | 27,366 | |
Unearned premiums | 36,095 | 32,378 | |
Non-Standard Auto [Member] | |||
Schedule of Revenue by Insurance Product Line [Line Items] | |||
Direct premiums earned | 25,058 | 20,971 | |
Assumed premiums earned | |||
Ceded premiums earned | (69) | (92) | |
Net premiums earned | 24,989 | 20,879 | |
Direct losses and loss adjustment expenses | 16,869 | 17,038 | |
Assumed losses and loss adjustment expenses | |||
Ceded losses and loss adjustment expenses | |||
Net losses and loss adjustment expenses | 16,869 | 17,038 | |
Gross margin | 8,120 | 3,841 | |
Underwriting and general expenses | 10,266 | 8,994 | |
Underwriting gain (loss) | (2,146) | (5,153) | |
Fee and other income | 350 | 232 | |
Total | $ (1,796) | $ (4,921) | |
Operating Ratios: | |||
Loss and loss adjustment expense ratio | 67.50% | 81.60% | |
Expense ratio | 41.10% | 43.10% | |
Combined ratio | 108.60% | 124.70% | |
Balances at March 31, 2024: | |||
Premiums and agents’ balances receivable | $ 22,720 | $ 16,642 | |
Deferred policy acquisition costs | 12,978 | 10,716 | |
Reinsurance recoverables on losses | |||
Receivable from Federal Crop Insurance Corporation | |||
Goodwill and other intangibles | 2,728 | 2,748 | |
Unpaid losses and loss adjustment expenses | 65,228 | 50,876 | |
Unearned premiums | 42,641 | 33,711 | |
Home and Farm [Member] | |||
Schedule of Revenue by Insurance Product Line [Line Items] | |||
Direct premiums earned | 24,245 | 22,433 | |
Assumed premiums earned | |||
Ceded premiums earned | (2,831) | (2,442) | |
Net premiums earned | 21,414 | 19,991 | |
Direct losses and loss adjustment expenses | 12,782 | 9,523 | |
Assumed losses and loss adjustment expenses | |||
Ceded losses and loss adjustment expenses | (601) | (804) | |
Net losses and loss adjustment expenses | 12,181 | 8,719 | |
Gross margin | 9,233 | 11,272 | |
Underwriting and general expenses | 6,665 | 6,205 | |
Underwriting gain (loss) | $ 2,568 | $ 5,067 | |
Operating Ratios: | |||
Loss and loss adjustment expense ratio | 56.90% | 43.60% | |
Expense ratio | 31.10% | 31.10% | |
Combined ratio | 88% | 74.70% | |
Balances at March 31, 2024: | |||
Premiums and agents’ balances receivable | $ 10,269 | $ 8,954 | |
Deferred policy acquisition costs | 8,621 | 7,279 | |
Reinsurance recoverables on losses | 2,970 | 5,845 | |
Receivable from Federal Crop Insurance Corporation | |||
Goodwill and other intangibles | |||
Unpaid losses and loss adjustment expenses | 20,124 | 29,165 | |
Unearned premiums | 48,751 | 44,446 | |
Crop [Member] | |||
Schedule of Revenue by Insurance Product Line [Line Items] | |||
Direct premiums earned | (204) | (10) | |
Assumed premiums earned | |||
Ceded premiums earned | (1,345) | (715) | |
Net premiums earned | (1,549) | (725) | |
Direct losses and loss adjustment expenses | (1,962) | (669) | |
Assumed losses and loss adjustment expenses | |||
Ceded losses and loss adjustment expenses | 405 | (104) | |
Net losses and loss adjustment expenses | (1,557) | (773) | |
Gross margin | 8 | 48 | |
Underwriting and general expenses | 1 | 32 | |
Underwriting gain (loss) | $ 7 | $ 16 | |
Operating Ratios: | |||
Loss and loss adjustment expense ratio | |||
Expense ratio | |||
Combined ratio | |||
Balances at March 31, 2024: | |||
Premiums and agents’ balances receivable | $ 93 | ||
Deferred policy acquisition costs | |||
Reinsurance recoverables on losses | 33 | 51 | |
Receivable from Federal Crop Insurance Corporation | 13,913 | 14,034 | |
Goodwill and other intangibles | |||
Unpaid losses and loss adjustment expenses | 92 | 421 | |
Unearned premiums | |||
Commercial [Member] | |||
Schedule of Revenue by Insurance Product Line [Line Items] | |||
Direct premiums earned | 21,182 | 20,230 | |
Assumed premiums earned | |||
Ceded premiums earned | (4,044) | (4,213) | |
Net premiums earned | 17,138 | 16,017 | |
Direct losses and loss adjustment expenses | 13,976 | 29,322 | |
Assumed losses and loss adjustment expenses | |||
Ceded losses and loss adjustment expenses | (1,075) | (11,208) | |
Net losses and loss adjustment expenses | 12,901 | 18,114 | |
Gross margin | 4,237 | (2,097) | |
Underwriting and general expenses | 6,081 | 6,086 | |
Underwriting gain (loss) | $ (1,844) | $ (8,183) | |
Operating Ratios: | |||
Loss and loss adjustment expense ratio | 75.30% | 113.10% | |
Expense ratio | 35.50% | 38% | |
Combined ratio | 110.80% | 151.10% | |
Balances at March 31, 2024: | |||
Premiums and agents’ balances receivable | $ 21,374 | $ 16,301 | |
Deferred policy acquisition costs | 8,191 | 7,616 | |
Reinsurance recoverables on losses | 43,139 | 37,669 | |
Receivable from Federal Crop Insurance Corporation | |||
Goodwill and other intangibles | 7,205 | 14,384 | |
Unpaid losses and loss adjustment expenses | 105,904 | 89,296 | |
Unearned premiums | 41,139 | 39,975 | |
All Other [Member] | |||
Schedule of Revenue by Insurance Product Line [Line Items] | |||
Direct premiums earned | 1,394 | 1,309 | |
Assumed premiums earned | 151 | 576 | |
Ceded premiums earned | (82) | (73) | |
Net premiums earned | 1,463 | 1,812 | |
Direct losses and loss adjustment expenses | 1,580 | 23 | |
Assumed losses and loss adjustment expenses | 45 | 90 | |
Ceded losses and loss adjustment expenses | (1,103) | (11) | |
Net losses and loss adjustment expenses | 522 | 102 | |
Gross margin | 941 | 1,710 | |
Underwriting and general expenses | 959 | 509 | |
Underwriting gain (loss) | $ (18) | $ 1,201 | |
Operating Ratios: | |||
Loss and loss adjustment expense ratio | 35.70% | 5.60% | |
Expense ratio | 65.60% | 28.10% | |
Combined ratio | 101.30% | 33.70% | |
Balances at March 31, 2024: | |||
Premiums and agents’ balances receivable | $ 781 | $ 769 | |
Deferred policy acquisition costs | 480 | 430 | |
Reinsurance recoverables on losses | 3,254 | 797 | |
Receivable from Federal Crop Insurance Corporation | |||
Goodwill and other intangibles | |||
Unpaid losses and loss adjustment expenses | 8,048 | 7,666 | |
Unearned premiums | $ 2,792 | $ 2,957 |
Subsequent Events (Details)
Subsequent Events (Details) | May 07, 2024 USD ($) |
Subsequent Event [Member] | |
Subsequent Events (Details) [Line Items] | |
Total consideration sale cash | $ 10,500 |