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Segment Information
 6 Months Ended
Jun. 30, 2024
Segment Information [Abstract]  
Segment Information
20.Segment Information

 

We have five reportable operating segments of our continuing operations, which consist of Private Passenger Auto, Non-Standard Auto, Home and Farm, Crop, and All Other (which primarily consists of commercial, assumed reinsurance, and our excess liability business). Prior to the sale of Westminster on June 30, 2024, we also reported a Commercial segment that consisted primarily of Westminster’s balances and results. Subsequent to the sale, Westminster is reported as part of discontinued operations, which is not included in our segment information. The commercial business that remains a part of our continuing operations has been included in the All Other segment for the current and prior periods presented. 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- and six-month periods ended June 30, 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 June 30, 2024 
   Private
Passenger Auto		   Non-Standard
Auto		   Home and
Farm		   Crop   All Other   Total 
Direct premiums earned  $23,395   $26,820   $24,999   $13,118   $3,168   $91,500 
Assumed premiums earned   
—
    
—
    
—
    503    150    653 
Ceded premiums earned   (924)   (77)   (3,075)   (2,643)   (265)   (6,984)
Net premiums earned   22,471    26,743    21,924    10,978    3,053    85,169 
                               
Direct losses and loss adjustment expenses   20,899    19,313    22,574    8,916    1,648    73,350 
Assumed losses and loss adjustment expenses   
—
    
—
    
—
    247    (23)   224 
Ceded losses and loss adjustment expenses   (970)   
—
    (548)   (1,852)   (846)   (4,216)
Net losses and loss adjustment expenses   19,929    19,313    22,026    7,311    779    69,358 
                               
Gross margin   2,542    7,430    (102)   3,667    2,274    15,811 
                               
Underwriting and general expenses   6,836    10,261    7,246    1,712    1,464    27,519 
Underwriting gain (loss)   (4,294)   (2,831)   (7,348)   1,955    810    (11,708)
                               
Fee and other income        340                   695 
         (2,491)                    
Net investment income                            2,523 
Net investment gains (losses)                            (580)
Loss before income taxes                            (9,070)
Income tax expense (benefit)                            (1,592)
Net loss                            (7,478)
Net loss attributable to non-controlling interest                            
—
 
Net loss attributable to NI Holdings, Inc.                           $(7,478)
                               
Operating Ratios:                              
Loss and loss adjustment expense ratio   88.7%    72.2%    100.5%    66.6%    25.5%    81.4% 
Expense ratio   30.4%    38.4%    33.1%    15.6%    48.0%    32.3% 
Combined ratio   119.1%    110.6%    133.6%    82.2%    73.5%    113.7% 
                               
                               
Balances at June 30, 2024:                              
Premiums and agents’ balances receivable  $26,393   $15,357   $11,927   $36,382   $2,772   $92,831 
Deferred policy acquisition costs   6,719    11,533    9,598    2,120    1,187    31,157 
Reinsurance recoverables on
losses		   930    
—
    2,726    1,685    4,082    9,423 
Receivable from Federal Crop Insurance Corporation   
—
    
—
    
—
    13,793    
—
    13,793 
Goodwill and other intangibles   
—
    2,728    
—
    
—
    
—
    2,728 
Unpaid losses and loss adjustment expenses   33,643    69,951    26,336    8,770    9,827    148,527 
Unearned premiums   38,682    36,170    54,147    21,695    7,036    157,730 

 

   Three Months Ended June 30, 2023 
   Private
Passenger Auto		   Non-Standard
Auto		   Home and
Farm		   Crop   All Other   Total 
Direct premiums earned  $21,508   $21,744   $22,994   $17,526   $2,850   $86,622 
Assumed premiums earned   
—
    
—
    
—
    501    326    827 
Ceded premiums earned   (965)   (99)   (2,580)   (4,691)   (279)   (8,614)
Net premiums earned   20,543    21,645    20,414    13,336    2,897    78,835 
                               
Direct losses and loss adjustment expenses   18,456    14,139    18,414    12,702    2,500    66,211 
Assumed losses and loss adjustment expenses   
—
    
—
    
—
    
—
    67    67 
Ceded losses and loss adjustment expenses   411    
—
    (499)   (4,492)   (1,621)   (6,201)
Net losses and loss adjustment expenses   18,867    14,139    17,915    8,210    946    60,077 
                               
Gross margin   1,676    7,506    2,499    5,126    1,951    18,758 
                               
Underwriting and general expenses   5,796    8,730    6,194    2,683    856    24,259 
Underwriting gain (loss)   (4,120)   (1,224)   (3,695)   2,443    1,095    (5,501)
                               
Fee and other income        239                   490 
         (985)                    
Net investment income                            1,923 
Net investment gains (losses)                            (173)
Loss before income taxes                            (3,261)
Income tax expense (benefit)                            (685)
Net loss                            (2,576)
Net loss attributable to non-controlling interest                            (113)
Net loss attributable to NI Holdings, Inc.                           $(2,463)
                               
Operating Ratios:                              
Loss and loss adjustment expense ratio   91.8%    65.3%    87.8%    61.6%    32.7%    76.2% 
Expense ratio   28.3%    40.3%    30.3%    20.0%    29.5%    30.9% 
Combined ratio   120.1%    105.6%    118.1%    81.6%    62.2%    107.1% 
                               
                               
Balances at June 30, 2023:                              
Premiums and agents’ balances receivable  $23,840   $10,322   $9,793   $44,950   $2,344   $91,249 
Deferred policy acquisition costs   5,785    8,870    7,974    2,832    1,009    26,470 
Reinsurance recoverables on
losses		   727    
—
    4,691    3,114    2,416    10,948 
Receivable from Federal Crop Insurance Corporation   
—
    
—
    
—
    14,032    
—
    14,032 
Goodwill and other intangibles   
—
    2,736    
—
    
—
    
—
    2,736 
Unpaid losses and loss adjustment expenses   31,935    52,866    30,503    11,603    10,628    137,535 
Unearned premiums   35,317    28,067    48,690    27,193    6,412    145,679 

 

   Six Months Ended June 30, 2024 
   Private
Passenger Auto		   Non-Standard
Auto		   Home and
Farm		   Crop   All Other   Total 
Direct premiums earned  $46,619   $51,878   $49,244   $12,915   $6,243   $166,899 
Assumed premiums earned   
—
    
—
    
—
    503    301    804 
Ceded premiums earned   (2,046)   (147)   (5,905)   (3,989)   (563)   (12,650)
Net premiums earned   44,573    51,731    43,339    9,429    5,981    155,053 
                               
Direct losses and loss adjustment expenses   32,308    36,182    35,356    6,955    4,068    114,869 
Assumed losses and loss adjustment expenses   
—
    
—
    
—
    247    22    269 
Ceded losses and loss adjustment expenses   (1,086)   
—
    (1,149)   (1,448)   (1,953)   (5,636)
Net losses and loss adjustment expenses   31,222    36,182    34,207    5,754    2,137    109,502 
                               
Gross margin   13,351    15,549    9,132    3,675    3,844    45,551 
                               
Underwriting and general expenses   13,857    20,565    13,943    1,711    2,965    53,041 
Underwriting gain (loss)   (506)   (5,016)   (4,811)   1,964    879    (7,490)
                               
Fee and other income        690                   1,099 
         (4,326)                    
Net investment income                            5,278 
Net investment gains (losses)                            876 
Loss before income taxes                            (237)
Income tax expense (benefit)                            306 
Net loss                            (543)
Net loss attributable to non-controlling interest                            
—
 
Net loss attributable to NI Holdings, Inc.                           $(543)
                               
Operating Ratios:                              
Loss and loss adjustment expense ratio   70.0%    69.9%    78.9%    61.0%    35.7%    70.6% 
Expense ratio   31.1%    39.8%    32.2%    18.1%    49.6%    34.2% 
Combined ratio   101.1%    109.7%    111.1%    79.1%    85.3%    104.8% 

 

   Six Months Ended June 30, 2023 
   Private
Passenger Auto		   Non-Standard
Auto		   Home and
Farm		   Crop   All Other   Total 
Direct premiums earned  $42,050   $42,716   $45,426   $17,516   $5,584   $153,292 
Assumed premiums earned   
—
    
—
    
—
    501    902    1,403 
Ceded premiums earned   (1,853)   (192)   (5,021)   (5,405)   (518)   (12,989)
Net premiums earned   40,197    42,524    40,405    12,612    5,968    141,706 
                               
Direct losses and loss adjustment expenses   34,081    31,177    27,937    12,032    2,937    108,164 
Assumed losses and loss adjustment expenses   
—
    
—
    
—
    
—
    157    157 
Ceded losses and loss adjustment expenses   412    
—
    (1,303)   (4,597)   (1,631)   (7,119)
Net losses and loss adjustment expenses   34,493    31,177    26,634    7,435    1,463    101,202 
                               
Gross margin   5,704    11,347    13,771    5,177    4,505    40,504 
                               
Underwriting and general expenses   12,279    17,791    12,464    2,715    1,815    47,064 
Underwriting gain (loss)   (6,575)   (6,444)   1,307    2,462    2,690    (6,560)
                               
Fee and other income        471                   751 
         (5,973)                    
Net investment income                            3,614 
Net investment gains (losses)                            1,230 
Loss before income taxes                            (965)
Income tax expense (benefit)                            (203)
Net loss                            (762)
Net loss attributable to non-controlling interest                            (403)
Net loss attributable to NI Holdings, Inc.                           $(359)
                               
Operating Ratios:                              
Loss and loss adjustment expense ratio   85.8%    73.3%    65.9%    59.0%    24.5%    71.4% 
Expense ratio   30.5%    41.8%    30.8%    21.5%    30.4%    33.2% 
Combined ratio   116.3%    115.1%    96.7%    80.5%    54.9%    104.6%