NODK earnings analysis
What we found in NODK's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
NI Holdings returned to modest profitability in Q2 2026, with $0.146M of net income versus a $12.051M loss a year earlier, driven by lower claims, $6.077M of favorable reserve development and higher investment gains. However, total revenue fell 7.7% to $70.234M, quarterly underwriting remained unprofitable with a 107.7% combined ratio, and operating cash flow was negative $0.955M for the first half. Growth in Home and Farm and All Other is being offset by the intentional runoff of Non-Standard Auto, for which management expects further near-term premium declines.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- Returned to Profitability Despite Lower Revenue
- Total revenue was $70.234M, down 7.7% from $76.057M a year ago, while net income improved to $0.146M from a $12.051M loss. Sequentially, revenue increased from approximately $59.602M in Q1 2026, but diluted EPS declined to $0.01 from $0.61.
- Material Underwriting Improvement
- The combined ratio improved to 107.7% from 125.1% year over year, and the underwriting loss narrowed to $4.987M from $18.376M. Net favorable prior-year reserve development was $6.077M in the quarter.
- Growth in Home, Farm and Other Lines
- Home and Farm net premiums earned increased 22.6% to $26.118M, while All Other increased 50.7% to $5.356M. All Other underwriting gain rose to $2.400M from $2.126M.
- Lower Claims Burden
- Net losses and loss adjustment expenses declined 27.3% to $48.417M from $66.607M, benefiting from lower catastrophe losses and favorable prior-year development. The overall loss ratio improved to 74.5% from 91.2%.
- First-Half Earnings Reversal
- Six-month net income was $12.654M versus a $5.591M loss in the prior year, with six-month underwriting income of $6.234M versus a $14.564M loss. Net investment gains increased to $3.767M from $0.459M.
- Solid Capital and Investment Base
- Total cash and investments remained substantial at $376.475M, while shareholders’ equity increased to $249.376M from $240.337M at December 31, 2025. The company had no borrowings under its $3.000M line of credit.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- Non-Standard Auto Runoff Continues
- Non-Standard Auto net premiums earned fell 93.5% to $0.942M from $14.505M, and management anticipates further near-term reductions as Illinois, Arizona and South Dakota operations run off. The segment still had $45.688M of unpaid losses at June 30, 2026.
- Home and Farm Underwriting Loss
- Home and Farm produced an $11.612M underwriting loss and a 144.5% combined ratio in the quarter, despite 22.6% premium growth. Management cited increased non-catastrophe weather-related losses as a partial offset to improvements elsewhere.
- Negative Cash Flow and Liquidity Use
- Operating cash flow was negative $0.955M for the first six months versus positive $16.289M a year ago. Premiums and agents’ balances receivable increased to $77.789M from $41.575M at year-end, while the company sold fixed-income securities to raise cash for operational liquidity and claim payments.
- Lower Investment Income and Unrealized Losses
- Net investment income declined to $2.810M from $3.146M year over year as average cash and invested assets fell to $375.692M from $402.499M. Fixed-income securities also carried $16.982M of gross unrealized losses at June 30, 2026.
- Underwriting Remains Below Breakeven
- The overall quarterly combined ratio remained above breakeven at 107.7%, producing a $4.987M underwriting loss. Home and Farm’s 144.5% combined ratio and Private Passenger Auto’s $1.822M gain leave limited margin for adverse claims development or weather losses.
- Constrained Holding-Company Liquidity
- The $3.000M Wells Fargo credit line had no outstanding balance but is scheduled to expire on December 11, 2026. Holding-company liquidity also depends on subsidiary dividends, with approximately $6.730M available from Nodak Insurance and $3.829M from Direct Auto without prior approval as of December 31, 2025.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $0.01
- Segment
- Private Passenger Auto: net premiums earned $22.094M, down 3.6% year over year; underwriting gain $1.822M.
- Segment
- Non-Standard Auto: net premiums earned $0.942M, down 93.5% year over year; underwriting gain $1.547M versus a $8.798M loss.
- Segment
- Home and Farm: net premiums earned $26.118M, up 22.6% year over year; underwriting loss $11.612M.
- Segment
- Crop: net premiums earned $10.507M, down 1.9% year over year; underwriting gain $0.856M.
- Segment
- All Other: net premiums earned $5.356M, up 50.7% year over year; underwriting gain $2.400M.
What they said about what is next.
No quantitative revenue or EPS guidance was provided. Management expects further near-term reductions in Non-Standard Auto net premiums as operations run off and expects sufficient operating funds and investment portfolio liquidity to meet claim settlements and operating expenses.
The filing reads about the same as the one before it.
What came before.
- 10-Q · May 8, 2026
- NI Holdings, Inc. reported Q1 2026 earnings reflecting a significant rebound with net income rising to $12,508 from $6,460 a year ago. Revenue dropped 18.3% year-over-year to $55,113 primarily driven by a strategic exit…
- 10-K · March 6, 2026
- NI Holdings (NODK) shows a strategic retrenchment from non-core non-standard auto markets and a disposal (Westminster sold June 30, 2024) while remaining concentrated in North Dakota. Operating results deteriorated…
- 10-Q · November 7, 2025
- NI Holdings reported total revenues of $76,568,000 for Q3 2025, down from $88,984,000 in Q3 2024, while GAAP diluted loss per share improved to $(0.08) from $(0.13). Operating loss (loss before income taxes) narrowed to…
- 10-K · March 7, 2025
- NI Holdings reports stable direct premium growth with total direct premiums written of $342,301 (thousands) in 2024, up from $341,234 in 2023, while executing portfolio changes (sale of Westminster on June 30, 2024) and…
This is our reading of a public filing, not the filing. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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