Segment Information (Tables)

9 Months Ended

Sep. 30, 2021

Income Tax Disclosure [Abstract]

Schedule of revenue by insurance product line

NI Holdings, Inc.

Notes to Unaudited Consolidated Financial Statements

(dollar amounts in thousands, except per share amounts)

	Three Months Ended September 30, 2021
	Private Passenger Auto			Non- Standard Auto			Home and Farm			Crop			Commercial			All Other				Total
Direct premiums earned	$	19,453		$	15,258		$	21,256		$	19,654		$	16,864		$	1,255		$	93,740
Assumed premiums earned		-			-			-			24			-			1,312			1,336
Ceded premiums earned		(962	)		(369	)		(2,481	)		(6,954	)		(2,066	)		(71	)		(12,903	)
Net premiums earned		18,491			14,889			18,775			12,724			14,798			2,496			82,173
Direct losses and LAE		17,646			9,620			19,839			27,237			13,058			53			87,453
Assumed losses and LAE		-			-			-			151			-			2,157			2,308
Ceded losses and LAE		(516	)		-			(3,684	)		(14,906	)		(5,288	)		375			(24,019	)
Net losses and LAE		17,130			9,620			16,155			12,482			7,770			2,585			65,742
Gross margin		1,361			5,269			2,620			242			7,028			(89	)		16,431
Underwriting and general expenses		5,892			6,010			6,627			864			5,257			698			25,348
Underwriting gain (loss)		(4,531	)		(741	)		(4,007	)		(622	)		1,771			(787	)		(8,917	)
Fee and other income					301															501
					(440	)
Net investment income																				1,713
Net capital gain on investments																				222
Loss before income taxes																				(6,481	)
Income tax benefit																				(1,622	)
Net loss																				(4,859	)
Net loss attributable to non-controlling interest																				(122	)
Net loss attributable to NI Holdings, Inc.																			$	(4,737	)
Non-GAAP Ratios:
Loss and LAE ratio		92.6%			64.6%			86.0%			98.1%			52.5%			103.6%			80.0%
Expense ratio		31.9%			40.4%			35.3%			6.8%			35.5%			28.0%			30.8%
Combined ratio		124.5%			105.0%			121.3%			104.9%			88.0%			131.5%			110.9%
Balances at September 30, 2021:
Premiums and agents’ balances receivable	$	19,531		$	8,789		$	9,246		$	33,376		$	10,737		$	709		$	82,388
Deferred policy acquisition costs		5,234			6,226			7,539			1			6,027			449			25,476
Reinsurance recoverables		1,422			-			2,680			28,824			7,911			1,841			42,678
Receivable from Federal Crop Insurance Corporation		-			-			-			9,362			-			-			9,362
Goodwill and other intangibles		-			2,823			-			-			15,017			-			17,840
Unpaid losses and LAE		26,073			44,114			17,443			50,393			30,547			11,006			179,576
Unearned premiums		29,462			19,489			42,664			9,369			32,930			3,185			137,099

33

NI Holdings, Inc.

Notes to Unaudited Consolidated Financial Statements

(dollar amounts in thousands, except per share amounts)

	Three Months Ended September 30, 2020
	Private Passenger Auto			Non- Standard Auto			Home and Farm			Crop			Commercial			All Other				Total
Direct premiums earned	$	19,002		$	13,882		$	20,688		$	12,189		$	12,516		$	1,178		$	79,455
Assumed premiums earned		-			-			-			(33	)		-			1,405			1,372
Ceded premiums earned		(1,055	)		(43	)		(2,140	)		(2,437	)		(1,743	)		(67	)		(7,485	)
Net premiums earned		17,947			13,839			18,548			9,719			10,773			2,516			73,342
Direct losses and LAE		13,570			9,425			13,912			12,154			9,257			1,618			59,936
Assumed losses and LAE		(165	)		-			-			617			-			1,984			2,436
Ceded losses and LAE		165			-			(475	)		(3,546	)		(3,680	)		(1,000	)		(8,536	)
Net losses and LAE		13,570			9,425			13,437			9,225			5,577			2,602			53,836
Gross margin		4,377			4,414			5,111			494			5,196			(86	)		19,506
Underwriting and general expenses		5,103			5,140			5,507			1,542			4,289			563			22,144
Underwriting gain (loss)		(726	)		(726	)		(396	)		(1,048	)		907			(649	)		(2,638	)
Fee and other income					336															524
					(390	)
Net investment income																				1,886
Net capital gain on investments																				5,102
Income before income taxes																				4,874
Income tax expense																				1,188
Net income																				3,686
Net income attributable to non-controlling interest																				22
Net income attributable to NI Holdings, Inc.																			$	3,664
Non-GAAP Ratios:
Loss and LAE ratio		75.6%			68.1%			72.4%			94.9%			51.8%			103.4%			73.4%
Expense ratio		28.4%			37.1%			29.7%			15.9%			39.8%			22.4%			30.2%
Combined ratio		104.0%			105.2%			102.1%			110.8%			91.6%			125.8%			103.6%
Balances at September 30, 2020:
Premiums and agents’ balances receivable	$	19,269		$	7,358		$	9,323		$	39,182		$	9,071		$	665		$	84,868
Deferred policy acquisition costs		5,629			4,931			7,900			409			4,564			452			23,885
Reinsurance recoverables		341			-			1,984			3,675			5,082			2,474			13,556
Receivable from Federal Crop Insurance Corporation		-			-			-			9,519			-			-			9,519
Goodwill and other intangibles		-			2,872			-			-			15,765			-			18,637
Unpaid losses and LAE		20,399			44,526			12,361			29,723			16,602			11,192			134,803
Unearned premiums		29,203			17,147			41,724			8,730			26,247			2,915			125,966

34

NI Holdings, Inc.

Notes to Unaudited Consolidated Financial Statements

(dollar amounts in thousands, except per share amounts)

	Nine Months Ended September 30, 2021
	Private Passenger Auto			Non- Standard Auto			Home and Farm			Crop			Commercial			All Other				Total
Direct premiums earned	$	57,153		$	44,102		$	62,647		$	34,212		$	47,781		$	3,647		$	249,542
Assumed premiums earned		-			-			-			2,108			-			4,192			6,300
Ceded premiums earned		(3,096	)		(1,057	)		(8,045	)		(15,196	)		(6,625	)		(234	)		(34,253	)
Net premiums earned		54,057			43,045			54,602			21,124			41,156			7,605			221,589
Direct losses and LAE		45,299			25,910			47,163			49,612			33,016			630			201,630
Assumed losses and LAE		-			-			-			674			-			4,542			5,216
Ceded losses and LAE		(1,010	)		-			(5,168	)		(27,911	)		(7,583	)		375			(41,297	)
Net losses and LAE		44,289			25,910			41,995			22,375			25,433			5,547			165,549
Gross margin		9,768			17,135			12,607			(1,251	)		15,723			2,058			56,040
Underwriting and general expenses		16,018			16,949			17,311			2,831			15,049			2,017			70,175
Underwriting gain (loss)		(6,250	)		186			(4,704	)		(4,082	)		674			41			(14,135	)
Fee and other income					994															1,338
					1,180
Net investment income																				4,959
Net capital gain on investments																				10,734
Income before income ​​taxes																				2,896
Income tax expense																				707
Net income																				2,189
Net loss attributable to non-controlling interest																				(99	)
Net income attributable to NI Holdings, Inc.																			$	2,288
Non-GAAP Ratios:
Loss and LAE ratio		81.9%			60.2%			76.9%			105.9%			61.8%			72.9%			74.7%
Expense ratio		29.6%			39.4%			31.7%			13.4%			36.6%			26.5%			31.7%
Combined ratio		111.6%			99.6%			108.6%			119.3%			98.4%			99.5%			106.4%

35

NI Holdings, Inc.

Notes to Unaudited Consolidated Financial Statements

(dollar amounts in thousands, except per share amounts)

	Nine Months Ended September 30, 2020
	Private Passenger Auto			Non- Standard Auto			Home and Farm			Crop			Commercial			All Other				Total
Direct premiums earned	$	55,899		$	40,253		$	61,062		$	31,438		$	32,173		$	3,475		$	224,300
Assumed premiums earned		-			-			-			1,903			-			3,752			5,655
Ceded premiums earned		(3,267	)		(129	)		(7,125	)		109			(5,206	)		(217	)		(15,835	)
Net premiums earned		52,632			40,124			53,937			33,450			26,967			7,010			214,120
Direct losses and LAE		33,324			23,560			32,661			35,212			26,169			2,277			153,203
Assumed losses and LAE		-			-			-			839			-			2,699			3,538
Ceded losses and LAE		(1	)		-			(1,826	)		(5,352	)		(11,640	)		(1,300	)		(20,119	)
Net losses and LAE		33,323			23,560			30,835			30,699			14,529			3,676			136,622
Gross margin		19,309			16,564			23,102			2,751			12,438			3,334			77,498
Underwriting and general expenses		14,248			15,482			15,102			3,542			11,842			1,712			61,928
Underwriting gain (loss)		5,061			1,082			8,000			(791	)		596			1,622			15,570
Fee and other income					993															1,332
					2,075
Net investment income																				5,875
Net capital gain on investments																				1,380
Income before income taxes																				24,157
Income tax expense																				5,259
Net income																				18,898
Net income attributable to non-controlling interest																				88
Net income attributable to NI Holdings, Inc.																			$	18,810
Non-GAAP Ratios:
Loss and LAE ratio		63.3%			58.7%			57.2%			91.8%			53.9%			52.4%			63.8%
Expense ratio		27.1%			38.6%			28.0%			10.6%			43.9%			24.4%			28.9%
Combined ratio		90.4%			97.3%			85.2%			102.4%			97.8%			76.9%			92.7%