Segment Information

6 Months Ended

Jun. 30, 2018

Segment Reporting [Abstract]

Segment Information

21. Segment Information

We have four primary reportable operating segments, which consist of private passenger auto insurance, non-standard auto insurance, home and farm insurance, and crop insurance. A fifth segment captures all other insurance coverages we sell, including commercial coverages and our assumed reinsurance lines of business. We operate only in the United States, 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 months ended June 30, 2018 and 2017. Prior years have been restated to reflect the change in segments. For presentation in these tables, “LAE” refers to loss adjustment expenses.

	Three Months Ended June 30, 2018
	Private Passenger Auto			Non- Standard Auto			Home and Farm			Crop			All Other			Total
Direct premiums earned	$	16,139		$	3,476		$	17,243		$	15,084		$	2,045		$	53,987
Assumed premiums earned		4			—			(4	)		2,283			966			3,249
Ceded premiums earned		(833	)		—			(1,618	)		(3,926	)		(182	)		(6,559	)
Net premiums earned		15,310			3,476			15,621			13,441			2,829			50,677
Direct losses and LAE		11,177			2,973			16,542			9,724			705			41,121
Assumed losses and LAE		47			—			(62	)		164			338			487
Ceded losses and LAE		(49	)		—			47			(881	)		(4	)		(887	)
Net losses and LAE		11,175			2,973			16,527			9,007			1,039			40,721
Gross margin		4,135			503			(906	)		4,434			1,790			9,956
Underwriting and general expenses		4,703			890			5,138			163			908			11,802
Underwriting gain (loss)		(568	)		(387	)		(6,044	)		4,271			882			(1,846	)
Fee and other income					330												470
					(57	)
Net investment income																	1,523
Net realized capital gain on investments																	250
Income before income taxes																	397
Income taxes																	141
Net income																	256
Net income attributable to non-controlling interest																	30
Net income attributable to NI Holdings, Inc.																$	226
Loss and LAE ratio		73.0%			85.5%			105.8%			67.0%			36.7%			80.4%
Expense ratio		30.7%			25.6%			32.9%			1.2%			32.1%			23.3%
Combined ratio		103.7%			111.1%			138.7%			68.2%			68.8%			103.6%
Balances at June 30, 2018:
Premiums receivable	$	17,365		$	1,126		$	9,819		$	44,397		$	1,468		$	74,175
Deferred policy acquisition costs		3,754			322			5,250			2,267			597			12,190
Reinsurance recoverables		432			—			589			899			1,681			3,601
Receivable from Federal Crop Insurance Corporation		—			—			—			11,130			—			11,130
Unpaid losses and LAE		18,592			5,942			18,838			10,020			9,984			63,376
Unearned premiums		27,248			1,860			37,473			28,310			5,063			99,954

	Three Months Ended June 30, 2017
	Private Passenger Auto			Non- Standard Auto			Home and Farm			Crop			All Other			Total
Direct premiums earned	$	14,278		$	2,590		$	15,649		$	14,138		$	1,909		$	48,564
Assumed premiums earned		4			—			1			2,435			928			3,368
Ceded premiums earned		(762	)		—			(1,579	)		(3,759	)		(179	)		(6,279	)
Net premiums earned		13,520			2,590			14,071			12,814			2,658			45,653
Direct losses and LAE		7,432			2,347			14,224			11,573			517			36,093
Assumed losses and LAE		39			—			—			1,403			582			2,024
Ceded losses and LAE		262			—			347			(2,062	)		(434	)		(1,887	)
Net losses and LAE		7,733			2,347			14,571			10,914			665			36,230
Gross margin		5,787			243			(500	)		1,900			1,993			9,423
Underwriting and general expenses		5,921			807			6,264			(2,244	)		677			11,425
Underwriting gain (loss)		(134	)		(564	)		(6,764	)		4,144			1,316			(2,002	)
Fee and other income					262												321
					(302	)
Net investment income																	1,303
Net realized capital gain on investments																	339
Loss before income taxes																	(39	)
Income taxes (benefit)																	(156	)
Net income																	117
Net loss attributable to non-controlling interest																	(12	)
Net income attributable to NI Holdings, Inc.																$	129
Loss and LAE ratio		57.2%			90.6%			103.6%			85.2%			25.0%			79.4%
Expense ratio		43.8%			31.2%			44.5%			-17.5%			25.5%			25.0%
Combined ratio		101.0%			121.8%			148.1%			67.7%			50.5%			104.4%
Balances at June 30, 2017:
Premiums receivable	$	15,600		$	1,003		$	8,328		$	44,736		$	1,215		$	70,882
Deferred policy acquisition costs		2,577			277			5,238			5,586			448			14,126
Reinsurance recoverables		1,435			—			2,625			3,716			2,616			10,392
Receivable from Federal Crop Insurance Corporation		—			—			—			12,496			—			12,496
Unpaid losses and LAE		24,391			6,276			17,162			15,862			8,928			72,619
Unearned premiums		25,247			1,579			33,894			26,718			4,756			92,194

	Six Months Ended June 30, 2018
	Private Passenger Auto			Non- Standard Auto			Home and Farm			Crop			All Other			Total
Direct premiums earned	$	31,718		$	6,467		$	33,862		$	15,084		$	4,048		$	91,179
Assumed premiums earned		8			—			(8	)		2,283			2,205			4,488
Ceded premiums earned		(1,591	)		—			(3,115	)		(3,825	)		(347	)		(8,878	)
Net premiums earned		30,135			6,467			30,739			13,542			5,906			86,789
Direct losses and LAE		21,364			4,937			21,958			10,063			1,436			59,758
Assumed losses and LAE		47			—			(49	)		164			914			1,076
Ceded losses and LAE		(114	)		—			(60	)		(905	)		(185	)		(1,264	)
Net losses and LAE		21,297			4,937			21,849			9,322			2,165			59,570
Gross margin		8,838			1,530			8,890			4,220			3,741			27,219
Underwriting and general expenses		9,122			1,925			10,092			651			1,889			23,679
Underwriting gain (loss)		(284	)		(395	)		(1,202	)		3,569			1,852			3,540
Fee and other income					651												847
					256
Net investment income																	2,892
Net realized capital gain on investments																	719
Income before income taxes																	7,998
Income taxes																	1,590
Net income																	6,408
Net income attributable to non-controlling interest																	60
Net income attributable to NI Holdings, Inc.																$	6,348
Loss and LAE ratio		70.7%			76.3%			71.1%			68.8%			36.7%			68.6%
Expense ratio		30.3%			29.8%			32.8%			4.8%			32.0%			27.3%
Combined ratio		100.9%			106.1%			103.9%			73.6%			68.6%			95.9%
Balances at June 30, 2018:
Premiums receivable	$	17,365		$	1,126		$	9,819		$	44,397		$	1,468		$	74,175
Deferred policy acquisition costs		3,754			322			5,250			2,267			597			12,190
Reinsurance recoverables		432			—			589			899			1,681			3,601
Receivable from Federal Crop Insurance Corporation		—			—			—			11,130			—			11,130
Unpaid losses and LAE		18,592			5,942			18,838			10,020			9,984			63,376
Unearned premiums		27,248			1,860			37,473			28,310			5,063			99,954

	Six Months Ended June 30, 2017
	Private Passenger Auto			Non- Standard Auto			Home and Farm			Crop			All Other			Total
Direct premiums earned	$	27,877		$	5,121		$	30,721		$	15,164		$	3,797		$	82,680
Assumed premiums earned		8			—			2			2,437			2,092			4,539
Ceded premiums earned		(1,721	)		—			(3,014	)		(3,687	)		(335	)		(8,757	)
Net premiums earned		26,164			5,121			27,709			13,914			5,554			78,462
Direct losses and LAE		17,461			4,719			19,509			12,106			1,940			55,735
Assumed losses and LAE		310			—			—			1,403			900			2,613
Ceded losses and LAE		(51	)		—			(506	)		(2,015	)		(1,825	)		(4,397	)
Net losses and LAE		17,720			4,719			19,003			11,494			1,015			53,951
Gross margin		8,444			402			8,706			2,420			4,539			24,511
Underwriting and general expenses		10,128			1,492			9,777			(1,392	)		1,439			21,444
Underwriting gain (loss)		(1,684	)		(1,090	)		(1,071	)		3,812			3,100			3,067
Fee and other income					526												668
					(564	)
Net investment income																	2,302
Net realized capital gain on investments																	955
Income before income taxes																	6,992
Income taxes																	2,126
Net income																	4,866
Net income attributable to non-controlling interest																	48
Net income attributable to NI Holdings, Inc.																$	4,818
Loss and LAE ratio		67.7%			92.1%			68.6%			82.6%			18.3%			68.8%
Expense ratio		38.7%			29.1%			35.3%			-10.0%			25.9%			27.3%
Combined ratio		106.4%			121.3%			103.9%			72.6%			44.2%			96.1%
Balances at June 30, 2017:
Premiums receivable	$	15,600		$	1,003		$	8,328		$	44,736		$	1,215		$	70,882
Deferred policy acquisition costs		2,577			277			5,238			5,586			448			14,126
Reinsurance recoverables		1,435			—			2,625			3,716			2,616			10,392
Receivable from Federal Crop Insurance Corporation		—			—			—			12,496			—			12,496
Unpaid losses and LAE		24,391			6,276			17,162			15,862			8,928			72,619
Unearned premiums		25,247			1,579			33,894			26,718			4,756			92,194

For purposes of evaluating profitability of the non-standard auto segment, management combines 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 above tables. The remaining fee and other income amounts are not allocated to any segment.

We do not assign or allocate all Consolidated Statement of Operations or Consolidated Balance Sheet line items to our operating segments. Those line items include investment income, net realized capital gain on investments, other income excluding non-standard auto insurance fees, and income taxes for the Consolidated Statement of Operations. For the Consolidated Balance Sheet, those items include cash and investments, property and equipment, other assets, accrued expenses, federal income taxes recoverable or payable, and equity.