Brokers and agents placing non-standard auto business in North Dakota, South Dakota, and Nebraska have one fewer carrier option after NI Holdings, Inc. (NASDAQ: NODK) reported that premiums in the segment declined 100.2% in the third quarter of 2026 (Q3 2026), confirming the Fargo-based insurer’s full exit from the line.
The departure comes as the broader non-standard auto market is heading in the opposite direction. An AM Best market segment report published in November 2025 found that non-standard auto insurers posted net underwriting income of $65 million in the first half of 2025, nearly four times the figure from the same period a year earlier. The segment’s combined ratio improved to 96.6, down from 98.0 for full-year 2024, following three consecutive years of combined underwriting losses exceeding $2.5 billion.
David Blades, associate director of industry research and analytics at AM Best, said in the report: “The improved combined and loss ratios suggest insurers have raised premiums enough to better offset claim costs.”
Read more: NI Holdings returns to profit as it exits non-standard auto
NI Holdings operated in the non-standard auto segment through its subsidiaries Primero Insurance Company and Direct Auto Insurance Company. The company had previously exited the segment in Illinois, Arizona, and South Dakota, and the Q3 2026 figures indicate the runoff is now essentially complete.
The AM Best report noted that nonstandard auto companies acquired by national carriers in recent years have benefited from spreading costs across a larger premium base. For a carrier of NI Holdings’ size, that scale was out of reach. The question for brokers in the region is which remaining carriers are writing the business and at what terms.
NI Holdings’ Private Passenger Auto premiums fell 8.4% in the quarter, driven by lower new business and renewal volumes in South Dakota and Nebraska and rate decreases across North Dakota, South Dakota, and Nebraska.
That pattern extends beyond NI Holdings. COUNTRY Financial announced auto rate reductions in 11 states in June 2026, including a 3% decrease in North Dakota, citing fewer accidents and lower claim costs. The Insurance Information Institute and Milliman have forecast a full-year 2026 industry personal auto combined ratio of 95.5, suggesting the rate cycle in standard personal auto is softening broadly.
For agents writing personal auto in those states, the dynamic is worth watching: rates are falling, but NI Holdings’ own results show adverse prior year reserve development and increased large loss activity in the same line.
Read more: P&C industry on track for 94 combined ratio in 2026: Triple-I and Milliman
Higher losses in the Crop segment also cut into NI Holdings’ results. According to the U.S. Drought Monitor, more than half of North Dakota was in drought by early August 2026. State climatologist Daryl Ritchison described July as “one of the warmest and driest on record,” as reported by the North Dakota Monitor.
Brokers placing farm and crop business in the state faced difficult conditions during the quarter. NI Holdings’ Home and Farm segment, by contrast, grew 1.9%, supported by renewal premiums and rate increases in North Dakota.
NI Holdings posted a combined ratio of 93.6% for the quarter, down from 109.1% a year earlier. Net income was $5.5 million, compared to a net loss of $1.7 million in Q3 2025. Gross premiums written fell 7.2% to $54.3 million.
The combined ratio improvement came primarily from favorable prior year development on loss reserves in Non-Standard Auto, which contrasted with unfavorable development in the year-ago quarter. The All Other segment grew 50.6%, driven by increased assumed premiums from catastrophe reinsurance programs of certain farm bureau insurance companies.
Net investment income was $2.7 million, down 10.7%, as proceeds from maturities and sales funded operating cash needs tied to the non-standard auto runoff. For the nine months ended September 30, the combined ratio was 94.4%, down from 110.0%.
“We delivered significantly improved underwriting results in the third quarter, reflecting continued progress on our strategic priorities. Despite challenges in Crop and Private Passenger Auto, we are encouraged by our momentum and believe we are well positioned to deliver more consistent, profitable performance and long-term shareholder value,” said Cindy Launer, president and chief executive officer of NI Holdings.
