Summary of Second Quarter 2025 Results, Continuing Operations(All comparisons vs. continuing operations for the second quarter of 2024, unless noted otherwise)
Direct written premiums of $109.5 million compared to $118.5 million. This reduction was driven by Non-Standard Auto (-56.4%) due to the continued impact of the strategic decision to significantly decrease our Non-Standard Auto premiums, partially offset by Home and Farm (8.1%) driven by higher rate and insured values along with new business growth in North Dakota.
Combined ratio of 125.1% versus 113.7%, primarily driven by higher unfavorable development of liability loss claims in Non-Standard Auto, decreased net earned premiums in Non-Standard Auto and a significant catastrophe event in North Dakota that exceeded the Company's $20M reinsurance retention.
Total pre-tax catastrophe losses, net of reinsurance, of $20.0 million for the quarter and year-to-date, which adversely impacted the second quarter and year-to-date loss and loss adjustment expense ratios by 30.2 and 15.7 percentage points, respectively.
Net investment income increased 40.8% to $2.7 million, primarily driven by higher reinvestment rates in our fixed income portfolio and higher net realized gains.
Basic loss per share of ($0.57) compared to ($0.36).
Three Months Ended June 30,
Six Months Ended June 30,
Dollars in thousands, except per share data(unaudited)
2025
2024
Change
2025
2024
Change
Direct written premiums
$109,519
$118,472
(7.6%)
$177,247
$201.513
(12.0%)
Net earned premiums
$73,005
$85,169
(14.3%)
$140,502
$155,053
(9.4%)
Loss and LAE ratio
91.2%
81.4%
9.8 pts
74.8%
