Company: NODK
Filing Date: 2025-03-07
Form Type: 10-K
Source: 0001174947-25-000304
Chunk: 512

Company: NI Holdings, Inc.
Filing Date: 2025-03-07
Form: 10-K
Item: Item 1B
Chunk 512
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income tax benefits or accrued interest and penalties. Federal income tax returns for the years 2020 through 2023 remain subject to examination.

41 

Changing Climate Conditions

Longer-term natural catastrophe trends may be changing, and new
types of catastrophe losses may be developing due to climate change, a phenomenon that has been associated with extreme weather events
linked to rising temperatures, and includes effects on global weather patterns, greenhouse gases, sea, land and air temperatures, sea
levels, rain, hail, and snow. The frequency, number, and severity of these losses are unpredictable. The extent of losses from a catastrophe
is a function of both the total amount of insured exposure in the area affected by the event and the severity of the event. Our ability
to effectively manage catastrophe risk is dependent, in part, on our reliance on various catastrophe models, which may produce unreliable
output as a result of inaccurate or incomplete data, along with the inherent uncertainty of future frequency and severity of losses. The
impact of changing climate conditions on the overall insurance industry may also materially affect the availability and cost of reinsurance
to us. In addition, these changes could impact the creditworthiness of issuers of securities in which we invest, subjecting our investment
portfolio to increased credit and interest rate risk, with the potential for reduced investment returns and/or material realized or unrealized
losses.

Liquidity and Capital Resources

We expect to generate sufficient funds from our operations and maintain
a high degree of liquidity in our investment portfolio to meet the demands of claim settlements and operating expenses for the foreseeable
future. Our primary sources of funds are premium collections, investment earnings, and fixed income maturities.

We also have a $3,000 line of credit with Wells
Fargo Bank, N.A. The terms of the line of credit include a floating interest rate of 2.50% above the daily simple secured overnight financing
rate. There were no outstanding amounts during the years ended December 31, 2024, 2023, or 2022. This line of credit is scheduled to expire
on December 13, 2025.

The changes in cash and cash equivalents for continuing
and discontinued operations for the years ended December 31, 2024, 2023, and 2022 were as follows:

    Year Ended December 31, 

    2024  
    2023  
    2022 
  
    Net cash flows from operating activities 
    $38