Company: NODK
Filing Date: 2025-05-09
Form Type: 10-Q
Source: 0001174947-25-000721
Chunk: 101

Company: NI Holdings, Inc.
Filing Date: 2025-05-09
Form: 10-Q
Item: Part I, Item 8
Chunk 101
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 provided through the FCIC.

Effective July 1, 2024, the Company’s reinsurance
contracts were modified to exclude any Westminster losses occurring on or after that date, while maintaining all other existing limits,
retentions, and attachment points.

The Company actively monitors and evaluates the financial
condition of the reinsurers and develops estimates of the uncollectible amounts due from reinsurers, which would be recognized as credit
losses through an allowance account developed using the current expected credit losses (“CECL”) model. See the Part II, Item
8, Note 3 “Summary of Significant Accounting Policies and Basis of Presentation” section of the 2024 Annual Report for additional
information. Credit loss estimates are made based on periodic evaluation of balances due from reinsurers, changes in reinsurer credit
standing, judgments regarding reinsurers’ solvency, known disputes, reporting characteristics of the underlying reinsured business,
historical experience, current economic conditions, and the state of reinsurer relations in general. Collection risk is mitigated by entering
into reinsurance arrangements only with reinsurers that have strong credit ratings and statutory surplus above certain levels. At March
31, 2025, and December 31, 2024, management has concluded that it is not necessary to record an allowance for expected credit losses related
to reinsurance recoverables. All of our significant reinsurance partners are rated “A-” (Excellent) or better by AM Best or
“A+” or better by Standard & Poor’s, and there is no history of write-offs.

16 

A reconciliation of direct to net premiums on both a written
and an earned basis, presented on a consolidated basis, including both continuing and discontinued operations, is as follows:

    Three Months Ended March 31, 2025 

    Premiums Written  
    Premiums Earned 
  
    Direct premium 
    $67,728  
    $72,161 
  
    Assumed premium 
     38  
     39 
  
    Ceded premium 
     (4,704) 
     (4,703)
  
    Net premiums 
    $63,062  
    $67,497 

    Three Months Ended March 31, 2024 

    Premiums Written  
    Premiums Earned 
  
    Direct premium 
    $102,657  
    $94,900 
  
    Assumed premium 
     137  
     151 
  
    C