Company: NODK
Filing Date: 2025-03-07
Form Type: 10-K
Source: 0001174947-25-000304
Chunk: 57

Company: NI Holdings, Inc.
Filing Date: 2025-03-07
Form: 10-K
Item: Item 1
Chunk 57
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 change in valuation
allowance and non-taxable executive compensation were the most significant drivers of the variance from the statutory rate. The valuation
allowance against certain deferred income tax assets was $2,506 as of December 31, 2024, $505 as of December 31, 2023, and $694 as of December
31, 2022.

Net Income (Loss)

We had net income before non-controlling interest of $6,600 for
the year ended December 31, 2024, net income of $19,831 for the year ended December 31, 2023, and a net loss of $38,685 for the year ended
December 31, 2022. The year-over-year decrease in 2024 compared to 2023 was largely attributable to higher loss severity and non-catastrophe
weather-related losses for Home and Farm in the states of North Dakota and Nebraska, unfavorable prior year loss reserve development for
Non-Standard Auto, a goodwill impairment charge for Non-Standard Auto, and expenses incurred related to the separation agreements with
our former Chief Executive Officer and former Senior Vice President of Operations, partially offset by net earned premium growth, improved
loss experience for Private Passenger Auto, and higher net investment income. The year-over-year improvement in 2023 compared to 2022
was largely attributable to the significant catastrophe losses and significantly higher investment losses during 2022.

Return on Average Equity

For the year ended December 31, 2024, we had annualized return on
average equity, after non-controlling interest, of 2.8%, compared to annualized return on average equity, after non-controlling interest,
of 7.9% and (13.6)% for the years ended December 31, 2023 and 2022, respectively.

Average equity is calculated as the average between beginning and
ending equity, excluding non-controlling interest, for the period.

36 

Principal Revenue Items

Revenue is primarily derived from net premiums earned, net investment
income, and net investment gains (losses).

Gross and Net Premiums Written

Gross premiums written is equal to direct premiums
written and assumed premiums before the effect of ceded reinsurance. Gross premiums written are recognized upon sale of new insurance
contracts or renewal of existing contracts. Net premiums written is equal to gross premiums written less premiums ceded to reinsurers.

Premiums Earned

Premiums earned is the earned portion of net