Company: NODK
Filing Date: 2025-03-07
Form Type: 10-K
Source: 0001174947-25-000304
Chunk: 545

Company: NI Holdings, Inc.
Filing Date: 2025-03-07
Form: 10-K
Item: Item 1B
Chunk 545
---
, length of collection periods, changes in reinsurer
credit standing, disputes, applicable coverage defenses and other relevant factors. 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, and there is no history of write-offs.

Goodwill and Other Intangibles

Goodwill assets arise from business combinations and consist of
the excess of the fair value of consideration paid over the tangible and intangible assets acquired and liabilities assumed. We evaluate
goodwill and other intangible assets for impairment on an annual basis or more frequently if events or changes in circumstances indicate
that it is more likely than not that the carrying amount of goodwill and other intangible assets may exceed their fair value.

60 

When performing our goodwill impairment analyses, we typically first
assess qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying
amount. In making our assessment, we evaluate a number of factors including operating results, key changes in the reporting unit, business
plans, macroeconomic conditions, and industry considerations. Inherent uncertainties exist with respect to these factors and to our judgment
in applying them when we make our assessment, and impairment of goodwill and other intangibles could result from changes in economic and
operating conditions in future periods. We may also choose to bypass the qualitative assessment in any period for any reporting unit and
proceed directly to performing the quantitative assessment.

If our qualitative assessment indicates it is more likely than not that
the fair value of a reporting unit is less than its carrying amount or we choose to bypass the qualitative assessment, we will perform
a quantitative assessment that compares the reporting unit’s carrying value with its estimated fair value. The determination of
the fair value of our reporting units is based a market approach that considers benchmark company market multiples, an income approach
that utilizes discounted cash flows, or another generally accepted method. The cash flows used to determine fair value are dependent on
a number of significant management assumptions such as our expectations of future performance and the expected future economic environment,
which are partly based upon our historical experience. Our estimates are subject to change given the inherent uncertainty in predicting
future results. While we believe such assumptions and estimates are reasonable, the actual results may differ materially from the projected
amounts. Should the carrying value exceed the estimated fair value, a goodwill impairment charge will