Company: NODK
Filing Date: 2025-03-07
Form Type: 10-K
Source: 0001174947-25-000304
Chunk: 517

Company: NI Holdings, Inc.
Filing Date: 2025-03-07
Form: 10-K
Item: Item 1B
Chunk 517
---
 No change 
     —  
     307,712  
     —  
     347,731 
  
    100 basis point decrease 
     13,509  
     321,221  
     16,199  
     363,930 
  
    200 basis point decrease 
     27,977  
     335,689  
     32,572  
     380,303 

The interest
rate exposure of our portfolio was proportionately consistent in the current year compared to the prior year, which is expected given
the generally consistent composition and duration of the fixed income portfolio over this time. 

44 

Credit Risk

Credit risk is the potential economic loss principally
arising from adverse changes in the financial condition of a specific debt issuer. We address this risk by investing primarily in fixed
income securities that are rated investment grade by Moody’s Investors Services, Inc. or an equivalent rating quality. We also work
in conjunction with our outside fixed income portfolio manager to monitor the financial condition of all of the issuers of fixed income
securities in the portfolio. Additionally, our investment policy includes diversification rules that limit the credit exposure to any
single issuer or asset class.

Equity Risk

Equity price risk is the risk that we will incur
economic losses due to adverse changes in equity prices. Our equity portfolio is subject to a variety of risk factors, including general
economic conditions which influence the performance of the underlying industries and companies within those industries. Industry and company-specific
risks also have the potential to substantially affect the value of our portfolio. Our investment policy helps mitigate these risks by
diversifying the portfolio and establishing parameters to help manage exposures.

45 

Item 8.Financial Statements and Supplementary Data

REPORT
OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Shareholders and Board of Directors

NI Holdings, Inc. 

Opinions on the Consolidated Financial Statements and Internal
Control over Financial Reporting

We have audited the accompanying consolidated
balance sheet of NI Holdings, Inc. and Subsidiaries (the “Company”) as of December 31, 2024, and the consolidated statements
of operations, comprehensive income (loss), changes in shareholders’ equity, and cash flows for the year ended December 31, 2024,
and the schedule listed in Item 15(a)(2) (collectively referred to as the “consolidated financial statements