Company: NODK
Filing Date: 2025-03-07
Form Type: 10-K
Source: 0001174947-25-000304
Chunk: 2

Company: NI Holdings, Inc.
Filing Date: 2025-03-07
Form: 10-K
Item: Item 1
Chunk 2
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on such website is not incorporated by reference into this 2024 Annual Report, and such information should not be considered to be part
of this 2024 Annual Report.

3 

Subsidiary and Affiliate Companies

Intercompany
Reinsurance Pooling Arrangement

Effective January 1, 2020, all of our insurance subsidiary and
affiliate companies entered into an intercompany reinsurance pooling agreement. Nodak Insurance is the lead company of the pool, and assumes
the net premiums, net losses, and underwriting expenses from each of the other four companies. Nodak Insurance then retrocedes balances
back to each company, while retaining its own share of the pool’s net underwriting results, based on individual pool percentages
established in the respective pooling agreement. This arrangement allows each insurance company to rely upon the capacity of the pool’s
total statutory capital and surplus. As a result, they are evaluated by A.M. Best Company, Inc. (“AM Best”) on a group basis
and hold a single combined financial strength rating, long-term issuer credit rating, and financial size category. Subsequent to the June
30, 2024, date of sale, Westminster is no longer a member of the pool, and the pooling percentages for the remaining insurance subsidiaries
were updated based on their respective surplus as a percentage of the pool as of December 31, 2023.

Nodak Insurance Company

Nodak Insurance is the largest domestic property and casualty insurance
company based in North Dakota, offering private passenger auto, homeowners, farmowners, commercial multi-peril, crop hail, and Federal
multi-peril crop insurance coverages through its captive agents in the state.

Nodak Insurance was formed in 1946 to offer property
and casualty insurance to members of the North Dakota Farm Bureau (“NDFB”), and benefits from a strong marketing affiliation
with that organization. Nodak Insurance’s bylaws provide that a person must be a member and remain a member of the NDFB in order
to become and remain a policyholder of Nodak Insurance. Nodak Insurance’s bylaws also require that four members of the Board of
Directors of Nodak Insurance must be members of the NDFB. Similarly, one-third of the members of the Board of Directors of Nodak Mutual
Group must be persons designated by the NDFB.

The NDFB has granted Nodak Insurance a nonexclusive,
nontransferable license to use