Company: NODK
Filing Date: 2025-03-07
Form Type: 10-K
Source: 0001174947-25-000304
Chunk: 7

Company: NI Holdings, Inc.
Filing Date: 2025-03-07
Form: 10-K
Item: Item 1
Chunk 7
---
 size and purpose:

●The first layer of capital, which we refer to as “regulatory capital,” is the amount of capital needed to satisfy state
insurance regulatory requirements while supporting our growth objectives. This capital is held by each of our insurance company subsidiaries.

6 

●The second layer of capital is considered “contingency capital.” While our regulatory capital is, by definition, a cushion
for absorbing financial consequences of adverse events, such as loss reserve development, litigation, weather catastrophes, and investment
market corrections, we view that as a base and hold additional capital for even more extreme operating conditions. This capital is generally
also held by each of our insurance company subsidiaries.

●The third layer of capital is classified as “excess capital” and represents the excess of the sum of the first two layers.
This capital is available for deployment by NI Holdings in conjunction with our excess capital deployment priorities.

Our excess capital deployment priorities are to
(1) invest in existing businesses where we see opportunities for profitable growth, (2) make strategic investments and acquisitions that
enhance our businesses and achieve appropriate risk-adjusted returns over time, and (3) return capital to shareholders through share repurchases
or shareholder dividends.

Insurance Products by Segment

Our consolidated financial results from continuing
operations include our Private Passenger Auto, Non-Standard Auto, Home and Farm, Crop, and All Other reporting segments. Information regarding
products and services offered in each segment is included below. Additionally, revenues, underwriting results, and identifiable assets
and liabilities for each segment are shown in Part II, Item 8, Note 21 “Segment Information.” The financial performance of
each segment is discussed in Part II, Item 7, “Management’s Discussion and Analysis of Financial Condition and Results of
Operations.”

Private Passenger Auto

Nodak Insurance, Battle Creek, and American West
each write private passenger auto insurance to provide protection against liability for bodily injury and property damage arising from
automobile accidents as well as protection against loss from damage to automobiles owned by the insured. Private passenger auto accounted
for $97,209 (28.4%) of direct premiums written by the Company on a consolidated basis during 2024.

Non-Standard Auto

Primero and Direct Auto write non-standard auto
insurance with a focus on minimum-limit auto liability coverage. Non-standard auto insurance accounted for $87,467 (25.6%) of direct premiums
written by the Company on a consolidated basis during 2024.

Home and Farm