Company: NODK
Filing Date: 2025-03-07
Form Type: 10-K
Source: 0001174947-25-000304
Chunk: 964

Company: NI Holdings, Inc.
Filing Date: 2025-03-07
Form: 10-K
Item: Item 2
Chunk 964
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 If a quoted market price is not available, fair value is estimated using quoted market prices for similar securities.
Amortization of premium and accretion of discount are computed using the effective interest method. Net investment income includes interest
and dividend income together with amortization of purchase premiums and discounts and is net of investment management and custody fees.
Realized gains and losses on investments are determined using the specific identification method and are included in net investment gains
(losses), along with the change in unrealized gains and losses on equity securities. Other invested assets that do not have observable
inputs and little or no market activity are carried on a cost basis, which approximates fair value. The carrying value of these other
invested assets was $1,812 at December 31, 2024 and $2,006 at December 31, 2023.

Beginning on December 31, 2022, credit losses are recognized through
an allowance account. See Part II, Item 8, Note 2 “Recent Accounting Pronouncements” for additional information. We, along
with our investment advisors, frequently review our investment portfolio for declines in fair value that could be indicative of credit
losses. The available-for-sale impairment model requires an 

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estimate of expected credit losses only when the fair value of the available-for-sale
fixed income security is below its amortized cost basis. The Company considers a number of factors when determining if an allowance for
credit losses is necessary including payment and default history, credit spreads, credit ratings and rating actions, and probability of
default. The Company determines the credit loss component of fixed income securities by utilizing discounted cash flow modeling to determine
the present value of the security and comparing the present value with the amortized cost of the security. If the amortized cost is greater
than the present value of the expected cash flows, the difference is considered a credit loss and recognized as an impairment loss in
net realized investment gains (losses). Credit impairments are recognized as an allowance on the Consolidated Balance Sheet with a corresponding
adjustment to earnings.

For fixed income securities that the Company does not intend to
sell or for which it is more likely than not that the Company would not be required to sell before an anticipated recovery in value, the
Company separates the credit loss component of the impairment from the amount related to all other factors and reports the credit loss
component in net realized investment gains (losses). The impairment related to all other factors (non-credit factors) is