Company: NODK
Filing Date: 2025-08-08
Form Type: 10-Q
Source: 0001174947-25-001142
Chunk: 74

Company: NI Holdings, Inc.
Filing Date: 2025-08-08
Form: 10-Q
Item: Part I, Item 1
Chunk 74
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 income tax benefit of $1,984 for the six months ended
June 30, 2025, compared to income tax expense of $306 for the six months ended June 30, 2024. Our effective tax rate for the first six
months of 2025 was 26.2% compared to an effective tax rate of (129.1)% for the first six months of 2024. The effective tax rate for the
first six months of 2025 and 2024 were impacted by changes in our valuation allowances against deferred income tax assets.

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Net Income (Loss)

For the three months ended June 30, 2025, we had a net loss of $12,051
compared to net loss of $7,478 for the three months ended June 30, 2024. The year-over-year change was largely attributable to the catastrophe
losses for Home and Farm in North Dakota and unfavorable prior year loss reserve development for Non-Standard Auto, partially offset by
improved loss experience for Private Passenger Auto and higher net investment income.

For the six months ended June 30, 2025, we had a net loss of $5,591
compared to net loss of $543 for the six months ended June 30, 2024. The year-over-year change was largely attributable to the catastrophe
losses for Home and Farm in North Dakota and unfavorable prior year loss reserve development for Non-Standard Auto, partially offset by
improved loss experience for Private Passenger Auto and higher net investment income.

Return on Average Equity

For the three months ended June 30, 2025, we had annualized return
on average equity of (19.4)% compared to (12.8)% for the three months ended June 30, 2024.

For the six months ended June 30, 2025, we had annualized return on
average equity of (4.6)% compared to (0.5)% for the six months ended June 30, 2024.

Average equity is calculated as the average between beginning and ending
equity for the period.

43 

Critical Accounting Policies

The preparation of financial statements in accordance with GAAP requires
both the use of estimates and judgment relative to the application of appropriate accounting policies. We are required to make estimates
and assumptions in certain circumstances that affect amounts reported in the unaudited consolidated financial statements and related footnotes.
We evaluate these estimates and assumptions on an