Company: NODK
Filing Date: 2025-08-08
Form Type: 10-Q
Source: 0001174947-25-001142
Chunk: 27

Company: NI Holdings, Inc.
Filing Date: 2025-08-08
Form: 10-Q
Item: Part I, Item 1
Chunk 27
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 coverage of $4,000 in excess of $1,000 for property risks and $11,000 in excess of $1,000 for casualty risks.
For Westminster, a per risk excess of loss treaty provided coverage of $3,000 in excess of $2,000 for property risks and $10,000 in excess
of $2,000 for casualty risks until July 1, 2024. Additionally, a property per-risk facultative contract is in place to provide coverage
up to $20,000 in excess of $5,000 per property. Aggregate stop loss reinsurance agreements are also in place for both crop hail and multi-peril
crop coverage. The crop hail aggregate attaches at a 100% net loss ratio providing 50 points of cover. The multi-peril crop aggregate
attaches at a 105% net loss ratio providing 45 points of cover. In addition to the aggregate covers, underlying multi-peril crop reinsurance
is provided through the FCIC.

Effective July 1, 2024, the Company’s reinsurance
contracts were modified to exclude any Westminster losses occurring on or after that date, while maintaining all other existing limits,
retentions, and attachment points.

The Company actively monitors and evaluates the financial
condition of the reinsurers and develops estimates of the uncollectible amounts due from reinsurers, which would be recognized as credit
losses through an allowance account developed using the current expected credit losses (“CECL”) model. See the Part II, Item
8, Note 3 “Summary of Significant Accounting Policies and Basis of Presentation” section of the 2024 Annual Report for additional
information. Credit loss estimates are made based on periodic evaluation of balances due from reinsurers, changes in reinsurer credit
standing, judgments regarding reinsurers’ solvency, known disputes, reporting characteristics of the underlying reinsured business,
historical experience, current economic conditions, and the state of reinsurer relations in general. Collection risk is mitigated by entering
into reinsurance arrangements only with reinsurers that have strong credit ratings and statutory surplus above certain levels. At June
30, 2025, and December 31, 2024, management has concluded that it is not necessary to record an allowance for expected credit losses related
to reinsurance recoverables. All of our significant reinsurance partners are rated “A-” (Excellent) or better by AM Best or
“A+” or better by Standard & Poor’s, and there is no history of write