Company: NODK
Filing Date: 2025-03-07
Form Type: 10-K
Source: 0001174947-25-000304
Chunk: 778

Company: NI Holdings, Inc.
Filing Date: 2025-03-07
Form: 10-K
Item: Item 1C
Chunk 778
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 $15,000 retention. Additionally, per risk excess
of loss treaties provided coverage of $4,000 in excess of $1,000 for property risks and $11,000 in excess of $1,000 for casualty risks,
with facultative contracts in place to provide coverage up to $20,000 in excess of $5,000 per property. Aggregate stop loss reinsurance
agreements were placed for both crop hail and multi-peril crop coverage. The crop hail aggregate attached at a 100% net loss ratio providing
50 points of cover. The multi-peril crop aggregate attached at a 105% net loss ratio providing 45 points of cover. In addition to the
aggregate covers, underlying multi-peril crop reinsurance was provided through the FCIC.

The Company experienced multiple catastrophe events
during 2022 which resulted in reinsurance recoveries of $5,648 through December 31, 2024.

For 2025, the Company’s catastrophe retention
will remain consistent with 2024 at $20,000 and the reinsurance protection will cover $117,000. The lower limit for 2025 was primarily
due to the sale of Westminster, which drove the top end of the catastrophe modeling results. There were no changes made to limits, retentions,
or attachment points in our other reinsurance contracts.

The Company actively monitors and evaluates the financial
condition of the reinsurers and develops estimates of the uncollectible amounts due from reinsurers. Beginning on December 31, 2022, credit
losses are recognized through an allowance account developed using a new CECL model. See the Part II, Item 8, Note 2 “Recent Accounting
Pronouncements” 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 December 31, 2024 and 2023, 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, and there is no history of write