Company: NODK
Filing Date: 2025-05-09
Form Type: 10-Q
Source: 0001174947-25-000721
Chunk: 26

Company: NI Holdings, Inc.
Filing Date: 2025-05-09
Form: 10-Q
Item: Part I, Item 1
Chunk 26
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 Insurance is the lead company of the pool, and assumes the
net premiums, net losses, and underwriting expenses from each of the other five companies. Nodak Insurance then retrocedes balances back
to each company, while retaining its own share of the pool’s net underwriting results, based on individual pool percentages established
in the respective pooling agreement. This arrangement allows each insurance company to rely upon the capacity of the pool’s total
statutory capital and surplus. As a result, they are evaluated by AM Best on a group basis and hold a single combined financial strength
rating, long-term issuer credit rating, and financial size category. Subsequent to the June 30, 2024, date of sale, Westminster is no
longer a member of the pool, and the pooling percentages for the remaining insurance subsidiaries were updated based on their respective
surplus as a percentage of the pool as of December 31, 2023.

6.Deferred Policy Acquisition Costs

Expenses directly related to successfully acquired insurance policies,
primarily commissions, premium taxes and underwriting costs, are deferred and amortized over the terms of the policies. We update our
acquisition cost assumptions periodically to reflect actual experience, and we evaluate the costs for recoverability. The table below,
presented on a consolidated basis, including both continuing and discontinued operations, shows the deferred policy acquisition costs
and asset reconciliation:

    Three Months Ended March 31, 

    2025  
    2024 
  
    Balance, beginning of period 
    $26,300  
    $34,120 
  
    Deferral of policy acquisition costs 
     14,041  
     23,108 
  
    Amortization of deferred policy acquisition costs 
     (16,528) 
     (20,663)
  
    Balance, end of period 
    $23,813  
    $36,565 

18 

The tables for the current and comparable prior year quarter continuing
and discontinued operations showing the deferred policy acquisition costs and assets reconciliation are shown below:

    Three Months Ended March 31, 

    2025  
    2024 
  
    Continuing operations: 

    Balance, beginning of period 
    $26,300  
    $26,790 
  
    Deferral of policy acquisition costs 
     14,041  
     18,975 
  
    Amortization of deferred policy acquisition costs 
     (16