Company: NODK
Filing Date: 2025-11-07
Form Type: 10-Q
Source: 0001174947-25-001356
Chunk: 32

Company: NI Holdings, Inc.
Filing Date: 2025-11-07
Form: 10-Q
Item: Part I, Item 1
Chunk 32
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154) 
     (5,209) 
     (46,834) 
     (10,845)
  
    Net losses and loss adjustment expenses 
    $56,197  
    $65,100  
    $161,329  
    $174,602 

    Three Months Ended September 30,  
    Nine Months Ended September 30, 

    2025  
    2024  
    2025  
    2024 
  
    Discontinued operations: 

    Direct losses and loss adjustment expenses 
    $—  
    $—  
    $—  
    $28,353 
  
    Assumed losses and loss adjustment expenses 
     —  
     —  
     —  
     — 
  
    Ceded losses and loss adjustment expenses 
     —  
     —  
     —  
     (4,847)
  
    Net losses and loss adjustment expenses 
    $—  
    $—  
    $—  
    $23,506 

Intercompany Reinsurance Pooling Arrangement

Effective January 1, 2020, all of our insurance subsidiary and
affiliate companies entered into an intercompany reinsurance pooling agreement. Nodak 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.

19 

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