Company: NODK
Filing Date: 2025-03-07
Form Type: 10-K
Source: 0001174947-25-000304
Chunk: 28

Company: NI Holdings, Inc.
Filing Date: 2025-03-07
Form: 10-K
Item: Item 1
Chunk 28
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, which would adversely impact our results of operations. Additionally, potential capital
markets disruption could lead to our fixed income portfolio being adversely impacted by ratings downgrades, increased bankruptcies, declines
in real estate valuations, and/or declines in fixed income yields, along with increased volatility in our equity portfolio.

17 

We may not be able to grow our business if
we cannot retain and expand our captive and independent agent relationships, we cannot provide competitive products for these agents to
sell, and/or consumers seek other distribution methods offered by our competitors.

Our ability to retain existing agents, and to
attract new agents, is essential to the continued growth of our business. Nodak Insurance utilizes captive agents who only sell our Company’s
products. Outside of North Dakota, we write business through the independent agent distribution model. If we are not able to offer competitive
products and a competitive compensation structure to our captive agents and/or if our independent agents find it easier to do business
with our competitors, we may be unable to retain existing business or generate sufficient new business.

While our products are sold through either independent
or captive agents, our competitors may sell insurance through other distribution models, including the internet, direct marketing, or
other emerging forms of distribution. To the extent that current and potential policyholders change their insurance shopping preferences,
this may have an adverse effect on our ability to grow, financial position, and results of operations.

Acquisitions could disrupt our business and
harm our financial condition or results of operations.

As part of our growth strategy, we will continue
to evaluate acquisition opportunities. Any acquisitions involve a number of risks that could materially adversely affect our business
and operating results, including:

●problems integrating the acquired operations into our existing business;

●operating and underwriting results of the acquired operations not meeting our expectations;

●diversion of management’s time and attention from our existing business;

●higher than anticipated capital requirements;

●difficulties in retaining business relationships with agents and policyholders of the acquired company;

●risks associated with entering markets in which we lack extensive prior experience;

●tax issues associated with acquisitions;

●acquisition-related disputes, including disputes over contingent consideration and escrows;

●loss of key employees of the acquired company;

●impairment of related goodwill and intangible assets; and

●changes in strategy resulting in the sale of an acquired business which may result in a capital loss.

Our access to capital may be limited or may not be available on favorable
terms. 

Our future