Company: NODK
Filing Date: 2025-03-07
Form Type: 10-K
Source: 0001174947-25-000304
Chunk: 941

Company: NI Holdings, Inc.
Filing Date: 2025-03-07
Form: 10-K
Item: Item 2
Chunk 941
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 in fair value resulting from changes
in interest rates and are carried as available for sale. We manage the exposure to risks associated with interest rate fluctuations through
active management and consultation with our outside fixed income portfolio manager.

Higher interest rates, oftentimes correlated to
inflation, reduce the carrying value of our fixed income and short-term investments, negatively impacting the Company’s book value
in the short-term. Over the long-term, however, higher interest rates provide an incremental benefit to our net investment income over
time as excess cash and proceeds of maturing bonds are reinvested at higher rates. We manage our exposure to interest rate increases by
monitoring the duration within our investment portfolio and maintaining maturities that minimize forced sales within the portfolio.

Additionally, we hold certain fixed income securities
that have call features. In a potential declining interest rate environment, these securities may be called by their issuer and replaced
with securities bearing lower interest rates.

If we are required to sell fixed income securities
in a rising interest rate environment, we may recognize investment losses.

The table below shows the interest rate sensitivity
of our fixed income securities (including both continuing and discontinued operations) measured in terms of fair value (which is equal
to the carrying value for all of our investment securities that are subject to interest rate changes) at December 31, 2024 and 2023:

    As of December 31, 2024  
    As of December 31, 2023 
  
    Hypothetical Change in Interest Rate 
    Estimated Change 
in Fair Value  
    Fair Value  
    Estimated Change 
in Fair Value  
    Fair Value 
  
    200 basis point increase 
    $(28,085) 
    $279,627  
    $(31,125) 
    $316,606 
  
    100 basis point increase 
     (14,687) 
     293,025  
     (15,826) 
     331,905 
  
    No change 
     —  
     307,712  
     —  
     347,731 
  
    100 basis point decrease 
     13,509  
     321,221  
     16,199  
     363,930 
  
    200 basis point decrease 
     27,977  
     335,689  
     32,572  
     380,303 

The interest