Company: NODK
Filing Date: 2025-05-09
Form Type: 10-Q
Source: 0001174947-25-000721
Chunk: 105

Company: NI Holdings, Inc.
Filing Date: 2025-05-09
Form: 10-Q
Item: Part I, Item 8
Chunk 105
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  Unpaid Losses and Loss Adjustment Expenses

Activity in the liability for unpaid losses and loss
adjustment expenses is summarized as follows for both continuing and discontinued operations:

    Three Months Ended March 31, 

    2025  
    2024 
  
    Balance, beginning of period: 

    Liability for unpaid losses and loss adjustment expenses 
    $137,288  
    $217,119 
  
    Reinsurance recoverables on losses 
     12,561  
     48,969 
  
    Net balance, beginning of period 
     124,727  
     168,150 

    Incurred related to: 

    Current year 
     37,107  
     50,925 
  
    Prior years 
     1,418  
     1,284 
  
    Total incurred 
     38,525  
     52,209 

    Paid related to: 

    Current year 
     10,375  
     12,940 
  
    Prior years 
     25,637  
     31,897 
  
    Total paid 
     36,012  
     44,837 

    Balance, end of period: 

    Liability for unpaid losses and loss adjustment expenses 
     135,886  
     225,006 
  
    Reinsurance recoverables on losses 
     8,646  
     49,484 
  
    Net balance, end of period 
    $127,240  
    $175,522 

19 

During the three months ended
March 31, 2025, the Company’s incurred reported losses and loss adjustment expense included $1,418 of net unfavorable development
on prior accident years. This was primarily attributable to unfavorable development for the Direct Auto non-standard auto business. During
the three months ended March 31, 2024, the Company’s incurred reported losses and loss adjustment expenses included $1,284 of net
unfavorable development on prior accident years, primarily attributable to unfavorable development for the Direct Auto non-standard auto
business partially offset by favorable development for Battle Creek, American West, and Nodak Insurance. During 2024, Westminster was
sold and all associated liabilities were included in the sale.

Changes in unpaid losses and loss adjustment expense reserves
are generally the result of ongoing analysis of recent loss development trends. As additional information becomes known regarding