Company: NODK
Filing Date: 2025-11-07
Form Type: 10-Q
Source: 0001174947-25-001356
Chunk: 123

Company: NI Holdings, Inc.
Filing Date: 2025-11-07
Form: 10-Q
Item: Part I, Item 2
Chunk 123
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 a separate component (net of income taxes) of other comprehensive
income.

Income (Loss) before Income Taxes

For the three months ended September 30, 2025, we had a pre-tax
loss of $1,858 compared to a pre-tax loss of $3,456 for the three months ended September 30, 2024. The year-over-year change was largely
attributable to lower levels of non-catastrophe weather losses, improved loss experience for Private Passenger Auto, and higher net investment
income in the current year, partially offset by lower net investment gains and higher unfavorable prior year loss reserve development
for Non-Standard Auto.

42 

For the nine months ended September 30, 2025, we had a pre-tax loss
of $9,433 compared to pre-tax loss of $3,693 for the nine months ended September 30, 2024. The year-over-year change was largely attributable
to the catastrophe losses for Home and Farm in North Dakota, lower net investment gains, and unfavorable prior year loss reserve development
for Non-Standard Auto, partially offset by lower levels of non-catastrophe weather losses, improved loss experience for Private Passenger
Auto, and higher net investment income.

Income Tax Expense (Benefit)

We recorded an income tax benefit of $192 for the three months ended
September 30, 2025, compared to an income tax benefit of $751 for the three months ended September 30, 2024. Our effective tax rate for
the third quarter of 2025 was 10.3% compared to an effective tax rate of 21.7% for the third quarter of 2024.

We recorded an income tax benefit of $2,176 for the nine months
ended September 30, 2025, compared to income tax benefit of $445 for the nine months ended September 30, 2024. Our effective tax rate
for the first nine months of 2025 was 23.1% compared to an effective tax rate (excluding tax effects relates to the loss on sale of Westminster)
of 12.0% for the first nine months of 2024. The effective tax rate for the first nine months of 2025 and 2024 were impacted by changes
in our valuation allowances against deferred income tax assets.

Net Income (Loss)

For the three months ended September 30, 2025, we had a net loss
of $1,666 compared to net