Company: NODK
Filing Date: 2025-03-07
Form Type: 10-K
Source: 0001174947-25-000304
Chunk: 940

Company: NI Holdings, Inc.
Filing Date: 2025-03-07
Form: 10-K
Item: Item 2
Chunk 940
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 sold on June 30, 2024, and therefore no dividends
are available to be paid to NI Holdings subsequent to that date. No dividends were declared or paid by Westminster during the years ended
December 31, 2024, 2023 or 2022. See Part II, Item 8, Note 20 “Discontinued Operations” for additional information.

Contractual Obligations

The primary contractual obligations of the Company
include gross loss and loss adjustment expenses payments as well as operating and finance lease obligations.

The Company’s unpaid losses and loss adjustment
expenses were $137,288 as of December 31, 2024. Historical payment experience indicates that approximately 46% of this amount will be
paid during 2025 and another 37% will be paid over the subsequent two years. The actual timing and amounts of these payments in the future
may vary.

Recent Accounting Pronouncements

For a discussion of recent accounting pronouncements,
see Part II, Item 8, Note 2 “Recent Accounting Pronouncements.”

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Item 7A.Quantitative and Qualitative Disclosures About Market Risk

Market
Risk

Market risk is the risk that a company will incur
losses due to adverse changes in the fair value of financial instruments. We have exposure to three principal types of market risk through
our investment activities: interest rate risk, credit risk, and equity risk. Our primary market risk exposure is to changes in interest
rates. We have not entered, and do not plan to enter, into any derivative financial instruments for hedging, trading, or speculative purposes.

Interest Rate Risk

Interest rate risk is the risk that a company
will incur economic losses due to adverse changes in interest rates. Our exposure to interest rate changes primarily results from our
significant holdings of fixed income securities. Fluctuations in interest rates have a direct impact on the fair value of these securities.

We develop our investment strategies based on
a number of factors, including estimated duration of reserve liabilities, short and long-term liquidity needs, general economic conditions,
expected rates of inflation and regulatory requirements. The portfolio duration of the fixed income securities in our investment portfolio
at December 31, 2024 was 4.77 years. These fixed income securities include U.S. government bonds, securities issued by government agencies,
obligations of state and local governments and governmental authorities, and corporate bonds, most of which are exposed to changes in
prevailing interest rates. These fixed income securities may experience significant fluctuations