Company: NODK
Filing Date: 2025-11-07
Form Type: 10-Q
Source: 0001174947-25-001356
Chunk: 380

Company: NI Holdings, Inc.
Filing Date: 2025-11-07
Form: 10-Q
Item: Part I, Item 8
Chunk 380
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 hail and multi-peril
crop coverage. The crop hail aggregate attaches at a 100% net loss ratio providing 50 points of cover. The multi-peril crop aggregate
attaches at a 105% net loss ratio providing 45 points of cover. In addition to the aggregate covers, underlying multi-peril crop reinsurance
is provided through the FCIC.

Effective July 1, 2024, the Company’s reinsurance contracts
were modified to exclude any Westminster losses occurring on or after that date, while maintaining all other existing limits, retentions,
and attachment points.

The Company actively monitors and evaluates the
financial condition of the reinsurers and develops estimates of the uncollectible amounts due from reinsurers, which would be recognized
as credit losses through an allowance account developed using the current expected credit losses (“CECL”) model. See the Part
II, Item 8, Note 3 “Summary of Significant Accounting Policies and Basis of Presentation” section of the 2024 Annual Report
for additional information. Credit loss estimates are made based on periodic evaluation of balances due from reinsurers, changes in reinsurer
credit standing, judgments regarding reinsurers’ solvency, known disputes, reporting characteristics of the underlying reinsured
business, historical experience, current economic conditions, and the state of reinsurer relations in general. Collection risk is mitigated
by entering into reinsurance arrangements only with reinsurers that have strong credit ratings and statutory surplus above certain levels.
At September 30, 2025, and December 31, 2024, management has concluded that it is not necessary to record an allowance for expected credit
losses related to reinsurance recoverables. All of our significant reinsurance partners are rated “A-” (Excellent) or better
by AM Best or “A+” or better by Standard & Poor’s, and there is no history of write-offs.

A reconciliation of direct to net premiums on both a written
and an earned basis, presented on a consolidated basis, including both continuing and discontinued operations, is as follows:

    Three Months Ended September 30, 2025  
    Three Months Ended September 30, 2024 

    Premiums Written  
    Premiums Earned  
    Premiums Written  
    Premiums Earned 
  
    Direct premium 
    $58,458  
    $81,819  
    $67,704  
    $90,125 
  
    Assumed premium