Company: NODK
Filing Date: 2025-03-07
Form Type: 10-K
Source: 0001174947-25-000304
Chunk: 29

Company: NI Holdings, Inc.
Filing Date: 2025-03-07
Form: 10-K
Item: Item 1
Chunk 29
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 capital requirements depend on many factors, including rating
agency and regulatory requirements, the performance of our investment portfolio, strategic initiatives, acquisition opportunities, and
the ability to write business successfully at rate levels sufficient to cover losses. We may need to raise additional capital in the future
through debt or equity financings. However, we can provide no assurance that we will be successful in raising funds pursuant to additional
equity or debt financings or that such funds will be raised at prices that do not create substantial dilution for our existing stockholders.
Any debt financing obtained by us in the future would cause us to incur debt service expenses and could include restrictive covenants
relating to our capital raising activities and other financial and operational matters, which may make it more difficult for us to obtain
additional capital and pursue business opportunities. Macroeconomic challenges and volatility in capital markets could limit our ability
to raise capital when needed on terms favorable to us, or at all. If we cannot obtain adequate capital or sources of credit on favorable
terms, or at all, our business, financial condition, results of operations, and strategic initiatives could be adversely affected.

18 

We may be unable to attract, retain or effectively
manage the succession of key personnel.

The success of our business is dependent, to a
large extent, on our ability to attract and retain key employees, in particular our senior officers and key management of our insurance
subsidiaries. Our business may be adversely affected if labor market conditions make it difficult for us to retain or, if needed, replace
our current key officers with individuals having equivalent qualifications and experience at compensation levels competitive for our industry.
While we believe we offer competitive compensation and benefit arrangements, there can be no guarantee that we will be able to retain
our key employees. There is significant competition from within the property and casualty insurance industry and from businesses outside
the industry for those in key management positions, as well as others possessing highly specialized knowledge in areas such as actuarial,
accounting, information technology, and data and analytics. In addition, our employment and other agreements with our key officers do
not include non-compete covenants or non-solicitation provisions because they are unenforceable under North Dakota law. If we are not
able to successfully attract, retain, and motivate our employees, our business, financial results, and reputation could be materially
and adversely affected.

A failure in our operational systems or infrastructure,
or those of our third-party service providers, including operational errors,