Company: NODK
Filing Date: 2025-05-09
Form Type: 10-Q
Source: 0001174947-25-000721
Chunk: 55

Company: NI Holdings, Inc.
Filing Date: 2025-05-09
Form: 10-Q
Item: Part I, Item 1
Chunk 55
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.8% 
  
    Combined ratio 
     94.4%  
     93.9% 

Underwriting gain (loss) measures the pre-tax profitability of our
insurance operations. It is derived by subtracting losses and loss adjustment expenses, amortization of deferred policy acquisition costs,
and other underwriting and general expenses from net premiums earned. The combined ratio represents the sum of these losses and expenses
as a percentage of net premiums earned and measures our overall underwriting profit.

The total underwriting gain decreased $406 to a gain of $3,812 for
the three-month period ended March 31, 2025, from a gain of $4,218 for the three-month period ended March 31, 2024. These results were
driven by the factors discussed in the Loss and Loss Adjustment Expenses the Underwriting and General Expenses and Expense Ratio sections
above.

The overall combined ratio increased 0.5 percentage points in the three-month
period ended March 31, 2025, compared to the same period in 2024. These results were driven by the factors discussed in the Loss and Loss
Adjustment Expenses and the Underwriting and General Expenses and Expense Ratio sections above.

37 

Fee and Other Income

We had fee and other income of $230 for the three months ended March
31, 2025, compared to $404 for the three months ended March 31, 2024. Fee income is largely attributable to the Non-Standard Auto segment
and is a key component in measuring its profitability. Fee and other income on this business decreased to $221 for the three months ended
March 31, 2025, from $350 for the three months ended March 31, 2024, driven by the strategic reduction in written premium within this
segment.

Net Investment Income

The following table shows our average cash and invested assets, net
investment income, and return on average cash and invested assets for the reported periods:

    Three Months Ended March 31, 

    2025  
    2024 
  
    Average cash and invested assets 
    $391,998  
    $358,634 
  
    Net investment income 
    $2,838  
    $2,755 

    Gross return on average cash and invested assets 
     3.9%  
     4.1% 
  
    Net return on average cash and invested assets 
     2.9%