Company: NODK
Filing Date: 2025-03-07
Form Type: 10-K
Source: 0001174947-25-000304
Chunk: 1597

Company: NI Holdings, Inc.
Filing Date: 2025-03-07
Form: 10-K
Item: Item 5
Chunk 1597
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writing standards, as well as underwriting and claims administration, to Nodak Insurance, American West, and Battle Creek. Primero
and Direct Auto personnel manage the day-to-day operations of their respective companies. Westminster personnel managed the day-to-day
operations of their company prior to the date of sale.

2.       Recent
Accounting Pronouncements

Adopted

Improvements to Reportable Segment Disclosures

In the fourth quarter of 2024, the Company adopted the annual
and interim disclosure requirements of ASU 2023-07, “Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures”
issued by the FASB in November 2023. The amendments expand a public business entity's segment disclosures by requiring disclosure of significant
segment expenses that are regularly provided to the chief operating decision maker (“CODM”), clarifying when an entity may
report one or more additional measures to assess segment performance, requiring enhanced interim disclosures, providing new disclosure
requirements for entities with a single reportable segment, and requiring other new disclosures. See Item II, Part 8, Note 21 “Segment
Information” section of this Annual Report for applicable disclosures required by this guidance.

Measurement of Credit Losses on Financial Instruments

In December 2022, the Company adopted amended guidance from
the FASB that applies a new credit loss model (current expected credit losses or “CECL”) for determining credit-related impairments
for financial instruments measured at amortized cost and requires an entity to estimate the credit losses expected over the life of an
exposure or pool of exposures. The expected credit losses, and subsequent adjustments to such losses, are recorded through an allowance
account that is deducted from the amortized cost basis of the financial asset, with the net carrying value of the financial asset presented
on the Consolidated Balance Sheet at the amount expected to be collected. The updated guidance also amended the previous other-than-temporary
impairment model for available-for-sale fixed income securities by requiring the recognition of impairments relating to credit losses
through an allowance account and limiting the amount of credit loss to the difference between a security’s amortized cost basis
and its fair value. In addition, the length of time a security has been in an unrealized loss position no longer impacts the determination
of whether a credit loss exists.

The Company adopted the updated guidance for the year ended
December 31, 2022. The adoption of this guidance resulted in an allowance for expected credit losses