Company: NODK
Filing Date: 2025-03-07
Form Type: 10-K
Source: 0001174947-25-000304
Chunk: 1154

Company: NI Holdings, Inc.
Filing Date: 2025-03-07
Form: 10-K
Item: Item 3
Chunk 1154
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 rate environment, these securities may be called by their issuer and replaced
with securities bearing lower interest rates.

If we are required to sell fixed income securities
in a rising interest rate environment, we may recognize investment losses.

The table below shows the interest rate sensitivity
of our fixed income securities (including both continuing and discontinued operations) measured in terms of fair value (which is equal
to the carrying value for all of our investment securities that are subject to interest rate changes) at December 31, 2024 and 2023:

    As of December 31, 2024  
    As of December 31, 2023 
  
    Hypothetical Change in Interest Rate 
    Estimated Change 
in Fair Value  
    Fair Value  
    Estimated Change 
in Fair Value  
    Fair Value 
  
    200 basis point increase 
    $(28,085) 
    $279,627  
    $(31,125) 
    $316,606 
  
    100 basis point increase 
     (14,687) 
     293,025  
     (15,826) 
     331,905 
  
    No change 
     —  
     307,712  
     —  
     347,731 
  
    100 basis point decrease 
     13,509  
     321,221  
     16,199  
     363,930 
  
    200 basis point decrease 
     27,977  
     335,689  
     32,572  
     380,303 

The interest
rate exposure of our portfolio was proportionately consistent in the current year compared to the prior year, which is expected given
the generally consistent composition and duration of the fixed income portfolio over this time. 

44 

Credit Risk

Credit risk is the potential economic loss principally
arising from adverse changes in the financial condition of a specific debt issuer. We address this risk by investing primarily in fixed
income securities that are rated investment grade by Moody’s Investors Services, Inc. or an equivalent rating quality. We also work
in conjunction with our outside fixed income portfolio manager to monitor the financial condition of all of the issuers of fixed income
securities in the portfolio. Additionally, our investment policy includes diversification rules that limit the credit exposure to any
single issuer or asset class.

Equity Risk

Equity price risk is the risk that