Company: NODK
Filing Date: 2025-08-08
Form Type: 10-Q
Source: 0001174947-25-001142
Chunk: 216

Company: NI Holdings, Inc.
Filing Date: 2025-08-08
Form: 10-Q
Item: Part I, Item 2
Chunk 216
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.4)% compared to (12.8)% for the three months ended June 30, 2024.

For the six months ended June 30, 2025, we had annualized return on
average equity of (4.6)% compared to (0.5)% for the six months ended June 30, 2024.

Average equity is calculated as the average between beginning and ending
equity for the period.

43 

Critical Accounting Policies

The preparation of financial statements in accordance with GAAP requires
both the use of estimates and judgment relative to the application of appropriate accounting policies. We are required to make estimates
and assumptions in certain circumstances that affect amounts reported in the unaudited consolidated financial statements and related footnotes.
We evaluate these estimates and assumptions on an ongoing basis based on historical developments, market conditions, industry trends,
and other information that we believe to be reasonable under the circumstances. There can be no assurance that actual results will conform
to these estimates and assumptions or that reported results of operations will not be materially and adversely affected by the need to
make accounting adjustments to reflect changes in these estimates and assumptions from time to time. Our critical accounting policies
are more fully described in Part II, Item 7, “Management's Discussion and Analysis of Financial Condition and Results of Operations”
presented in our 2024 Annual Report. There have been no changes in our critical accounting policies from December 31, 2024.

Liquidity and Capital Resources

We expect to generate sufficient funds from our operations and maintain
a high degree of liquidity in our investment portfolio to meet the demands of claim settlements and operating expenses for the foreseeable
future. Our primary sources of funds are premium collections, investment earnings, and fixed income maturities.

We also have a $3,000 line of credit with Wells Fargo Bank, N.A. The
terms of the line of credit include a floating interest rate of 2.50% above the daily simple secured overnight financing rate. There were
no outstanding amounts during the six months ended June 30, 2025, or the year ended December 31, 2024. This line of credit is scheduled
to expire on December 13, 2025.

The change in cash and cash equivalents for continuing and discontinued
operations for the six months ended June 30, 2025 and 2024, were as follows:

    Six Months Ended June 30, 

    2025  
    2024