Company: NODK
Filing Date: 2025-05-09
Form Type: 10-Q
Source: 0001174947-25-000721
Chunk: 59

Company: NI Holdings, Inc.
Filing Date: 2025-05-09
Form: 10-Q
Item: Part I, Item 1
Chunk 59
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 quarter. This change was primarily driven by lower levels of cash received
for premiums in the current year quarter and positive cash flows from discontinued operations in the prior year quarter, partially offset
by lower levels of loss and loss adjustment expense payments in the current year quarter.

For the three months ended March 31, 2025, net cash used by investing
activities totaled $3,459 compared to $4,143 in the prior year quarter. The relatively consistent cash outflows in the current year quarter
compared to the prior year quarter were attributable to the investment of excess cash from operations.

For the three months ended March 31, 2025, net cash used by financing
activities totaled $157 compared to $178 a year ago. This decrease in cash used was attributable to a reduction in the issuance of vested
award shares in the current year quarter.

As a holding company, a principal source of long-term liquidity will
be dividend payments from our directly-owned subsidiaries.

Nodak Insurance is restricted by the insurance laws of North Dakota
as to the amount of dividends or other distributions it may pay to NI Holdings. North Dakota law sets the maximum amount of dividends
that may be paid by Nodak Insurance during any twelve-month period after notice to, but without prior approval of, the North Dakota Insurance
Department. This amount cannot exceed the lesser of (i) 10% of the Company’s surplus as regards policyholders as of the preceding
December 31, or (ii) the Company’s statutory net income for the preceding calendar year (excluding realized investment gains), less
any prior dividends paid during such twelve-month period. In addition, any insurance company other than a life insurance company may carry
forward net income from the preceding two calendar years, not including realized investment gains, less any dividends actually paid during
those two calendar years. Dividends in excess of this amount are considered “extraordinary” and are subject to the approval
of the North Dakota Insurance Department.

The amount available for payment of dividends from Nodak Insurance
to NI Holdings during 2025 without the prior approval of the North Dakota Insurance Department is approximately $8,273 as of December
31, 2024. No dividends were declared or paid by Nodak Insurance during the three months ended March 31, 2025, or the year ended December
31, 2024.

The amount available for payment of dividends from Direct Auto to NI
Holdings during 2025 without the prior approval of the North