Company: NODK
Filing Date: 2025-03-07
Form Type: 10-K
Source: 0001174947-25-000304
Chunk: 2382

Company: NI Holdings, Inc.
Filing Date: 2025-03-07
Form: 10-K
Item: Item 8
Chunk 2382
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 determining whether we qualify as the primary beneficiary. Our assessment of whether we are the primary beneficiary
of a VIE is performed at least annually.

Cash and Cash Equivalents

Cash and cash equivalents include cash, money
market accounts, and certain investments in highly liquid debt instruments. Cost approximates fair value for these short-term investments.

Investments

The Company’s fixed income securities and equity securities
are classified as available-for-sale and carried at estimated fair value as determined by management based upon quoted market prices or
a recognized independent pricing service at the reporting date for those or similar investments. Changes in unrealized investment gains
or losses on the fixed income securities, net of applicable income taxes, are reflected directly in shareholders’ equity as a component
of other comprehensive income (loss) and, accordingly, have no effect on net income (loss). Changes in unrealized investment gains or
losses on equity securities are reported in net income (loss). Investment income from fixed income securities is recognized when earned,
and realized investment gains (losses) are recognized when investments are sold, the fair value of equity securities change, or credit
impairments are recognized.

Fair values are based on quoted market prices or independent pricing
services, if available. If a quoted market price is not available, fair value is estimated using quoted market prices for similar securities.
Amortization of premium and accretion of discount are computed using the effective interest method. Net investment income includes interest
and dividend income together with amortization of purchase premiums and discounts and is net of investment management and custody fees.
Realized gains and losses on investments are determined using the specific identification method and are included in net investment gains
(losses), along with the change in unrealized gains and losses on equity securities. Other invested assets that do not have observable
inputs and little or no market activity are carried on a cost basis, which approximates fair value. The carrying value of these other
invested assets was $1,812 at December 31, 2024 and $2,006 at December 31, 2023.

Beginning on December 31, 2022, credit losses are recognized through
an allowance account. See Part II, Item 8, Note 2 “Recent Accounting Pronouncements” for additional information. We, along
with our investment advisors, frequently review our investment portfolio for declines in fair value that could be indicative of credit
losses. The available-for-sale impairment model requires an 

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estimate of expected credit losses