Company: NODK
Filing Date: 2025-03-07
Form Type: 10-K
Source: 0001174947-25-000304
Chunk: 495

Company: NI Holdings, Inc.
Filing Date: 2025-03-07
Form: 10-K
Item: Item 1B
Chunk 495
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 the year ended December 31, 2022.

Crop – The net loss and loss adjustment expenses
ratio increased 1.1 percentage points in 2024 compared to 2023. The strong results for 2024 were the result of favorable crop growing
conditions, similar to the prior year. The net loss and loss adjustment expenses ratio decreased 14.1 percentage points in 2023 compared
to 2022. This decrease was due to improved crop growing conditions in 2023 in comparison to 2022.

All other – The net loss and loss adjustment
expenses ratio increased 33.0 percentage points in 2024 compared to 2023. This increase was driven by elevated large loss experience compared
to the prior year and an inter-segment reclassification of a large loss during 2023. The net loss and loss adjustment expenses ratio decreased
55.5 percentage points in 2023 compared to 2022. This decrease was driven by improved loss experience related to the commercial and excess
liability lines of business.

Underwriting and General Expenses and Expense Ratio

    Year Ended December 31, 

    2024  
    2023  
    2022 
  
    Underwriting and general expenses: 

    Amortization of deferred policy acquisition costs 
    $71,257  
    $67,631  
    $53,605 
  
    Other underwriting and general expenses 
     33,709  
     29,326  
     25,303 
  
    Total underwriting and general expenses 
    $104,966  
    $96,957  
    $78,908 

    Expense ratio 
     33.8%  
     33.2%  
     29.0% 

The expense ratio is calculated by dividing other underwriting and
general expenses and amortization of deferred policy acquisition costs by net premiums earned. The expense ratio measures a company’s
operational efficiency in producing, underwriting, and administering its insurance business. The overall expense ratio increased 0.6 percentage
points in the year ended December 31, 2024, compared to the same period in 2023. The increase in the amortization of deferred policy acquisition
costs is due to higher deferrable costs resulting from significant earned premium growth compared to the prior year, including significant
growth in the Non-Standard Auto segment which generally pays higher agent commissions than our