Company: NODK
Filing Date: 2025-11-07
Form Type: 10-Q
Source: 0001174947-25-001356
Chunk: 376

Company: NI Holdings, Inc.
Filing Date: 2025-11-07
Form: 10-Q
Item: Part I, Item 8
Chunk 376
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 securities that do not trade on a daily basis, the independent pricing service prepares estimates of fair
value using a wide array of observable inputs including relevant market information, benchmark curves, benchmarking of like securities,
sector groupings, and matrix pricing. The observable market inputs that the Company’s independent pricing service utilizes may include
benchmark yields, reported trades, broker-dealer quotes, issuer spreads, two-sided markets, benchmark securities, market bids/offers,
and other reference data on markets, industry, and the economy. Additionally, the independent pricing service uses an option-adjusted
spread model to develop prepayment and interest rate scenarios.

Should the independent pricing service be unable to provide
a fair value estimate, we would first attempt to obtain a fair value estimate from a second independent pricing service. If unsuccessful,
we would attempt to obtain a non-binding fair value estimate from a number of broker-dealers and would review this estimate in conjunction
with a fair value estimate reported by an independent business news service or other sources. In instances where only one broker-dealer
provides a fair value for a fixed income security, we would use that estimate. In instances where the Company would be able to obtain
fair value estimates from more than one broker-dealer, we would review the range of estimates and select the most appropriate value based
on the facts and circumstances. Should neither the independent pricing service nor a broker-dealer provide a fair value estimate, we would
develop a fair value estimate based on cash flow analyses and other valuation techniques that utilize certain unobservable inputs. Accordingly,
the Company classifies such a security as a Level 3 investment.

The fair value estimates of our investments provided by the
independent pricing service at each period-end were utilized, among other resources, in reaching a conclusion as to the fair value of
our investments.

15 

Management reviews the reasonableness of the pricing provided
by the independent pricing service by employing various analytical procedures. We also use information from a second independent pricing
service to further validate the reasonableness of the valuation of our fixed income portfolio. If, after this review, management does
not believe the pricing for any security is a reasonable estimate of fair value, then it will seek to resolve the discrepancy through
discussions with the independent pricing services. In its review, management did not identify any such discrepancies and no adjustments
were made to the estimates provided by the independent pricing services for the nine-month period ended September 30, 2025, or the year
ended December 31,