Company: NODK
Filing Date: 2025-08-08
Form Type: 10-Q
Source: 0001174947-25-001142
Chunk: 123

Company: NI Holdings, Inc.
Filing Date: 2025-08-08
Form: 10-Q
Item: Part I, Item 8
Chunk 123
---
 place for both crop hail and multi-peril crop coverage. The crop hail aggregate attaches at a
100% net loss ratio providing 50 points of cover. The multi-peril crop aggregate attaches at a 105% net loss ratio providing 45 points
of cover. In addition to the aggregate covers, underlying multi-peril crop reinsurance is provided through the Federal Crop Insurance
Corporation (“FCIC”).

During the year ended December 31, 2024, the Company maintained property
catastrophe reinsurance protection covering $133,000 in excess of a $20,000 retention. With the exception of Westminster, a per risk excess
of loss treaty provides coverage of $4,000 in excess of $1,000 for property risks and $11,000 in excess of $1,000 for casualty risks.
For Westminster, a per risk excess of loss treaty provided coverage of $3,000 in excess of $2,000 for property risks and $10,000 in excess
of $2,000 for casualty risks until July 1, 2024. Additionally, a property per-risk facultative contract is in place to provide coverage
up to $20,000 in excess of $5,000 per property. Aggregate stop loss reinsurance agreements are also in place for both crop hail and multi-peril
crop coverage. The crop hail aggregate attaches at a 100% net loss ratio providing 50 points of cover. The multi-peril crop aggregate
attaches at a 105% net loss ratio providing 45 points of cover. In addition to the aggregate covers, underlying multi-peril crop reinsurance
is provided through the FCIC.

Effective July 1, 2024, the Company’s reinsurance
contracts were modified to exclude any Westminster losses occurring on or after that date, while maintaining all other existing limits,
retentions, and attachment points.

The Company actively monitors and evaluates the financial
condition of the reinsurers and develops estimates of the uncollectible amounts due from reinsurers, which would be recognized as credit
losses through an allowance account developed using the current expected credit losses (“CECL”) model. See the Part II, Item
8, Note 3 “Summary of Significant Accounting Policies and Basis of Presentation” section of the 2024 Annual Report for additional
information. Credit loss estimates are made based on periodic evaluation of balances due from reinsurers, changes in reinsurer credit
standing, judgments regarding reinsurers’ solvency, known disputes