Company: NODK
Filing Date: 2025-05-09
Form Type: 10-Q
Source: 0001174947-25-000721
Chunk: 167

Company: NI Holdings, Inc.
Filing Date: 2025-05-09
Form: 10-Q
Item: Part I, Item 2
Chunk 167
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 points in the three-month period ended March 31, 2025, compared to the same period in
2024. This increase was driven by unfavorable prior year development on loss reserves in the current year quarter due to higher severity.

Non-Standard Auto – The net loss and loss adjustment
expense ratio increased 12.1 percentage points in the three-month period ended March 31, 2025, compared to the same period in 2024. This
increase was primarily driven by significant strategic reductions in net earned premium and unfavorable prior year development on liability
loss reserves in the current year quarter.

Home and Farm – The net loss and loss adjustment
expense ratio decreased 15.6 percentage points in the three-month period ended March 31, 2025, compared to the same period in 2024. This
decrease was driven by earned premium growth as well as lower frequency of large farm losses in the current quarter compared to the first
quarter of 2024.

Crop – The net losses and loss adjustment expenses
during the first quarter of any year are typically the result of the current year settlement of prior crop year claims. The majority of
crop insurance losses and loss adjustment expenses are generally incurred in the last three quarters of the calendar year.

All Other – The net loss and loss adjustment expense
ratio decreased 9.3 percentage points in the three-month period ended March 31, 2025, compared to the same period in 2024. This decrease
was driven by favorable loss development related to the continued run-off of our participation in an assumed domestic and international
reinsurance pool of business.

36 

Underwriting and General Expenses and Expense Ratio

    Three Months Ended March 31, 

    2025  
    2024 
  
    Underwriting and general expenses: 

    Amortization of deferred policy acquisition costs 
    $16,528  
    $16,817 
  
    Other underwriting and general expenses 
     8,632  
     8,705 
  
    Total underwriting and general expenses 
     25,160  
     25,522 

    Expense ratio 
     37.3%  
     36.5% 

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