Company: NODK
Filing Date: 2025-05-09
Form Type: 10-Q
Source: 0001174947-25-000721
Chunk: 22

Company: NI Holdings, Inc.
Filing Date: 2025-05-09
Form: 10-Q
Item: Part I, Item 1
Chunk 22
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5, or December 31, 2024.

15 

  5.
  Reinsurance

External Reinsurance

The Company’s consolidated financial statements reflect the effects
of assumed and ceded reinsurance transactions. Assumed reinsurance refers to the acceptance of certain insurance risks that other insurance
companies have underwritten. Ceded reinsurance involves transferring certain insurance risks (along with the related written and earned
premiums) the Company has underwritten to other insurance companies who agree to share these risks. The Company reinsures a portion of
the risks it underwrites, through these ceded reinsurance agreements, in order to control its exposure to losses. Our ceded reinsurance
is placed either on an automatic basis under general reinsurance contracts known as treaties or through facultative contracts placed on
substantial individual risks. These contracts do not relieve the Company from its obligations to policyholders. Treaty reinsurance contracts
are typically effective from January 1 through December 31 each year.

During the three-month period ended March 31, 2025, the Company maintained
property catastrophe reinsurance protection covering $117,000 in excess of a $20,000 retention. Our 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. 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 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