Company: NODK
Filing Date: 2025-03-07
Form Type: 10-K
Source: 0001174947-25-000304
Chunk: 1175

Company: NI Holdings, Inc.
Filing Date: 2025-03-07
Form: 10-K
Item: Item 3
Chunk 1175
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 statements, which we
have prepared in accordance with GAAP, include our accounts and those of our wholly-owned subsidiaries, including Battle Creek, which
was consolidated as a variable interest entity (“VIE”) with an associated non-controlling interest prior to January 2, 2024.
We have eliminated all significant intercompany accounts and transactions in consolidation.

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Use of Estimates

In preparing our consolidated financial statements,
management makes estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the balance sheet,
and revenues and expenses for the periods then ended. Actual results could differ significantly from those estimates.

We make estimates and assumptions that can have
a significant effect on amounts and disclosures we report in our consolidated financial statements. The most significant estimates relate
to our reserves for unpaid losses and loss adjustment expenses, earned premiums for crop insurance, valuation of investments, determination
of credit impairments, valuation allowances for deferred income tax assets, deferred policy acquisition costs, as well as valuation and
impairments of goodwill and other intangible assets. While we believe our estimates are appropriate, the ultimate amounts may differ from
the estimates provided. We regularly review our methods for making these estimates as well as the continued appropriateness of the estimated
amounts, and we reflect any adjustment we consider necessary in our current results of operations.

Variable-Interest Entities

Any company deemed to be a VIE is required to
be consolidated by the primary beneficiary of the VIE.

We assess our investments in other entities at
inception to determine if any meet the qualifications of a VIE. We consider an investment in another company to be a VIE if: (a) the total
equity investment at risk is not sufficient to permit the entity to finance its activities without additional subordinated financial support,
(b) the characteristics of a controlling financial interest are missing (either the ability to make decisions through voting or other
rights, the obligation to absorb expected losses of the entity, or the right to receive the expected residual returns of the entity),
or (c) the voting rights of the equity holders are not proportional to their obligations to absorb the expected losses of the entity and/or
the rights to receive the expected residual returns of the entity, and substantially all of the entity’s activities either involve
or are conducted on behalf of an investor that has disproportionately few voting rights. Upon the occurrence of certain events, we would
reassess our initial determination of whether the investment is a VIE.

We evaluate whether we are the primary