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

Company: NI Holdings, Inc.
Filing Date: 2025-05-09
Form: 10-Q
Item: Part I, Item 1
Chunk 10
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 disclosures we report in our unaudited 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.

Operating results for the interim period ended March
31, 2025, are not necessarily indicative of the results that may be expected for the year ending December 31, 2025.

Our 2024 Annual Report describes the accounting policies
and estimates that are critical to the understanding of our results of operations, financial condition, and liquidity. The accounting
policies and estimation processes described in the 2024 Annual Report were consistently applied to the unaudited consolidated financial
statements as of and for the three months ended March 31, 2025 and 2024.

Discontinued Operations

On May 7, 2024, NI Holdings entered into a Stock
Purchase Agreement (“Purchase Agreement”) to sell its subsidiary, Westminster, to Scott Insurance Holdings, a privately owned
Maryland limited liability company. Scott Insurance Holdings is affiliated with John Scott, Sr., the father of the president of Westminster,
John Scott, Jr. The sale closed on June 30, 2024. The Purchase Agreement included a cash purchase price of $10,500, subject to certain
post-closing adjustments, including a post-closing payment to NI Holdings for the amount by which the ending statutory surplus balance
for Westminster exceeded $20,000. The post-closing payment received from Scott Insurance Holdings during the third quarter of 2024 was
$1,772 and has been included as an adjustment to the purchase price for the calculation of the loss on the sale of Westminster. The sale
of Westminster, which represented the majority of our Commercial segment in prior periods, was a strategic shift that has had a major
effect on our operations and financial results. Therefore, Westminster has been reported as discontinued operations in the Consolidated
Balance Sheets, Consolidated Statements of Operations, and Consolidated Statements of Cash Flows for all periods presented in this Form
10-Q.