Company: NODK
Filing Date: 2025-03-07
Form Type: 10-K
Source: 0001174947-25-000304
Chunk: 2066

Company: NI Holdings, Inc.
Filing Date: 2025-03-07
Form: 10-K
Item: Item 7
Chunk 2066
---

  
    Impairment recognized during the period 
     (2,628) 
     —  
     (2,628) 
     —  
     (6,756) 
     (6,756) 
     —  
     —  
     — 
  
    Goodwill, end of year 
    $—  
    $—  
    $—  
    $2,628  
    $—  
    $2,628  
    $2,628  
    $6,756  
    $9,384 

We performed a quantitative assessment
of the goodwill related to the Primero acquisition during the fourth quarter of 2024, which is allocated to our Non-Standard Auto segment,
and concluded that the goodwill was fully impaired as of December 31, 2024, resulting in a non-cash impairment charge of $2,628 in the
current year. The determination of the fair value of the reporting unit was based on an income approach that utilized discounted cash
flows. Under the income approach, we determined fair value based on the present value of the most recent cash flow projections for the
reporting unit as of the date of the analysis and calculated a terminal value utilizing a terminal growth rate. The significant assumptions
under this approach include, among others: income projections, operating expenses, the discount rate, and the terminal growth rate. The
cash flows used to determine fair value are dependent on a number of significant management assumptions such as our expectations of future
performance and the expected future economic environment, which are partly based upon our historical experience. Our estimates are subject
to change given the inherent uncertainty in predicting future results. Additionally, the discount rate and the terminal growth rate are
based on our judgment of the rates that would be utilized by a hypothetical market participant.

We performed a quantitative assessment
of the goodwill related to the Westminster acquisition during the fourth quarter of 2023, which was allocated to our former Commercial
segment, and concluded that the goodwill was fully impaired as of December 31, 2023, resulting in a non-cash impairment charge of $6,756
in 2023. The determination of the fair value of the reporting unit was based on a combination of a market approach that considered benchmark
company market multiples, and an income approach that utilized discounted cash flows. Under the income approach, we determined fair value
based on the present value of the most recent cash