Company: NODK
Filing Date: 2025-08-08
Form Type: 10-Q
Source: 0001174947-25-001142
Chunk: 109

Company: NI Holdings, Inc.
Filing Date: 2025-08-08
Form: 10-Q
Item: Part I, Item 8
Chunk 109
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the date of sale.

  2.
  Basis of Presentation and Accounting Policies

Basis of Presentation

The accompanying unaudited consolidated financial
statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”)
for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include
all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, all adjustments
(consisting of normal recurring accruals) considered necessary for a fair presentation have been included. All material intercompany transactions
and balances have been eliminated. These financial statements should be read in conjunction with the financial statements and notes thereto
included in our 2024 Annual Report.

The Consolidated Balance Sheet at December 31, 2024,
has been derived from the audited consolidated financial statements at that date but does not include all of the information and footnotes
required by GAAP for complete financial statements.

The preparation of the interim unaudited consolidated
financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of
assets and liabilities and disclosure of contingent assets and liabilities at the date of the interim unaudited consolidated financial
statements and the reported amounts of revenues, claims, and expenses during the reporting period.

We make estimates and assumptions that can have a
significant effect on amounts and 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 periods ended June
30, 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