Company: NODK
Filing Date: 2025-03-07
Form Type: 10-K
Source: 0001174947-25-000304
Chunk: 546

Company: NI Holdings, Inc.
Filing Date: 2025-03-07
Form: 10-K
Item: Item 1B
Chunk 546
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 be recognized in the amount by which
the reporting unit’s carrying amount exceeds its fair value, not to exceed the total goodwill assigned to the reporting unit.

For the goodwill arising from the acquisition of Primero in 2014,
we determined that it was appropriate to perform a quantitative assessment during the fourth quarter of 2024. Based on our quantitative
assessment as described above, we concluded that the goodwill related to Primero was fully impaired as of December 31, 2024, primarily
due to Primero’s expected future performance being well below initial projections and expectations as a result of strategic initiatives.
We did not record any impairments of goodwill for this reporting unit during the years ended December 31, 2023 or 2022.

For the goodwill arising from the acquisition of Westminster in
2020, we determined that it was appropriate to perform a quantitative assessment during the fourth quarter of 2023. Based on our quantitative
assessment as described above, we concluded that the goodwill related to Westminster was fully impaired as of December 31, 2023, primarily
due to Westminster’s actual and expected future performance being well below initial projections and expectations. We did not record
any impairments of goodwill for this reporting unit during the year ended December 31, 2022.

Intangible assets arising from the acquisition of Direct Auto in
2018 represent the estimated fair values of certain intangible assets, including a favorable lease contract, a state insurance license,
the value of the Direct Auto trade name, and the value of business acquired (“VOBA”). The state insurance license asset has
an indefinite life, while the Direct Auto trade name was amortized over five years from the August 31, 2018 acquisition/valuation date.
The favorable lease contract and VOBA assets have been fully amortized. We did not record any impairments of the intangible assets for
this reporting unit during the years ended December 31, 2024, 2023 or 2022.

Other intangible assets arising from the acquisition of Westminster
represented the estimated fair values of certain intangible assets, including state insurance licenses, the value of Westminster’s
distribution network, the value of the Westminster trade name, and the VOBA. The state insurance license asset had an indefinite life,
while the distribution networks asset and Westminster trade name were being amortized over twenty years and ten years, respectively, from
the January 1, 2020 acquisition/valuation date until the date of sale on June 30, 2024