Company: NODK
Filing Date: 2025-11-07
Form Type: 10-Q
Source: 0001174947-25-001356
Chunk: 422

Company: NI Holdings, Inc.
Filing Date: 2025-11-07
Form: 10-Q
Item: Part I, Item 8
Chunk 422
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 prior year. The year-to-date
increase was driven by higher crop hail losses in the current year compared to the prior year.

All Other – The net loss and loss adjustment
expense ratio increased 3.0 percentage points and decreased 4.9 percentage points in the three- and nine-month period ended September
30, 2025, compared to the same period in 2024. The current quarter increase was driven by unfavorable development for commercial property
losses related to the significant catastrophe event in North Dakota during the second quarter of 2025. The year-to-date decrease was driven
by favorable loss development related to the continued run-off of our participation in an assumed domestic and international reinsurance
pool of business.

Underwriting and General Expenses and Expense Ratio

    Three Months Ended September 30,  
    Nine Months Ended September 30, 

    2025  
    2024  
    2025  
    2024 
  
    Underwriting and general expenses: 

    Amortization of deferred policy acquisition costs 
    $13,725  
    $17,616  
    $46,627  
    $53,723 
  
    Other underwriting and general expenses 
     8,504  
     9,724  
     25,536  
     26,658 
  
    Total underwriting and general expenses 
     22,229  
     27,340  
     72,163  
     80,381 

    Expense Ratio 
     30.9%  
     32.8%  
     34.0%  
     33.7% 

The expense ratio is calculated by dividing other underwriting and
general expenses and amortization of deferred policy acquisition costs by net premiums earned. The expense ratio measures a company’s
operational efficiency in producing, underwriting, and administering its insurance business. The overall expense ratio decreased 1.9 percentage
points and increased 0.3 percentage points in the three-and nine-month periods ended September 30, 2025, respectively, compared to the
same periods in 2024. The decrease in the amortization of deferred policy acquisition costs is due to lower deferrable costs resulting
from the strategic reduction in premium for the Non-Standard Auto segment, which generally pays higher agent commissions than our other
segments. Other underwriting and general expenses are generally consistent year-over