Company: NODK
Filing Date: 2025-03-07
Form Type: 10-K
Source: 0001174947-25-000304
Chunk: 299

Company: NI Holdings, Inc.
Filing Date: 2025-03-07
Form: 10-K
Item: Item 1A
Chunk 299
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 between Nodak Insurance and Westminster.

For the year ended December 31, 2023, net cash provided by operating
activities totaled $51,028 compared to $15,294 net cash used by operating activities during 2022. This change was primarily driven by
lower claim payments and the receipt of a significant income tax refund during 2023.

For the year ended December 31, 2023, net cash used by investing
activities totaled $8,813 compared to $25,048 net cash provided by investing activities during 2022. This change was primarily attributable
to a decrease in maturities and sales of fixed income securities and an increase in purchases of fixed income securities during 2023 compared
to 2022, partially offset by an increase in sales of equity securities and a decrease in purchases of equity securities.

42 

For the year ended December 31, 2023, net cash used by financing
activities totaled $7,466 compared to $18,281 during 2022. This decrease in cash used was attributable to installment payments on the
Westminster consideration payable during 2022, partially offset by an increase in share repurchases during 2023 compared to 2022.

As a holding company, a principal source of long-term liquidity
will be dividend payments from our directly-owned subsidiaries.

Nodak Insurance is restricted by the insurance laws of North Dakota
as to the amount of dividends or other distributions it may pay to NI Holdings. North Dakota law sets the maximum amount of dividends
that may be paid by Nodak Insurance during any twelve-month period after notice to, but without prior approval of, the North Dakota Insurance
Department. This amount cannot exceed the lesser of (i) 10% of the Company’s surplus as regards policyholders as of the preceding
December 31, or (ii) the Company’s statutory net income for the preceding calendar year (excluding realized investment gains), less
any prior dividends paid during such twelve-month period. In addition, any insurance company other than a life insurance company may carry
forward net income from the preceding two calendar years, not including realized investment gains, less any dividends actually paid during
those two calendar years. Dividends in excess of this amount are considered “extraordinary” and are subject to the approval
of the North Dakota Insurance Department.

The amount available for payment of dividends from Nodak Insurance
to NI Holdings during 2025 without the prior approval of the North Dakota Insurance Department is approximately