Company: NODK
Filing Date: 2025-08-08
Form Type: 10-Q
Source: 0001174947-25-001142
Chunk: 118

Company: NI Holdings, Inc.
Filing Date: 2025-08-08
Form: 10-Q
Item: Part I, Item 8
Chunk 118
---
 $(410) 
    $(836) 
    $459  
    $992 

Non-cash investment transactions were $499 and $0 for the six months
ended June 30, 2025 and 2024, respectively. The activity in the current year consisted of one non-cash exchange of a fixed income security.

14 

  4.
  Fair Value Measurements

The Company uses fair value measurements to record fair value
adjustments to certain assets to determine fair value disclosures. Investment securities available for sale are recorded at fair value
on a recurring basis. Additionally, from time to time, we may be required to record other assets or liabilities at fair value on a nonrecurring
basis. These nonrecurring fair value adjustments typically involve application of lower-of-cost-or-market accounting or write-downs of
individual assets. Accounting guidance on fair value measurements and disclosures establishes a fair value hierarchy that prioritizes
the inputs to valuation methods used to measure fair value. The three levels of the fair value hierarchy are as follows:

    Level 1:
    Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities.

    Level 2:
    Quoted prices in markets that are not active, or inputs that are observable either directly or indirectly, for substantially the full term of the asset or liability.  Level 2 includes fixed income securities with quoted prices that are traded less frequently than exchange traded instruments.  Valuation techniques include matrix pricing which is a mathematical technique used widely in the industry to value fixed income securities without relying exclusively on quoted market prices for the specific securities but rather by relying on the securities’ relationship to other benchmark quoted prices.

    Level 3:
    Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (i.e., supported with little or no market activity).
  
The Company bases its fair values on the price that would be received
to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. It is
our policy to maximize the use of observable inputs and minimize the use of unobservable inputs when developing fair value measurements,
in accordance with the fair value hierarchy. Fair value measurements for assets where there exists limited or no observable market data
and, therefore, are based primarily upon the estimates of the Company or other third-parties, are often calculated based on the characteristics
of the asset, the economic and competitive environment, and other such