Company: NODK
Filing Date: 2025-08-08
Form Type: 10-Q
Source: 0001174947-25-001142
Chunk: 165

Company: NI Holdings, Inc.
Filing Date: 2025-08-08
Form: 10-Q
Item: Part I, Item 8
Chunk 165
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 prior year.

All Other – The net loss and loss adjustment expense
ratio decreased 9.5 percentage points and 9.6 percentage points in the three- and six-month period ended June 30, 2025, compared to the
same period in 2024. These decreases were 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 June 30,  
    Six Months Ended June 30, 

    2025  
    2024  
    2025  
    2024 
  
    Underwriting and general expenses: 

    Amortization of deferred policy acquisition costs 
    $16,374  
    $19,290  
    $32,902  
    $36,107 
  
    Other underwriting and general expenses 
     8,400  
     8,229  
     17,032  
     16,934 
  
        Total underwriting and general expenses 
     24,774  
     27,519  
     49,934  
     53,041 

         Expense Ratio 
     33.9%  
     32.3%  
     35.5%  
     34.2% 

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 increased 1.6 percentage
points and 1.3 percentage points in the three-and six-month periods ended June 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-year.

40 

Underwriting Gain (Loss) and Combined Ratio

    Three Months Ended June 30,  
    Six Months Ended June 30, 

    2025  
    2024  
    2025  
    2024