Company: NODK
Filing Date: 2025-03-07
Form Type: 10-K
Source: 0001174947-25-000304
Chunk: 1561

Company: NI Holdings, Inc.
Filing Date: 2025-03-07
Form: 10-K
Item: Item 5
Chunk 1561
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resulted in higher reinvestment rates in our fixed income portfolio as well as higher yields on our cash and cash equivalents, partially
offset by higher investment expenses. Net investment income increased $1,398 for the year ended December 31, 2023, compared to the year
ended December 31, 2022. This increase was primarily driven by higher reinvestment rates as well as a strategic increased allocation to
fixed income securities in our investment portfolio.

Gross and net return on average cash and invested assets increased
year-over-year from 2023 to 2024, primarily driven by the favorable interest rate environment that resulted in significantly higher net
investment income on an increased average balance of fixed income securities as well as cash and cash equivalents (measured at fair value).
In addition, the increase in investments in high dividend yield equities resulted in relatively consistent year-over-year dividend income
despite a reduction in the average equities balance (measured at fair value). The increase in average cash and invested assets was driven
by additional investments in fixed income securities as a result of positive operating cash flows during 2024.

Gross and net return on average cash and invested assets increased
year-over-year from 2022 to 2023, driven by the higher net investment income and a higher proportion of the equity portfolio being invested
in high dividend yield equities in 2023, along with a decrease in average cash and invested assets (measured at fair value). This decrease
in average cash and invested assets was driven by challenging equity market conditions, particularly during the middle and later stages
of 2022, combined with investment sales as a result of an unusually high number of weather-related losses in 2022.

Net Investment Gains (Losses)

Net investment gains (losses) consisted of the following:

    Year Ended December 31, 

    2024  
    2023  
    2022 
  
    Gross realized gains 
    $1,341  
    $13,841  
    $7,083 
  
    Gross realized losses, excluding credit impairment losses 
     (790) 
     (1,745) 
     (5,099)
  
    Net realized gains 
     551  
     12,096  
     1,984 
  
    Change in net unrealized gain on equity securities 
     1,662  
     (10,167) 
     (13,959