Company: NODK
Filing Date: 2025-03-07
Form Type: 10-K
Source: 0001174947-25-000304
Chunk: 350

Company: NI Holdings, Inc.
Filing Date: 2025-03-07
Form: 10-K
Item: Item 1A
Chunk 350
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 $47,179  
    $353,915  
    $— 

There were no liabilities measured
at fair value on a recurring basis at December 31, 2024 or 2023.

6.       Reinsurance

External Reinsurance 

The Company’s consolidated financial statements reflect
the effects of assumed and ceded reinsurance transactions. Assumed reinsurance refers to the acceptance of certain insurance risks that
other insurance companies have underwritten. Ceded reinsurance involves transferring certain insurance risks (along with the related written
and earned premiums) the Company has underwritten to other insurance companies who agree to share these risks. The Company reinsures a
portion of the risks it underwrites, through these ceded reinsurance agreements, in order to control its exposure to losses. Our ceded
reinsurance is placed either on an automatic basis under general reinsurance contracts known as treaties or through facultative contracts
placed on substantial individual risks. These contracts do not relieve the Company from its obligations to policyholders. Treaty reinsurance
contracts are typically effective from January 1 through December 31 each year.

70 

During the year ended December 31, 2024, the Company
maintained property catastrophe reinsurance protection covering $133,000 in excess of a $20,000 retention. With the exception of Westminster,
a per risk excess of loss treaty provides coverage of $4,000 in excess of $1,000 for property risks and $11,000 in excess of $1,000 for
casualty risks. For Westminster, a per risk excess of loss treaty provided coverage of $3,000 in excess of $2,000 for property risks and
$10,000 in excess of $2,000 for casualty risks until July 1, 2024. Additionally, a property per-risk facultative contract is in place
to provide coverage up to $20,000 in excess of $5,000 per property. Aggregate stop loss reinsurance agreements are also in place for both
crop hail and multi-peril crop coverage. The crop hail aggregate attaches at a 100% net loss ratio providing 50 points of cover. The multi-peril
crop aggregate attaches at a 105% net loss ratio providing 45 points of cover. In addition to the aggregate covers, underlying multi-peril
crop reinsurance is provided through the FCIC.

Effective July 1, 2024, the Company’s reinsurance contracts
were modified to exclude any Westminster losses