Company: NODK
Filing Date: 2025-03-07
Form Type: 10-K
Source: 0001174947-25-000304
Chunk: 265

Company: NI Holdings, Inc.
Filing Date: 2025-03-07
Form: 10-K
Item: Item 1A
Chunk 265
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 potential future dividends to shareholders and/or debt servicing are management fees, dividends
from our subsidiaries, or other sources of capital. The payment of dividends by our subsidiaries are restricted by North Dakota’s
insurance law. If we are unable to obtain dividends from our subsidiaries as needed to fund our operations, our business and financial
results could be adversely affected.

Statutory provisions and provisions of our
Articles of Incorporation and Bylaws may discourage takeover attempts of NI Holdings that shareholders may believe are in their best interests.

We are subject to provisions of North Dakota corporate
and insurance law that hinder a change of control. North Dakota law requires the North Dakota Insurance Department’s prior approval
of a change of control of an insurance holding company. Under North Dakota law, the acquisition of 10% or more of the outstanding voting
stock of an insurer or its holding company is presumed to be a change in control. Approval by the North Dakota Insurance Department may
be withheld even if the transaction would be in the shareholders’ best interest if the North Dakota Insurance Department determines
that the transaction would be detrimental to policyholders.

Our Articles of Incorporation and Bylaws also
contain provisions that may discourage a change in control. These provisions may serve to entrench management and may discourage a takeover
attempt that shareholders may consider to be in their best interest or in which they would receive a substantial premium over the current
market price. These provisions may make it extremely difficult for any one person, entity, or group of affiliated persons or entities
to acquire voting control of NI Holdings, with the result that it may be 

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extremely difficult to bring about a change in the Board of
Directors or management. Some of these provisions also may perpetuate present management because of the additional time required to cause
a change in the control of the Board of Directors. Other provisions make it difficult for shareholders owning less than a majority of
the voting stock to be able to elect even a single director.

General Risks

Our investment portfolio is subject to credit
and interest rate risk, and therefore our revenues and financial results may fluctuate with interest rates, investment results, equity
market fluctuations, and developments in the capital markets.

Investment income is an important component of
our net income and overall profitability. We invest premiums received from policyholders and other available cash to generate investment
income and capital appreciation, while also maintaining sufficient liquidity to pay claims and operating expenses. Changes in interest
rates and credit quality may result in fluctuations in the income derived from, the