Company: NODK
Filing Date: 2025-05-09
Form Type: 10-Q
Source: 0001174947-25-000721
Chunk: 88

Company: NI Holdings, Inc.
Filing Date: 2025-05-09
Form: 10-Q
Item: Part I, Item 8
Chunk 88
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5, are not necessarily indicative of the results that may be expected for the year ending December 31, 2025.

Our 2024 Annual Report describes the accounting policies
and estimates that are critical to the understanding of our results of operations, financial condition, and liquidity. The accounting
policies and estimation processes described in the 2024 Annual Report were consistently applied to the unaudited consolidated financial
statements as of and for the three months ended March 31, 2025 and 2024.

Discontinued Operations

On May 7, 2024, NI Holdings entered into a Stock
Purchase Agreement (“Purchase Agreement”) to sell its subsidiary, Westminster, to Scott Insurance Holdings, a privately owned
Maryland limited liability company. Scott Insurance Holdings is affiliated with John Scott, Sr., the father of the president of Westminster,
John Scott, Jr. The sale closed on June 30, 2024. The Purchase Agreement included a cash purchase price of $10,500, subject to certain
post-closing adjustments, including a post-closing payment to NI Holdings for the amount by which the ending statutory surplus balance
for Westminster exceeded $20,000. The post-closing payment received from Scott Insurance Holdings during the third quarter of 2024 was
$1,772 and has been included as an adjustment to the purchase price for the calculation of the loss on the sale of Westminster. The sale
of Westminster, which represented the majority of our Commercial segment in prior periods, was a strategic shift that has had a major
effect on our operations and financial results. Therefore, Westminster has been reported as discontinued operations in the Consolidated
Balance Sheets, Consolidated Statements of Operations, and Consolidated Statements of Cash Flows for all periods presented in this Form
10-Q. All current and prior periods reflected in this Form 10-Q have been presented as continuing and discontinued operations, unless
otherwise noted. For additional information see Part I, Item 1, Note 19 “Discontinued Operations” of this Form 10-Q.

9 

Recent Accounting Pronouncements

Adopted

For information regarding accounting pronouncements that
the Company adopted during the periods presented, see Part II, Item 8, Note 2 “Recent Accounting Pronouncements” section of
the 2024 Annual Report.

Not Yet Adopted

Improvements to Income Tax Disclosures

In December 2023, the FASB issued ASU 2023-09, “Income
Taxes (Topic 740