Company: NODK
Filing Date: 2025-03-07
Form Type: 10-K
Source: 0001174947-25-000304
Chunk: 923

Company: NI Holdings, Inc.
Filing Date: 2025-03-07
Form: 10-K
Item: Item 2
Chunk 923
---
 31, 2022. See Part II,
Item 8, Note 10 “Goodwill and Other Intangibles” for additional information.

34 

Net Investment Income

The following table shows our average cash and invested assets,
net investment income, and return on average cash and invested assets for the reported periods for continuing operations:

    Year Ended December 31, 

    2024  
    2023  
    2022 
  
    Average cash and invested assets 
    $371,110  
    $335,821  
    $391,584 
  
    Net investment income 
    $10,943  
    $8,034  
    $6,636 

    Gross return on average cash and invested assets 
     3.9%  
     3.5%  
     2.5% 
  
    Net return on average cash and invested assets 
     3.0%  
     2.6%  
     1.7% 

Net investment income increased $2,909 for the year ended December
31, 2024, compared to the year ended December 31, 2023. This increase was primarily driven by the higher interest rate environment which
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 202