Company: NODK
Filing Date: 2025-11-07
Form Type: 10-Q
Source: 0001174947-25-001356
Chunk: 428

Company: NI Holdings, Inc.
Filing Date: 2025-11-07
Form: 10-Q
Item: Part I, Item 8
Chunk 428
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 2025, we had a net loss
of $7,257 compared to net loss of $3,248 for the nine months ended September 30, 2024. The year-over-year change was largely attributable
to the catastrophe losses for Home and Farm in North Dakota, lower net investment gains, and unfavorable prior year loss reserve development
for Non-Standard Auto, partially offset by lower levels of non-catastrophe weather losses, improved loss experience for Private Passenger
Auto, and higher net investment income.

Return on Average Equity

For the three months ended September 30, 2025, we had annualized
return on average equity of (2.7)% compared to (4.5)% for the three months ended September 30, 2024.

For the nine months ended September 30, 2025, we had annualized
return on average equity of (4.0)% compared to (1.9)% for the nine months ended September 30, 2024.

Average equity is calculated as the average between beginning and
ending equity for the period.

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Critical Accounting Policies

The preparation of financial statements in accordance with GAAP
requires both the use of estimates and judgment relative to the application of appropriate accounting policies. We are required to make
estimates and assumptions in certain circumstances that affect amounts reported in the unaudited consolidated financial statements and
related footnotes. We evaluate these estimates and assumptions on an ongoing basis based on historical developments, market conditions,
industry trends, and other information that we believe to be reasonable under the circumstances. There can be no assurance that actual
results will conform to these estimates and assumptions or that reported results of operations will not be materially and adversely affected
by the need to make accounting adjustments to reflect changes in these estimates and assumptions from time to time. Our critical accounting
policies are more fully described in Part II, Item 7, “Management's Discussion and Analysis of Financial Condition and Results
of Operations” presented in our 2024 Annual Report. There have been no changes in our critical accounting policies from December
31, 2024.

Liquidity and Capital Resources

We expect to generate sufficient funds from our operations and maintain
a high degree of liquidity in our investment portfolio to meet the demands of claim settlements and operating expenses for the foreseeable
future. Our primary sources of funds are premium collections, investment earnings, and fixed income maturities.

We also have a $3,000 line of credit with Wells Fargo