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What changed in NI Holdings, Inc.'s 10-K — 2024 vs 2025

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Paragraph-level year-over-year comparison of NI Holdings, Inc.'s 2024 and 2025 10-K annual filings, covering the Business, Risk Factors, Legal Proceedings, Cybersecurity, MD&A and Market Risk sections. Every new, removed and edited paragraph is highlighted side-by-side so you can see exactly what management changed in the 2025 report.

+194 added−192 removedSource: 10-K (2026-03-06) vs 10-K (2025-03-07)

Top changes in NI Holdings, Inc.'s 2025 10-K

194 paragraphs added · 192 removed · 162 edited across 8 sections

Item 1. Business

Business — how the company describes what it does

46 edited+4 added−11 removed112 unchanged
Biggest changeThe following chart shows our direct premiums written during the last two years and our relative market share within each of our states during the year ended December 31, 2023: 5 Year Ended December 31, 2024 Year Ended December 31, 2023 Direct Premiums Written Direct Premiums Written Market Size Rank in State North Dakota $ 167,713 $ 163,505 $ 3,827,000 5 th Illinois 78,523 86,348 35,939,000 59 th Nebraska 53,244 50,698 7,573,000 32 nd South Dakota 32,421 29,660 3,970,000 30 th Arizona 5,180 4,077 17,959,000 163 rd Minnesota 3,786 4,008 17,081,000 140 th Nevada 1,434 2,938 8,562,000 139 th Total direct premiums written $ 342,301 $ 341,234 Market size information is not yet available for the year ended December 31, 2024.
Biggest changeThe following chart shows our direct premiums written during the last two years and our relative market share within each of our states during the year ended December 31, 2024: 5 Year Ended December 31, 2025 Year Ended December 31, 2024 Direct Premiums Written Direct Premiums Written Market Size Rank in State North Dakota $ 176,346 $ 167,713 $ 3,835,000 6 th Nebraska 50,787 53,244 8,225,000 32 nd South Dakota 32,046 32,421 4,076,000 29 th Illinois 22,866 78,523 39,270,000 62 nd Minnesota 6,269 3,786 18,907,000 156 th Arizona 1,470 5,180 19,958,000 161 st Nevada — 1,434 9,601,000 174 th Total direct premiums written $ 289,784 $ 342,301 Market size information is not yet available for the year ended December 31, 2025.
Additionally, revenues, underwriting results, and identifiable assets and liabilities for each segment are shown in Part II, Item 8, Note 21 “Segment Information.” The financial performance of each segment is discussed in Part II, Item 7, “Management’s Discussion and Analysis of Financial Condition and Results of Operations.” Private Passenger Auto Nodak Insurance, Battle Creek, and American West each write private passenger auto insurance to provide protection against liability for bodily injury and property damage arising from automobile accidents as well as protection against loss from damage to automobiles owned by the insured.
Additionally, revenues, underwriting results, and identifiable assets and liabilities for each segment are shown in Part II, Item 8, Note 21 “Segment Information.” The financial performance of each segment is discussed in Part II, Item 7, “Management’s Discussion and Analysis of Financial Condition and Results of Operations.” Private Passenger Auto Nodak Insurance, American West, and Battle Creek each write private passenger auto insurance to provide protection against liability for bodily injury and property damage arising from automobile accidents as well as protection against loss from damage to automobiles owned by the insured.
Home and Farm Nodak Insurance, Battle Creek, and American West each write homeowners and farmowners policies to provide coverage for damage to buildings, equipment, and contents for a variety of perils, including fire, lightning, wind, hail, and theft. These policies also cover liability arising from injury to other persons or their property while on the insured’s premises.
Home and Farm Nodak Insurance, American West, and Battle Creek each write homeowners and farmowners policies to provide coverage for damage to buildings, equipment, and contents for a variety of perils, including fire, lightning, wind, hail, and theft. These policies also cover liability arising from injury to other persons or their property while on the insured’s premises.
These pricing reviews involve 8 evaluating our claims experience and loss trends on a periodic basis to identify changes in the frequency and severity of our claims. We then consider whether our premium rates are adequate relative to the level of underwriting risk as well as the sufficiency of our underwriting guidelines.
These pricing reviews involve evaluating our claims experience and loss trends on a periodic basis to identify changes in the frequency and severity of our claims. 8 We then consider whether our premium rates are adequate relative to the level of underwriting risk as well as the sufficiency of our underwriting guidelines.
Strategies we employ to achieve this growth include: ● continued emphasis on our relationship with the NDFB, a key advocacy group for agricultural and rural interests which enjoys a high profile and favorable reputation throughout North Dakota; ● expansion and enhancement of independent agency relationships, including the use of technology such as mobile apps, online quoting, and policy issuance initiatives to make it easy for agents and insureds to do business with us; ● capitalizing on our excellent claims service for all insureds; ● selective expansion of our insurance products in states where we currently operate, as well as those states where we hold insurance licenses; and ● consideration of strategic acquisitions and investment opportunities in businesses that align with our growth objectives.
Strategies we employ to achieve this growth include: · continued emphasis on our relationship with the NDFB, a key advocacy group for agricultural and rural interests which enjoys a high profile and favorable reputation throughout North Dakota; · expansion and enhancement of agency relationships, including the use of technology such as mobile apps, online quoting, and policy issuance initiatives to make it easy for agents and insureds to do business with us; · capitalizing on our excellent claims service for all insureds; · selective expansion of our insurance products in states where we currently operate, as well as those states where we hold insurance licenses; and · consideration of strategic acquisitions and investment opportunities in businesses that align with our growth objectives.
In accordance with the approved plan of conversion, the name of Battle Creek Mutual Insurance Company became Battle Creek Insurance Company, the surplus note was considered paid in full as of the conversion date, and Battle Creek became a wholly-owned subsidiary of Nodak Insurance; ● Direct Auto Insurance Company (“Direct Auto”) – a wholly-owned subsidiary of NI Holdings; and ● Westminster American Insurance Company (“Westminster”) – a wholly-owned subsidiary of NI Holdings until it was sold to Scott Insurance Holdings, LLC (“Scott Insurance Holdings”) on June 30, 2024. 2 A chart of the corporate structure as of December 31, 2024, and a more complete description of each of the NI Holdings subsidiaries, is included below.
In accordance with the approved plan of conversion, the name of Battle Creek Mutual Insurance Company became Battle Creek Insurance Company, the surplus note was considered paid in full as of the conversion date, and Battle Creek became a wholly-owned subsidiary of Nodak Insurance; · Direct Auto Insurance Company (“Direct Auto”) – a wholly-owned subsidiary of NI Holdings; and · Westminster American Insurance Company (“Westminster”) – a wholly-owned subsidiary of NI Holdings until it was sold to Scott Insurance Holdings, LLC (“Scott Insurance Holdings”) on June 30, 2024. 2 A chart of the corporate structure as of December 31, 2025, and a more complete description of each of the NI Holdings subsidiaries, is included below.
Because we concluded that we controlled Battle Creek prior to January 2, 2024, we consolidated the financial statements of Battle Creek, and Battle Creek’s policyholders’ interest in Battle Creek was reflected as a non-controlling interest in shareholders’ equity in our Consolidated Balance Sheets for NI Holdings (“Consolidated Balance Sheets”) and its net income or loss was excluded from net income or loss attributed to NI Holdings in our Consolidated Statements of Operations for NI Holdings (“Consolidated Statements of Operations”).
Because we concluded that we controlled Battle Creek prior to January 2, 2024, we consolidated the financial statements of Battle Creek, and Battle Creek’s policyholders’ interest in Battle Creek was reflected as a non-controlling interest in shareholders’ equity in our Consolidated Balance Sheets for NI Holdings (“Consolidated 4 Balance Sheets”) and its net income or loss was excluded from net income or loss attributed to NI Holdings in our Consolidated Statements of Operations for NI Holdings (“Consolidated Statements of Operations”).
Westminster was sold to Scott Insurance Holdings on June 30, 2024. Subsequent to the date of sale, Westminster is reflected as discontinued operations within our Consolidated Balance Sheets and Consolidated Statements of Operations. For additional information see Part II, Item 8, Note 20 “Discontinued Operations” of this 2024 Annual Report.
Westminster was sold to Scott Insurance Holdings on June 30, 2024. Subsequent to the date of sale, Westminster is reflected as discontinued operations within our Consolidated Balance Sheets and Consolidated Statements of Operations. For additional information see Part II, Item 8, Note 20 “Discontinued Operations” of this 2025 Annual Report.
The “company action level” is triggered if a company’s total adjusted capital is less than 2.0 times its authorized control level but greater than or equal to 1.5 times its authorized control level. At the company action level, the company must submit a comprehensive plan to the regulatory authority that discusses proposed corrective actions to improve the capital position.
The “company action level” is triggered if a company’s total adjusted capital is less than 2.0 times its authorized control level but greater than or equal to 1.5 times its authorized control level. 11 At the company action level, the company must submit a comprehensive plan to the regulatory authority that discusses proposed corrective actions to improve the capital position.
In some years, it may not be unusual for financially sound companies to have several ratios with results outside the usual ranges. During the years ended December 31, 2024 and 2023, none of our insurance company subsidiaries produced results outside the acceptable range for more than three of the IRIS tests.
In some years, it may not be unusual for financially sound companies to have several ratios with results outside the usual ranges. During the years ended December 31, 2025, 2024, and 2023, none of our insurance company subsidiaries produced results outside the acceptable range for more than three of the IRIS tests.
We regularly monitor the effective duration of our fixed income investments, and our investment purchases and sales are executed with the objective of having adequate funds available to satisfy our insurance and other obligations. Generally, the expected principal and 9 interest payments produced by our fixed income portfolio adequately fund the estimated runoff of the Company’s insurance reserves.
We regularly monitor the effective duration of our fixed income investments, and our investment purchases and sales are executed with the objective of having adequate funds available to satisfy our insurance and other obligations. Generally, the expected principal and interest payments produced by our fixed income portfolio adequately fund the estimated runoff of the Company’s insurance reserves.
A company’s “total adjusted capital” is the sum of statutory capital and surplus and such other items as the risk-based capital instructions may provide. The formula is designed to allow state insurance regulators to identify insufficiently capitalized companies. 11 The requirements provide for four different levels of regulatory attention.
A company’s “total adjusted capital” is the sum of statutory capital and surplus and such other items as the risk-based capital instructions may provide. The formula is designed to allow state insurance regulators to identify insufficiently capitalized companies. The requirements provide for four different levels of regulatory attention.
We cannot predict the amount and timing of any future assessments under these laws. Federal Regulation The U.S. federal government generally does not directly regulate the insurance industry except for certain areas of the market, such as insurance for crops, flood, nuclear, and terrorism risks.
We cannot predict the amount and timing of any future assessments under these laws. 12 Federal Regulation The U.S. federal government generally does not directly regulate the insurance industry except for certain areas of the market, such as insurance for crops, flood, nuclear, and terrorism risks.
Each insurance company in a holding company system is required to register with the insurance supervisory agency of its state of domicile and furnish certain information, including information concerning the operations of companies within the holding company group that may materially affect the operations, management, or financial condition of the insurers within the group.
Each insurance company in a holding company system is required to register with the insurance supervisory agency of its state of domicile and furnish certain information, including information concerning the operations of companies within the holding company group that may 13 materially affect the operations, management, or financial condition of the insurers within the group.
Under these laws, insurance companies must provide advance 13 informational notice to the domicile state insurance regulatory authority prior to payment of any dividend or distribution to its shareholders. Prior approval from the state insurance regulatory authority must be obtained before payment of an “extraordinary dividend” as defined under the state’s insurance code.
Under these laws, insurance companies must provide advance informational notice to the domicile state insurance regulatory authority prior to payment of any dividend or distribution to its shareholders. Prior approval from the state insurance regulatory authority must be obtained before payment of an “extraordinary dividend” as defined under the state’s insurance code.
Each of the insurance companies is subject to examination and comprehensive regulation by the insurance department of its state of domicile, North Dakota. Market Overview for Continuing Operations We market our personal lines products in the upper Midwest states of North Dakota, Nebraska, South Dakota, and Minnesota.
Each of the insurance companies is subject to examination and comprehensive regulation by the insurance department of its state of domicile, North Dakota. Market Overview for Continuing Operations We market our personal lines products in the upper Midwest states of North Dakota, Nebraska, South Dakota, Arizona, and Minnesota.
We hold regular training sessions when we introduce new products or product changes, and we identify specific topics that may help our agents more effectively market our products. For the year ended December 31, 2024, no individual agent was responsible for more than 5% of the Company’s direct premiums written. Agents are compensated through a fixed base commission structure.
We hold regular training sessions when we introduce new products or product changes, and we identify specific topics that may help our agents more effectively market our products. For the year ended December 31, 2025, no individual agent was responsible for more than 5% of the Company’s direct premiums written. Agents are compensated through a fixed base commission structure.
Information contained on such website is not incorporated by reference into this 2024 Annual Report, and such information should not be considered to be part of this 2024 Annual Report. 3 Subsidiary and Affiliate Companies Intercompany Reinsurance Pooling Arrangement Effective January 1, 2020, all of our insurance subsidiary and affiliate companies entered into an intercompany reinsurance pooling agreement.
Information contained on such website is not incorporated by reference into this 2025 Annual Report, and such information should not be considered to be part of this 2025 Annual Report. 3 Subsidiary and Affiliate Companies Intercompany Reinsurance Pooling Arrangement Effective January 1, 2020, all of our insurance subsidiary and affiliate companies entered into an intercompany reinsurance pooling agreement.
Under the current license agreement, Nodak Insurance is required to pay to the NDFB an annual royalty payment equal to 1.3% of Nodak Insurance’s written premiums (excluding multi-peril crop insurance premiums), subject to a minimum annual payment of $900 and a maximum annual payment of $1,672.
Under the current license agreement, Nodak Insurance is required to pay to the NDFB an annual royalty payment equal to 1.3% of Nodak Insurance’s written premiums (excluding multi-peril crop insurance premiums), subject to a minimum annual payment of $900 and a maximum annual payment of $1,717.
The current license agreement between the NDFB and Nodak Insurance renewed on October 1, 2024, with an expiration date of September 30, 2025. The agreement has historically been renewed annually by a vote of the Nodak Insurance Board of Directors.
The current license agreement between the NDFB and Nodak Insurance renewed on October 1, 2025, with an expiration date of September 30, 2026. The agreement has historically been renewed annually by a vote of the Nodak Insurance Board of Directors.
For the years ended December 31, 2024, 2023, and 2022, we paid only minimal assessments pursuant to state insurance guaranty association laws. We establish reserves relating to insurance companies that are subject to insolvency proceedings 12 when it becomes probable that we will be subject to an assessment and the amount of such assessment can be estimated.
For the years ended December 31, 2025, 2024, and 2023, we paid only minimal assessments pursuant to state insurance guaranty association laws. We establish reserves relating to insurance companies that are subject to insolvency proceedings when it becomes probable that we will be subject to an assessment and the amount of such assessment can be estimated.
Nodak Insurance Company Nodak Insurance is the largest domestic property and casualty insurance company based in North Dakota, offering private passenger auto, homeowners, farmowners, commercial multi-peril, crop hail, and Federal multi-peril crop insurance coverages through its captive agents in the state.
Nodak Insurance Company Nodak Insurance is the largest domestic property and casualty insurance company based in North Dakota, offering private passenger auto, homeowners, farmowners, commercial multi-peril, excess liability, dwelling, crop hail, and Federal multi-peril crop insurance coverages through its captive agents in the state.
All of the Company’s insurance subsidiaries and affiliate companies are rated “A” Excellent by AM Best, which is the third highest out of 15 possible ratings, under a group rating due to the intercompany pooling reinsurance agreement. Effective May 10, 2024, AM Best affirmed a stable financial strength outlook to the group.
All of the Company’s insurance subsidiaries and affiliate companies are rated “A” Excellent by AM Best, which is the third highest out of 15 possible ratings, under a group rating due to the intercompany pooling reinsurance agreement. Effective May 20, 2025, AM Best affirmed a stable financial strength outlook to the group.
Based on 2023 data, Nodak Insurance is the second largest writer of farmowners insurance in North Dakota. Our largest competitors include Farmers Union, North Star Mutual, American Family, and Liberty Mutual insurance companies. In Nebraska and South Dakota, we have a small farmowners market share, which is dominated by the large national and regional carriers.
Based on 2024 data, Nodak Insurance is the second largest writer of farmowners insurance in North Dakota. Our largest competitors include Farmers Union, North Star Mutual, American Family, and Farmers Alliance insurance companies. In Nebraska and South Dakota, we have a small farmowners market share, which is dominated by the large national and regional carriers.
Nodak Insurance, Battle Creek, American West, and Direct Auto pay annual profit-sharing commissions with respect to all property and casualty (non-crop) business based on company-specific production metrics related to premiums and profitability.
Nodak Insurance, Battle Creek, and American West also pay annual profit-sharing commissions with respect to all property and casualty (non-crop) business based on company-specific production metrics related to premiums and profitability.
American West Insurance Company American West is a property and casualty insurance company licensed in eight states in the Midwest and Western regions of the United States (“U.S.”). American West began writing policies in 2002 and primarily writes private passenger auto, homeowners, and farm coverages in South Dakota.
American West Insurance Company American West is a property and casualty insurance company licensed in eight states in the Midwest and Western regions of the United States (“U.S.”). American West primarily writes private passenger auto, homeowners, and farm coverages in South Dakota.
Total North Dakota multi-peril crop premiums for the industry were $1,231,110, $1,491,650, and $1,537,758 for the years ended December 31, 2024, 2023, and 2022, respectively. With respect to writing property and casualty insurance, competitive factors include pricing, agency relationships, policy support, claim service, and market reputation.
Total North Dakota multi-peril crop premiums for the industry were $1,311,424, $1,231,110, and $1,491,650 for the years ended December 31, 2025, 2024, and 2023, respectively. With respect to writing property and casualty insurance, competitive factors include pricing, agency relationships, policy support, claim service, and market reputation.
We believe that our relationship with the NDFB and our leading market share are significant factors in maintaining our market share of the crop insurance business in North Dakota. The Company’s multi-peril crop insurance premiums for North Dakota were $30,641, $39,073, and $45,465 for the years ended December 31, 2024, 2023, and 2022, respectively.
We believe that our relationship with the NDFB and our leading market share are significant factors in maintaining our market share of the crop insurance business in North Dakota. The Company’s multi-peril crop insurance premiums for North Dakota were $28,976, $30,641, and $39,073 for the years ended December 31, 2025, 2024, and 2023, respectively.
As of December 31, 2024, all of our insurance subsidiaries are domiciled in North Dakota.
As of December 31, 2025, all of our insurance subsidiaries are domiciled in North Dakota.
For additional information, see Part II, Item 8, Note 12 “Benefit Plans” and Note 18 “Share-Based Compensation” for further discussion of our benefit plans and stock-based compensation. As of December 31, 2024, NI Holdings and its subsidiaries had 216 total employees, of which 202 were full-time employees.
For additional information, see Part II, Item 8, Note 12 “Benefit Plans” and Note 18 “Share-Based Compensation” for further discussion of our benefit plans and stock-based compensation. As of December 31, 2025, NI Holdings and its subsidiaries had 172 total employees, of which 166 were full-time employees.
Although our insurance company subsidiaries are exempt from ORSA because of their size, we intend to incorporate those elements of ORSA that we believe constitute “best practices” into our internal enterprise risk assessment.
Although our insurance company subsidiaries are exempt from ORSA because of their size, we have incorporated those elements of ORSA that we believe constitute “best practices” into our internal enterprise risk assessment.
The maximum royalty payment is adjusted annually based upon the June index month for the Consumer Price Index. As of December 31, 2024, Nodak Insurance distributed its insurance products through 63 exclusive agents appointed by Nodak Insurance. Nodak Agency, Inc. Nodak Agency is an inactive shell corporation. Tri-State, Ltd. Tri-State, Ltd. is an inactive shell corporation.
The maximum royalty payment is adjusted annually based upon the June index month for the Consumer Price Index. As of December 31, 2025, Nodak Insurance distributed its insurance products through 59 exclusive agents appointed by Nodak Insurance. Nodak Agency, Inc. Nodak Agency is an inactive shell corporation.
Collectively, crop insurance accounted for $36,421 (10.6%) of direct premiums written by the Company on a consolidated basis during 2024. All Other In addition to the products described above, Nodak Insurance, American West, and Battle Creek write commercial and excess liability coverages.
Collectively, crop insurance accounted for $36,707 (12.7%) of direct premiums written by the Company on a consolidated basis during 2025. All Other In addition to the products described above, Nodak Insurance, American West, and Battle Creek write commercial and excess liability coverages.
The investment portfolio is managed by Conning, Inc. For additional information, see Part II, Item 7, “Critical Accounting Policies” and Part II, Item 8, Note 4 “Investments.” Financial Strength Ratings are an important factor in assessing the Company’s competitive position in the insurance industry.
For additional information, see Part II, Item 7, “Critical Accounting Policies” and Part II, Item 8, Note 4 “Investments.” Financial Strength Ratings are an important factor in assessing the Company’s competitive position in the insurance industry.
The consolidated financial statements of NI Holdings presented herein include the financial position and results of operations of NI Holdings, Direct Auto, Westminster (as discontinued operations), and Nodak Insurance, including Nodak Insurance’s subsidiaries of American West, Primero and Battle Creek.
Westminster personnel managed the day-to-day operations of their company prior to the date of sale. The consolidated financial statements of NI Holdings presented herein include the financial position and results of operations of NI Holdings, Nodak Insurance, including Nodak Insurance’s subsidiaries of American West, Primero and Battle Creek; Direct Auto, and Westminster (as discontinued operations until the date of sale).
Home and farm accounted for $107,203 (31.3%) of direct premiums written by the Company on a consolidated basis during 2024. Crop Nodak Insurance, American West, and Battle Creek offer crop hail and multi-peril crop insurance policies.
Home and Farm accounted for $115,764 (39.9%) of direct premiums written by the Company on a consolidated basis during 2025. Crop Nodak Insurance, American West, and Battle Creek offer crop hail and multi-peril crop insurance policies.
Primero distributed its policies through independent agents in 216 contracted agencies in the three remaining states. 4 Battle Creek Insurance Company Battle Creek is a property and casualty insurance company writing private passenger auto, homeowners, and farm coverages solely in the state of Nebraska.
Battle Creek Insurance Company Battle Creek is a property and casualty insurance company writing private passenger auto, homeowners, and farm coverages solely in the state of Nebraska. As of December 31, 2025, Battle Creek distributed its policies through independent agents in 103 contracted agencies.
American West also writes private passenger auto coverage in North Dakota, as well as crop hail and Federal multi-peril crop insurance coverages in Minnesota and South Dakota. As of December 31, 2024, American West distributed its products through independent agents in 63 contracted agencies. Primero Insurance Company Primero is a wholly-owned subsidiary of Tri-State, Ltd.
American West also writes private passenger auto coverage in North Dakota, as well as crop hail and Federal multi-peril crop insurance coverages in Minnesota and South Dakota. As of December 31, 2025, American West distributed its products through independent agents in 64 contracted agencies.
Collectively, these other coverages accounted for $14,002 (4.1%) of the direct premiums written by the Company on a consolidated basis during 2024. This segment also includes an assumed reinsurance book of business, with $820 of assumed premiums written on a consolidated basis during 2024.
Collectively, these other coverages accounted for $16,659 (5.8%) of the direct premiums written by the Company on a consolidated basis during 2025. This segment also includes an assumed reinsurance book of business, with $483 of assumed premiums written on a consolidated basis during 2025.
On January 2, 2024, Battle Creek issued 300,000 shares of its common stock to Nodak Insurance at a $10.00 per share par value and became a wholly-owned subsidiary of Nodak Insurance.
Battle Creek became affiliated with Nodak Insurance in 2011, and Nodak Insurance provides underwriting, claims management, policy administration, and other administrative services to Battle Creek. On January 2, 2024, Battle Creek issued 300,000 shares of its common stock to Nodak Insurance at a $10.00 per share par value and became a wholly-owned subsidiary of Nodak Insurance.
Private passenger auto accounted for $97,209 (28.4%) of direct premiums written by the Company on a consolidated basis during 2024. Non-Standard Auto Primero and Direct Auto write non-standard auto insurance with a focus on minimum-limit auto liability coverage. Non-standard auto insurance accounted for $87,467 (25.6%) of direct premiums written by the Company on a consolidated basis during 2024.
Private passenger auto accounted for $95,156 (32.8%) of direct premiums written by the Company on a consolidated basis during 2025. Non-Standard Auto Primero and Direct Auto write non-standard auto insurance with a focus on minimum-limit auto liability coverage. Non-standard auto insurance accounted for $25,499 (8.8%) of direct premiums written by the Company on a consolidated basis during 2025.
We offer non-standard auto insurance in the states of Illinois, Arizona, Nevada, South Dakota, and North Dakota. We offer commercial multi-peril insurance in the states of North Dakota and South Dakota.
We offer commercial multi-peril insurance in the states of North Dakota and South Dakota. Prior to our strategic decision to discontinue writing non-standard auto, we marketed this coverage in the states of Illinois, Arizona, Nevada, South Dakota, and North Dakota.
Tri-State, Ltd. is an inactive shell corporation 100% owned by Nodak Insurance. Primero is a property and casualty insurance company writing non-standard automobile coverage in the states of Nevada, Arizona, North Dakota, and South Dakota during 2024. Primero was acquired by Nodak Insurance in 2014. As of December 31, 2024, Primero no longer writes coverage in the state of Nevada.
Tri-State, Ltd. is an inactive shell corporation that is 100% owned by Nodak Insurance. Primero is a property and casualty insurance company that primarily provides non-standard auto coverage in the states of Arizona, North Dakota, South Dakota, and Nevada.
Subsequent to January 2, 2024, Battle Creek is fully consolidated in our Consolidated Balance Sheets and Consolidated Statements of Operations and, as such, no longer reflected as a non-controlling interest. Direct Auto Insurance Company Direct Auto is a property and casualty insurance company licensed in Illinois.
Subsequent to January 2, 2024, Battle Creek is fully consolidated in our Consolidated Balance Sheets and Consolidated Statements of Operations and, as such, no longer reflected as a non-controlling interest. Tri-State, Ltd. Tri-State, Ltd. is an inactive shell corporation. Primero Insurance Company Primero is a wholly-owned subsidiary of Tri-State, Ltd.
The substantial amount by which the fair value of the fixed income portfolio exceeds the value of the net insurance liabilities, as well as the positive cash flow from newly sold policies and the large amount of high-quality liquid bonds, contribute to the Company’s ability to fund claim payments without having to sell illiquid assets or access its credit facilities.
The substantial amount by which the fair value of the fixed income portfolio exceeds the value of the net insurance liabilities, as well as the positive cash flow from newly sold policies and the large amount of high-quality liquid bonds, contribute to the Company’s ability to fund claim payments without having to sell illiquid assets or access its credit facilities. 9 We also invest a much smaller percentage of the portfolio in private placement debt offerings and equity securities, which have the potential for higher returns but also involve varying degrees of risk, including higher volatility and/or less liquidity.
Employee turnover averaged 29.0% during 2024, compared to 22.7% during 2023, and 25.2% during 2022. A significant portion of this turnover is related to Direct Auto, which generally experiences higher turnover. 14
Employee turnover averaged 39.5% during 2025, compared to 29.0% during 2024, and 22.7% during 2023. A significant portion of this turnover is related to our strategic decision to no longer write non-standard auto coverage in Nevada, Arizona, South Dakota, and Illinois. 14
Removed
As of December 31, 2024, Battle Creek distributed its policies through independent agents in 113 contracted agencies. Battle Creek became affiliated with Nodak Insurance in 2011, and Nodak Insurance provides underwriting, claims management, policy administration, and other administrative services to Battle Creek.
Added
The Company made the strategic decision to stop writing non-standard auto business for Primero in Nevada during 2024 and in Arizona and South Dakota during the third quarter of 2025, and existing policies will be non-renewed. Direct Auto Insurance Company Direct Auto is a property and casualty insurance company that provides non-standard auto coverage in the state of Illinois.
Removed
Direct Auto began writing non-standard automobile coverage in 2007, and was acquired by NI Holdings on August 31, 2018, via a stock purchase agreement. As of December 31, 2024, Direct Auto distributed its policies through independent agents in 156 contracted agencies, concentrated primarily in the Chicago area.
Added
The Company made the strategic decision to stop writing non-standard auto business for Direct Auto in Illinois during the third quarter of 2025, and existing policies will be non-renewed. Westminster American Insurance Company Westminster was a property and casualty insurance company underwriting commercial multi-peril insurance in 18 states and the District of Columbia.
Removed
Westminster American Insurance Company Westminster is a property and casualty insurance company licensed in 18 states and the District of Columbia. Westminster is headquartered in Owings Mills, Maryland and underwrites commercial multi-peril insurance in the states of Delaware, Georgia, Kentucky, Maryland, New Jersey, North Carolina, Pennsylvania, South Carolina, Tennessee, Virginia, and the District of Columbia.
Added
We made the strategic decision to stop writing non-standard auto business for Primero in Nevada during 2024 and in Arizona, Illinois, and South Dakota during 2025, and existing policies will be non-renewed.
Removed
Nodak Insurance provides common product oversight, pricing practices, and underwriting standards, as well as underwriting and claims administration, to itself, American West, and Battle Creek. Primero and Direct Auto personnel manage the day-to-day operations of their respective companies. Westminster personnel managed the day-to-day operations of their company prior to the date of sale.
Added
The Investment Committee of NI Holdings’ Board of Directors reviews and approves the Company’s investment policy periodically. The investment portfolio is managed by Conning, Inc.
Removed
The nature of our business requires that we remain sensitive to the marketplace and the pricing strategies of our competitors. Using the market information as a reference point, we typically set our prices based on our estimated future costs. From time to time, we may reduce our discounts or apply a premium surcharge to achieve an appropriate return.
Removed
Pricing flexibility allows us to provide a fair rate commensurate with the assumed risk. If our pricing strategy cannot yield sufficient premium to cover our costs on a particular type of risk, we may choose not to underwrite that risk. It is our philosophy not to sacrifice profitability for premium growth.
Removed
We also invest a much smaller percentage of the portfolio in private placement debt offerings and equity securities, which have the potential for higher returns but also involve varying degrees of risk, including higher volatility and/or less liquidity. The Investment Committee of NI Holdings’ Board of Directors reviews and approves the Company’s investment policy periodically.
Removed
During the year ended December 31, 2022, our insurance company subsidiaries produced results outside the acceptable range for as many as six of the IRIS tests, primarily driven by our significant net loss for the year that negatively impacted IRIS ratios related to the operating ratio and certain ratios based on policyholders’ surplus.
Removed
Jumpstart Our Business Startups Act of 2012 Until December 31, 2022, we were an emerging growth company (“EGC”), as defined in the Jumpstart Our Business Startups Act of 2012 (the “JOBS Act”).
Removed
We previously took advantage of certain exemptions from various reporting requirements that are applicable to other public companies that are not EGCs, such as reduced public company reporting, accounting, and corporate governance requirements.
Removed
However, beginning on December 31, 2022, we are no longer an EGC and no longer have the ability to delay adoption of these new or revised accounting standards or to take advantage of reduced corporate governance disclosures.

Item 1A. Risk Factors

Risk Factors — what could go wrong, per management

15 edited+9 added−0 removed122 unchanged
Biggest changeAny damage caused by such a failure or loss may cause interruptions in our business operations that may adversely affect our service levels and business.
Biggest changeAny damage caused by such a failure or loss may cause interruptions in our business operations that may adversely affect our service levels and business. Trade policies, including tariffs, could adversely impact our financial condition and operating results. We maintain reserves to cover estimated unpaid losses and expenses necessary to settle claims.
Federal laws and regulations, and 20 the influence of international laws and regulations, may have adverse effects on our business, potentially including a change from a state-based system of regulation to a system of federal regulation, the repeal of the McCarran Ferguson Act, and/or measures under the Dodd-Frank Act that establish the Federal Insurance Office and provide for a determination that a non-bank financial company presents systemic risk and therefore should be subject to heightened supervision by the Federal Reserve Board.
Federal laws and regulations, and the influence of international laws and regulations, may have adverse effects on our business, potentially including a change from a state-based system of regulation to a system of federal regulation, the repeal of the McCarran Ferguson Act, and/or measures under the Dodd-Frank Act that establish the Federal Insurance Office and provide for a determination that a non-bank financial company presents systemic risk and therefore should be subject to heightened supervision by the Federal Reserve Board.
The failure to manage our growth effectively could have a material adverse effect on our business, financial condition, and results of operations. We could be adversely affected by a future unexpected business interruption involving our office buildings, operational systems and infrastructure, key external vendors, and/or workforce.
The failure to manage our growth effectively could have a material adverse effect on our business, financial condition, and results of operations. 22 We could be adversely affected by a future unexpected business interruption involving our office buildings, operational systems and infrastructure, key external vendors, and/or workforce.
A significant source of funds available to us for the payment of operating expenses, share repurchases, and 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.
A significant source of funds available to us for the payment of operating expenses, share repurchases, and potential future dividends to shareholders and/or debt servicing are management fees, dividends from our subsidiaries, or other sources of capital. The payment of 21 dividends by our subsidiaries are restricted by North Dakota’s insurance law.
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 21 extremely difficult to bring about a change in the Board of Directors or management.
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 extremely difficult to bring about a change in the Board of Directors or management.
Additionally, international trade policies, including the imposition of tariffs between major trading partners such as the United States and China, can create significant fluctuations in crop prices. We are unable to predict the ultimate result and duration of any tariff actions by the U.S. government, or countermeasures that may be taken by other nations.
Additionally, international trade policies, including the imposition of tariffs between major trading partners such as the U.S. and China, can create significant fluctuations in crop prices. We are unable to predict the ultimate result and duration of any tariff actions by the U.S. government, or countermeasures that may be taken by other nations.
All of our significant reinsurance partners are rated “A-” (Excellent) or better by AM Best. However, we remain subject to credit risk relating to our ability to collect these recoverables. Our reinsurance recoveries are also subject to the underlying losses meeting the qualifying conditions and specified limits within the respective contracts.
All of our significant reinsurance partners are rated “A-” (Excellent) or better by AM Best or “A+” or better by Standard & Poor’s. However, we remain subject to credit risk relating to our ability to collect these recoverables. Our reinsurance recoveries are also subject to the underlying losses meeting the qualifying conditions and specified limits within the respective contracts.
Additionally, the industry could be impacted by changes in customer preferences, including customer demand for direct, point-of-sale, or other non-traditional distribution channels. Consolidation within the industry could also influence future growth and profit potential. Innovation and emerging technologies continue to greatly impact the insurance industry.
Additionally, the industry could be impacted by changes in customer preferences, including customer demand for direct, point-of-sale, or other non-traditional distribution channels. Consolidation within the industry could also influence future growth and profit potential. Innovation and emerging technologies, including artificial intelligence, continue to greatly impact the insurance industry.
Our most recent rating by AM Best was affirmed on May 10, 2024. Financial strength ratings are used by agents, customers, lenders, and other insurance carriers as a means of assessing the financial strength and quality of insurance companies. If our financial position deteriorates, we may not maintain our favorable financial strength rating from AM Best.
Our most recent rating by AM Best was affirmed on May 20, 2025. Financial strength ratings are used by agents, customers, lenders, and other insurance carriers as a means of assessing the financial strength and quality of insurance companies. If our financial position deteriorates, we may not maintain our favorable financial strength rating from AM Best.
For 2025, we expect our catastrophe excess of loss program will limit our catastrophe exposure to $20 million retention per event, with $117 million of reinsurance coverage placed in excess of this retention.
For 2026, we expect our catastrophe excess of loss program will limit our catastrophe exposure to $20 million retention per event, with $123 million of reinsurance coverage placed in excess of this retention.
Our reinsurance coverage includes a catastrophe excess of loss program, which in 2024 limited our catastrophe exposure to $20 million retention per event, with $133 million of reinsurance coverage placed in excess of this retention.
Our reinsurance coverage includes a catastrophe excess of loss program, which in 2025 limited our catastrophe exposure to $20 million retention per event, with $117 million of reinsurance coverage placed in excess of this retention.
Such changes could have an adverse effect on our revenues and income. Our businesses are heavily regulated by the jurisdictions in which we conduct business and changes in regulation, including required participation in pools, premium surcharges, and higher tax rates, may reduce our profitability and limit our growth.
Such changes could have an adverse effect on our results of operations and financial condition. Our businesses are heavily regulated by the jurisdictions in which we conduct business and changes in regulation, including required participation in pools, premium surcharges, and higher tax rates, may reduce our profitability and limit our growth.
In 2024, 2023, and 2022, our direct premiums written generated from the multi-peril crop insurance line of business were 9.8%, 10.2%, and 12.8%, respectively, of total written premiums.
In 2025, 2024, and 2023, our direct premiums written generated from the multi-peril crop insurance line of business were 11.7%, 9.8%, and 10.2%, respectively, of total written premiums.
The effect of assessments and premium surcharges or increases in such assessments or surcharges could reduce our profitability in any given period or limit our ability to grow our business.
Further, the impairment, insolvency, or failure of other insurance companies in these pooling arrangements would likely increase the liability for other members in the pool. 20 The effect of assessments and premium surcharges or increases in such assessments or surcharges could reduce our profitability in any given period or limit our ability to grow our business.
As we write policies in new states that have mandatory pooling arrangements, we will be required to participate in additional pooling arrangements. Further, the impairment, insolvency, or failure of other insurance companies in these pooling arrangements would likely increase the liability for other members in the pool.
As we write policies in new states that have mandatory pooling arrangements, we will be required to participate in additional pooling arrangements.
Added
Strategic decisions may not achieve their intended benefits, may be based on incomplete or inaccurate information, or may not be implemented in a timely manner, which could adversely affect our results of operations. From time to time, we evaluate and adjust our business strategies in response to changes in market conditions, underwriting results, competitive dynamics, regulatory developments, and other factors.
Added
For example, we recently determined to cease writing new policies and non-renew existing policies in our Non-Standard Auto segment. Strategic decisions such as these are based on information, estimates, and assumptions available to us at the time they are made.
Added
However, such information may prove to be inaccurate or incomplete, and the anticipated benefits of these actions, such as improved underwriting performance, reduced volatility, or more efficient capital allocation, may not be realized as expected, or at all. In addition, there can be significant timing and execution risks associated with strategic changes.
Added
Our decision-making and implementation processes may take longer than anticipated, or we may not identify needed changes on a timely basis. While we evaluate and execute strategic adjustments, our business operations may experience disruption, our relationships with agents, policyholders, or reinsurers may be adversely affected, and our overall financial results may be negatively impacted.
Added
Furthermore, no longer writing a line of business may result in short-term declines in premium volume, increased expense ratios, or other unforeseen consequences that could negatively impact our results of operations and financial condition.
Added
The reserves for losses and loss adjustment expenses that we have established are estimates of amounts needed to pay reported and unreported claims and related expenses, based on facts and circumstances known to us at the time we established the reserves. Reserves are actuarially projected based on historical claims information, industry statistics, anticipated trends, and other factors.
Added
Changes in U.S. trade policy, including changes in tariffs, could have a material adverse impact on our business, financial condition, and results of operations. The imposition of new tariffs or increases in existing tariffs on goods imported from other countries could result in increased costs for raw materials, components, or finished goods and adversely impact loss severity.
Added
In addition, tariffs or other trade restrictions may lead to continuing uncertainty and volatility in U.S. and global financial and economic conditions and commodity markets, declining consumer confidence, significant inflation, and diminished expectations for the economy. Such conditions could have a material adverse impact on our business, results of operations and cash flows.
Added
We are unable to predict the ultimate result and duration of any tariff actions by the U.S. government or countermeasures that may be taken by other nations.

Item 1C. Cybersecurity

Cybersecurity — threats and controls disclosure

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Biggest changePeriodic reports are also provided to appropriate members of senior management that include information regarding prevention, detection, mitigation, and remediation efforts related to cybersecurity incidents. Our Chief Executive Officer and Director of Information Systems also provide periodic reports to the Audit Committee of the Board of Directors regarding ERMC activities and assessments, including those related to cybersecurity and cybersecurity incidents.
Biggest changeOur Chief Executive Officer, Chief Financial Officer, and Chief Information Officer also provide periodic reports to the Audit Committee of the Board of Directors regarding ERMC activities and assessments, including those related to cybersecurity and cybersecurity incidents.
Refer to the risk factor captioned “Cyberattacks, security breaches, or similar events affecting the technologies and systems we rely on to operate our business and to maintain and protect sensitive Company and customer data could disrupt our operations, harm our reputation, and result in material losses” in Part I, Item 1A, “Risk Factors” for additional details regarding cybersecurity risks and potential impacts on our business.
Refer to the risk factor captioned “Cyberattacks, security breaches, or similar events affecting the technologies and systems we rely on to 23 operate our business and to maintain and protect sensitive Company and customer data could disrupt our operations, harm our reputation, and result in material losses” in Part I, Item 1A, “Risk Factors” for additional details regarding cybersecurity risks and potential impacts on our business.
The ERMC provides oversight and support related to our cybersecurity program and consists of our Chief Executive Officer, Chief Financial Officer, Director of Information Systems, and other appropriate members of senior management who possess the relevant expertise to assess and manage cybersecurity risks as part of the broader enterprise risk management process.
The ERMC provides oversight and support related to our cybersecurity program and consists of our Chief Executive Officer, Chief Financial Officer, Chief Information Officer, and other appropriate members of senior management who possess the relevant expertise to assess and manage cybersecurity risks as part of the broader enterprise risk management process.
As of the date of this 2024 Annual Report, we are not aware of any risks from cybersecurity threats that have materially affected or are reasonably likely to materially affect the Company, including our business strategy, results of operations, or financial condition.
As of the date of this 2025 Annual Report, we are not aware of any risks from cybersecurity threats that have materially affected or are reasonably likely to materially affect the Company, including our business strategy, results of operations, or financial condition.
The Director of Information Systems provides periodic reports to our ERMC related to cybersecurity risks and threats, the status of projects to strengthen our information security systems and controls, assessments of the information security program and related third-party service providers, and the emerging threat landscape.
The Chief Information Officer provides periodic reports to our ERMC related to cybersecurity risks and threats, the status of projects to strengthen our information security systems and controls, assessments of the information security program and related third-party service providers, and the emerging threat landscape.
Our information security program is directly managed by a dedicated Director of Information Systems, whose team is responsible for enterprise-wide cybersecurity strategy, policy, standards, architecture, and processes. Company employees are periodically required to affirm their understanding of several policies and standards, including those related to cybersecurity.
Our information security program is directly managed by a dedicated Chief Information Officer, whose team is responsible for enterprise-wide cybersecurity strategy, policy, standards, architecture, and processes. Company employees are periodically required to affirm their understanding of several policies and standards, including those related to cybersecurity.
Added
Periodic reports are also provided to appropriate members of senior management that include information regarding prevention, detection, mitigation, and remediation efforts related to cybersecurity incidents.

Item 2. Properties

Properties — owned and leased real estate

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Biggest changeItem 2. Properties Our headquarters is located at 1101 First Avenue North, Fargo, North Dakota, which is also the headquarters of Nodak Insurance. Nodak Insurance owns this building and leases a portion of the building to the NDFB and to AFBIS. Battle Creek owns the building in which its offices are located at 603 South Preece Street, Battle Creek, Nebraska.
Biggest changeItem 2. Properties Our headquarters is located at 1101 First Avenue North, Fargo, North Dakota, which is also the headquarters of Nodak Insurance. Nodak Insurance owns this building and leases a portion of the building to the NDFB and to AFBIS. Tri-State Ltd. leases the building at 506 5 th Street, Spearfish, South Dakota.
We believe that the offices currently occupied by each of our subsidiaries are sufficient for their needs and any expected internal growth in the near future.
Direct Auto leases office space at 8700 West Bryn Mawr Avenue, Chicago, Illinois. We believe that the offices currently occupied by each of our subsidiaries are sufficient for their needs and any expected internal growth in the near future.
Removed
Tri-State Ltd. leases the building at 506 5 th Street, Spearfish, South Dakota. Direct Auto leases office space at 8700 West Bryn Mawr Avenue, Chicago, Illinois under a lease that expires on August 31, 2029.

Item 3. Legal Proceedings

Legal Proceedings — active lawsuits and investigations

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Biggest changeItem 3. Legal Proceedings We are party to litigation in the normal course of business. Based upon information presently available to us, we do not consider any litigation to be material. However, given the inherent uncertainties of litigation, we cannot assure you that our results of operations and financial condition will not be materially adversely affected by any litigation. 23
Biggest changeItem 3. Legal Proceedings We are party to litigation in the normal course of business. Based upon information presently available to us, we do not consider any litigation to be material. However, given the inherent uncertainties of litigation, we cannot assure you that our results of operations and financial condition will not be materially adversely affected by any litigation.
Added
Item 4. Mine Safety Disclosures Not applicable. 24 PART II

Item 5. Market for Registrant's Common Equity

Market for Common Equity — stock, dividends, buybacks

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Biggest changeOn May 9, 2022, our Board of Directors approved an authorization for the repurchase of up to approximately $10,000 of the Company’s outstanding common stock. During the year ended December 31, 2022, we completed the repurchase of 54,223 shares of our common stock for $734 under this authorization.
Biggest changeDuring the year ended December 31, 2024, we did not repurchase any shares of our common stock. On August 25, 2025, our Board of Directors approved an authorization for the repurchase of up to approximately $5,000 of the Company’s outstanding common stock in addition to the $2,052 remaining from the May 9, 2022 authorization.
The graph assumes that the value of the investment in the common stock and each index was $100 on December 31, 2019, and that all dividends were reinvested. 25 Dividend Policy Our Board of Directors continues to evaluate a potential policy of paying regular cash dividends but has not decided on the amounts that may be paid, the frequency of any payment, or when any payments may begin.
The graph assumes that the value of the investment in the common stock and each index was $100 on December 31, 2020, and that all dividends were reinvested. 25 Dividend Policy Our Board of Directors continues to evaluate a potential policy of paying regular cash dividends but has not decided on the amounts that may be paid, the frequency of any payment, or when any payments may begin.
Stock Performance Graph The following graph shows the cumulative total shareholder return (stock price increase plus dividends) on our common stock from December 31, 2019 through December 31, 2024, along with the corresponding returns for the Russell 2000 Index (as the broad stock market index) and the Standard & Poor’s (S&P) 1500 US P&C Insurance Index (as the published industry index).
Stock Performance Graph The following graph shows the cumulative total shareholder return (stock price increase plus dividends) on our common stock from December 31, 2020 through December 31, 2025, along with the corresponding returns for the Russell 2000 Index (as the broad stock market index) and the Standard & Poor’s (S&P) 1500 US P&C Insurance Index (as the published industry index).
Item 5. Market for Registrant’s Common Equity, Related Shareholder Matters, and Issuer Purchases of Equity Securities Market Information The Company’s common shares trade on the Nasdaq Capital Market (“Nasdaq”) under the symbol “NODK.” As of February 28, 2025, there were approximately 502 shareholders of record for the Company’s common stock.
Item 5. Market for Registrant’s Common Equity, Related Shareholder Matters, and Issuer Purchases of Equity Securities Market Information The Company’s common shares trade on the Nasdaq Capital Market (“Nasdaq”) under the symbol “NODK.” As of February 27, 2026, there were approximately 480 shareholders of record for the Company’s common stock.
(2) Maximum dollar value of shares that may yet be purchased consist of up to approximately $2,052 under the May 9, 2022, publicly announced share repurchase authorization. (3) The Inflation Reduction Act of 2022 imposed a 1% excise tax on the net value of certain share repurchases made after December 31, 2022.
(2) Maximum dollar value of shares that may yet be purchased consist of up to $4,549 under the August 25, 2025, publicly announced share repurchase authorization. (2) The Inflation Reduction Act of 2022 imposed a 1% excise tax on the net value of certain share repurchases made after December 31, 2022.
Share repurchase activity during the three months ended December 31, 2024, is presented below: Period in 2024 Total Number of Shares Purchased Average Price Paid Per Share (3) Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs (1) Maximum Approximate Dollar Value of Shares That May Yet Be Purchased Under the Plans or Programs (2)(3) (in thousands) October 1 – 31, 2024 — $ — — $ 2,052 November 1 – 30, 2024 — — — 2,052 December 1 – 31, 2024 — — — 2,052 Total — $ — — $ 2,052 (1) Shares purchased pursuant to the May 9, 2022 publicly announced share repurchase authorization of up to approximately $10,000 of the Company’s outstanding common stock.
Share repurchase activity during the three months ended December 31, 2025, is presented below: Period in 2025 Total Number of Shares Purchased Average Price Paid Per Share (3) Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs (1) (2) Maximum Approximate Dollar Value of Shares That May Yet Be Purchased Under the Plans or Programs (1)(2)(3) (in thousands) October 1 – 31, 2025 26,125 $ 13.45 26,125 $ 5,549 November 1 – 30, 2025 37,352 13.39 37,352 5,049 December 1 – 31, 2025 37,509 13.33 37,509 4,549 Total 100,986 $ 13.38 100,986 $ 4,549 (1) Shares purchased pursuant to the May 9, 2022 publicly announced share repurchase authorization of up to approximately $10,000 of the Company’s outstanding common stock.
During the year ended December 31, 2023, we repurchased an additional 548,549 shares of our common stock for $7,278, including the effect from applicable excise taxes. During the year ended December 31, 2024, we did not repurchase any shares of our common stock. At December 31, 2024, $2,052 remains available under this authorization.
During the year ended December 31, 2022, we completed the repurchase of 54,223 shares of our common stock for $734 under this authorization. During the year ended December 31, 2023, we repurchased an additional 548,549 shares of our common stock for $7,278, including the effect from applicable excise taxes.
Unregistered Securities The Company has not sold any unregistered securities within the past three years. 26 Issuer Stock Purchases The Company had no common shares outstanding prior to March 13, 2017. On August 11, 2021, our Board of Directors approved an authorization for the repurchase of up to approximately $5,000 of the Company’s outstanding common stock.
Unregistered Securities The Company has not sold any unregistered securities within the past three years. 26 Issuer Stock Purchases On May 9, 2022, our Board of Directors approved an authorization for the repurchase of up to approximately $10,000 of the Company’s outstanding common stock.
Removed
During the year ended December 31, 2021, we completed the repurchase of 81,095 shares of our common stock for $1,554 under this new authorization. During the year ended December 31, 2022, we completed the repurchase of 214,937 shares of our common stock for $3,446 to close out this authorization.
Added
During the year ended December 31, 2025, we completed the repurchase of 188,185 shares of our common stock for $2,517, including the effects from applicable excise taxes under these authorizations. As of December 31, 2025, these share repurchases closed out the May 9, 2022 authorization, and $4,549 remains available under the August 25, 2025 authorization.

Item 7. Management's Discussion & Analysis

Management's Discussion & Analysis (MD&A) — revenue / margin commentary

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Biggest changeThe major components of our revenues and net income (loss) for the three periods are shown below: Year Ended December 31, 2024 2023 2022 Revenues: Net premiums earned $ 310,110 $ 292,117 $ 271,740 Fee and other income 1,938 1,940 1,381 Net investment income 10,943 8,034 6,636 Net investment gains (losses) 2,213 1,929 (11,975 ) Total revenues $ 325,204 $ 304,020 $ 267,782 Components of net income (loss): Net premiums earned $ 310,110 $ 292,117 $ 271,740 Losses and loss adjustment expenses 207,465 186,516 241,750 Amortization of deferred policy acquisition costs and other underwriting and general expenses 104,966 96,957 78,908 Underwriting gain (loss) (2,321 ) 8,644 (48,918 ) Fee and other income 1,938 1,940 1,381 Net investment income 10,943 8,034 6,636 Net investment gains (losses) 2,213 1,929 (11,975 ) Goodwill impairment charge (2,628 ) — — Income (loss) from continuing operations before income taxes 10,145 20,547 (52,876 ) Income tax expense (benefit) 3,545 716 (14,191 ) Net income (loss) from continuing operations $ 6,600 $ 19,831 $ (38,685 ) 30 Net Premiums Earned Year Ended December 31, 2024 2023 2022 Net premiums earned: Direct premium $ 341,885 $ 325,590 $ 299,607 Assumed premium 2,984 3,570 6,550 Ceded premium (34,759 ) (37,043 ) (34,417 ) Total net premiums earned $ 310,110 $ 292,117 $ 271,740 Net premiums earned for the year ended December 31, 2024 increased $17,993, or 6.2%, to $310,110, compared to $292,117 for the year ended December 31, 2023.
Biggest changeThe major components of our revenues and net income (loss) for the three periods are shown below: Year Ended December 31, 2025 2024 2023 Revenues: Net premiums earned $ 270,655 $ 310,110 $ 292,117 Fee and other income 997 1,938 1,940 Net investment income 11,702 10,943 8,034 Net investment gains 1,696 2,213 1,929 Total revenues $ 285,050 $ 325,204 $ 304,020 Components of net income (loss): Net premiums earned $ 270,655 $ 310,110 $ 292,117 Losses and loss adjustment expenses 200,788 207,465 186,516 Amortization of deferred policy acquisition costs and other underwriting and general expenses 96,591 104,966 96,957 Underwriting gain (loss) (26,724 ) (2,321 ) 8,644 Fee and other income 997 1,938 1,940 Net investment income 11,702 10,943 8,034 Net investment gains 1,696 2,213 1,929 Goodwill impairment charge — (2,628 ) — Income (loss) from continuing operations before income taxes (12,329 ) 10,145 20,547 Income tax expense (benefit) (1,916 ) 3,545 716 Net income (loss) from continuing operations $ (10,413 ) $ 6,600 $ 19,831 30 Net Premiums Earned Year Ended December 31, 2025 2024 2023 Net premiums earned: Direct premium $ 309,782 $ 341,885 $ 325,590 Assumed premium 2,627 2,984 3,570 Ceded premium (41,754 ) (34,759 ) (37,043 ) Total net premiums earned $ 270,655 $ 310,110 $ 292,117 Net premiums earned for the year ended December 31, 2025 decreased $39,455, or 12.7%, to $270,655, compared to $310,110 for the year ended December 31, 2024.
These results were driven by the factors discussed in the Losses and Loss Adjustment Expenses and the Underwriting and General Expenses and Expense Ratio sections above. The overall combined ratio increased 3.7 percentage points in the year ended December 31, 2024, compared to the same period in 2023.
The overall combined ratio increased 3.7 percentage points in the year ended December 31, 2024, compared to the same period in 2023. These results were driven by the factors discussed in the Losses and Loss Adjustment Expenses and the Underwriting and General Expenses and Expense Ratio sections above.
The year-over-year decrease in 2024 compared to 2023 was largely attributable to higher loss severity and non-catastrophe weather-related losses for Home and Farm in the states of North Dakota and Nebraska, unfavorable prior year loss reserve development for Non-Standard Auto, a goodwill impairment charge for Non-Standard Auto, and expenses incurred related to the separation agreements with our former Chief Executive Officer and former Senior Vice President of Operations, partially offset by net earned premium growth, improved loss experience for Private Passenger Auto, and higher net investment income.
The year-over-year decrease in 2024 compared to 2023 was largely attributable to higher loss severity and non-catastrophe weather-related losses for Home and Farm in the states of North Dakota and Nebraska, unfavorable prior year loss reserve development for Non-Standard Auto, a goodwill impairment charge for Non-Standard Auto, and expenses incurred related to the separation agreements with our former Chief Executive Officer and former Senior Vice President of Operations, partially offset by net earned premium growth, improved loss experience for Private Passenger Auto, and higher net investment income.
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).
Gross and net return on average cash and invested assets increased year-over-year from 2023 to 2024, 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).
If we estimate the damages to be in excess of half of the retained catastrophe amount, reinsurers are notified immediately of a potential loss so that we can quickly recover reinsurance payments once the retention is exceeded.
If we estimate the damages to be in excess of half of the retained catastrophe amount, reinsurers are notified of a potential loss so that we can quickly recover reinsurance payments once the retention is exceeded.
The discussion should be read in conjunction with the consolidated financial statements and the notes thereto included in Part II, Item 8, “Financial Statements and Supplementary Data.” Some of the information contained in this discussion and analysis or set forth elsewhere in this 2024 Annual Report constitutes forward-looking information that involves risks and uncertainties.
The discussion should be read in conjunction with the consolidated financial statements and the notes thereto included in Part II, Item 8, “Financial Statements and Supplementary Data.” Some of the information contained in this discussion and analysis or set forth elsewhere in this 2025 Annual Report constitutes forward-looking information that involves risks and uncertainties.
We estimate multi-peril crop insurance losses on a quarterly basis based upon historical loss patterns, current crop conditions, current weather patterns, and input from crop loss adjusters. These estimates have proven to be reasonably accurate indicators of our anticipated losses for this line of business.
We estimate multi-peril crop insurance losses on a quarterly basis based upon historical loss patterns, current crop conditions, current weather patterns, input from crop loss adjusters, and other factors. These estimates have proven to be reasonably accurate indicators of our anticipated losses for this line of business.
Our Management’s Discussion and Analysis of Financial Condition and Results of Operations included in this document discusses 2024 and 2023 items and year-over-year comparisons between 2024 and 2023 as well as discussions of 2022 items and year-over-year comparisons between 2023 and 2022, which were included due to the impacts of discontinued operations for those prior periods.
Our Management’s Discussion and Analysis of Financial Condition and Results of Operations included in this document discusses 2025 and 2024 items and year-over-year comparisons between 2025 and 2024 as well as discussions of 2023 items and year-over-year comparisons between 2024 and 2023, which were included due to the impacts of discontinued operations for those prior periods.
Any reduction in estimated future taxable income may require us to record a valuation allowance against our deferred income tax assets. As of December 31, 2024, we had no material unrecognized income tax benefits or accrued interest and penalties.
Any reduction in estimated future taxable income may require us to record a valuation allowance against our deferred income tax assets. As of December 31, 2025, we had no material unrecognized income tax benefits or accrued interest and penalties.
Federal income tax returns for the years 2020 through 2023 remain subject to examination. 41 Changing Climate Conditions Longer-term natural catastrophe trends may be changing, and new types of catastrophe losses may be developing due to climate change, a phenomenon that has been associated with extreme weather events linked to rising temperatures, and includes effects on global weather patterns, greenhouse gases, sea, land and air temperatures, sea levels, rain, hail, and snow.
Federal income tax returns for the years 2021 through 2024 remain subject to examination. 41 Changing Climate Conditions Longer-term natural catastrophe trends may be changing, and new types of catastrophe losses may be developing due to climate change, a phenomenon that has been associated with extreme weather events linked to rising temperatures, and includes effects on global weather patterns, greenhouse gases, sea, land and air temperatures, sea levels, rain, hail, and snow.
Our actuaries assist with the estimation of the liability for unpaid losses and loss adjustment expenses. The actuaries prepare estimates by first deriving an actuarially based estimate of the ultimate cost of total losses and loss adjustment expenses incurred as of the financial statement date based on established actuarial methods as described below.
Our actuaries assist with the estimation of the liability for unpaid losses and loss adjustment expenses. The actuaries prepare estimates by first deriving an actuarially based estimate of the ultimate cost of total losses and loss adjustment expenses incurred as of the financial statement date based on established actuarial methods as described below or other appropriate methods.
We also have a $3,000 line of credit with Wells Fargo Bank, N.A. The terms of the line of credit include a floating interest rate of 2.50% above the daily simple secured overnight financing rate. There were no outstanding amounts during the years ended December 31, 2024, 2023, or 2022.
We also have a $3,000 line of credit with Wells Fargo Bank, N.A. The terms of the line of credit include a floating interest rate of 2.25% above the daily simple secured overnight financing rate. There were no outstanding amounts during the years ended December 31, 2025, 2024, or 2023.
A valuation allowance is required to be established for any portion of the deferred income tax asset for which we believe it is more likely than not that it will not be realized. A valuation allowance of $2,506 and $505 was maintained at December 31, 2024, and December 31, 2023, respectively.
A valuation allowance is required to be established for any portion of the deferred income tax asset for which we believe it is more likely than not that it will not be realized. A valuation allowance of $2,345 and $2,506 was maintained at December 31, 2025, and December 31, 2024, respectively.
Including the impacts of discontinued operations and the loss on sale of discontinued operations, we recorded an income tax benefit of $3,192 for the year ended December 31, 2024, income tax expense of $963 for the year ended December 31, 2023, and an income tax benefit of $15,254 for the year ended December 31, 2022.
Including the impacts of discontinued operations and the loss on sale of discontinued operations, we recorded an income tax benefit of $3,192 for the year ended December 31, 2024, and an income tax expense of $963 for the year ended December 31, 2023.
We then reduce the estimated ultimate loss and loss adjustment expenses by loss and loss adjustment expenses payments and case reserves carried as of the financial statement date. The actuarially determined estimate is based upon indications from various actuarial methodologies including paid chain-ladder, incurred chain-ladder, Bornhuetter-Ferguson, weighted averages of the methods, and judgment.
We then reduce the estimated ultimate loss and loss adjustment expenses by loss and loss adjustment expenses payments and case reserves carried as of the financial statement date to determine the appropriate IBNR amount. The actuarially determined estimate is based upon indications from various actuarial methodologies including paid chain-ladder, incurred chain-ladder, Bornhuetter-Ferguson, weighted averages of the methods, and judgment.
We had net realized gains on the sale of equity securities of $750, $12,619, and $2,051 during the years ended December 31, 2024, 2023, and 2022, respectively. 35 Our fixed income securities are classified as available for sale because we will, from time to time, execute sales of securities that are not impaired, consistent with our investment goals and policies.
We had net realized gains on the sale of equity securities of $1,646, $750, and $12,619 during the years ended December 31, 2025, 2024, and 2023, respectively. 35 Our fixed income securities are classified as available for sale because we will, from time to time, execute sales of securities that are not impaired, consistent with our investment goals and policies.
At December 31, 2024 and 2023, deferred policy acquisition costs (“DAC”) and the related liability for unearned premiums were as follows: December 31, 2024 2023 Deferred policy acquisition costs $ 26,300 $ 26,790 Liability for unearned premiums 126,498 126,100 The method followed in computing DAC limits the amount of deferred costs to their estimated realizable value, which gives effect to the premium to be earned, related investment income, losses and loss adjustment expenses, and certain other costs expected to be incurred as the premium is earned.
At December 31, 2025 and 2024, deferred policy acquisition costs (“DAC”) and the related liability for unearned premiums were as follows: December 31, 2025 2024 Deferred policy acquisition costs $ 19,209 $ 26,300 Liability for unearned premiums 106,498 126,498 The method followed in computing DAC limits the amount of deferred costs to their estimated realizable value, which gives effect to the premium to be earned, related investment income, losses and loss adjustment expenses, and certain other costs expected to be incurred as the premium is earned.
Historical payment experience indicates that approximately 46% of this amount will be paid during 2025 and another 37% will be paid over the subsequent two years. The actual timing and amounts of these payments in the future may vary. Recent Accounting Pronouncements For a discussion of recent accounting pronouncements, see Part II, Item 8, Note 2 “Recent Accounting Pronouncements.” 43
Historical payment experience indicates that approximately 50% of this amount will be paid during 2026 and another 34% will be paid over the subsequent two years. The actual timing and amounts of these payments in the future may vary. Recent Accounting Pronouncements For a discussion of recent accounting pronouncements, see Part II, Item 8, Note 2 “Recent Accounting Pronouncements.” 43
The amount available for payment of dividends from Nodak Insurance to NI Holdings during 2025 without the prior approval of the North Dakota Insurance Department is approximately $8,273 as of December 31, 2024. No dividends were declared or paid by Nodak Insurance during the years ended December 31, 2024 and 2023.
The amount available for payment of dividends from Nodak Insurance to NI Holdings during 2026 without the prior approval of the North Dakota Insurance Department is approximately $6,730 as of December 31, 2025. No dividends were declared or paid by Nodak Insurance during the years ended December 31, 2024 and 2023.
This decrease was driven by lower levels of weather-related losses in the current year due to the mild winter in the Midwest compared to elevated winter weather-related losses in the prior year as well as favorable prior year loss reserve development. Both periods were positively affected by earned premium growth.
This decrease was the result of lower levels of weather-related losses in 2024 due to the mild winter in the Midwest compared to elevated winter weather-related losses in 2023 as well as favorable prior year loss reserve development. Both periods were positively affected by earned premium growth.
For more information on the Company’s results of operations by segment, see Part II, Item 8, Note 21 “Segment Information.” 29 Years ended December 31, 2024, 2023, and 2022 The consolidated net income from continuing operations for the Company was $6,600 for the year ended December 31, 2024, compared to net income of $19,831 for the year ended December 31, 2023, and a net loss of $38,685 for the year ended December 31, 2022.
For more information on the Company’s results of operations by segment, see Part II, Item 8, Note 21 “Segment Information.” 29 Years ended December 31, 2025, 2024, and 2023 The consolidated net loss from continuing operations for the Company was $10,413 for the year ended December 31, 2025, compared to net income of $6,600 for the year ended December 31, 2024, and net income of $19,831 for the year ended December 31, 2023.
We had gross deferred income tax liabilities of $6,116 at December 31, 2024, and $9,254 at December 31, 2023, arising primarily from deferred policy acquisition costs and other intangible assets. We exercise significant judgment in evaluating the amount and timing of recognition of the resulting income tax liabilities and assets.
We had gross deferred income tax liabilities of $4,190 at December 31, 2025, and $6,116 at December 31, 2024, arising primarily from deferred policy acquisition costs and other intangible assets. We exercise significant judgment in evaluating the amount and timing of recognition of the resulting income tax liabilities and assets.
The change in net unrealized gains on equity securities for 2023 was driven by the equity portfolio liquidation noted above and the impact of changes in fair value attributable to equity market volatility. The 2022 decreases were driven by the impact of changes in fair value attributable to unfavorable equity markets.
The change in net unrealized gains on equity securities for 2023 was driven by the equity portfolio liquidation noted above and the impact of changes in fair value attributable to equity market volatility.
Including the impacts of discontinued operations and the loss on sale of discontinued operations, our effective tax rate for 2024 was 35.2% compared to an effective tax rate of (22.6)% and 22.1% for 2023 and 2022, respectively.
Including the impacts of discontinued operations and the loss on sale of discontinued operations, our effective tax rate for 2025 was 15.5% compared to an effective tax rate of 35.2% and (22.6)% for 2024 and 2023, respectively.
For the year ended December 31, 2024, net cash used by investing activities totaled $4,541 compared to $8,813 net cash used by investing activities a year ago.
For the year ended December 31, 2024, net cash used by investing activities totaled $4,541 compared to $8,813 net cash used by investing activities during 2023.
The expense ratio measures a company’s operational efficiency in producing, underwriting, and administering its insurance business. The overall expense ratio increased 0.6 percentage points in the year ended December 31, 2024, compared to the same period in 2023.
The expense ratio measures a company’s operational efficiency in producing, underwriting, and administering its insurance business. The overall expense ratio increased 1.9 percentage points in the year ended December 31, 2025, compared to the same period in 2024.
Return on Average Equity For the year ended December 31, 2024, we had annualized return on average equity, after non-controlling interest, of 2.8%, compared to annualized return on average equity, after non-controlling interest, of 7.9% and (13.6)% for the years ended December 31, 2023 and 2022, respectively.
Return on Average Equity For the year ended December 31, 2025, we had annualized return on average equity of (4.3%), compared to annualized return on average equity, after non-controlling interest, of 2.8% and 7.9% for the years ended December 31, 2024 and 2023, respectively.
We had gross deferred income tax assets of $15,946 at December 31, 2024, and $18,172 at December 31, 2023, arising primarily from unearned premiums, loss reserve discounting, net unrealized investment losses, and net operating loss carryforwards.
We had gross deferred income tax assets of $12,680 at December 31, 2025, and $15,946 at December 31, 2024, arising primarily from unearned premiums, loss reserve discounting, net unrealized investment losses, and net operating loss carryforwards.
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.
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, 2025 2024 2023 Average cash and invested assets $ 386,802 $ 371,110 $ 335,821 Net investment income $ 11,702 $ 10,943 $ 8,034 Gross return on average cash and invested assets 3.9% 3.9% 3.5% Net return on average cash and invested assets 3.0% 3.0% 2.6% Net investment income increased $759 for the year ended December 31, 2025, compared to the year ended December 31, 2024.
The changes in cash and cash equivalents for continuing and discontinued operations for the years ended December 31, 2024, 2023, and 2022 were as follows: Year Ended December 31, 2024 2023 2022 Net cash flows from operating activities $ 38,506 $ 51,028 $ (15,294 ) Net cash flows from investing activities (4,541 ) (8,813 ) 25,048 Net cash flows from financing activities (3,643 ) (7,466 ) (18,281 ) Net increase (decrease) in cash and cash equivalents $ 30,322 $ 34,749 $ (8,527 ) For the year ended December 31, 2024, net cash provided by operating activities totaled $38,506 compared to $51,028 net cash provided by operating activities a year ago.
The changes in cash and cash equivalents for continuing and discontinued operations for the years ended December 31, 2025, 2024, and 2023 were as follows: Year Ended December 31, 2025 2024 2023 Net cash flows from operating activities $ (15,272 ) $ 38,506 $ 51,028 Net cash flows from investing activities 18,839 (4,541 ) (8,813 ) Net cash flows from financing activities (2,782 ) (3,643 ) (7,466 ) Net increase (decrease) in cash and cash equivalents $ 785 $ 30,322 $ 34,749 For the year ended December 31, 2025, net cash used by operating activities totaled $15,272 compared to $38,506 net cash provided by operating activities a year ago.
Income (Loss) before Income Taxes We had pre-tax income of $10,145 for the year ended December 31, 2024, a pre-tax income of $20,547 for the year ended December 31, 2023, and pre-tax loss of $52,876 for the year ended December 31, 2022.
Income (Loss) before Income Taxes We had pre-tax loss of ($12,329) for the year ended December 31, 2025, a pre-tax income of $10,145 for the year ended December 31, 2024, and pre-tax income of $20,547 for the year ended December 31, 2023.
Income Tax Expense (Benefit) We recorded income tax expense of $3,545 for the year ended December 31, 2024, income tax expense of $716 for the year ended December 31, 2023, and an income tax benefit of $14,191 for the year ended December 31, 2022.
Income Tax Expense (Benefit) We recorded income tax benefit of ($1,916) for the year ended December 31, 2025, income tax expense of $3,545 for the year ended December 31, 2024, and an income tax expense of $716 for the year ended December 31, 2023.
Catastrophe losses, net of reinsurance, for the Home and Farm segment accounted for 72.1 percentage points of the net loss and loss adjustment expense ratio for the year ended December 31, 2022. Crop – The net loss and loss adjustment expenses ratio increased 1.1 percentage points in 2024 compared to 2023.
Catastrophe losses, net of reinsurance, for the Home and Farm segment accounted for 21.2 percentage points of the net loss and loss adjustment expense ratio for the year ended December 31, 2025. The net loss and loss adjustment expenses ratio increased 10.0 percentage points in 2024 compared to 2023.
The overall combined ratio decreased 21.0 percentage points in the year ended December 31, 2023, compared to the same period in 2022. These results were driven by the factors discussed in the Losses and Loss Adjustment Expenses and the Underwriting and General Expenses and Expense Ratio sections above.
These results were driven by the factors discussed in the Losses and Loss Adjustment Expenses and the Underwriting and General Expenses and Expense Ratio sections above. The overall combined ratio increased 9.2 percentage points in the year ended December 31, 2025, compared to the same period in 2024.
Net Investment Gains (Losses) Net investment gains (losses) consisted of the following: Year Ended December 31, 2024 2023 2022 Gross realized gains $ 1,341 $ 13,841 $ 7,083 Gross realized losses, excluding credit impairment losses (790 ) (1,745 ) (5,099 ) Net realized gains 551 12,096 1,984 Change in net unrealized gain on equity securities 1,662 (10,167 ) (13,959 ) Net investment gains (losses) $ 2,213 $ 1,929 $ (11,975 ) We had net realized gains of $551 for the year ended December 31, 2024, compared to $12,096 for the year ended December 31, 2023, and $1,984 for the year ended December 31, 2022.
Net Investment Gains (Losses) Net investment gains (losses) consisted of the following: Year Ended December 31, 2025 2024 2023 Gross realized gains $ 2,386 $ 1,341 $ 13,841 Gross realized losses, excluding credit impairment losses (1,080 ) (790 ) (1,745 ) Net realized gains 1,306 551 12,096 Change in net unrealized gain on equity securities 390 1,662 (10,167 ) Net investment gains (losses) $ 1,696 $ 2,213 $ 1,929 We had net realized gains of $1,306 for the year ended December 31, 2025, compared to $551 for the year ended December 31, 2024, and $12,096 for the year ended December 31, 2023.
Non-Standard auto – The net loss and loss adjustment expenses ratio increased 8.1 percentage points in 2024 compared to 2023. This increase was driven by unfavorable prior year loss reserve development related to elevated bodily injury losses, partially offset by earned premium growth resulting from new business growth and significant rate increases.
This increase 32 was driven by unfavorable prior year loss reserve development related to elevated bodily injury losses, partially offset by earned premium growth resulting from new business growth and significant rate increases. Home and farm – The net loss and loss adjustment expenses ratio decreased 5.7 percentage points in 2025 compared to 2024.
The overall expense ratio increased 4.2 percentage points in the year ended December 31, 2023, compared to the same period in 2022.
The overall expense ratio increased 0.6 percentage points in the year ended December 31, 2024, compared to the same period in 2023.
Underwriting and General Expenses and Expense Ratio Year Ended December 31, 2024 2023 2022 Underwriting and general expenses: Amortization of deferred policy acquisition costs $ 71,257 $ 67,631 $ 53,605 Other underwriting and general expenses 33,709 29,326 25,303 Total underwriting and general expenses $ 104,966 $ 96,957 $ 78,908 Expense ratio 33.8% 33.2% 29.0% The expense ratio is calculated by dividing other underwriting and general expenses and amortization of deferred policy acquisition costs by net premiums earned.
Underwriting and General Expenses and Expense Ratio Year Ended December 31, 2025 2024 2023 Underwriting and general expenses: Amortization of deferred policy acquisition costs $ 59,993 $ 71,257 $ 67,631 Other underwriting and general expenses 36,598 33,709 29,326 Total underwriting and general expenses $ 96,591 $ 104,966 $ 96,957 Expense ratio 35.7% 33.8% 33.2% The expense ratio is calculated by dividing other underwriting and general expenses and amortization of deferred policy acquisition costs by net premiums earned.
This increase was driven by higher loss severity and higher non-catastrophe weather-related losses in North Dakota and Nebraska during 2024 compared to the prior year, partially offset by earned premium growth in the current year. The net loss and loss adjustment expenses ratio decreased 76.5 percentage points in 2023 compared to 2022.
This increase was driven by higher loss severity and higher non-catastrophe weather-related losses in North Dakota and Nebraska during 2024 compared 2023. Crop – The net loss and loss adjustment expenses ratio increased 8.5 percentage points in 2025 compared to 2024. This increase was driven by higher crop hail losses in the current year compared to the prior year.
This line of credit is scheduled to expire on December 13, 2025.
This line of credit is scheduled to expire on December 11, 2026.
Results were driven by prior period new business growth in Illinois and Arizona as well as significant rate increases in the Chicago market where our non-standard auto business is concentrated, partially offset by lower retention compared to the prior year and the decision to exit Nevada. Net premiums earned for 2023 increased $20,849, or 31.2%, from 2022.
Results were driven by prior period new business growth in Illinois and Arizona as well as significant rate increases in the Chicago market where our non-standard auto business was concentrated, partially offset by lower retention compared to the prior year and the decision to exit Nevada.
Year Ended December 31, 2024 2023 2022 Net losses and loss adjustment expenses: Private passenger auto $ 51,869 $ 60,204 $ 65,420 Non-Standard auto 76,130 63,041 39,400 Home and farm 64,561 50,935 107,823 Crop 9,071 10,793 19,418 All other 5,834 1,543 9,689 Total net losses and loss adjustment expenses $ 207,465 $ 186,516 $ 241,750 Year Ended December 31, 2024 2023 2022 Loss and loss adjustment expenses ratio: Private passenger auto 57.4% 72.2% 84.3% Non-Standard auto 79.9% 71.8% 58.9% Home and farm 71.1% 61.1% 137.6% Crop 42.9% 41.8% 55.9% All other 46.1% 13.1% 68.6% Total loss and loss adjustment expenses ratio 66.9% 63.8% 89.0% Below are comments regarding significant changes in net losses and loss adjustment expenses, and the net loss and loss adjustment expenses ratios by business segment: Private passenger auto – The net loss and loss adjustment expenses ratio decreased 14.8 percentage points in 2024 compared to 2023.
Year Ended December 31, 2025 2024 2023 Net losses and loss adjustment expenses: Private passenger auto $ 55,258 $ 51,869 $ 60,204 Non-Standard auto 67,848 76,130 63,041 Home and farm 61,425 64,561 50,935 Crop 11,140 9,071 10,793 All other 5,117 5,834 1,543 Total net losses and loss adjustment expenses $ 200,788 $ 207,465 $ 186,516 Year Ended December 31, 2025 2024 2023 Loss and loss adjustment expenses ratio: Private passenger auto 60.7% 57.4% 72.2% Non-Standard auto 135.7% 79.9% 71.8% Home and farm 65.4% 71.1% 61.1% Crop 51.4% 42.9% 41.8% All other 36.4% 46.1% 13.1% Total loss and loss adjustment expenses ratio 74.2% 66.9% 63.8% Below are comments regarding significant changes in net losses and loss adjustment expenses, and the net loss and loss adjustment expenses ratios by business segment: Private passenger auto – The net loss and loss adjustment expenses ratio increased 3.3 percentage points in 2025 compared to 2024.
The amount of the loss reserve for the reported claim is based primarily upon an evaluation of coverage, liability, damages suffered, and any other information considered pertinent to estimating the exposure presented by the claim.
In many cases a default reserve is utilized until the claims personnel can determine a more claim specific amount. The amount of the loss reserve for the reported claim is based primarily upon an evaluation of coverage, liability, damages suffered, and any other information considered pertinent to estimating the exposure presented by the claim.
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 the favorable 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.
The Nodak Insurance Board of Directors declared and paid dividends of $3,000 to NI Holdings during the year ended December 31, 2022. The amount available for payment of dividends from Direct Auto to NI Holdings during 2025 without the prior approval of the North Dakota Insurance Department is approximately $3,146 as of December 31, 2024.
The amount available for payment of dividends from Direct Auto to NI Holdings during 2026 without the prior approval of the North Dakota Insurance Department is approximately $3,829 as of December 31, 2025. No dividends were declared or paid by Direct Auto during the years ended December 31, 2024 and 2023.
Year Ended December 31, 2024 2023 2022 Net premiums earned: Private passenger auto $ 90,314 $ 83,360 $ 77,605 Non-Standard auto 95,225 87,760 66,911 Home and farm 90,761 83,389 78,381 Crop 21,142 25,817 34,721 All other 12,668 11,791 14,122 Total net premiums earned $ 310,110 $ 292,117 $ 271,740 Below are comments regarding significant changes in net premiums earned by business segment: Private passenger auto – Net premiums earned for 2024 increased $6,954, or 8.3%, from 2023.
Year Ended December 31, 2025 2024 2023 Net premiums earned: Private passenger auto $ 91,027 $ 90,314 $ 83,360 Non-Standard auto 50,000 95,225 87,760 Home and farm 93,920 90,761 83,389 Crop 21,665 21,142 25,817 All other 14,043 12,668 11,791 Total net premiums earned $ 270,655 $ 310,110 $ 292,117 Below are comments regarding significant changes in net premiums earned by business segment: Private passenger auto – Net premiums earned for 2025 increased $713, or 0.8%, from 2024.
The total underwriting gain (loss) decreased $10,965, or 126.9%, for the year ended December 31, 2024, compared to the same period in 2023. The total underwriting gain (loss) increased $57,562, or 117.7%, for the year ended December 31, 2023, compared to the same period in 2022.
The total underwriting gain (loss) decreased $24,403, or 1,051%, for the year ended December 31, 2025, compared to the same period in 2024. The total underwriting gain (loss) decreased $10,965, or 126.9%, for the year ended December 31, 2024, compared to the same period in 2023.
This decrease was driven by a reduction in acres insured and lower commodity prices, which are a key determinant of premiums on a Federal multi-peril crop insurance policy, in the current year. Net premiums earned for 2023 decreased $8,904, or 25.6%, from 2022.
This decrease was 31 driven by a reduction in acres insured and lower commodity prices, which are a key determinant of premiums on a Federal multi-peril crop insurance policy, in the current year. All other – Net premiums earned for 2025 increased $1,375, or 10.9%, from 2024.
Net Income (Loss) We had net income before non-controlling interest of $6,600 for the year ended December 31, 2024, net income of $19,831 for the year ended December 31, 2023, and a net loss of $38,685 for the year ended December 31, 2022.
Net Income (Loss) We had net loss of ($10,413) for the year ended December 31, 2025, net income of $6,600 for the year ended December 31, 2024, and a net income of $19,831 for the year ended December 31, 2023.
This change was primarily attributable to the proceeds from the sale of Westminster as well as a decrease in the net cash outflows for fixed income securities in the current year, partially offset by a decrease in the cash inflows from equity securities in the current year.
This change was primarily attributable to the proceeds from the sale of Westminster as well as a decrease in the net cash outflows for fixed income securities in the current year, partially offset by a decrease in the cash inflows from equity securities in the current year. 42 For the year ended December 31, 2024, net cash used by financing activities totaled $3,643 compared to $7,466 during 2023.
The fixed income portion of the portfolio experienced net unrealized losses of $191 during the year ended December 31, 2024, compared to net unrealized gains of $9,168 during the year ended December 31, 2023. The changes were primarily the result of changes in U.S. interest rates.
The fixed income portion of the portfolio experienced net unrealized gains of $10,180 during the year ended December 31, 2025, compared to net unrealized losses of $191 during the year ended December 31, 2024. The fixed income portfolio experienced net unrealized losses of $9,168 during the year ended December 31, 2023.
All other – The net loss and loss adjustment expenses ratio increased 33.0 percentage points in 2024 compared to 2023. This increase was driven by elevated large loss experience compared to the prior year and an inter-segment reclassification of a large loss during 2023.
This decrease was driven by lower severity on commercial property losses as well as the effects of earned premium growth. The net loss and loss adjustment expenses ratio increased 33.0 percentage points in 2024 compared to 2023. This increase was driven by elevated large loss experience compared to 2023 and an inter-segment reclassification of a large loss during 2023.
For the year ended December 31, 2024, net cash used by financing activities totaled $3,643 compared to $7,466 a year ago. This decrease in cash used was attributable to a reduction in share repurchases in the current year partially offset by the final pooling settlement between Nodak Insurance and Westminster.
This decrease in cash used was attributable to the final pooling settlement between Nodak Insurance and Westminster in the prior year, partially offset by the resumption of share repurchases in the current year. For the year ended December 31, 2024, net cash provided by operating activities totaled $38,506 compared to $51,028 net cash provided by operating activities during 2023.
This decrease in cash used was attributable to installment payments on the Westminster consideration payable during 2022, partially offset by an increase in share repurchases during 2023 compared to 2022. As a holding company, a principal source of long-term liquidity will be dividend payments from our directly-owned subsidiaries.
This decrease in cash used was attributable to a reduction in share repurchases in the current year partially offset by the final pooling settlement between Nodak Insurance and Westminster. As a holding company, a principal source of long-term liquidity will be dividend payments from our directly-owned subsidiaries.
The strong results for 2024 were the result of favorable crop growing conditions, similar to the prior year. The net loss and loss adjustment expenses ratio decreased 14.1 percentage points in 2023 compared to 2022. This decrease was due to improved crop growing conditions in 2023 in comparison to 2022.
The net loss and loss adjustment expenses ratio increased 1.1 percentage points in 2024 compared to 2023. The strong results for 2024 were the result of favorable crop growing conditions, similar to 2023. All other – The net loss and loss adjustment expenses ratio decreased 9.7 percentage points in 2025 compared to 2024.
Results were driven by new business growth in North Dakota as well as significant rate increases in North Dakota, South Dakota, and Nebraska, partially offset by lower new business and retention levels in South Dakota and Nebraska as a result of underwriting actions taken to improve profitability. Net premiums earned for 2023 increased $5,755, or 7.4%, from 2022.
This increase was driven by new business growth in North Dakota as well as significant rate increases in North Dakota, South Dakota, and Nebraska, partially offset by lower new business and retention levels in South Dakota and Nebraska as a result of underwriting actions taken to improve profitability.
Results were driven by rate and insured value increases for the commercial and excess lines of business, partially offset by the continued run-off of our participation in an assumed domestic and international reinsurance pool of business. Net premiums earned for 2023 decreased $2,331, or 16.5%, from 2022.
This increase was driven by rate and insured value increases for the commercial and excess lines of business, partially offset by the continued run-off of our participation in an assumed domestic and international reinsurance pool of business.
Losses and Loss Adjustment Expenses Year Ended December 31, 2024 2023 2022 Net losses and loss adjustment expenses: Direct losses and loss adjustment expenses $ 220,991 $ 195,138 $ 255,187 Assumed losses and loss adjustment expenses 784 1,140 2,369 Ceded losses and loss adjustment expenses (14,310 ) (9,762 ) (15,806 ) Total net losses and loss adjustment expenses $ 207,465 $ 186,516 $ 241,750 The Company’s net losses and loss adjustment expenses for the year ended December 31, 2024 increased $20,949, or 11.2%, to $207,465, compared to $186,516 for the year ended December 31, 2023.
Losses and Loss Adjustment Expenses Year Ended December 31, 2025 2024 2023 Net losses and loss adjustment expenses: Direct losses and loss adjustment expenses $ 247,431 $ 220,991 $ 195,138 Assumed losses and loss adjustment expenses 606 784 1,140 Ceded losses and loss adjustment expenses (47,249 ) (14,310 ) (9,762 ) Total net losses and loss adjustment expenses $ 200,788 $ 207,465 $ 186,516 The Company’s net losses and loss adjustment expenses for the year ended December 31, 2025 decreased $6,677, or 3.2%, to $200,788, compared to $207,465 for the year ended December 31, 2024.
See Part II, Item 8, Note 20 “Discontinued Operations” for additional information. Contractual Obligations The primary contractual obligations of the Company include gross loss and loss adjustment expenses payments as well as operating and finance lease obligations. The Company’s unpaid losses and loss adjustment expenses were $137,288 as of December 31, 2024.
Contractual Obligations The primary contractual obligations of the Company include gross loss and loss adjustment expenses payments as well as operating and finance lease obligations. The Company’s unpaid losses and loss adjustment expenses were $137,855 as of December 31, 2025.
The increase in amortization of deferred policy acquisition costs was driven by higher deferrable costs resulting from overall premium growth compared to the prior year, including significant growth in the non-standard auto segment which generally pays higher agent commissions than our other segments.
The decrease in the amortization of deferred policy acquisition costs is due to lower deferrable costs resulting from the strategic reduction in premium for the Non-Standard Auto segment, which generally pays higher agent commissions than our other segments.
The increase in other underwriting and general expenses was due to the impact of continued high levels of inflation and 2022 expenses being favorably impacted by multi-peril crop insurance final settlements. 33 Underwriting Gain (Loss) and Combined Ratio Year Ended December 31, 2024 2023 2022 Underwriting gain (loss): Private passenger auto $ 10,407 $ (1,536 ) $ (9,548 ) Non-Standard auto (17,637 ) (12,860 ) 508 Home and farm (2,373 ) 7,557 (52,644 ) Crop 7,189 8,702 12,236 All other 93 6,781 530 Total underwriting gain (loss) $ (2,321 ) $ 8,644 $ (48,918 ) Year Ended December 31, 2024 2023 2022 Combined ratio: Private passenger auto 88.4% 101.8% 112.3% Non-Standard auto 118.5% 114.6% 99.3% Home and farm 102.6% 91.0% 167.2% Crop 66.0% 66.3% 64.7% All other 99.3% 42.5% 96.2% Total combined ratio 100.7% 97.0% 118.0% Underwriting gain (loss) measures the pre-tax profitability of our insurance operations.
The increase in the other underwriting and general expenses is due to the costs incurred in 2024 associated with the execution of separation agreements with our former Chief Executive Officer and former Senior Vice President of Operations. 33 Underwriting Gain (Loss) and Combined Ratio Year Ended December 31, 2025 2024 2023 Underwriting gain (loss): Private passenger auto $ 5,980 $ 10,407 $ (1,536 ) Non-Standard auto (40,805 ) (17,637 ) (12,860 ) Home and farm (1,493 ) (2,373 ) 7,557 Crop 5,870 7,189 8,702 All other 3,724 93 6,781 Total underwriting gain (loss) $ (26,724 ) $ (2,321 ) $ 8,644 Year Ended December 31, 2025 2024 2023 Combined ratio: Private passenger auto 93.4% 88.4% 101.8% Non-Standard auto 181.6% 118.5% 114.6% Home and farm 101.6% 102.6% 91.0% Crop 72.9% 66.0% 66.3% All other 73.4% 99.3% 42.5% Total combined ratio 109.9% 100.7% 97.0% Underwriting gain (loss) measures the pre-tax profitability of our insurance operations.
Our 2023 effective tax rate was impacted by several factors, but the 2023 non-taxable goodwill impairment charge was the most significant driver of the variance from the statutory rate.
Our 2023 effective tax rate was impacted by several factors, but the 2023 non-taxable goodwill impairment charge was the most significant driver of the variance from the statutory rate. The valuation allowance against certain deferred income tax assets was $2,345 as of December 31, 2025, $2,506 as of December 31, 2024, and $505 as of December 31, 2023.
These restrictions or any subsequently imposed restrictions may affect our future liquidity. Westminster was sold on June 30, 2024, and therefore no dividends are available to be paid to NI Holdings subsequent to that date. No dividends were declared or paid by Westminster during the years ended December 31, 2024, 2023 or 2022.
Westminster was sold on June 30, 2024, and therefore no dividends are available to be paid to NI Holdings subsequent to that date. No dividends were declared or paid by Westminster during the years ended December 31, 2024 and 2023. See Part II, Item 8, Note 20 “Discontinued Operations” for additional information.
This increase was driven by rate increases along with increased insured property values, which were primarily the result of higher inflationary factors. These premium increases were partially offset by lower levels of new business production as a result of underwriting actions taken to improve profitability Crop – Net premiums earned for 2024 decreased $4,675, or 18.1%, from 2023.
This increase was driven by new business growth in North Dakota, rate increases, and increased insured property values, which were primarily the result of higher inflationary factors. These increases were partially offset by lower retention rates and new business levels in Nebraska and South Dakota as a result of underwriting actions taken to improve profitability.
Our 2022 effective tax rate was impacted by several factors, but the change in valuation allowance and non-taxable executive compensation were the most significant drivers of the variance from the statutory rate.
Our 2025 effective tax rate was impacted by several factors, but non-taxable compensation-related expenses and prior-year true-ups on the loss on sale of discontinued operations were the most significant drivers of the variance from the statutory rate.
This notice must be provided to the North Dakota Insurance Department 30 days prior to the payment of an extraordinary dividend and 10 days prior to the payment of an ordinary dividend. The North Dakota Insurance Department has the power to limit or prohibit dividend payments if an insurance company is in violation of any law or regulation.
Prior to its payment of any dividend, Nodak Insurance will be required to provide notice of the dividend to the North Dakota Insurance Department. This notice must be provided to the North Dakota Insurance Department 30 days prior to the payment of an extraordinary dividend and 10 days prior to the payment of an ordinary dividend.
This increase was driven by significant rate increases in North Dakota, South Dakota, and Nebraska, partially offset by lower new business production as a result of underwriting actions taken to improve profitability. Non-Standard auto – Net premiums earned for 2024 increased $7,465, or 8.5%, from 2023.
This increase was driven by new business growth in North Dakota, significant rate increases in South Dakota and Nebraska, and improved retention in North Dakota and Nebraska, partially offset by lower new business and retention levels in South Dakota. Net premiums earned for 2024 increased $6,954, or 8.3%, from 2023.
When a claim is reported to one of the insurance companies, its claims personnel establish a case reserve for the estimated amount of the ultimate payment to the extent it can be determined or estimated, in many cases a default reserve is utilized until the claims personnel can determine a more claim specific amount.
Estimates of future costs to administer reported and unreported claims for both allocated and unallocated expenses are included in IBNR. When a claim is reported to one of the insurance companies, its claims personnel or assigned external parties establish a case reserve for the estimated amount of the ultimate payment to the extent it can be determined or estimated.
The Company’s net losses and loss adjustment expenses for the year ended December 31, 2023 decreased $55,234, or 22.8%, to $186,516, compared to $241,750 for the year ended December 31, 2022.
The Company’s net losses and loss adjustment expenses for the year ended December 31, 2024 increased $20,949, or 11.2%, to $207,465, compared to $186,516 for the year ended December 31, 2023.
No credit impairment losses were reported during any of the periods presented. We experienced an increase in net unrealized gains on equity securities of $1,662 during the year ended December 31, 2024, attributable to overall favorable equity markets during the current year.
We experienced an increase in net unrealized gains on equity securities of $390 and $1,662 during the years ended December 31, 2025 and 2024, respectively. These results were driven by the impact of changes in fair value attributable to overall favorable equity markets during those periods.
Net premiums earned for the year ended December 31, 2023 increased $20,377, or 7.5%, to $292,117, compared to $271,740 for the year ended December 31, 2022.
Net premiums earned for the year ended December 31, 2024 increased $17,993, or 6.2%, to $310,110, compared to $292,117 for the year ended December 31, 2023.
For the year ended December 31, 2023, net cash used by investing activities totaled $8,813 compared to $25,048 net cash provided by investing activities during 2022.
For the year ended December 31, 2025, net cash provided by investing activities totaled $18,839 compared to $4,541 net cash used by investing activities a year ago.
Financial Highlights 2024 Consolidated Results of Continuing Operations ● Net income of $6,600, or $0.31 per share basic and diluted ● Net premiums earned of $310,110 ● Net investment income of $10,943 ● Net unfavorable prior year reserve development of $13,517 ● Underwriting loss of $2,321 ● Combined ratio of 100.7% ● Operating cash flows of $15,082 2024 Consolidated Financial Condition ● Total cash and investments of $385,094 ● Total assets of $526,545 ● Unpaid losses and loss adjustment expenses of $137,288 ● Total liabilities of $281,914 ● Shareholders’ equity of $244,631 28 Results of Continuing Operations Our consolidated financial statements are prepared in accordance with GAAP.
Financial Highlights 2025 Consolidated Results of Operations · Net loss of $10,413, or ($0.50) per share basic and diluted · Net premiums earned of $270,655 · Net investment income of $11,702 · Net unfavorable prior year reserve development of $30,330 · Underwriting loss of $26,724 · Combined ratio of 109.9% · Operating cash flows of ($4,859) 2025 Consolidated Financial Condition · Total cash and investments of $378,680 · Total assets of $506,002 · Unpaid losses and loss adjustment expenses of $137,855 · Total liabilities of $265,665 · Shareholders’ equity of $240,337 28 Results of Continuing Operations Our consolidated financial statements are prepared in accordance with GAAP.
Goodwill Impairment Charge We had a goodwill impairment charge of $2,628 for the year ended December 31, 2024, compared to $6,756 for the years ended December 31, 2023, and $0 for the year ended December 31, 2022.
Fee and other income for 2024 was generally consistent with 2023 due to elevated other income in 2023. Goodwill Impairment Charge We did not have a goodwill impairment charge for the year ended December 31, 2025, compared to $2,628 for the year ended December 31, 2024, and $6,756 for the year ended December 31, 2023.
The elevated net realized gains for the year ended December 31, 2023, were the result of a strategic liquidation of a portfolio of equity securities. The gross realized gains from the sale of these securities were largely offset by the elimination of the unrealized gain position of these securities.
The net realized gains for the year ended December 31, 2025, were driven by sales of equity securities that were executed as part of the strategic management of our investment portfolio. The elevated net realized gains for the year ended December 31, 2023, were the result of a strategic liquidation of a portfolio of equity securities.
The change in the fair value of fixed income securities is not reflected in net income; rather it is reflected as a separate component (net of income taxes) of other comprehensive income. The fixed income portfolio experienced net unrealized losses of $39,971 during the year ended December 31, 2022.
These changes were primarily the result of changes in U.S. interest rates. The change in the fair value of fixed income securities is not reflected in net income; rather it is reflected as a separate component (net of income taxes) of other comprehensive income.
This change was primarily attributable to a decrease in maturities and sales of fixed income securities and an increase in purchases of fixed income securities during 2023 compared to 2022, partially offset by an increase in sales of equity securities and a decrease in purchases of equity securities. 42 For the year ended December 31, 2023, net cash used by financing activities totaled $7,466 compared to $18,281 during 2022.
This change was primarily attributable to the decrease in the net cash outflows for fixed income securities in the current year, partially offset by proceeds from the sale of Westminster in the prior year. For the year ended December 31, 2025, net cash used by financing activities totaled $2,782 compared to $3,643 a year ago.
This increase was driven by new business growth, improved retention, and significant rate increases in the Chicago market. Home and farm – Net premiums earned for 2024 increased $7,372, or 8.8%, from 2023. Results were driven by new business growth in North Dakota, rate increases, and increased insured property values, which were primarily the result of higher inflationary factors.
Home and farm – Net premiums earned for 2025 increased $3,159, or 3.5%, from 2024. Results were driven by new business growth, rate increases, and increased insured property values in North Dakota, South Dakota, and Nebraska, partially offset by lower retention rates in South Dakota.
The net loss and loss adjustment expenses ratio decreased 55.5 percentage points in 2023 compared to 2022. This decrease was driven by improved loss experience related to the commercial and excess liability lines of business.
This increase was driven by higher severity on bodily injury liability losses. The net loss and loss adjustment expenses ratio decreased 14.8 percentage points in 2024 compared to 2023.
This increase was driven by elevated loss severity as a result of inflationary factors as well as unfavorable prior year loss reserve development, partially offset by significant rate increases. 32 Home and farm – The net loss and loss adjustment expenses ratio increased 10.0 percentage points in 2024 compared to 2023.
Non-Standard auto – The net loss and loss adjustment expenses ratio increased 55.8 percentage points in 2025 compared to 2024. This increase was driven by higher unfavorable prior year development on liability loss reserves, primarily related to bodily injury coverage. The net loss and loss adjustment expenses ratio increased 8.1 percentage points in 2024 compared to 2023.

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Item 7A. Quantitative and Qualitative Disclosures About Market Risk

Market Risk — interest-rate, FX, commodity exposure

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Biggest changeThe table below shows the interest rate sensitivity of our fixed income securities (including both continuing and discontinued operations) measured in terms of fair value (which is equal to the carrying value for all of our investment securities that are subject to interest rate changes) at December 31, 2024 and 2023: As of December 31, 2024 As of December 31, 2023 Hypothetical Change in Interest Rate Estimated Change in Fair Value Fair Value Estimated Change in Fair Value Fair Value 200 basis point increase $ (28,085 ) $ 279,627 $ (31,125 ) $ 316,606 100 basis point increase (14,687 ) 293,025 (15,826 ) 331,905 No change — 307,712 — 347,731 100 basis point decrease 13,509 321,221 16,199 363,930 200 basis point decrease 27,977 335,689 32,572 380,303 The interest rate exposure of our portfolio was proportionately consistent in the current year compared to the prior year, which is expected given the generally consistent composition and duration of the fixed income portfolio over this time. 44 Credit Risk Credit risk is the potential economic loss principally arising from adverse changes in the financial condition of a specific debt issuer.
Biggest changeThe table below shows the interest rate sensitivity of our fixed income securities measured in terms of fair value (which is equal to the carrying value for all of our investment securities that are subject to interest rate changes) at December 31, 2025 and 2024: As of December 31, 2025 As of December 31, 2024 Hypothetical Change in Interest Rate Estimated Change in Fair Value Fair Value Estimated Change in Fair Value Fair Value 200 basis point increase $ (28,158 ) $ 273,235 $ (28,085 ) $ 279,627 100 basis point increase (14,621 ) 286,772 (14,687 ) 293,025 No change — 301,393 — 307,712 100 basis point decrease 13,072 314,465 13,509 321,221 200 basis point decrease 26,832 328,225 27,977 335,689 The interest rate exposure of our portfolio was proportionately consistent in the current year compared to the prior year, which is expected given the generally consistent composition and duration of the fixed income portfolio over this time. 44 Credit Risk Credit risk is the potential economic loss principally arising from adverse changes in the financial condition of a specific debt issuer.
We develop our investment strategies based on a number of factors, including estimated duration of reserve liabilities, short and long-term liquidity needs, general economic conditions, expected rates of inflation and regulatory requirements. The portfolio duration of the fixed income securities in our investment portfolio at December 31, 2024 was 4.77 years.
We develop our investment strategies based on a number of factors, including estimated duration of reserve liabilities, short and long-term liquidity needs, general economic conditions, expected rates of inflation and regulatory requirements. The portfolio duration of the fixed income securities in our investment portfolio at December 31, 2025 was 4.53 years.

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