NI Holdings, Inc. Reports Results for Fourth Quarter and Year Ended December 31, 2023 FARGO, North Dakota, March 15, 2024 – NI Holdings, Inc. (NASDAQ: NODK) announced today results for the year ended December 31, 2023. NI Holdings, Inc. is an insurance holding company. The company is a North Dakota business corporation that is the stock holding company of Nodak Insurance Company and became such in connection with the conversion of Nodak Mutual Insurance Company from a mutual to stock form of organization an ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2023 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ____ to _____ Commission file number 001-37973 NI HOLDINGS, INC. (Exact name of registrant as specified in its charter) NORTH DAKOTA 81-2683619 (State or other jurisdiction o ...

Financial Performance - Consolidated net income for Q3 2023 was $298, a significant improvement from a net loss of $10,169 in Q3 2022[152]. - Total revenues for Q3 2023 increased to $92,749, up 1.4% from $89,175 in Q3 2022, and for the nine months ended September 30, 2023, revenues rose to $271,281, a 17.4% increase from $231,105 in the same period of 2022[152]. - The company recorded a pre-tax income of $128 for the three months ended September 30, 2023, compared to a pre-tax loss of $13,243 for the same period in 2022[178]. - The net income before non-controlling interest for the three months ended September 30, 2023, was $298 compared to a net loss of $10,169 for the same period in 2022[181]. - The annualized return on average equity for the three months ended September 30, 2023, was 0.4% compared to (15.4)% for the same period in 2022[182]. Premiums and Underwriting - Net premiums earned for Q3 2023 were $90,770, an increase of $1,238 or 1.4% compared to Q3 2022, and for the nine months ended September 30, 2023, net premiums earned rose to $262,543, up $18,928 or 7.8% from the same period in 2022[154]. - Private passenger auto net premiums earned increased by $1,422 or 7.2% in Q3 2023 compared to Q3 2022, driven by rate increases in specific states[155]. - Non-standard auto net premiums earned surged by $3,652 or 20.8% in Q3 2023, attributed to new business growth and significant rate increases in the Chicago market[156]. - Home and farm net premiums earned rose by $1,558 or 7.9% in Q3 2023, supported by rate increases and higher insured property values[157]. - Crop net premiums earned decreased by $4,820 or 33.1% in Q3 2023, driven by lower commodity prices and fewer acres insured[158]. - Commercial net premiums earned saw a slight decrease of $133 or 0.8% in Q3 2023, while year-to-date figures showed an increase of $3,307 or 7.3%[159]. Losses and Expenses - Losses and loss adjustment expenses for Q3 2023 decreased to $63,564, down $15,353 or 19.5% from $78,917 in Q3 2022, and for the nine months ended September 30, 2023, these expenses decreased to $199,895, down $27,746 or 12.2% from $227,641 in the same period of 2022[161]. - The loss and loss adjustment expenses ratio for Q3 2023 was 70.0%, a decrease from 88.1% in Q3 2022, indicating improved profitability[162]. - The net loss and loss adjustment expense ratio for the Commercial segment increased by 3.4 percentage points and 23.3 percentage points for the three- and nine-month periods ended September 30, 2023, respectively, compared to the same periods in 2022[166]. - The net loss and loss adjustment expense ratio for all other segments decreased by 44.1 percentage points and 40.1 percentage points for the three- and nine-month periods ended September 30, 2023, respectively, compared to the same period in 2022[167]. - Total underwriting loss decreased by $11,035, or 85.6%, for the three-month period and by $32,650, or 57.1%, for the nine-month period ended September 30, 2023, compared to the same periods in 2022[170]. - The overall combined ratio decreased by 12.4 percentage points for the three-month period and by 14.2 percentage points for the nine-month period ended September 30, 2023, compared to the same periods in 2022[171]. Investment Income - Net investment income increased by $716 for the three months and by $1,792 for the nine months ended September 30, 2023, compared to the same periods in 2022, driven by a rising interest rate environment[173]. - Net realized gains were $531 and $11,998 for the three and nine months ended September 30, 2023, respectively, compared to $83 and $2,048 for the same periods in 2022[175]. Cash Flow and Liquidity - For the nine months ended September 30, 2023, net cash used by operating activities totaled $3,021, a significant decrease from $24,680 in the same period of 2022, primarily due to lower claim payments and higher premium collections[186]. - Net cash used by investing activities for the same period was $2,021, compared to net cash provided of $18,639 a year ago, driven by decreased maturities and sales of fixed income securities[187]. - Net cash used by financing activities totaled $7,454 for the nine months ended September 30, 2023, down from $10,305 in the prior year, influenced by an installment payment related to Westminster and increased share repurchases[188]. - No dividends were declared or paid by Nodak Insurance during the nine months ended September 30, 2023, due to statutory net loss restrictions[192]. - Direct Auto and Westminster also did not declare or pay dividends during the nine months ended September 30, 2023, due to similar restrictions based on statutory net losses[193][194]. - The company expects to maintain a high degree of liquidity in its investment portfolio to meet claim settlements and operating expenses in the foreseeable future[186]. - The company's principal source of long-term liquidity will be dividend payments from directly-owned subsidiaries, which are currently restricted[189]. Market Risk - The assessment of market risk as of September 30, 2023, indicates no material changes from the previous year[196].

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2023 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 001-37973 NI HOLDINGS, INC. (Exact name of registrant as specified in its charter) NORTH DAKOTA 81-2683619 (State or other jurisdiction of (IRS Emp ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2023 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 001-37973 NI HOLDINGS, INC. (Exact name of registrant as specified in its charter) NORTH DAKOTA 81-2683619 (State or other jurisdiction of (IRS Em ...

Insurance Premiums Breakdown - Private passenger auto insurance accounted for $82,311 million (21.1%) of direct premiums written by the company in 2022[51] - Non-standard auto insurance represented $77,798 million (20.0%) of direct premiums written by the company in 2022[52] - Home and farm insurance contributed $90,701 million (23.3%) of direct premiums written by the company in 2022[53] - Crop insurance, including crop hail and multi-peril policies, accounted for $53,215 million (13.7%) of direct premiums written by the company in 2022[54] - Commercial insurance made up $80,443 million (20.6%) of direct premiums written by the company in 2022[55] - Other coverages, including excess liability, accounted for $5,238 million (1.3%) of direct premiums written by the company in 2022[56] Financial Strength and Ratings - All of the company's insurance subsidiaries are rated "A" Excellent by AM Best, affirming a stable financial strength outlook[84] - All insurance subsidiaries hold a financial strength rating of "A" (Excellent) by AM Best, which is crucial for competitive positioning in the insurance market[127] - The company has never triggered any regulatory capital levels under the NAIC risk-based capital requirements, with total adjusted capital exceeding the authorized control level[100] Regulatory Environment - The company is subject to extensive state-level regulations that impact various aspects of its operations, including pricing, claims procedures, and corporate governance[92] - The company’s ability to pay dividends to shareholders is dependent on the ability of its insurance subsidiaries to pay dividends, which is regulated by state laws[113] - The company’s multi-peril crop insurance is overseen by the RMA, which establishes premium rates and loss adjustment procedures[97] - Regulatory changes affecting the federal crop insurance program could significantly impact revenues and net income[146] Competition and Market Position - The company faces competition from major insurers in its markets, including Progressive, State Farm, and American Family Insurance[85] - The company differentiates itself in the property and casualty insurance market by focusing on ease of doing business and providing excellent claims service[90] Underwriting and Risk Management - The company’s underwriting and risk management approach emphasizes long-term profitability, but there is no guarantee of success in mitigating catastrophe losses[123] - The company’s ability to manage underwriting risks is dependent on the availability and cost of reinsurance, which may vary significantly over time[133] - The company is subject to significant risks from catastrophic events, with potential impacts on financial condition and operating results due to climate change and natural disasters[121] Operational Risks - The company is exposed to operational risks including fraud, clerical errors, and system malfunctions, which could materially affect operations[142] - The company relies heavily on its operating systems for issuing policies and paying claims, making it vulnerable to operational disruptions[141] - Future acquisitions may involve risks such as integration challenges, management distraction, and potential loss of key employees[142] - Business continuity plans may not sufficiently address all risks related to significant business interruptions[163] Investment and Financial Performance - The company's investment portfolio is primarily in high-quality, liquid, taxable U.S. government and corporate bonds, ensuring adequate funds for insurance obligations[80] - Investment income is crucial for profitability, with fluctuations in interest rates and credit quality potentially leading to significant losses[159] - The company's investment portfolio, the largest component of its assets, is subject to credit and cash flow risk, particularly from asset-backed and mortgage-backed securities[161] - Significant negative changes in fixed income or equity markets could materially affect the company's financial condition, results of operations, or cash flows[161] - Adverse economic conditions could lead to material impairments in the company's financial condition and operating results[161] Employee and Organizational Insights - As of December 31, 2022, NI Holdings had 233 total employees, with an employee turnover rate of 25.2% in 2022, up from 14.7% in 2021[119] - Nodak Mutual Group's majority control allows it to exercise significant voting power, which may not align with the interests of all shareholders[153] Challenges and Future Outlook - The company faces challenges in retaining and expanding agent relationships, which are essential for business growth[137] - The insurance industry is influenced by cyclical changes, with potential fluctuations in premium volume due to economic conditions and competition[128] - The company intends to continue growing its business, which may require additional capital, systems development, and skilled personnel[162] - Risks associated with growth include identifying profitable business opportunities and managing capital requirements[162] - Future unexpected business interruptions could significantly impact the company's operations and service levels[163] - Cybersecurity threats remain a priority, with the potential for significant losses and reputational damage if systems are compromised[144] - The company faces increased compliance costs and risks due to evolving cybersecurity and data protection laws[145]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2022 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ____ to _____ Commission file number 001-37973 NI HOLDINGS, INC. (Exact name of registrant as specified in its charter) NORTH DAKOTA (State or other jurisdiction of inc ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2022 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ____ to _____ Commission file number 001-37973 NI HOLDINGS, INC. (Exact name of registrant as specified in its charter) NORTH DAKOTA (State or other jurisdiction of incorpor ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2022 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ____ to _____ Commission file number 001-37973 NI HOLDINGS, INC. (Exact name of registrant as specified in its charter) NORTH DAKOTA (State or other jurisdiction of incorpo ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 1101 First Avenue North Fargo, North Dakota (Address of principal executive offices) (701) 298-4200 FORM 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2021 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ____ to _____ Commission file number 001-37973 NI HOLDINGS, INC. (Exact na ...