NI (US:NODK)2025-03-07 21:06Insurance Premiums - Private passenger auto insurance accounted for $97,209 million (28.4%) of direct premiums written by the company in 2024[45] - Non-standard auto insurance represented $87,467 million (25.6%) of direct premiums written by the company in 2024[46] - Home and farm insurance contributed $107,203 million (31.3%) of direct premiums written by the company in 2024[47] - Crop insurance accounted for $36,421 million (10.6%) of direct premiums written by the company in 2024[48] - Other coverages, including commercial and excess liability, made up $14,002 million (4.1%) of direct premiums written by the company in 2024[49] Crop Insurance - The company's multi-peril crop insurance premiums for North Dakota were $30,641 million, $39,073 million, and $45,465 million for the years ended December 31, 2024, 2023, and 2022, respectively[73] - The total North Dakota multi-peril crop premiums for the industry were $1,231,110 million, $1,491,650 million, and $1,537,758 million for the years ended December 31, 2024, 2023, and 2022, respectively[73] - The multi-peril crop insurance business is overseen by the federal government through the RMA, which establishes premium rates and loss adjustment procedures[80] Financial Strength and Regulation - All of the company's insurance subsidiaries are rated "A" Excellent by AM Best, reflecting a stable financial strength outlook[70] - 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[83] - The NAIC has established a set of 13 financial ratios known as the Insurance Regulatory Information System (IRIS) to monitor the financial condition of insurance companies[84] - None of the insurance company subsidiaries produced results outside the acceptable range for more than three of the IRIS tests during the years ended December 31, 2024 and 2023[84] - The company is subject to extensive state-level regulation, impacting various aspects of its operations including pricing and claims procedures[79] - The company is required to submit an enterprise risk report annually to its lead state insurance regulator, identifying activities that could materially affect its financial condition[85] - The company must obtain prior approval from state insurance regulatory authorities before paying extraordinary dividends to shareholders[98] Business Operations and Strategy - The company focuses on disciplined pricing and risk assessment to maintain underwriting profitability while attracting and retaining customers[61] - The company utilizes a cost-effective distribution system through exclusive and independent agents to market its insurance products[54] - The company plans to continue growing, which may require additional capital and skilled personnel[151] - Risks associated with growth include identifying profitable opportunities and managing capital requirements[151] - Business operations could be interrupted by various external factors, including weather-related incidents and pandemics[152] - Business continuity plans may not sufficiently address all risks from significant business interruptions[152] Employee Information - As of December 31, 2024, NI Holdings had 216 total employees, with a full-time employee count of 202[104] - Employee turnover averaged 29.0% in 2024, an increase from 22.7% in 2023 and 25.2% in 2022[104] Investment Risks - The investment portfolio is the largest component of the company's assets, exposing it to credit and cash flow risks[150] - Adverse changes in economic conditions could lead to material impairments in the investment portfolio, affecting financial condition and operating results[150] Regulatory Compliance - The company is no longer classified as an emerging growth company as of December 31, 2022, and must comply with new reporting requirements[96] - The company paid only minimal assessments pursuant to state insurance guaranty association laws for the years ended December 31, 2024, 2023, and 2022[88]