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Document and Entity Information - shares	3 Months Ended
Document and Entity Information - shares	Mar. 31, 2020	Apr. 30, 2020
Document and Entity Information [Abstract]
Entity Registrant Name	NI Holdings, Inc.
Entity Central Index Key	0001681206
Current Fiscal Year End Date	--12-31
Entity Filer Category	Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	true
Entity Ex Transition Period	false
Entity Common Stock, Shares Outstanding		21,779,260
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Mar. 31, 2020
Document Fiscal Period Focus	Q1
Document Fiscal Year Focus	2020
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity File Number	001-37973
Entity Incorporation, State or Country Code	ND
Document Quarterly Report	true
Document Transition Report	false
Entity Shell Company	false

Unaudited Consolidated Balance Sheets - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Assets:
Cash and cash equivalents	$ 56,637	$ 62,132
Fixed income securities, at fair value	310,619	295,945
Equity securities, at fair value	47,142	59,932
Other investments	2,583	1,914
Total cash and investments	416,981	419,923
Premiums and agents' balances receivable	48,283	36,691
Deferred policy acquisition costs	19,164	15,399
Reinsurance recoverables on losses	8,067	4,045
Accrued investment income	2,098	2,089
Property and equipment	10,120	7,694
Receivable from Federal Crop Insurance Corporation	5,240	14,230
Goodwill and other intangibles	21,251	2,912
Other assets	5,180	5,176
Total assets	536,384	508,159
Liabilities:
Unpaid losses and loss adjustment expenses	97,400	93,250
Unearned premiums	106,410	89,276
Reinsurance premiums payable	916	170
Income tax payable	473	1,645
Deferred income taxes, net	2,422	4,590
Accrued expenses and other liabilities	26,972	9,425
Commitments and Contingencies
Total liabilities	234,593	198,356
Shareholders' equity:
Common stock, $0.01 par value, authorized: 25,000,000 shares; issued: 23,000,000 shares; and outstanding: 2020 - 22,015,158 shares, 2019 - 22,119,380 shares	230	230
Preferred stock, without par value, authorized 5,000,000 shares, no shares issued or outstanding
Additional paid-in capital	96,374	95,961
Unearned employee stock ownership plan shares	(1,671)	(1,671)
Retained earnings	214,811	218,480
Accumulated other comprehensive income, net of income taxes	2,047	5,612
Treasury stock, at cost, 2020 - 817,787 shares, 2019 - 713,565 shares	(13,459)	(12,308)
Non-controlling interest	3,459	3,499
Total shareholders' equity	301,791	309,803
Total liabilities and shareholders' equity	$ 536,384	$ 508,159

Unaudited Consolidated Balance Sheets (Parenthetical) - $ / shares	Mar. 31, 2020	Dec. 31, 2019
Statement of Financial Position [Abstract]
Common stock, par value	$ 0.01	$ 0.01
Common stock, shares authorized	25,000,000	25,000,000
Common stock, shares issued	23,000,000	23,000,000
Common stock, shares outstanding	22,015,158	22,119,380
Preferred stock, shares authorized	5,000,000	5,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Treasury stock, shares	817,787	713,565

Unaudited Consolidated Statements of Operations - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Revenues:
Net premiums earned	$ 58,772	$ 50,506
Fee and other income	362	464
Net investment income	1,971	1,743
Net capital gain (loss) on investments	(14,919)	7,859
Total revenues	46,186	60,572
Expenses:
Losses and loss adjustment expenses	30,422	26,234
Amortization of deferred policy acquisition costs	9,387	9,222
Other underwriting and general expenses	10,772	7,472
Total expenses	50,581	42,928
Income (loss) before income taxes	(4,395)	17,644
Income tax expense (benefit)	(840)	3,848
Net income (loss)	(3,555)	13,796
Net income attributable to non-controlling interest	32	23
Net income (loss) attributable to NI Holdings, Inc.	$ (3,587)	$ 13,773
Basic earnings (loss) per common share	$ (0.16)	$ 0.62
Diluted earnings (loss) per common share	$ (0.16)	$ 0.62

Unaudited Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Net income (loss)	$ (3,555)	$ 13,796
Other comprehensive income (loss), before income taxes:
Holding gains (losses) on investments	(4,542)	4,164
Reclassification adjustment for net realized capital (gain) loss included in net income	(62)	27
Other comprehensive income (loss), before income taxes	(4,604)	4,191
Income tax benefit (expense) related to items of other comprehensive income	967	(880)
Other comprehensive income (loss), net of income taxes	(3,637)	3,311
Comprehensive income (loss)	(7,192)	17,107
Attributable to NI Holdings, [Member]
Net income (loss)	(3,587)	13,773
Other comprehensive income (loss), before income taxes:
Holding gains (losses) on investments	(4,456)	4,092
Reclassification adjustment for net realized capital (gain) loss included in net income	(57)	26
Other comprehensive income (loss), before income taxes	(4,513)	4,118
Income tax benefit (expense) related to items of other comprehensive income	948	(865)
Other comprehensive income (loss), net of income taxes	(3,565)	3,253
Comprehensive income (loss)	(7,152)	17,026
Attributable to Non-Controlling Interest [Member]
Net income (loss)	32	23
Other comprehensive income (loss), before income taxes:
Holding gains (losses) on investments	(86)	72
Reclassification adjustment for net realized capital (gain) loss included in net income	(5)	1
Other comprehensive income (loss), before income taxes	(91)	73
Income tax benefit (expense) related to items of other comprehensive income	19	(15)
Other comprehensive income (loss), net of income taxes	(72)	58
Comprehensive income (loss)	$ (40)	$ 81

Unaudited Consolidated Statements of Changes in Shareholders' Equity - USD ($) $ in Thousands	Common Stock [Member]	Additional Paid-in Capital [Member]	Unearned Employee Stock Ownership Plan Shares [Member]	Retained Earnings [Member]	Accumulated Other Comprehensive Income, Net of Income Taxes [Member]	Treasury Stock	Non-controlling Interest [Member]	Total
Balance at Dec. 31, 2018	$ 230	$ 94,486	$ (1,914)	$ 183,946	$ 6,376	$ (10,634)	$ 3,263	$ 275,753
Cumulative effect of change in accounting for equity securities				8,184	(8,184)
Net income (loss)				13,773			23	13,796
Other comprehensive loss, net of income taxes					3,253		58	3,311
Purchase of treasury stock						(2)		(2)
Share-based compensation		617						617
Issuance of vested award shares		(274)		(50)		304		(20)
Balance at Mar. 31, 2019	230	94,829	(1,914)	205,853	1,445	(10,332)	3,344	293,455
Balance at Dec. 31, 2018	230	94,486	(1,914)	183,946	6,376	(10,634)	3,263	275,753
Purchase of treasury stock								(2,006)
Balance at Dec. 31, 2019	230	95,961	(1,671)	218,480	5,612	(12,308)	3,499	309,803
Net income (loss)				(3,587)			32	(3,555)
Other comprehensive loss, net of income taxes					(3,565)		(72)	(3,637)
Purchase of treasury stock						(1,502)		(1,502)
Share-based compensation		713						713
Issuance of vested award shares		(300)		(82)		351		(31)
Balance at Mar. 31, 2020	$ 230	$ 96,374	$ (1,671)	$ 214,811	$ 2,047	$ (13,459)	$ 3,459	$ 301,791

- Definition

The consolidated profit or loss for the period, net of income taxes, including the portion attributable to the noncontrolling interest.

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+ Details

- Definition

Total of all stockholders' equity (deficit) items, net of receivables from officers, directors, owners, and affiliates of the entity which are attributable to the parent. The amount of the economic entity's stockholders' equity attributable to the parent excludes the amount of stockholders' equity which is allocable to that ownership interest in subsidiary equity which is not attributable to the parent (noncontrolling interest, minority interest). This excludes temporary equity and is sometimes called permanent equity.

+ References + Details

Unaudited Consolidated Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Cash Flows from Operating Activities:
Net income (loss)	$ (3,555)	$ 13,796
Adjustments to reconcile net income (loss) to net cash flows from operating activities:
Net capital (gain) loss on investments	14,919	(7,859)
Deferred income tax expense (benefit)	(2,708)	1,468
Depreciation of property and equipment	187	142
Amortization of intangibles	1,882	1,135
Share-based compensation	713	617
Amortization of deferred policy acquisition costs	9,387	9,222
Deferral of policy acquisition costs	(13,152)	(11,147)
Net amortization of premiums and discounts on investments	282	250
Loss on sale of property and equipment		3
Changes in operating assets and liabilities:
Premiums and agents' balances receivable	(3,085)	(4,215)
Reinsurance premiums receivable / payable	181	224
Reinsurance recoverables on losses	(3,259)	(911)
Accrued investment income	60	33
Receivable from Federal Crop Insurance Corporation	8,990	1,887
Income tax recoverable / payable	(1,034)	(31)
Other assets	72	1,065
Unpaid losses and loss adjustment expenses	(4,418)	(1,561)
Unearned premiums	523	3,404
Accrued expenses and other liabilities	(2,369)	(3,291)
Net cash flows from operating activities	3,616	4,231
Cash flows from investing activities:
Proceeds from sales of fixed income securities	19,872	12,342
Proceeds from sales of equity securities	6,016	2,024
Purchases of fixed income securities	(27,016)	(14,282)
Purchases of equity securities	(5,503)	(2,746)
Purchases of property and equipment, net	(310)	(410)
Acquisition of Westminster American Insurance Company (cash consideration paid net of cash and cash equivalents acquired)	(703)
Other	66	40
Net cash flows from investing activities	(7,578)	(3,032)
Cash flows from financing activities:
Purchases of treasury stock	(1,502)	(2)
Issuance of restricted stock awards	(31)	(20)
Net cash flows from financing activities	(1,533)	(22)
Net (decrease) increase in cash and cash equivalents	(5,495)	1,177
Cash and cash equivalents at beginning of period	62,132	68,950
Cash and cash equivalents at end of period	56,637	70,127
Non-cash item:
Present value of installment payable issued in connection with acquisition of Westminster American Insurance Company	18,787
Federal income taxes paid	$ 2,900	$ 2,000

Organization

3 Months Ended

Mar. 31, 2020

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Organization

Organization

NI Holdings, Inc. (“NI Holdings”) 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 and the creation of a mutual holding company. The conversion was consummated on March 13, 2017. Immediately following the conversion, all of the outstanding shares of common stock of Nodak Insurance Company (the successor to Nodak Mutual Insurance Company) were issued to Nodak Mutual Group, Inc., which then contributed the shares to NI Holdings in exchange for 55% of the outstanding shares of common stock of NI Holdings. Nodak Insurance Company then became a wholly-owned stock subsidiary of NI Holdings. Prior to completion of the conversion, NI Holdings conducted no business and had no assets or liabilities. As a result of the conversion, NI Holdings became the holding company for Nodak Insurance Company and its existing subsidiaries. The newly issued shares of NI Holdings were available for public trading on March 16, 2017.

These consolidated financial statements of NI Holdings include the financial position and results of NI Holdings and seven other entities:

Nodak Insurance Company (“Nodak Insurance”, formerly Nodak Mutual Insurance Company prior to the conversion);

Nodak Agency, Inc. (“Nodak Agency”);

American West Insurance Company (“American West”);

Primero Insurance Company (“Primero”);

Battle Creek Mutual Insurance Company (“Battle Creek”, an affiliated company with Nodak Insurance);

Direct Auto Insurance Company (“Direct Auto”); and

Westminster American Insurance Company (“Westminster”).

Nodak Insurance is the largest domestic property and casualty insurance company in North Dakota. Nodak Insurance was incorporated on April 15, 1946 under the laws of North Dakota, and benefits from a strong marketing affiliation with the North Dakota Farm Bureau Federation (“NDFB”). Nodak Insurance specializes in providing private passenger auto, homeowners, farmowners, commercial, crop hail, and Federal multi-peril crop insurance coverages.

Nodak Agency, a wholly-owned subsidiary of Nodak Insurance, is an inactive shell corporation.

American West, a wholly-owned subsidiary of Nodak Insurance, is a property and casualty insurance company licensed in eight states in the Midwest and Western regions of the United States. American West began writing policies in 2002 and primarily writes personal auto, homeowners, and farm coverages in South Dakota. American West also writes personal auto coverage in North Dakota, as well as crop hail and Federal multi-peril crop insurance coverages in Minnesota and South Dakota.

Primero is a wholly-owned subsidiary of Tri-State, Ltd. 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.

Battle Creek is controlled by Nodak Insurance via a surplus note and 100% quota-share agreement. The terms of the surplus note and quota-share agreement allow Nodak Insurance to appoint two-thirds of the Battle Creek Board of Directors. Battle Creek is a property and casualty insurance company writing personal auto, homeowners, and farm coverages solely in the state of Nebraska.

Direct Auto, a wholly-owned subsidiary of NI Holdings, is a property and casualty company licensed in Illinois. 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.

Westminster, a wholly-owned subsidiary of NI Holdings, is a property and casualty insurance company licensed in seventeen states and the District of Columbia. Westminster is headquartered in Owings Mills, Maryland and underwrites multi-peril commercial insurance in the states of Delaware, Georgia, Maryland, New Jersey, North Carolina, Pennsylvania, South Carolina, Virginia, West Virginia, and the District of Columbia. Westminster was acquired by NI Holdings on January 1, 2020 via a stock purchase agreement. The financial results of Westminster have been included in the Consolidated Financial Statements herein since January 1, 2020. See Note 4.

The same executive management team provides oversight and strategic direction for the entire organization. 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, Direct Auto, and Westminster personnel manage the day-to-day operations of their respective companies. The insurance companies share a combined business plan to achieve market penetration and underwriting profitability objectives. Distinctions within the products of the insurance companies generally relate to the states in which the risk is located and specific risk profiles targeted within similar classes of business.

Basis of Presentation

3 Months Ended

Mar. 31, 2020

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Basis of Presentation

Basis of Presentation

The accompanying unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the interim period ended March 31, 2020 are not necessarily indicative of the results that may be expected for the year ended December 31, 2020.

Our consolidated financial statements include our accounts and those of our wholly-owned subsidiaries, as well as Battle Creek, an entity we control via contract. We have eliminated all significant inter-company accounts and transactions in consolidation. The terms “we”, “us”, “our”, or “the Company” as used herein refer to the consolidated entity.

Summary of Significant Accounting Policies

3 Months Ended

Mar. 31, 2020

Accounting Policies [Abstract]

Summary of Significant Accounting Policies

Summary of Significant Accounting Policies

Use of Estimates:

In preparing our Consolidated Financial Statements, management makes estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the balance sheet and revenues and expenses for the periods then ended. Actual results could differ significantly from those estimates.

We make estimates and assumptions that can have a significant effect on amounts and disclosures we report in our Consolidated Financial Statements. The most significant estimates relate to our reserves for unpaid losses and loss adjustment expenses, earned premiums for crop insurance, valuation of investments, determination of other-than-temporary impairments, valuation allowances for deferred income tax assets, deferred policy acquisition costs, and the valuations used to establish intangible assets acquired related to business combinations. While we believe our estimates are appropriate, the ultimate amounts may differ from the estimates provided. We regularly review our methods for making these estimates as well as the continuing appropriateness of the estimated amounts, and we reflect any adjustment we consider necessary in our current results of operations.

Variable-Interest Entities:

Any company deemed to be a variable interest entity (“VIE”) is required to be consolidated by the primary beneficiary of the VIE.

We assess our investments in other entities at inception to determine if any meet the qualifications of a VIE. We consider an investment in another company to be a VIE if (a) the total equity investment at risk is not sufficient to permit the entity to finance its activities without additional subordinated financial support, (b) the characteristics of a controlling financial interest are missing (either the ability to make decisions through voting or other rights, the obligation to absorb expected losses of the entity or the right to receive the expected residual returns of the entity), or (c) the voting rights of the equity holders are not proportional to their obligations to absorb the expected losses of the entity and/or the rights to receive the expected residual returns of the entity, and substantially all of the entity’s activities either involve or are conducted on behalf of an investor that has disproportionately few voting rights. Upon the occurrence of certain events, we would reassess our initial determination of whether the investment is a VIE.

We evaluate whether we are the primary beneficiary of each VIE and we consolidate the VIE if we have both (1) the power to direct the economically significant activities of the entity and (2) the obligation to absorb losses of, or the right to receive benefits from, the entity. We consider the contractual agreements that define the ownership structure, distribution of profits and losses, risks, responsibilities, indebtedness, voting rights, and board representation of the respective parties in determining whether we qualify as the primary beneficiary. Our assessment of whether we are the primary beneficiary of a VIE is performed at least annually.

We control Battle Creek via a 100% quota-share reinsurance agreement between Nodak Insurance and Battle Creek, as well as the ability to control a majority of the Board of Directors of Battle Creek. Through the effects of the 100% quota-share agreement with Battle Creek, we are considered the primary beneficiary of Battle Creek’s operating results excluding net investment income, bad

debt expense, and income taxes. Therefore, we consolidate the financial statements of Battle Creek, and Battle Creek’s policyholders’ interest in Battle Creek is reflected as a non-controlling interest in shareholders’ equity in our Consolidated Balance Sheet.

Cash and Cash Equivalents:

Cash and cash equivalents include certain investments in highly liquid debt instruments with original maturities of three months or less. Cost approximates fair value for these short-term investments.

Investments:

We have categorized our investment portfolio as “available-for-sale” and have reported the portfolio at fair value. Unrealized gains and losses on fixed income securities, and on equity securities prior to January 1, 2019, net of income taxes, are reported in accumulated other comprehensive income. Effective January 1, 2019, in accordance with a change in accounting principle, changes in unrealized gains and losses on equity securities are reported as a component of net capital gain on investments in our operating results.

Fair values are based on quoted market prices or dealer quotes, if available. If a quoted market price is not available, fair value is estimated using quoted market prices for similar securities. Amortization of premium and accretion of discount are computed using an effective interest method. Net investment income includes interest and dividend income together with amortization of purchase premiums and discounts, and is net of investment management and custody fees. Realized gains and losses on investments are determined using the specific identification method and are included in net capital gain (loss) on investments, along with the change in unrealized gains and losses on equity securities after January 1, 2019.

We review our investments each quarter to determine whether a decline in fair value below the amortized cost basis is other than temporary. Accordingly, we assess whether we intend to sell or it is more likely than not that we will be required to sell a security before recovery of its amortized cost basis. For fixed income securities that are considered other-than-temporarily impaired and that we do not intend to sell and will not be required to sell prior to recovery of the amortized cost basis, we separate the amount of the impairment into the amount that is credit related (credit loss component) and the amount due to all other factors. The credit loss component is recognized in earnings and is the difference between the security’s amortized cost basis and the present value of its expected future cash flows discounted at the security’s effective yield. The remaining difference between the security’s fair value and the present value of future expected cash flows is due to factors that are not credit related and, therefore, is not required to be recognized as losses in the Consolidated Statement of Operations, but is recognized in other comprehensive income (loss).

We classify each fair value measurement at the appropriate level in the fair value hierarchy. The hierarchy gives the highest priority to unadjusted quoted market price in active markets for identical assets or liabilities (Level I measurements) and the lowest priority to unobservable inputs (Level III measurements). An asset’s or liability’s classification within the fair value hierarchy is based on the lowest level of significant input to its valuation.

Level I – Quoted price in active markets for identical assets and liabilities.

Level II – Quoted prices in markets that are not active or inputs that are observable either directly or indirectly. Level II inputs include quoted prices for similar assets or liabilities other than quoted in prices in Level I, quoted prices in markets that are not active, or other inputs that are observable or can be derived principally from or corroborated by observable market data for substantially the full term of the assets or liabilities.

Level III – Unobservable inputs that are supported by little or no market activity and are significant to the fair value of the assets or liabilities. Unobservable inputs reflect the reporting entity’s own assumptions that market participants would use in pricing the asset or liability. Level III assets and liabilities include financial instruments whose values are determined using pricing models, discounted cash flow methodologies, or similar techniques, as well as instruments for which the determination of fair value requires significant management judgment or estimation.

Fair Value of Other Financial Instruments:

Our other financial instruments, aside from investments, are cash and cash equivalents, premiums and agents’ balances receivable, and accrued expenses and accounts payable. The carrying amounts for cash and cash equivalents, premiums and agents’ balances receivable, and accrued expenses and accounts payable approximate their fair value based on their short-term nature. Other invested assets that do not have observable inputs and little or no market activity are carried on a cost basis. All other invested assets have been assessed for impairment. The carrying value of these other invested assets was $2,583 at March 31, 2020 and $1,914 at December 31, 2019.

Reclassification of Segment Information:

Effective first quarter 2020, the Company’s results are being reported in our Consolidated Financial Statements in the following five primary operating segments – private passenger auto insurance, non-standard auto insurance, home and farm insurance, crop insurance, and commercial insurance. A sixth “all other” segment captures all other insurance business, including our assumed reinsurance lines of business.

Commercial insurance was previously reported within the all other segment. All prior periods presented have been reclassified to conform to this presentation.

Revenue Recognition:

We record premiums written at policy inception and recognize them as revenue on a pro rata basis over the policy term or, in the case of crop insurance, over the period of risk. The portion of premiums that could be earned in the future is deferred and reported as unearned premiums. When policies lapse, the Company reverses the unearned portion of the written premium and removes the applicable unearned premium. Policy-related fee income is recognized when collected.

The Company uses the direct write-off method for recognizing bad debts. Accounts billed directly to the policyholder are provided grace payment and cancellation notice periods per state insurance regulations. Any earned but uncollected premiums are written off within 90 days after the effective date of policy cancellation.

Direct Auto also provides for agency billing for a portion of their agents. Accounts billed to agents are due within 60 days of the statement date. The balances are carried as agents’ balances receivable until it is determined the amount is not collectible from the agent. At that time, the balance is written off as uncollectible. The agent is responsible for all past due balances. As part of its agent appointment, Direct Auto requires a personal guarantee for all balances due to Direct Auto from the principal of the contracted agency.

Policy Acquisition Costs:

We defer our policy acquisition costs, consisting primarily of commissions, state premium taxes and certain other underwriting costs, reduced by ceding commissions, which vary with and relate directly to the production of business. We amortize these deferred policy acquisition costs over the period in which we earn the premiums. The method we follow in computing deferred policy acquisition costs limits the amount of such 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 we expect to incur as we earn the premium.

Property and Equipment:

We report property and equipment at cost less accumulated depreciation. Depreciation is computed using the straight-line method based upon the estimated useful lives of the assets.

Losses and Loss Adjustment Expenses:

Liabilities for unpaid losses and loss adjustment expenses are estimates at a given point in time of the amounts we expect to pay with respect to policyholder claims based on facts and circumstances then known. At the time of establishing our estimates, we recognize that our ultimate liability for losses and loss adjustment expenses will exceed or be less than such estimates. We base our estimates of liabilities for unpaid losses and loss adjustment expenses on assumptions as to future loss trends, expected claims severity, judicial theories of liability, and other factors. During the loss adjustment period, we may learn additional facts regarding certain claims, and, consequently, it often becomes necessary for us to refine and adjust our estimates of the liability. We reflect any adjustments to our liabilities for unpaid losses and loss adjustment expenses in our operating results in the period in which we determine the need for a change in the estimates.

We maintain liabilities for unpaid losses and loss adjustment expenses with respect to both reported and unreported claims. We establish these liabilities for the purpose of covering the ultimate costs of settling all losses, including investigation and litigation costs. We base the amount of our liability for reported losses primarily upon a case-by-case evaluation of the type of risk involved, knowledge of the circumstances surrounding each claim, and the insurance policy provisions relating to the type of loss our policyholder incurred. We determine the amount of our liability for unreported losses and loss adjustment expenses on the basis of historical information by line of insurance. Inflation is not explicitly selected in the loss reserve analysis. However, historical

inflation is embedded in the estimated loss development factors. We closely monitor our liabilities and update them periodically using new information on reported claims and a variety of statistical techniques. We do not discount our liabilities for unpaid losses and loss adjustment expense.

Reserve estimates can change over time because of unexpected changes in assumptions related to our external environment and, to a lesser extent, assumptions as to our internal operations. Assumptions related to our external environment include the absence of significant changes in tort law and the legal environment which may impact liability exposure, the trends in judicial interpretations of insurance coverage and policy provisions, and the rate of loss cost inflation. Internal assumptions include consistency in the recording of premium and loss statistics, consistency in the recording of claims, payment and case reserving methodologies, accurate measurement of the impact of rate changes and changes in policy provisions, consistency in the quality and characteristics of business written within a given line of business, and consistency in reinsurance coverage and collectability of reinsured losses, among other items. To the extent we determine that underlying factors impacting our assumptions have changed, we attempt to make appropriate adjustments for such changes in our reserves. Accordingly, our ultimate liability for unpaid losses and loss adjustment expenses will likely differ from the amount recorded.

Income Taxes:

With the exception of Battle Creek, which files a stand-alone federal income tax return, we currently file a consolidated federal income tax return which includes NI Holdings and its wholly-owned subsidiaries. Direct Auto and Westminster became part of the consolidated federal income tax return as of their acquisition dates.

Insurance companies typically pay state premium taxes rather than state income taxes. However, Direct Auto is subject to state income taxes in the state of Illinois, in addition to state premium taxes. Additionally, NI Holdings, on a stand-alone basis, pays state income taxes to the state of North Dakota for income or losses generated as a separate financial entity. While state premium taxes are included as a part of amortization of deferred policy acquisition costs, state income taxes are combined with federal income taxes within the financial reporting category labeled income taxes.

The Company reports tax-related interest and penalties, if any, as part of income tax expense in the year such amounts are determinable.

We account for deferred income taxes using the asset and liability method. The objective of the asset and liability method is to establish deferred income tax assets and liabilities for the temporary differences between the financial reporting basis and the income tax basis of our assets and liabilities at enacted tax rates expected to be in effect when we realize or settle such amounts.

Accounting guidance requires that companies re-measure existing deferred income tax assets (including loss carryforwards) and liabilities when a change in tax rate occurs, and record an offset for the net amount of the change as a component of income tax expense from continuing operations in the period of enactment. The guidance also requires any change to a previously recorded valuation allowance as a result of re-measuring existing temporary differences and loss carryforwards to be reflected as a component of income tax expense from continuing operations.

The Company has elected to reclassify any tax effects stranded in accumulated other comprehensive income as a result of a change in income tax rates to retained earnings.

Credit Risk:

Our primary investment objective is to earn competitive returns by investing in a diversified portfolio of securities. Our portfolio of fixed income securities and, to a lesser extent, short-term investments, is subject to credit risk. We define this risk as the potential loss in fair value resulting from adverse changes in the borrower’s ability to repay the debt. We manage this risk by performing an analysis of prospective investments and through regular reviews of our portfolio by our management team and investment advisors. We also limit the amount of our total investment portfolio that we invest in any one security.

Property and liability insurance coverages are marketed through captive agents in North Dakota and through independent insurance agencies located throughout all other operating areas. All business, except for the majority of Direct Auto’s business, is billed directly to the policyholders.

We maintain cash balances primarily at one bank, which are insured by the Federal Deposit Insurance Corporation (“FDIC”) up to $250. During the normal course of business, balances are maintained above the FDIC insurance limit. The Company maintains short-term investment balances in investment grade money market accounts that are insured by the Securities Investor Protection

Corporation (“SIPC”) up to $500. On occasion, balances for these accounts are maintained in excess of the SIPC insurance limit.

Reinsurance:

The Company limits the maximum net loss that can arise from large risks or risks in concentrated areas of exposure by reinsuring (ceding) certain levels of risks to other insurers or reinsurers, either on an automatic basis under general reinsurance contracts knows as “treaties” or by negotiation on substantial individual risks. Ceded reinsurance is treated as the risk and liability of the assuming companies.

Reinsurance contracts do not relieve the Company from its obligations to policyholders. In the event that all or any of the reinsuring companies might be unable to meet their obligations under existing reinsurance agreements, the Company would be liable for such defaulted amounts.

Goodwill and Other Intangibles:

Goodwill represents the excess of the purchase price over the underlying fair value of acquired entities. When completing acquisitions, we seek also to identify separately identifiable intangible assets that we have acquired. We assess goodwill and other intangibles with an indefinite useful life for impairment annually. We also assess goodwill and other intangibles for impairment upon the occurrence of certain events. In making our assessment, we consider a number of factors including operating results, business plans, economic projections, anticipated future cash flows, and current market data. Inherent uncertainties exist with respect to these factors and to our judgment in applying them when we make our assessment. Impairment of goodwill and other intangibles could result from changes in economic and operating conditions in future periods. We did not record any impairments of goodwill or other intangibles during the three month periods ended March 31, 2020 and 2019.

Goodwill arising from the acquisition of Primero in 2014 represents the excess of the purchase price over the fair value of the net assets acquired. The purchase price in excess of the fair value of net assets acquired was negotiated at arms-length with an unrelated party and was based upon the strategic decision by Company management to expand both the geographic footprint and product lines of the Company. The nature of the business acquired was such that there were limited intangibles not reflected in the net assets acquired. The purchase price was paid with a combination of cash and cancellation of obligations owed to the acquired company by the sellers. The goodwill which arose from this transaction is included in the basis of the net assets acquired and is not deductible for income tax purposes.

Intangible assets arising from the acquisition of Direct Auto in 2018 represent the estimated fair values of certain intangible assets, including a favorable lease contract, a state insurance license, the value of the Direct Auto trade name, and the value of business acquired (“VOBA”). The state insurance license asset has an indefinite life, while the favorable lease contract, Direct Auto trade name, and VOBA assets will be amortized over eighteen months, five years, and twelve months, respectively, from the August 31, 2018 acquisition/valuation date.

Intangible assets arising from the acquisition of Westminster in January 2020 represent the estimated fair values of certain intangible assets, including state insurance licenses, the value of Westminster’s distribution network, the value of the Westminster trade name, and the VOBA. The state insurance license asset has an indefinite life, while the distribution networks asset, Westminster trade name, and VOBA assets will be amortized over twenty years, ten years, and twelve months, respectively, from the January 1, 2020 acquisition/valuation date.

Acquisition of Westminster American Insurance Company

3 Months Ended

Mar. 31, 2020

Business Combinations [Abstract]

Acquisition of Westminster American Insurance Company

Acquisition of Westminster American Insurance Company

On January 1, 2020, the Company completed the acquisition of 100% of the common stock of Westminster from the private shareholder of Westminster, and Westminster became a consolidated subsidiary of the Company. Westminster is a property and casualty insurance company specializing in multi-peril commercial insurance in nine states and the District of Columbia.

Westminster remains headquartered in Owings Mills, Maryland, and the current president of Westminster continues to manage the Westminster insurance operations along with the staff and management team in place at the time of the acquisition. The results of Westminster are included as part of the Company’s commercial business segment following the closing date.

We account for business acquisitions in accordance with the acquisition method of accounting, which requires, among other things, that most assets acquired, liabilities assumed, and contingent consideration be recognized at their fair values as of the acquisition date, which is the closing date for the Westminster transaction. During the measurement period, adjustments to provisional purchase price allocations are recognized if new information is obtained about the facts and circumstances that existed as of the acquisition date that, if known, would have resulted in the recognition of those assets and liabilities as of that date. The measurement period ends as soon as it is determined that no more information is obtainable, but in no case shall the measurement period exceed one year from the acquisition date. The Company did not make any adjustments during this period.

The acquired Westminster business contributed revenues of $6,329 and net loss of $158 to the Company for the three months ended March 31, 2020. The following unaudited pro forma summary presents consolidated information of the Company as if the business combination had occurred on January 1, 2019:

	Pro forma Three Months Ended March 31,
	2020			2019
Revenues	$	46,186		$	65,757

Net income (loss) attributable to NI Holdings, Inc.		(2,598	)		12,375

Basic earnings (loss) per share attributable to NI Holdings, Inc.		(0.12	)		0.56

The Company did not reflect any material, nonrecurring pro forma adjustments directly attributable to the business combination in the above pro forma revenue and earnings.

These pro forma amounts have been calculated after applying the Company’s accounting policies and adjusting the results of Westminster to reflect the deferral and amortization of policy acquisition costs and the additional amortization that would have been charged assuming the fair value adjustments to intangible assets had been applied from January 1, 2019, with the related income tax effects.

The Company incurred acquisition-related costs of $828 during the three months ended March 31, 2020, and $83 during the third and fourth quarters of 2019, respectively. These expenses were reclassified to occur in first quarter 2019 in the pro forma amounts presented above.

The Company paid $20,000 in cash consideration to the private shareholder of Westminster as of the closing date, and will pay an additional $20,000 in three equal annual installments. The acquisition of Westminster did not include any contingent consideration other than a provision regarding future changes to federal income tax rates. The following table summarizes the consideration transferred to acquire Westminster and the amounts of identified assets acquired and liabilities assumed at the acquisition date:

Fair Value of Consideration:
Cash consideration transferred	$	20,000
Present value of future cash consideration		18,787
Total cash consideration	$	38,787

Recognized Amounts of Identifiable Assets Acquired and Liabilities Assumed:
Identifiable net assets:
Cash and cash equivalents	$	19,297
Fixed income securities, at fair value		12,353
Equity securities, at fair value		2,705
Other investments		735
Premiums and agents' balances receivable		8,507
Reinsurance recoverables on losses		763
Accrued investment income		70
Property and equipment		2,304
Federal income tax recoverable		138
State insurance licenses (included in goodwill and other intangibles)		1,800
Distribution network (included in goodwill and other intangibles)		6,700
Trade name (included in goodwill and other intangibles)		500
Value of business acquired (included in goodwill and other intangibles)		4,177
Other assets		76
Unpaid losses and loss adjustment expenses		(8,568	)
Unearned premiums		(16,611	)
Deferred income taxes, net		(1,506	)
Reinsurance premiums payable		(565	)
Accrued expenses and other liabilities		(1,132	)
Total identifiable net assets	$	31,743

Goodwill	$	7,044

The fair value of the assets acquired includes premiums and agents’ balances receivable of $8,507 and reinsurance recoverables on losses of $763. These are the gross amounts due from policyholders and reinsurers, respectively, none of which is anticipated to be uncollectible. The Company did not acquire any other material class of receivable as a result of the acquisition of Westminster.

The fair values of the acquired distribution network, state insurance licenses, Westminster trade name, and VOBA intangible assets of $6,700, $1,800, $500, and $4,177, respectively, are provisional pending receipt of the final valuation for those assets. The state insurance license intangible has an indefinite life, while the other intangible assets will be amortized over useful lives of up to twenty years.

Recent Accounting Pronouncements

3 Months Ended

Mar. 31, 2020

Accounting Policies [Abstract]

Recent Accounting Pronouncements

Recent Accounting Pronouncements

As an emerging growth company, we have elected to use the extended transition period for complying with any new or revised financial accounting standards pursuant to Section 13(a) of the Exchange Act. The following discussion includes effective dates for both public business entities and emerging growth companies, as well as whether specific guidance may be adopted early.

Adopted

In January 2019, the Company adopted amended guidance from the Financial Accounting Standards Board (“FASB”) that generally requires entities to measure equity securities at fair value and recognize changes in fair value in their results of operations. The FASB issued other impairment, disclosure, and presentation improvements related to financial instruments within the guidance. Effective January 1, 2019, we applied this guidance, which resulted in a cumulative-effect reclassification of after-tax unrealized net capital gains aggregating $8,184, from accumulated other comprehensive income to retained earnings. This reclassification had no

impact to the Company’s results of operations at the date of adoption. The after-tax change in accounting for equity securities did not affect the Company’s total shareholders’ equity; however, the unrealized net capital gains reclassified at the transition date to retained earnings will never be recognized in net income. Prior year financial statements were not restated. Going forward, the accounting used for equity securities will record the market fluctuations attributed to equity securities through our results of operations rather than as a component of other comprehensive income (loss), which will add a level of volatility to our net income.

In December 2019, the Company adopted guidance from the FASB that establishes the manner in which an entity recognizes the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. While the guidance replaces most existing GAAP revenue recognition guidance, the scope of the guidance excludes insurance contracts. The Company has reviewed its sources of revenues, and has determined that no material revenues are derived from non-insurance contracts and thus subject to the new revenue recognition guidance. As a result, there was no impact to the Company’s financial position, results of operations, or cash flows.

In December 2019, the Company adopted amended guidance from the FASB that addressed diversity in how certain cash receipts and cash payments are presented and classified in the Consolidated Statement of Cash Flows, and the presentation of restricted cash in the Consolidated Statement of Cash Flows. The amendments provided clarity on the treatment of eight specifically defined types of cash inflows and outflows, and requires entities to explain the changes during a reporting period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. There was no impact to the Company’s financial position, results of operations, or cash flows.

Not Yet Adopted

In February 2016, the FASB issued new guidance that requires lessees to recognize leases, including operating leases, on the lessee’s Consolidated Balance Sheet, unless a lease is considered a short-term lease. The new guidance also requires entities to make new judgments to identify leases. In July 2018, the FASB issued additional guidance to allow an optional transition method. An entity may apply the new leases guidance at the beginning of the earliest period presented in the financial statements, or at the adoption date and recognize a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. The new guidance, which replaces the current lease guidance, is effective for annual and interim reporting periods beginning after December 15, 2018 for public business entities. For private companies and emerging growth companies, this guidance is effective for annual reporting periods beginning after December 15, 2020 and interim periods within fiscal years beginning after December 15, 2021. Early adoption is permitted for all entities. We do not expect the adoption of this new guidance to have a significant impact on our financial position, results of operations, or cash flows.

In June 2016, the FASB issued a new standard that will require timelier recording of credit losses on loans and other financial instruments held by financial institutions and other organizations. The guidance will require the measurement of all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. Financial institutions and other organizations will now use forward-looking information to better form their credit loss estimates. Many of the loss estimation techniques applied today will still be permitted, although the inputs to those techniques will change to reflect the full amount of expected credit losses. Organizations will continue to use judgment to determine which loss estimation method is appropriate for their circumstances. Additionally, the guidance requires enhanced disclosures to help investors and other financial statement users better understand significant estimates and judgments used in estimating credit losses, as well as the credit quality and underwriting standards of an organization’s portfolio. These disclosures include qualitative and quantitative requirements that provide additional information about the amounts recorded in the financial statements. Finally, the guidance amends the accounting for credit losses on available-for-sale fixed income securities and purchased financial assets with credit deterioration. The guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019 for filers with the Securities and Exchange Commission (“SEC”) excluding smaller reporting companies, and emerging growth companies that did not relinquish private company relief. For all other entities, this guidance is effective for annual reporting periods beginning after December 15, 2022 and interim periods within those fiscal years. Early adoption is permitted for all entities as of the fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. We are evaluating the impact this new guidance will have on our financial position, results of operations, and cash flows.

In March 2017, the FASB issued amended guidance to shorten the amortization period of premiums on certain purchased callable fixed income securities to the earliest call date. The amended guidance is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years, for public business entities. For private companies and emerging growth companies, this amended guidance is effective for fiscal years beginning after December 15, 2019, and interim periods within fiscal years beginning after December 15, 2020. Early adoption is permitted, including adoption in an interim period. If an entity early adopts the amendments in an interim period, any adjustments should be reflected as of the beginning of the fiscal year that includes that interim period. An entity should apply the amendments on a modified retrospective basis through a cumulative-effect adjustment

directly to retained earnings as of the beginning of the period of adoption. We are evaluating the requirements of this guidance and the potential impact to our financial position, results of operations, and cash flows.

In August 2018, the FASB issued modified disclosure requirements relating to the fair value of assets and liabilities. The amended requirements are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. Early adoption is permitted. We do not expect these modified requirements will have a material impact on our financial statement disclosures.

In December 2019, the FASB issued amended guidance to simplify the accounting for income taxes. The amended guidance is effective for fiscal years beginning after December 15, 2020, including interim periods within those fiscal years, for public business entities. For private companies and emerging growth companies, this amended guidance is effective for fiscal years beginning after December 15, 2021, and interim periods within fiscal years beginning after December 15, 2022. Early adoption is permitted, including adoption in an interim period. We are evaluating the impact this new guidance will have on our financial position, results of operations, and cash flows.

- Definition

The entire disclosure for change in accounting principle. Includes, but is not limited to, nature, reason, and method of adopting amendment to accounting standards or other change in accounting principle.

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-Section 65
-Paragraph 8
-Subparagraph (e)(1)

Reference 24: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 65
-Paragraph 8
-Subparagraph (e)(2)

Reference 25: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 65
-Paragraph 8
-Subparagraph (e)(3)

+ Details

Investments

3 Months Ended

Mar. 31, 2020

Marketable Securities [Abstract]

Investments

Investments

The amortized cost and estimated fair value of investment securities as of March 31, 2020 and December 31, 2019, were as follows:

	March 31, 2020
	Cost or Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
Fixed income securities:
U.S. Government and agencies	$	18,594	$	1,173	$	—		$	19,767
Obligations of states and political subdivisions		61,010		1,498		(302	)		62,206
Corporate securities		118,213		2,454		(2,564	)		118,103
Residential mortgage-backed securities		48,954		1,908		(220	)		50,642
Commercial mortgage-backed securities		26,817		820		(48	)		27,589
Asset-backed securities		34,394		59		(2,141	)		32,312
Total fixed income securities		307,982		7,912		(5,275	)		310,619

Equity securities:
Basic materials		1,331		5		(257	)		1,079
Communications		4,761		1,439		(732	)		5,468
Consumer, cyclical		5,818		1,481		(1,254	)		6,045
Consumer, non-cyclical		8,723		2,837		(762	)		10,798
Energy		2,517		9		(957	)		1,569
Financial		5,948		82		(1,250	)		4,780
Industrial		5,634		2,142		(560	)		7,216
Technology		6,411		4,148		(404	)		10,155
Utility		37		—		(5	)		32
Total equity securities		41,180		12,143		(6,181	)		47,142
Total investments	$	349,162	$	20,055	$	(11,456	)	$	357,761

	December 31, 2019
	Cost or Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
Fixed income securities:
U.S. Government and agencies	$	17,078	$	472	$	(4	)	$	17,546
Obligations of states and political subdivisions		55,232		1,511		(91	)		56,652
Corporate securities		109,457		3,772		(16	)		113,213
Residential mortgage-backed securities		50,458		1,050		(22	)		51,486
Commercial mortgage-backed securities		26,450		658		(51	)		27,057
Asset-backed securities		30,029		132		(170	)		29,991
Total fixed income securities		288,704		7,595		(354	)		295,945

Equity securities:
Basic materials		1,062		155		(7	)		1,210
Communications		4,823		2,342		(169	)		6,996
Consumer, cyclical		5,477		4,207		(72	)		9,612
Consumer, non-cyclical		7,483		5,255		(171	)		12,567
Energy		2,817		124		(485	)		2,456
Financial		5,059		905		(35	)		5,929
Industrial		5,293		4,023		(17	)		9,299
Technology		6,022		5,867		(26	)		11,863
Total equity securities		38,036		22,878		(982	)		59,932
Total investments	$	326,740	$	30,473	$	(1,336	)	$	355,877

The amortized cost and estimated fair value of fixed income securities by contractual maturity are shown below. Actual maturities could differ from contractual maturities because issuers of the securities may have the right to call or prepay certain obligations, which may or may not include call or prepayment penalties.

	March 31, 2020
	Amortized Cost		Fair Value
Due to mature:
One year or less	$	14,920	$	14,933
After one year through five years		96,793		98,330
After five years through ten years		54,366		55,110
After ten years		31,738		31,703
Mortgage / asset-backed securities		110,165		110,543
Total fixed income securities	$	307,982	$	310,619

	December 31, 2019
	Amortized Cost		Fair Value
Due to mature:
One year or less	$	19,567	$	19,663
After one year through five years		84,937		87,134
After five years through ten years		55,927		58,466
After ten years		21,336		22,148
Mortgage / asset-backed securities		106,937		108,534
Total fixed income securities	$	288,704	$	295,945

Fixed income securities with a fair value of $6,028 at March 31, 2020 and $5,585 at December 31, 2019, were deposited with various state regulatory agencies as required by law. The Company has not pledged any assets to secure any obligations.

The investment category and duration of the Company’s gross unrealized losses on fixed income securities and equity securities were as follows:

	March 31, 2020
	Less than 12 Months					Greater than 12 months					Total
	Fair Value		Unrealized Losses			Fair Value		Unrealized Losses			Fair Value		Unrealized Losses
Fixed income securities:
Obligations of states and political subdivisions	$	12,239	$	(302	)	$	—	$	—		$	12,239	$	(302	)
Corporate securities		37,453		(2,564	)		—		—			37,453		(2,564	)
Residential mortgage-backed securities		1,884		(220	)		—		—			1,884		(220	)
Commercial mortgage-backed securities		3,522		(48	)		—		—			3,522		(48	)
Asset-backed securities		21,643		(1,634	)		4,292		(507	)		25,935		(2,141	)
Total fixed income securities		76,741		(4,768	)		4,292		(507	)		81,033		(5,275	)

Equity securities:
Basic materials		532		(257	)		—		—			532		(257	)
Communications		2,129		(553	)		649		(179	)		2,778		(732	)
Consumer, cyclical		3,371		(1,139	)		114		(115	)		3,485		(1,254	)
Consumer, non-cyclical		3,439		(762	)		—		—			3,439		(762	)
Energy		647		(902	)		4		(55	)		651		(957	)
Financial		3,846		(1,250	)		—		—			3,846		(1,250	)
Industrial		2,558		(560	)		—		—			2,558		(560	)
Technology		1,666		(404	)		—		—			1,666		(404	)
Utility		37		(5	)		—		—			37		(5	)
Total equity securities		18,225		(5,832	)		767		(349	)		18,992		(6,181	)
Total investments	$	94,966	$	(10,600	)	$	5,059	$	(856	)	$	100,025	$	(11,456	)

	December 31, 2019
	Less than 12 Months					Greater than 12 months					Total
	Fair Value		Unrealized Losses			Fair Value		Unrealized Losses			Fair Value		Unrealized Losses
Fixed income securities:
U.S. Government and agencies	$	494	$	(4	)	$	—	$	—		$	494	$	(4	)
Obligations of states and political subdivisions		8,018		(91	)		—		—			8,018		(91	)
Corporate securities		2,066		(15	)		650		(1	)		2,716		(16	)
Residential mortgage-backed securities		2,911		(9	)		2,583		(13	)		5,494		(22	)
Commercial mortgage-backed securities		4,841		(35	)		653		(16	)		5,494		(51	)
Asset-backed securities		8,511		(96	)		7,686		(74	)		16,197		(170	)
Total fixed income securities		26,841		(250	)		11,572		(104	)		38,413		(354	)

Equity securities:
Basic materials		258		(7	)		—		—			258		(7	)
Communications		506		(—	)		658		(169	)		1,164		(169	)
Consumer, cyclical		595		(30	)		146		(42	)		741		(72	)
Consumer, non-cyclical		1,033		(171	)		—		—			1,033		(171	)
Energy		823		(432	)		6		(53	)		829		(485	)
Financial		393		(35	)		—		—			393		(35	)
Industrial		620		(17	)		—		—			620		(17	)
Technology		575		(26	)		—		—			575		(26	)
Total equity securities		4,803		(718	)		810		(264	)		5,613		(982	)
Total investments	$	31,644	$	(968	)	$	12,382	$	(368	)	$	44,026	$	(1,336	)

Investments with unrealized losses are categorized with a duration of greater than 12 months when all positions of a security have continually been in a loss position for at least 12 months.

We frequently review our investment portfolio for declines in fair value. Our process for identifying declines in the fair value of investments that are other than temporary involves consideration of several factors. These factors include (i) the time period in which there has been a significant decline in value, (ii) an analysis of the liquidity, business prospects, and overall financial condition of the issuer, (iii) the significance of the decline, and (iv) our intent and ability to hold the investment for a sufficient period of time for the value to recover. When our analysis of the above factors results in the conclusion that declines in fair values are other than temporary, the cost of the securities is written down to fair value and the previously unrealized loss is therefore reflected as a realized capital loss on investment.

The Company did not record any impairments during the three month periods ended March 31, 2020 and 2019.

As of March 31, 2020, we held 214 fixed income securities with unrealized losses. As of December 31, 2019, we held 88 fixed income securities with unrealized losses. In conjunction with our outside investment advisors, we analyzed the credit ratings of the securities as well as the historical monthly amortized cost to fair value ratio of securities in an unrealized loss position. This analysis yielded no fixed income securities which had fair values less than 80% of amortized cost for the preceding 12-month period.

Net investment income consisted of the following:

	Three Months Ended March 31,
	2020		2019
Fixed income securities	$	2,309	$	1,976
Equity securities		325		224
Real estate		146		91
Cash and cash equivalents		20		17
Total gross investment income		2,800		2,308
Investment expenses		829		565
Net investment income	$	1,971	$	1,743

Net capital gain (loss) on investments consisted of the following:

	Three Months Ended March 31,
	2020			2019
Gross realized gains:
Fixed income securities	$	85		$	3
Equity securities		1,515			698
Total gross realized gains		1,600			701

Gross realized losses, excluding other-than-temporary impairment losses:
Fixed income securities		(23	)		(30	)
Equity securities		(562	)		(112	)
Total gross realized losses, excluding other-than-temporary impairment losses		(585	)		(142	)

Net realized gain on investments		1,015			559

Change in net unrealized gain on equity securities		(15,934	)		7,300
Net capital gain (loss) on investments	$	(14,919	)	$	7,859

Fair Value Measurements

3 Months Ended

Mar. 31, 2020

Investments, All Other Investments [Abstract]

Fair Value Measurements

Fair Value Measurements

We maximize the use of observable inputs in our valuation techniques and apply unobservable inputs only to the extent that observable inputs are unavailable. The largest class of assets and liabilities carried at fair value by the Company at March 31, 2020 and December 31, 2019 were fixed income securities.

Prices provided by independent pricing services and independent broker quotes can vary widely, even for the same security.

Our available-for-sale investments are comprised of a variety of different securities, which are classified into levels based on the valuation technique and inputs used in their valuation. The valuation of cash equivalents and equity securities are generally based on Level I inputs, which use the market approach valuation technique. The valuation of fixed income securities generally incorporates significant Level II inputs using the market and income approach techniques. We may assign a lower level to inputs typically considered to be Level II based on our assessment of liquidity and relative level of uncertainty surrounding inputs. There were no assets or liabilities classified as Level III at March 31, 2020 or December 31, 2019.

The following tables set forth our assets which are measured on a recurring basis by the level within the fair value hierarchy in which fair value measurements fall:

	March 31, 2020
	Total		Level I		Level II		Level III
Fixed income securities:
U.S. Government and agencies	$	19,767	$	—	$	19,767	$	—
Obligations of states and political subdivisions		62,206		—		62,206		—
Corporate securities		118,103		—		118,103		—
Residential mortgage-backed securities		50,642		—		50,642		—
Commercial mortgage-backed securities		27,589		—		27,589		—
Asset-backed securities		32,312		—		32,312		—
Total fixed income securities		310,619		—		310,619		—

Equity securities:
Basic materials		1,079		1,079		—		—
Communications		5,468		5,468		—		—
Consumer, cyclical		6,045		6,045		—		—
Consumer, non-cyclical		10,798		10,798		—		—
Energy		1,569		1,569		—		—
Financial		4,780		4,780		—		—
Industrial		7,216		7,216		—		—
Technology		10,155		10,155
Utility		32		32		—		—
Total equity securities		47,142		47,142		—		—

Cash and cash equivalents		56,637		56,637		—		—
Total assets at fair value	$	414,398	$	103,779	$	310,619	$	—

	December 31, 2019
	Total		Level I		Level II		Level III
Fixed income securities:
U.S. Government and agencies	$	17,546	$	—	$	17,546	$	—
Obligations of states and political subdivisions		56,652		—		56,652		—
Corporate securities		113,213		—		113,213		—
Residential mortgage-backed securities		51,486		—		51,486		—
Commercial mortgage-backed securities		27,057		—		27,057		—
Asset-backed securities		29,991		—		29,991		—
Total fixed income securities		295,945		—		295,945		—

Equity securities:
Basic materials		1,210		1,210		—		—
Communications		6,996		6,996		—		—
Consumer, cyclical		9,612		9,612		—		—
Consumer, non-cyclical		12,567		12,567		—		—
Energy		2,456		2,456		—		—
Financial		5,929		5,929		—		—
Industrial		9,299		9,299		—		—
Technology		11,863		11,863		—		—
Total equity securities		59,932		59,932		—		—

Cash and cash equivalents		62,132		62,132		—		—
Total assets at fair value	$	418,009	$	122,064	$	295,945	$	—

There were no liabilities measured at fair value on a recurring basis at March 31, 2020 or December 31, 2019.

Reinsurance

3 Months Ended

Mar. 31, 2020

Reinsurance Disclosures [Abstract]

Reinsurance

Reinsurance

The Company will assume and cede certain premiums and losses to and from various companies and associations under various reinsurance agreements. The Company seeks to limit the maximum net loss that can arise from large risks or risks in concentrated areas of exposure through use of these agreements, either on an automatic basis under general reinsurance contracts known as treaties or by negotiation on substantial individual risks.

Reinsurance contracts do not relieve the Company from its obligation to policyholders. Additionally, failure of reinsurers to honor their obligations could result in significant losses to us. There can be no assurance that reinsurance will continue to be available to us at the same extent, and at the same cost, as it has in the past. The Company may choose in the future to reevaluate the use of reinsurance to increase or decrease the amounts of risk ceded to reinsurers.

As a group, during the three month period ended March 31, 2020, the Company retained the first $10,000 of weather-related losses from catastrophic events and had reinsurance under various reinsurance agreements up to $97,000 in excess of its $10,000 retained risk. During the year ended December 31, 2019, the Company retained the first $10,000 of weather-related losses from catastrophic events and had reinsurance under various reinsurance agreements up to $78,600 in excess of its $10,000 retained risk.

The Company actively monitors and evaluates the financial condition of the reinsurers and develops estimates of the uncollectible amounts due from reinsurers. Such estimates are made based on periodic evaluation of balances due from reinsurers, judgments regarding reinsurers’ solvency, known disputes, reporting characteristics of the underlying reinsured business, historical experience, current economic conditions, and the state of reinsurer relations in general. Collection risk is mitigated from reinsurers by entering into reinsurance arrangements only with reinsurers that have strong credit ratings and statutory surplus above certain levels. The Company’s largest reinsurance recoverables on paid and unpaid losses were due from reinsurance companies with A.M. Best ratings of “A-” or higher.

A reconciliation of direct to net premiums on both a written and an earned basis is as follows:

	Three Months Ended March 31, 2020
	Premiums Written			Premiums Earned
Direct premium	$	62,972		$	62,393
Assumed premium		1,600			1,600
Ceded premium		(5,170	)		(5,221	)
Net premiums	$	59,402		$	58,772

Percentage of assumed earned premium to direct earned premium					2.6%

	Three Months Ended March 31, 2019
	Premiums Written			Premiums Earned
Direct premium	$	55,653		$	52,253
Assumed premium		1,029			1,026
Ceded premium		(2,773	)		(2,773	)
Net premiums	$	53,909		$	50,506

Percentage of assumed earned premium to direct earned premium					2.0%

A reconciliation of direct to net losses and loss adjustment expenses is as follows:

	Three Months Ended March 31,
	2020			2019
Direct losses and loss adjustment expenses	$	33,892		$	26,631
Assumed losses and loss adjustment expenses		308			443
Ceded losses and loss adjustment expenses		(3,778	)		(840	)
Net losses and loss adjustment expenses	$	30,422		$	26,234

If 100% of our ceded reinsurance was cancelled as of March 31, 2020 or December 31, 2019, no ceded commissions would need to be returned to the reinsurers. Reinsurance contracts are typically effective from January 1 through December 31 each year.

Deferred Policy Acquisition Costs

3 Months Ended

Mar. 31, 2020

Deferred Policy Acquisition Costs Disclosures [Abstract]

Deferred Policy Acquisition Costs

Deferred Policy Acquisition Costs

Activity with regards to our deferred policy acquisition costs was as follows:

	Three Months Ended March 31,
	2020			2019
Balance, beginning of period	$	15,399		$	12,866
Deferral of policy acquisition costs		13,152			11,147
Amortization of deferred policy acquisition costs		(9,387	)		(9,222	)
Balance, end of period	$	19,164		$	14,791

Unpaid Losses and Loss Adjustment Expenses

3 Months Ended

Mar. 31, 2020

Liability for Unpaid Claims and Claims Adjustment Expense, Activity in Liability [Abstract]

Unpaid Losses and Loss Adjustment Expenses

10.

Unpaid Losses and Loss Adjustment Expenses

Activity in the liability for unpaid losses and loss adjustment expenses is summarized as follows:

	Three Months Ended March 31,
	2020		2019
Balance at beginning of period:
Liability for unpaid losses and loss adjustment expenses	$	93,250	$	87,121
Reinsurance recoverables on losses		4,045		2,232
Net balance at beginning of period		89,205		84,889

Acquired unpaid losses and loss adjustment expenses related to:
Current year		—		—
Prior years		8,568		—
Total incurred		8,568		—

Incurred related to:
Current year		29,912		31,203
Prior years		510		(4,969	)
Total incurred		30,422		26,234

Paid related to:
Current year		12,532		11,064
Prior years		26,330		17,642
Total paid		38,862		28,706

Balance at end of period:
Liability for unpaid losses and loss adjustment expenses		97,400		85,560
Reinsurance recoverables on losses		8,067		3,143
Net balance at end of period	$	89,333	$	82,417

During the three months ended March 31, 2020, the Company’s reported losses and LAE included $510 of net unfavorable development on prior accident years, compared to $4,969 of net favorable development on prior accident years during the three months ended March 31, 2019. Increases and decreases are generally the result of ongoing analysis of loss development trends. As

additional information becomes known regarding individual claims, original estimates are increased or decreased accordingly. The net unfavorable development reported for the three months ended March 31, 2020 was attributable to our multi-peril crop insurance business from the 2019 crop year, partially offset by net favorable development in other segments.

Property and Equipment

3 Months Ended

Mar. 31, 2020

Property, Plant and Equipment [Abstract]

Property and Equipment

11.

Property and Equipment

Property and equipment consisted of the following:

	March 31, 2020			December 31, 2019			Estimated Useful Life
Cost:
Real estate	$	15,014		$	12,733		10 - 31 years
Electronic data processing equipment		1,323			1,271		5-7 years
Furniture and fixtures		2,944			2,796		5-7 years
Automobiles		1,263			1,130		2-3 years
Gross cost		20,544			17,930

Accumulated depreciation		(10,424	)		(10,236	)
Total property and equipment, net	$	10,120		$	7,694

Depreciation expense was $187 and $142 for the three months ended March 31, 2020 and 2019, respectively.

Goodwill and Other Intangibles

3 Months Ended

Mar. 31, 2020

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Other Intangibles

12.

Goodwill and Other Intangibles

Goodwill

The following table presents the carrying amount of the Company’s goodwill by segment:

	March 31, 2020		December 31, 2019
Non-standard auto from acquisition of Primero	$	2,628	$	2,628
Commercial from acquisition of Westminster		7,044		—
Total	$	9,672	$	2,628

Other Intangible Assets

The following table presents the carrying amount of the Company’s other intangible assets:

March 31, 2020	Gross Carrying Amount		Accumulated Amortization		Net
Subject to amortization:
Trade names	$	748	$	91	$	657
Distribution network		6,700		93		6,607
Value of business acquired		4,177		1,762		2,415
Total subject to amortization		11,625		1,946		9,679

Not subject to amortization – state insurance licenses		1,900		—		1,900
Total	$	13,525	$	1,946	$	11,579

December 31, 2019	Gross Carrying Amount		Accumulated Amortization		Net
Subject to amortization:
Trade names	$	248	$	66	$	182
Other		20		18		2
Total subject to amortization		268		84		184

Not subject to amortization – state insurance license		100		—		100
Total	$	368	$	84	$	284

Amortization expense was $1,882 and $1,135 for the three months ended March 31, 2020 and 2019, respectively.

Related Party Transactions

3 Months Ended

Mar. 31, 2020

Related Party Transactions

13.

Related Party Transactions

We were organized by the NDFB to provide insurance protection for its members. We have a royalty agreement with the NDFB that recognizes the use of their trademark and provides royalties to the NDFB based on the premiums written on Nodak Insurance’s insurance policies. Royalties paid to the NDFB were $336 and $324 during the three months ended March 31, 2020 and 2019, respectively. Royalty amounts payable of $124 and $115 were accrued as a liability to the NDFB at March 31, 2020 and December 31, 2019, respectively.

State insurance laws require our insurance subsidiaries to maintain certain minimum capital and surplus amounts on a statutory basis. Our insurance subsidiaries are subject to regulations that restrict the payment of dividends from statutory surplus and may require prior approval from their domiciliary insurance regulatory authorities. Our insurance subsidiaries are also subject to risk-based capital (“RBC”) requirements that may further affect their ability to pay dividends. Our insurance subsidiaries statutory capital and surplus at December 31, 2019 exceeded the amount of statutory capital and surplus necessary to satisfy regulatory requirements, including the RBC requirements, by a significant margin.

The amount available for payment of dividends from Nodak Insurance to NI Holdings during 2020 without the prior approval of the North Dakota Insurance Department is $18,984 based upon the policyholders’ surplus of Nodak Insurance at December 31, 2019. Prior to its payment of any extraordinary 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. The North Dakota Insurance Department has the power to limit or prohibit dividend payments if Nodak Insurance is in violation of any law or regulation. These restrictions or any subsequently imposed restrictions may affect our future liquidity. No dividends were declared or paid by Nodak Insurance during the three months ended March 31, 2020 or the year ended December 31, 2019.

The amount available for payment of dividends from Direct Auto to NI Holdings during 2020 without the prior approval of the Illinois Department of Insurance is $6,881 based upon the statutory net income of Direct Auto for the year ended December 31, 2019. Prior to its payment of any dividend, Direct Auto will be required to provide notice of the dividend to the Illinois Department of Insurance. This notice must be provided to the Illinois Department of Insurance within five business days following declaration of any dividend and no less than 30 days prior to the payment of an extraordinary dividend or 10 days prior to the payment of an ordinary dividend. The Illinois Department of Insurance has the power to limit or prohibit dividend payments if Direct Auto is in violation of any law or regulation. These restrictions or any subsequently imposed restrictions may affect our future liquidity. No dividends were declared or paid by Direct Auto during the three months ended March 31, 2020 or the year ended December 31, 2019.

The amount available for payment of dividends from Westminster to NI Holdings during 2020 without the prior approval of the Maryland Insurance Administration is $636 based upon the statutory net investment income of Westminster for the year ended December 31, 2019 and the three preceding years. Prior to its payment of any dividend, Westminster will be required to provide notice of the dividend to the Maryland Insurance Administration. This notice must be provided to the Maryland Insurance Administration within five business days following declaration of any dividend and no less than 30 days prior to the payment of an extraordinary dividend or 10 days prior to the payment of an ordinary dividend. The Maryland Insurance Administration has the power to limit or prohibit dividend payments if Westminster is in violation of any law or regulation. These restrictions or any subsequently imposed restrictions may affect our future liquidity. No dividends were declared or paid by Westminster during the three months ended March 31, 2020.

The following table illustrates the impact of including Battle Creek in our Consolidated Balance Sheets prior to intercompany eliminations:

	March 31, 2020		December 31, 2019
Assets:
Cash and cash equivalents (overdraft)	$	1,280	$	(716	)
Investments		4,602		4,661
Premiums and agents’ balances receivable		4,608		4,801
Reinsurance recoverables on losses ⁽¹⁾		26,907		26,330
Accrued investment income		35		33
Deferred income tax asset, net		352		343
Property and equipment		346		348
Other assets		45		45
Total assets	$	38,175	$	35,845

Liabilities:
Unpaid losses and loss adjustment expenses	$	11,221	$	10,622
Unearned premiums		15,686		15,708
Notes payable ⁽¹⁾		3,000		3,000
Reinsurance premiums payable ⁽¹⁾		824		1,706
Accrued expenses and other liabilities		3,985		1,310
Total liabilities		34,716		32,346

Equity:
Non-controlling interest		3,459		3,499
Total equity		3,459		3,499

Total liabilities and equity	$	38,175	$	35,845

(1) Amount eliminated in consolidation.

Total statutory revenues of Battle Creek, after intercompany eliminations, which is limited to net investment income and other income, were $42 and $31, respectively, during the three months ended March 31, 2020 and 2019, respectively. There were no statutory-basis expenses reported, after intercompany eliminations, during the three months ended March 31, 2020 and 2019.

Benefit Plans

3 Months Ended

Mar. 31, 2020

Benefit Plans

14.

Benefit Plans

The Company sponsors a money purchase plan that covers all Nodak Insurance eligible employees, and Westminster sponsors a profit sharing plan. Plan costs are funded annually as they are earned. The Company reported expenses related to the money purchase plan totaling $219 and $199 during the three months ended March 31, 2020 and 2019, respectively.

The Company also sponsors a 401(k) plan with an automatic contribution to all eligible employees and a matching contribution for eligible employees of 50% up to 3% of eligible compensation. The Company reported expenses related to the 401(k) plan totaling $144 and $139 during the three months ended March 31, 2020 and 2019, respectively. All fees associated with both plans are deducted from the eligible employee accounts.

Deferred Compensation Plan

The Board of Directors has authorized a non-qualified deferred compensation plan covering key executives of the Company (as designated by the Board of Directors). The Company’s policy is to fund the plan by amounts that represent the excess of the maximum contribution allowed by the Employee Retirement Income Security Act (“ERISA”) over the key executives’ allowable 401(k) contribution. The plan also allows employee-directed deferral of key executive’s compensation or incentive payments. The Company reported expenses related to this plan totaling $14 and $13 during the three months ended March 31, 2020 and 2019, respectively.

Employee Stock Ownership Plan

The Company has established an Employee Stock Ownership Plan (the “ESOP”). The ESOP is intended to be an employee stock ownership plan within the meaning of Internal Revenue Code Section 4975(e)(7) and will invest solely in common stock of the Company.

In connection with our initial public offering in March 2017, Nodak Insurance loaned $2,400 to the ESOP’s related trust (the “ESOP Trust”). The ESOP loan will be for a period of ten years and bears interest at the long-term Applicable Federal Rate effective on the closing date of the offering (2.79% annually). The ESOP Trust used the proceeds of the loan to purchase shares in our initial public offering, which results in the ESOP Trust owning approximately 1.0% of the Company’s authorized shares. The ESOP has purchased the shares for investment and not for resale.

The shares purchased by the ESOP Trust in the offering are held in a suspense account as collateral for the ESOP loan. The shares held in the ESOP’s suspense account are not considered outstanding for earnings per share purposes. Nodak Insurance will make semi-annual cash contributions to the ESOP in amounts no smaller than the amounts required for the ESOP Trust to make its loan payments to Nodak Insurance. While the ESOP makes two loan payments per year, a pre-determined portion of the shares will be released from the suspense account and allocated to participant accounts at the end of the calendar year. This release and allocation will occur on an annual basis over the ten-year term of the ESOP loan. Nodak Insurance will have a lien on the shares of common stock of the Company held by the ESOP to secure repayment of the loan from the ESOP to Nodak Insurance. If the ESOP is terminated as a result of a change in control of the Company, the ESOP may be required to pay the costs of terminating the plan.

It is anticipated that the only assets held by the ESOP will be shares of the Company’s common stock. Participants in the ESOP cannot direct the investment of any assets allocated to their accounts. The initial ESOP participants are employees of Nodak Insurance. The employees of Primero, Direct Auto, and Westminster do not participate in the ESOP. American West and Battle Creek have no employees.

Each employee of Nodak Insurance will automatically become a participant in the ESOP if such employee is at least 21 years old, has completed a minimum of one thousand hours of service with Nodak Insurance, and has completed an Eligibility Computation Period. Employees are not permitted to make any contributions to the ESOP. Participants in the ESOP will receive annual reports from the Company showing the number of shares of common stock of the Company allocated to the participant’s account and the market value of those shares. The shares are allocated to participants based on compensation as provided for in the ESOP.

In connection with the initial public offering, the Company created a contra-equity account on the Company’s Consolidated Balance Sheet equal to the ESOP’s basis in the shares. The basis of those shares was set at $10.00 per share as part of the initial public offering. As shares are released from the ESOP suspense account, the contra-equity account will be credited, which shall reduce the impact of the contra-equity account on the Company’s Consolidated Balance Sheet. The Company shall record a compensation expense related to the shares released, which compensation expense is equal to the number of shares released from the suspense account multiplied by the average market value of the Company’s stock during the period.

The Company recognized compensation expense of $89 and $94 during the three months ended March 31, 2020 and 2019, respectively, related to the ESOP.

Through March 31, 2020 and December 31, 2019, the Company had released and allocated 72,945 ESOP shares to participants, with a remainder of 167,055 ESOP shares in suspense at March 31, 2020 and December 31, 2019. Using the Company’s quarter-end market price of $13.56 per share, the fair value of the unearned ESOP shares was $2,265 at March 31, 2020.

Line of Credit

3 Months Ended

Mar. 31, 2020

Debt Disclosure [Abstract]

Line of Credit

15.

Line of Credit

Nodak Insurance has a $5,000 line of credit with Wells Fargo Bank, N.A., of which there were no outstanding amounts during the three months ended March 31, 2020, or the year ended December 31, 2019. This line of credit is scheduled to expire on October 31, 2020.

Income Taxes

3 Months Ended

Mar. 31, 2020

Income Tax Disclosure [Abstract]

Income Taxes

16.

Income Taxes

At March 31, 2020 and December 31, 2019, we had no unrecognized tax benefits, no accrued interest and penalties, and no significant uncertain tax positions. No interest and penalties were recognized during the three month periods ended March 31, 2020 or 2019.

At March 31, 2020 and December 31, 2019, the Company, other than Battle Creek and Westminster, had no income tax related carryovers for net operating losses, alternative minimum tax credits, or capital losses.

Battle Creek, which files its income tax returns on a stand-alone basis, had $4,652 of net operating loss carryover at December 31, 2019. The net operating loss carryforward expires beginning in 2021 through 2030.

Westminster, which became part of the Company’s consolidated federal income tax return beginning in 2020, had $874 of net operating loss carryover at December 31, 2019. This net operating loss carryforward expires in 2023.

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

+ References + Details

Operating Leases

3 Months Ended

Mar. 31, 2020

Leases, Operating [Abstract]

Operating Leases

17.

Operating Leases

Our Primero subsidiary leases a facility in Spearfish, South Dakota under a non-cancellable operating lease expiring in 2023. Our Direct Auto subsidiary leases a facility in Chicago, Illinois under a non-cancellable operating lease expiring in 2029. Our Nodak Insurance subsidiary leases a facility in Fargo, North Dakota under a non-cancellable operating lease expiring in 2024. There were expenses of $89 and $75 related to these leases during the three months ended March 31, 2020 and 2019, respectively.

As of March 31, 2020, we have minimum future commitments under non-cancellable leases as follows:

Year ending December 31,	Estimated Future Minimum Commitments
2020	$	281
2021		249
2022		319
2023		358
2024		320
Thereafter		1,353

We also sub-lease portions of our home office building under non-cancellable operating leases.

Contingencies

3 Months Ended

Mar. 31, 2020

Commitments and Contingencies Disclosure [Abstract]

Contingencies

18.

Contingencies

We have been named as a defendant in various lawsuits relating to our insurance operations. Contingent liabilities arising from litigation, income taxes, and other matters are not considered to be material to our financial position.

The Company does not have any unrecorded or potential contingent liabilities or material commitments requiring the use of assets as of March 31, 2020 or December 31, 2019.

Common Stock

3 Months Ended

Mar. 31, 2020

Equity [Abstract]

Common Stock

19.

Common Stock

Changes in the number of common stock shares outstanding are as follows:

	Three Months Ended March 31,
	2020			2019
Shares outstanding, beginning of period		22,119,380			22,192,894
Treasury shares repurchased through stock repurchase authorization		(123,264	)		(100	)
Issuance of treasury shares for vesting of restricted stock units		19,042			16,705
Shares outstanding, end of period		22,015,158			22,209,499

On February 28, 2018, our Board of Directors approved an authorization for the repurchase of up to approximately $10 million of the Company’s outstanding common stock. We completed the repurchase of 191,265 shares of our common stock for $2,966 during 2018, and an additional 116,034 shares for $2,006 during 2019. During the three months ended March 31, 2020, we completed the repurchase of 123,264 shares of our common stock for $1,502. The cost of this treasury stock is a reduction of shareholders’ equity within our Consolidated Balance Sheet.

Stock Based Compensation

3 Months Ended

Mar. 31, 2020

Share-based Payment Arrangement [Abstract]

Stock Based Compensation

20.

Stock Based Compensation

At its 2017 Annual Shareholders’ Meeting, the NI Holdings, Inc. 2017 Stock and Incentive Plan (the “Plan”) was approved by shareholders. The purpose of the Plan is to promote the interests of the Company and its shareholders by aiding the Company in attracting and retaining employees, officers, consultants, advisors, and non-employee directors capable of assuring the future success of the Company, to offer such persons incentives to put forth maximum efforts for the success of the Company’s business, to compensate such persons through various stock and cash-based arrangements, and to provide them with opportunities for stock ownership in the Company, thereby aligning the interests of such persons with the Company’s shareholders.

The Plan provides for the grant of nonqualified stock options, incentive stock options, restricted stock units (“RSUs”), stock appreciation rights, dividend equivalents, and performance share units (“PSUs”) to employees, officers, consultants, advisors, non-employee directors, and independent contractors designated by the Compensation Committee of the Board of Directors (the “Compensation Committee”). Awards made under the Plan are based upon, among other things, a participant’s level of responsibility and performance within the Company.

The total aggregate number of shares of common stock that awards may be issued under all awards made under the Plan shall not exceed 500,000 shares of common stock, subject to adjustments as provided in the Plan. No eligible participant may be granted more than 100,000 shares from any stock options, stock appreciation rights, or performance awards denominated in shares, in the aggregate in any calendar year, subject to adjustment in accordance with the Plan. The aggregate amount payable pursuant to all performance awards denominated in cash to any eligible person in any calendar year is limited to $1,000 in value. Directors who are not also employees of the Company may not be granted awards denominated in shares that exceed $100 in any calendar year.

Restricted Stock Units

The Compensation Committee has awarded RSUs to non-employee directors and select executives. RSUs are promises to issue actual shares of common stock at the end of a vesting period. The RSUs granted to executives under the Plan were based on salary and vest 20% per year over a five-year period, while RSUs granted to non-employee directors vest 100% on the date of the next annual meeting of shareholders following the grant date. Dividend equivalents on RSUs are accrued during the vesting period and paid in cash at the end of the vesting period, but are subject to forfeiture until the underlying shares become vested. Participants do not have voting rights with respect to RSUs.

The Company recognizes stock-based compensation costs based on the grant date fair value. The compensation costs are normally expensed over the vesting periods to each vesting date; however, the cost of RSUs granted to executives are expensed immediately if the executive has met certain retirement criteria and the RSUs become non-forfeitable. Estimated forfeitures are included in the determination of compensation costs. No forfeitures are currently estimated.

A summary of the Company’s outstanding and unearned restricted stock units is presented below:

	RSUs			Weighted-Average Grant-Date Fair Value Per Share
Units outstanding and unearned at January 1, 2019		73,880		$	16.87
RSUs granted during 2019		57,100			15.81
RSUs earned during 2019		(34,440	)		16.24
Units outstanding and unearned at December 31, 2019		96,540		$	16.47

RSUs granted during 2020		42,600			14.26
RSUs earned during 2020		(31,260	)		15.79
Units outstanding and unearned at March 31, 2020		107,880		$	15.79

The following table shows the impact of RSU activity to the Company’s financial results:

	Three Months Ended March 31,
	2020			2019
RSU compensation expense	$	420		$	319
Income tax benefit		(88	)		(67	)
RSU compensation expense, net of income taxes	$	332		$	252

At March 31, 2020, there was $962 of unrecognized compensation cost related to outstanding RSUs. That cost is expected to be recognized over a weighted-average period of 2.54 years.

Performance Stock Units

The Compensation Committee has awarded PSUs to select executives. PSUs are promises to issue actual shares of common stock at the end of a vesting period, if certain performance conditions are met. The PSUs granted to employees under the Plan were based on salary and include a three-year book value cumulative growth target with threshold and stretch goals. They will vest on the third anniversary of the grant date, subject to the participant’s continuous employment through the vesting date and the level of performance achieved. Dividend equivalents on PSUs are accrued and paid in cash at the end of the performance period in accordance with the level of performance achieved, but are subject to forfeiture until the underlying shares become vested. Participants do not have voting rights with respect to PSUs.

The Company recognizes stock-based compensation costs based on the grant date fair value over the performance period of the awards. Estimated forfeitures are included in the determination of compensation costs. No forfeitures are currently estimated. The current cost estimate assumes that the cumulative growth target will be achieved.

A summary of the Company’s outstanding performance share units is presented below:

	PSUs		Weighted-Average Grant-Date Fair Value Per Share
Units outstanding at January 1, 2019		48,600	$	16.25
PSUs granted during 2019 (at target)		62,400		15.21
Units outstanding at December 31, 2019		111,000	$	15.27

PSUs granted during 2020 (at target)		63,600		14.26
Units outstanding at March 31, 2020		174,600	$	15.15

The following table shows the impact of PSU activity to the Company’s financial results:

	Three Months Ended March 31,
	2020			2019
PSU compensation expense	$	293		$	297
Income tax benefit		(62	)		(62	)
PSU compensation expense, net of income taxes	$	231		$	235

The PSU grants above represent initial target awards and do not reflect potential increases or decreases resulting from financial performance objectives to be determined at the end of the performance period. The actual number of shares to be issued at the end of the performance period will range from 0% to 150% of the initial target awards.

At March 31, 2020, there was $1,834 of unrecognized compensation cost related to outstanding PSUs. That cost is expected to be recognized over a weighted-average period of 2.07 years.

Earnings Per Share

3 Months Ended

Mar. 31, 2020

Earnings Per Share [Abstract]

Earnings Per Share

21.

Earnings Per Share

As described in Note 1, the conversion of the mutual company to a stock company resulted in the issuance of NI Holdings common shares on March 13, 2017. Earnings per share are computed by dividing net income available to common shareholders for the period by the weighted average number of common shares outstanding for the same period. The weighted average number of common shares outstanding was 22,218,073 and 22,228,630 during the three months ended March 31, 2020 and 2019, respectively.

Unearned ESOP shares are not considered outstanding until they are released and allocated to plan participants. Unearned RSU and PSU shares are not considered outstanding until they are earned by award participants.

The following table presents a reconciliation of the numerators and denominators we used in the basic and diluted per share computations for our common stock:

	Three Months Ended March 31,
	2020			2019
Basic earnings (loss) per common share:
Numerator:
Net income (loss) attributable to NI Holdings, Inc.	$	(3,587	)	$	13,773
Denominator:
Weighted average shares outstanding		22,218,073			22,228,630
Basic earnings (loss) per common share	$	(0.16	)	$	0.62

Diluted earnings (loss) per common share:
Numerator:
Net income (loss) attributable to NI Holdings, Inc.	$	(3,587	)	$	13,773
Denominator:
Number of shares used in basic computation		22,218,073			22,228,630
Weighted average effect of dilutive securities
Add: RSUs and PSUs		121,251			50,149
Number of shares used in diluted computation		22,339,324			22,278,779
Diluted earnings (loss) per common share	$	(0.16	)	$	0.62

Segment Information

3 Months Ended

Mar. 31, 2020

Segment Reporting [Abstract]

Segment Information

22.

Segment Information

We have five primary reportable operating segments, which consist of private passenger auto insurance, non-standard auto insurance, home and farm insurance, crop insurance, and commercial insurance. A sixth segment captures all other insurance coverages we sell, including our assumed reinsurance lines of business. We operate only in the United States, and no single customer or agent provides 10 percent or more of our revenues. The following tables provide available information of these segments for the three month periods ended March 31, 2020 and 2019. For presentation in these tables, “LAE” refers to loss adjustment expenses.

The ratios presented in these tables are non-GAAP financial measures under Securities and Exchange Commission rules and regulations. The non-GAAP ratios may not be comparable to similarly-named measures reported by other companies.

The loss and LAE ratio equals losses and loss adjustment expenses divided by net premiums earned. The expense ratio equals amortization of deferred policy acquisition costs and other underwriting and general expenses, divided by net premiums earned. The combined ratio equals losses and loss adjustment expenses, amortization of deferred policy acquisition costs, and other underwriting and general expenses, divided by net premiums earned.

	Three Months Ended March 31, 2020
	Private Passenger Auto			Non-Standard Auto			Home and Farm			Crop			Commercial			All Other			Total
Direct premiums earned	$	18,397		$	13,194		$	20,158		$	(5	)	$	9,505		$	1,144		$	62,393
Assumed premiums earned		—			—			—			—			—			1,600			1,600
Ceded premiums earned		(1,098	)		(43	)		(2,537	)		184			(1,652	)		(75	)		(5,221	)
Net premiums earned		17,299			13,151			17,621			179			7,853			2,669			58,772

Direct losses and LAE		11,129			5,940			7,668			2,811			5,919			425			33,892
Assumed losses and LAE		—			—			—			—			—			308			308
Ceded losses and LAE		—			—			(1,130	)		(444	)		(2,204	)		—			(3,778	)
Net losses and LAE		11,129			5,940			6,538			2,367			3,715			733			30,422

Gross margin		6,170			7,211			11,083			(2,188	)		4,138			1,936			28,350

Underwriting and general expenses		4,810			5,197			4,889			702			3,929			632			20,159
Underwriting gain (loss)		1,360			2,014			6,194			(2,890	)		209			1,304			8,191

Fee and other income					329															362
					2,343
Net investment income																				1,971
Net capital loss on investments																				(14,919	)
Loss before income taxes																				(4,395	)
Income taxes																				(840	)
Net loss																				(3,555	)
Net income attributable to non-controlling interest																				32
Net loss attributable to NI Holdings, Inc.																				(3,587	)

Non-GAAP Ratios:
Loss and LAE ratio		64.3%			45.2%			37.1%			n/a			47.3%			27.5%			51.8%
Expense ratio		27.8%			39.5%			27.7%			n/a			50.0%			23.7%			34.3%
Combined ratio		92.1%			84.7%			64.8%			n/a			97.3%			51.1%			86.1%


Balances at March 31, 2020:
Premiums and agents’ balances receivable	$	18,657		$	10,557		$	9,204		$	—		$	9,254		$	611		$	48,283
Deferred policy acquisition costs		5,175			4,952			7,124			—			1,504			409			19,164
Reinsurance recoverables		500			—			2,060			600			3,434			1,473			8,067
Receivable from Federal Crop Insurance Corporation		—			—			—			5,240			—			—			5,240
Goodwill and other intangibles		—			2,897			—			—			18,354			—			21,251

Unpaid losses and LAE		19,952			42,000			10,401			3,945			12,248			8,854			97,400
Unearned premiums		28,426			17,260			39,542			—			18,444			2,738			106,410

	Three Months Ended March 31, 2019
	Private Passenger Auto			Non-Standard Auto		Home and Farm			Crop			Commercial			All Other			Total
Direct premiums earned	$	16,944		$	14,591	$	18,533		$	12		$	1,107		$	1,066		$	52,253
Assumed premiums earned		4			—		(4	)		—			—			1,026			1,026
Ceded premiums earned		(856	)		—		(1,740	)		(1	)		(118	)		(58	)		(2,773	)
Net premiums earned		16,092			14,591		16,789			11			989			2,034			50,506

Direct losses and LAE		10,102			7,156		8,256			(486	)		320			1,283			26,631
Assumed losses and LAE		49			—		—			—			—			394			443
Ceded losses and LAE		(46	)		—		(254	)		460			—			(1,000	)		(840	)
Net losses and LAE		10,105			7,156		8,002			(26	)		320			677			26,234

Gross margin		5,987			7,435		8,787			37			669			1,357			24,272

Underwriting and general expenses		4,750			5,478		5,202			331			314			619			16,694
Underwriting gain (loss)		1,237			1,957		3,585			(294	)		355			738			7,578

Fee and other income					470														464
					2,427
Net investment income																			1,743
Net capital gain on investments																			7,859
Loss before income taxes																			17,644
Income taxes																			3,848
Net loss																			13,796
Net income attributable to non-controlling interest																			23
Net loss attributable to NI Holdings, Inc.																			13,773

Non-GAAP Ratios:
Loss and LAE ratio		62.8%			49.0%		47.7%			n/a			32.4%			33.3%			51.9%
Expense ratio		29.5%			37.5%		31.0%			n/a			31.7%			30.4%			33.1%
Combined ratio		92.3%			86.6%		78.6%			n/a			64.1%			63.7%			85.0%


Balances at March 31, 2019:
Premiums and agents’ balances receivable	$	17,561		$	9,978	$	9,424		$	12		$	964		$	563		$	38,502
Deferred policy acquisition costs		3,925			4,816		5,452			—			—			598			14,791
Reinsurance recoverables		177			—		916			108			(28	)		1,970			3,143
Receivable from Federal Crop Insurance Corporation		—			—		—			14,282			—			—			14,282
Goodwill and other intangibles		—			3,488		—			—			—			—			3,488

Unpaid losses and LAE		17,737			46,641		12,061			621			852			7,648			85,560
Unearned premiums		27,110			18,845		37,476			—			2,141			2,599			88,171

For purposes of evaluating profitability of the non-standard auto segment, management combines the policy fees paid by the insured with the underwriting gain or loss as its primary measure. As a result, these fees are allocated to the non-standard auto segment (included in fee and other income) in the above tables. The remaining fee and other income amounts are not allocated to any segment.

We do not assign or allocate all Consolidated Statement of Operations or Consolidated Balance Sheet line items to our operating segments. Those line items include investment income, net capital gain (loss) on investments, other income excluding non-standard auto insurance fees, and income taxes within the Consolidated Statement of Operations. For the Consolidated Balance Sheet, those items include cash and investments, property and equipment, other assets, accrued expenses, income taxes recoverable or payable, and shareholders’ equity.

- Definition

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 31
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8924-108599

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 34
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8981-108599

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 21
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8721-108599

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 40
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9031-108599

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (f)
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (e)
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
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+ Details

Subsequent Events

3 Months Ended

Mar. 31, 2020

Subsequent Events [Abstract]

Subsequent Events

23.

Subsequent Events

We have evaluated subsequent events through May 6, 2020, the date these consolidated financial statements were available for issuance.

COVID-19 Pandemic

Beginning in March 2020, the global pandemic associated with novel coronavirus COVID-19 (“COVID-19”) and related economic conditions began to impact the Company's results. For the three months ended March 31, 2020, the Company’s underwriting results were impacted by reduced net premiums earned in our non-standard auto segment. The Company also incurred net unrealized investment losses driven by the impact of changes in fair value on the Company’s equity investments, attributable to the recent disruption in global financial markets. The actual long-term impact of the pandemic on the property and casualty industry is highly uncertain and will not be known for some time. In the short-term, we expect decreased economic activity to pressure overall top-line growth while negatively impacting investment results, dependent on the extent and duration of the economic contraction.

Summary of Significant Accounting Policies (Policies)	3 Months Ended
Summary of Significant Accounting Policies (Policies)	Mar. 31, 2020
Accounting Policies [Abstract]
Use of Estimates	Use of Estimates: In preparing our Consolidated Financial Statements, management makes estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the balance sheet and revenues and expenses for the periods then ended. Actual results could differ significantly from those estimates. We make estimates and assumptions that can have a significant effect on amounts and disclosures we report in our Consolidated Financial Statements. The most significant estimates relate to our reserves for unpaid losses and loss adjustment expenses, earned premiums for crop insurance, valuation of investments, determination of other-than-temporary impairments, valuation allowances for deferred income tax assets, deferred policy acquisition costs, and the valuations used to establish intangible assets acquired related to business combinations. While we believe our estimates are appropriate, the ultimate amounts may differ from the estimates provided. We regularly review our methods for making these estimates as well as the continuing appropriateness of the estimated amounts, and we reflect any adjustment we consider necessary in our current results of operations.
Variable-Interest Entities	Variable-Interest Entities: Any company deemed to be a variable interest entity (“VIE”) is required to be consolidated by the primary beneficiary of the VIE. We assess our investments in other entities at inception to determine if any meet the qualifications of a VIE. We consider an investment in another company to be a VIE if (a) the total equity investment at risk is not sufficient to permit the entity to finance its activities without additional subordinated financial support, (b) the characteristics of a controlling financial interest are missing (either the ability to make decisions through voting or other rights, the obligation to absorb expected losses of the entity or the right to receive the expected residual returns of the entity), or (c) the voting rights of the equity holders are not proportional to their obligations to absorb the expected losses of the entity and/or the rights to receive the expected residual returns of the entity, and substantially all of the entity’s activities either involve or are conducted on behalf of an investor that has disproportionately few voting rights. Upon the occurrence of certain events, we would reassess our initial determination of whether the investment is a VIE. We evaluate whether we are the primary beneficiary of each VIE and we consolidate the VIE if we have both (1) the power to direct the economically significant activities of the entity and (2) the obligation to absorb losses of, or the right to receive benefits from, the entity. We consider the contractual agreements that define the ownership structure, distribution of profits and losses, risks, responsibilities, indebtedness, voting rights, and board representation of the respective parties in determining whether we qualify as the primary beneficiary. Our assessment of whether we are the primary beneficiary of a VIE is performed at least annually. We control Battle Creek via a 100% quota-share reinsurance agreement between Nodak Insurance and Battle Creek, as well as the ability to control a majority of the Board of Directors of Battle Creek. Through the effects of the 100% quota-share agreement with Battle Creek, we are considered the primary beneficiary of Battle Creek’s operating results excluding net investment income, bad debt expense, and income taxes. Therefore, we consolidate the financial statements of Battle Creek, and Battle Creek’s policyholders’ interest in Battle Creek is reflected as a non-controlling interest in shareholders’ equity in our Consolidated Balance Sheet.
Cash and Cash Equivalents	Cash and Cash Equivalents: Cash and cash equivalents include certain investments in highly liquid debt instruments with original maturities of three months or less. Cost approximates fair value for these short-term investments.
Investments	Investments: We have categorized our investment portfolio as “available-for-sale” and have reported the portfolio at fair value. Unrealized gains and losses on fixed income securities, and on equity securities prior to January 1, 2019, net of income taxes, are reported in accumulated other comprehensive income. Effective January 1, 2019, in accordance with a change in accounting principle, changes in unrealized gains and losses on equity securities are reported as a component of net capital gain on investments in our operating results. Fair values are based on quoted market prices or dealer quotes, if available. If a quoted market price is not available, fair value is estimated using quoted market prices for similar securities. Amortization of premium and accretion of discount are computed using an effective interest method. Net investment income includes interest and dividend income together with amortization of purchase premiums and discounts, and is net of investment management and custody fees. Realized gains and losses on investments are determined using the specific identification method and are included in net capital gain (loss) on investments, along with the change in unrealized gains and losses on equity securities after January 1, 2019. We review our investments each quarter to determine whether a decline in fair value below the amortized cost basis is other than temporary. Accordingly, we assess whether we intend to sell or it is more likely than not that we will be required to sell a security before recovery of its amortized cost basis. For fixed income securities that are considered other-than-temporarily impaired and that we do not intend to sell and will not be required to sell prior to recovery of the amortized cost basis, we separate the amount of the impairment into the amount that is credit related (credit loss component) and the amount due to all other factors. The credit loss component is recognized in earnings and is the difference between the security’s amortized cost basis and the present value of its expected future cash flows discounted at the security’s effective yield. The remaining difference between the security’s fair value and the present value of future expected cash flows is due to factors that are not credit related and, therefore, is not required to be recognized as losses in the Consolidated Statement of Operations, but is recognized in other comprehensive income (loss). We classify each fair value measurement at the appropriate level in the fair value hierarchy. The hierarchy gives the highest priority to unadjusted quoted market price in active markets for identical assets or liabilities (Level I measurements) and the lowest priority to unobservable inputs (Level III measurements). An asset’s or liability’s classification within the fair value hierarchy is based on the lowest level of significant input to its valuation. Level I – Quoted price in active markets for identical assets and liabilities. Level II – Quoted prices in markets that are not active or inputs that are observable either directly or indirectly. Level II inputs include quoted prices for similar assets or liabilities other than quoted in prices in Level I, quoted prices in markets that are not active, or other inputs that are observable or can be derived principally from or corroborated by observable market data for substantially the full term of the assets or liabilities. Level III – Unobservable inputs that are supported by little or no market activity and are significant to the fair value of the assets or liabilities. Unobservable inputs reflect the reporting entity’s own assumptions that market participants would use in pricing the asset or liability. Level III assets and liabilities include financial instruments whose values are determined using pricing models, discounted cash flow methodologies, or similar techniques, as well as instruments for which the determination of fair value requires significant management judgment or estimation.
Fair Value of Other Financial Instruments	Fair Value of Other Financial Instruments: Our other financial instruments, aside from investments, are cash and cash equivalents, premiums and agents’ balances receivable, and accrued expenses and accounts payable. The carrying amounts for cash and cash equivalents, premiums and agents’ balances receivable, and accrued expenses and accounts payable approximate their fair value based on their short-term nature. Other invested assets that do not have observable inputs and little or no market activity are carried on a cost basis. All other invested assets have been assessed for impairment. The carrying value of these other invested assets was $2,583 at March 31, 2020 and $1,914 at December 31, 2019.
Reclassification of Segment Information	Reclassification of Segment Information: Effective first quarter 2020, the Company’s results are being reported in our Consolidated Financial Statements in the following five primary operating segments – private passenger auto insurance, non-standard auto insurance, home and farm insurance, crop insurance, and commercial insurance. A sixth “all other” segment captures all other insurance business, including our assumed reinsurance lines of business. Commercial insurance was previously reported within the all other segment. All prior periods presented have been reclassified to conform to this presentation.
Revenue Recognition	Revenue Recognition: We record premiums written at policy inception and recognize them as revenue on a pro rata basis over the policy term or, in the case of crop insurance, over the period of risk. The portion of premiums that could be earned in the future is deferred and reported as unearned premiums. When policies lapse, the Company reverses the unearned portion of the written premium and removes the applicable unearned premium. Policy-related fee income is recognized when collected. The Company uses the direct write-off method for recognizing bad debts. Accounts billed directly to the policyholder are provided grace payment and cancellation notice periods per state insurance regulations. Any earned but uncollected premiums are written off within 90 days after the effective date of policy cancellation. Direct Auto also provides for agency billing for a portion of their agents. Accounts billed to agents are due within 60 days of the statement date. The balances are carried as agents’ balances receivable until it is determined the amount is not collectible from the agent. At that time, the balance is written off as uncollectible. The agent is responsible for all past due balances. As part of its agent appointment, Direct Auto requires a personal guarantee for all balances due to Direct Auto from the principal of the contracted agency.
Policy Acquisition Costs	Policy Acquisition Costs: We defer our policy acquisition costs, consisting primarily of commissions, state premium taxes and certain other underwriting costs, reduced by ceding commissions, which vary with and relate directly to the production of business. We amortize these deferred policy acquisition costs over the period in which we earn the premiums. The method we follow in computing deferred policy acquisition costs limits the amount of such 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 we expect to incur as we earn the premium.
Property and Equipment	Property and Equipment: We report property and equipment at cost less accumulated depreciation. Depreciation is computed using the straight-line method based upon the estimated useful lives of the assets.
Losses and Loss Adjustment Expenses	Losses and Loss Adjustment Expenses: Liabilities for unpaid losses and loss adjustment expenses are estimates at a given point in time of the amounts we expect to pay with respect to policyholder claims based on facts and circumstances then known. At the time of establishing our estimates, we recognize that our ultimate liability for losses and loss adjustment expenses will exceed or be less than such estimates. We base our estimates of liabilities for unpaid losses and loss adjustment expenses on assumptions as to future loss trends, expected claims severity, judicial theories of liability, and other factors. During the loss adjustment period, we may learn additional facts regarding certain claims, and, consequently, it often becomes necessary for us to refine and adjust our estimates of the liability. We reflect any adjustments to our liabilities for unpaid losses and loss adjustment expenses in our operating results in the period in which we determine the need for a change in the estimates. We maintain liabilities for unpaid losses and loss adjustment expenses with respect to both reported and unreported claims. We establish these liabilities for the purpose of covering the ultimate costs of settling all losses, including investigation and litigation costs. We base the amount of our liability for reported losses primarily upon a case-by-case evaluation of the type of risk involved, knowledge of the circumstances surrounding each claim, and the insurance policy provisions relating to the type of loss our policyholder incurred. We determine the amount of our liability for unreported losses and loss adjustment expenses on the basis of historical information by line of insurance. Inflation is not explicitly selected in the loss reserve analysis. However, historical inflation is embedded in the estimated loss development factors. We closely monitor our liabilities and update them periodically using new information on reported claims and a variety of statistical techniques. We do not discount our liabilities for unpaid losses and loss adjustment expense. Reserve estimates can change over time because of unexpected changes in assumptions related to our external environment and, to a lesser extent, assumptions as to our internal operations. Assumptions related to our external environment include the absence of significant changes in tort law and the legal environment which may impact liability exposure, the trends in judicial interpretations of insurance coverage and policy provisions, and the rate of loss cost inflation. Internal assumptions include consistency in the recording of premium and loss statistics, consistency in the recording of claims, payment and case reserving methodologies, accurate measurement of the impact of rate changes and changes in policy provisions, consistency in the quality and characteristics of business written within a given line of business, and consistency in reinsurance coverage and collectability of reinsured losses, among other items. To the extent we determine that underlying factors impacting our assumptions have changed, we attempt to make appropriate adjustments for such changes in our reserves. Accordingly, our ultimate liability for unpaid losses and loss adjustment expenses will likely differ from the amount recorded.
Income Taxes	Income Taxes: With the exception of Battle Creek, which files a stand-alone federal income tax return, we currently file a consolidated federal income tax return which includes NI Holdings and its wholly-owned subsidiaries. Direct Auto and Westminster became part of the consolidated federal income tax return as of their acquisition dates. Insurance companies typically pay state premium taxes rather than state income taxes. However, Direct Auto is subject to state income taxes in the state of Illinois, in addition to state premium taxes. Additionally, NI Holdings, on a stand-alone basis, pays state income taxes to the state of North Dakota for income or losses generated as a separate financial entity. While state premium taxes are included as a part of amortization of deferred policy acquisition costs, state income taxes are combined with federal income taxes within the financial reporting category labeled income taxes. The Company reports tax-related interest and penalties, if any, as part of income tax expense in the year such amounts are determinable. We account for deferred income taxes using the asset and liability method. The objective of the asset and liability method is to establish deferred income tax assets and liabilities for the temporary differences between the financial reporting basis and the income tax basis of our assets and liabilities at enacted tax rates expected to be in effect when we realize or settle such amounts. Accounting guidance requires that companies re-measure existing deferred income tax assets (including loss carryforwards) and liabilities when a change in tax rate occurs, and record an offset for the net amount of the change as a component of income tax expense from continuing operations in the period of enactment. The guidance also requires any change to a previously recorded valuation allowance as a result of re-measuring existing temporary differences and loss carryforwards to be reflected as a component of income tax expense from continuing operations. The Company has elected to reclassify any tax effects stranded in accumulated other comprehensive income as a result of a change in income tax rates to retained earnings.
Credit Risk	Credit Risk: Our primary investment objective is to earn competitive returns by investing in a diversified portfolio of securities. Our portfolio of fixed income securities and, to a lesser extent, short-term investments, is subject to credit risk. We define this risk as the potential loss in fair value resulting from adverse changes in the borrower’s ability to repay the debt. We manage this risk by performing an analysis of prospective investments and through regular reviews of our portfolio by our management team and investment advisors. We also limit the amount of our total investment portfolio that we invest in any one security. Property and liability insurance coverages are marketed through captive agents in North Dakota and through independent insurance agencies located throughout all other operating areas. All business, except for the majority of Direct Auto’s business, is billed directly to the policyholders. We maintain cash balances primarily at one bank, which are insured by the Federal Deposit Insurance Corporation (“FDIC”) up to $250. During the normal course of business, balances are maintained above the FDIC insurance limit. The Company maintains short-term investment balances in investment grade money market accounts that are insured by the Securities Investor Protection Corporation (“SIPC”) up to $500. On occasion, balances for these accounts are maintained in excess of the SIPC insurance limit.
Reinsurance	Reinsurance: The Company limits the maximum net loss that can arise from large risks or risks in concentrated areas of exposure by reinsuring (ceding) certain levels of risks to other insurers or reinsurers, either on an automatic basis under general reinsurance contracts knows as “treaties” or by negotiation on substantial individual risks. Ceded reinsurance is treated as the risk and liability of the assuming companies. Reinsurance contracts do not relieve the Company from its obligations to policyholders. In the event that all or any of the reinsuring companies might be unable to meet their obligations under existing reinsurance agreements, the Company would be liable for such defaulted amounts.
Goodwill and Other Intangibles	Goodwill and Other Intangibles: Goodwill represents the excess of the purchase price over the underlying fair value of acquired entities. When completing acquisitions, we seek also to identify separately identifiable intangible assets that we have acquired. We assess goodwill and other intangibles with an indefinite useful life for impairment annually. We also assess goodwill and other intangibles for impairment upon the occurrence of certain events. In making our assessment, we consider a number of factors including operating results, business plans, economic projections, anticipated future cash flows, and current market data. Inherent uncertainties exist with respect to these factors and to our judgment in applying them when we make our assessment. Impairment of goodwill and other intangibles could result from changes in economic and operating conditions in future periods. We did not record any impairments of goodwill or other intangibles during the three month periods ended March 31, 2020 and 2019. Goodwill arising from the acquisition of Primero in 2014 represents the excess of the purchase price over the fair value of the net assets acquired. The purchase price in excess of the fair value of net assets acquired was negotiated at arms-length with an unrelated party and was based upon the strategic decision by Company management to expand both the geographic footprint and product lines of the Company. The nature of the business acquired was such that there were limited intangibles not reflected in the net assets acquired. The purchase price was paid with a combination of cash and cancellation of obligations owed to the acquired company by the sellers. The goodwill which arose from this transaction is included in the basis of the net assets acquired and is not deductible for income tax purposes. Intangible assets arising from the acquisition of Direct Auto in 2018 represent the estimated fair values of certain intangible assets, including a favorable lease contract, a state insurance license, the value of the Direct Auto trade name, and the value of business acquired (“VOBA”). The state insurance license asset has an indefinite life, while the favorable lease contract, Direct Auto trade name, and VOBA assets will be amortized over eighteen months, five years, and twelve months, respectively, from the August 31, 2018 acquisition/valuation date. Intangible assets arising from the acquisition of Westminster in January 2020 represent the estimated fair values of certain intangible assets, including state insurance licenses, the value of Westminster’s distribution network, the value of the Westminster trade name, and the VOBA. The state insurance license asset has an indefinite life, while the distribution networks asset, Westminster trade name, and VOBA assets will be amortized over twenty years, ten years, and twelve months, respectively, from the January 1, 2020 acquisition/valuation date.

Acquisition of Westminster American Insurance Company (Tables)

3 Months Ended

Mar. 31, 2020

Business Combinations [Abstract]

Schedule of Proforma Information of Business Combination

The following unaudited pro forma summary presents consolidated information of the Company as if the business combination had occurred on January 1, 2019:

	Pro forma Three Months Ended March 31,
	2020			2019
Revenues	$	46,186		$	65,757

Net income (loss) attributable to NI Holdings, Inc.		(2,598	)		12,375

Basic earnings (loss) per share attributable to NI Holdings, Inc.		(0.12	)		0.56

Schedule of Identified Assets Acquired and Liabilities Assumed

The following table summarizes the consideration transferred to acquire Westminster and the amounts of identified assets acquired and liabilities assumed at the acquisition date:

Fair Value of Consideration:
Cash consideration transferred	$	20,000
Present value of future cash consideration		18,787
Total cash consideration	$	38,787

Recognized Amounts of Identifiable Assets Acquired and Liabilities Assumed:
Identifiable net assets:
Cash and cash equivalents	$	19,297
Fixed income securities, at fair value		12,353
Equity securities, at fair value		2,705
Other investments		735
Premiums and agents' balances receivable		8,507
Reinsurance recoverables on losses		763
Accrued investment income		70
Property and equipment		2,304
Federal income tax recoverable		138
State insurance licenses (included in goodwill and other intangibles)		1,800
Distribution network (included in goodwill and other intangibles)		6,700
Trade name (included in goodwill and other intangibles)		500
Value of business acquired (included in goodwill and other intangibles)		4,177
Other assets		76
Unpaid losses and loss adjustment expenses		(8,568	)
Unearned premiums		(16,611	)
Deferred income taxes, net		(1,506	)
Reinsurance premiums payable		(565	)
Accrued expenses and other liabilities		(1,132	)
Total identifiable net assets	$	31,743

Goodwill	$	7,044

Investments (Tables)

3 Months Ended

Mar. 31, 2020

Marketable Securities [Abstract]

Schedule of amortized cost and estimated fair value of securities

The amortized cost and estimated fair value of investment securities as of March 31, 2020 and December 31, 2019, were as follows:

	March 31, 2020
	Cost or Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
Fixed income securities:
U.S. Government and agencies	$	18,594	$	1,173	$	—		$	19,767
Obligations of states and political subdivisions		61,010		1,498		(302	)		62,206
Corporate securities		118,213		2,454		(2,564	)		118,103
Residential mortgage-backed securities		48,954		1,908		(220	)		50,642
Commercial mortgage-backed securities		26,817		820		(48	)		27,589
Asset-backed securities		34,394		59		(2,141	)		32,312
Total fixed income securities		307,982		7,912		(5,275	)		310,619

Equity securities:
Basic materials		1,331		5		(257	)		1,079
Communications		4,761		1,439		(732	)		5,468
Consumer, cyclical		5,818		1,481		(1,254	)		6,045
Consumer, non-cyclical		8,723		2,837		(762	)		10,798
Energy		2,517		9		(957	)		1,569
Financial		5,948		82		(1,250	)		4,780
Industrial		5,634		2,142		(560	)		7,216
Technology		6,411		4,148		(404	)		10,155
Utility		37		—		(5	)		32
Total equity securities		41,180		12,143		(6,181	)		47,142
Total investments	$	349,162	$	20,055	$	(11,456	)	$	357,761

	December 31, 2019
	Cost or Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
Fixed income securities:
U.S. Government and agencies	$	17,078	$	472	$	(4	)	$	17,546
Obligations of states and political subdivisions		55,232		1,511		(91	)		56,652
Corporate securities		109,457		3,772		(16	)		113,213
Residential mortgage-backed securities		50,458		1,050		(22	)		51,486
Commercial mortgage-backed securities		26,450		658		(51	)		27,057
Asset-backed securities		30,029		132		(170	)		29,991
Total fixed income securities		288,704		7,595		(354	)		295,945

Equity securities:
Basic materials		1,062		155		(7	)		1,210
Communications		4,823		2,342		(169	)		6,996
Consumer, cyclical		5,477		4,207		(72	)		9,612
Consumer, non-cyclical		7,483		5,255		(171	)		12,567
Energy		2,817		124		(485	)		2,456
Financial		5,059		905		(35	)		5,929
Industrial		5,293		4,023		(17	)		9,299
Technology		6,022		5,867		(26	)		11,863
Total equity securities		38,036		22,878		(982	)		59,932
Total investments	$	326,740	$	30,473	$	(1,336	)	$	355,877

Schedule of amortized cost and fair value of fixed income securities by contractual maturity

	March 31, 2020
	Amortized Cost		Fair Value
Due to mature:
One year or less	$	14,920	$	14,933
After one year through five years		96,793		98,330
After five years through ten years		54,366		55,110
After ten years		31,738		31,703
Mortgage / asset-backed securities		110,165		110,543
Total fixed income securities	$	307,982	$	310,619

	December 31, 2019
	Amortized Cost		Fair Value
Due to mature:
One year or less	$	19,567	$	19,663
After one year through five years		84,937		87,134
After five years through ten years		55,927		58,466
After ten years		21,336		22,148
Mortgage / asset-backed securities		106,937		108,534
Total fixed income securities	$	288,704	$	295,945

Schedule of unrealized loss of securities

The investment category and duration of the Company’s gross unrealized losses on fixed income securities and equity securities were as follows:

	March 31, 2020
	Less than 12 Months					Greater than 12 months					Total
	Fair Value		Unrealized Losses			Fair Value		Unrealized Losses			Fair Value		Unrealized Losses
Fixed income securities:
Obligations of states and political subdivisions	$	12,239	$	(302	)	$	—	$	—		$	12,239	$	(302	)
Corporate securities		37,453		(2,564	)		—		—			37,453		(2,564	)
Residential mortgage-backed securities		1,884		(220	)		—		—			1,884		(220	)
Commercial mortgage-backed securities		3,522		(48	)		—		—			3,522		(48	)
Asset-backed securities		21,643		(1,634	)		4,292		(507	)		25,935		(2,141	)
Total fixed income securities		76,741		(4,768	)		4,292		(507	)		81,033		(5,275	)

Equity securities:
Basic materials		532		(257	)		—		—			532		(257	)
Communications		2,129		(553	)		649		(179	)		2,778		(732	)
Consumer, cyclical		3,371		(1,139	)		114		(115	)		3,485		(1,254	)
Consumer, non-cyclical		3,439		(762	)		—		—			3,439		(762	)
Energy		647		(902	)		4		(55	)		651		(957	)
Financial		3,846		(1,250	)		—		—			3,846		(1,250	)
Industrial		2,558		(560	)		—		—			2,558		(560	)
Technology		1,666		(404	)		—		—			1,666		(404	)
Utility		37		(5	)		—		—			37		(5	)
Total equity securities		18,225		(5,832	)		767		(349	)		18,992		(6,181	)
Total investments	$	94,966	$	(10,600	)	$	5,059	$	(856	)	$	100,025	$	(11,456	)

	December 31, 2019
	Less than 12 Months					Greater than 12 months					Total
	Fair Value		Unrealized Losses			Fair Value		Unrealized Losses			Fair Value		Unrealized Losses
Fixed income securities:
U.S. Government and agencies	$	494	$	(4	)	$	—	$	—		$	494	$	(4	)
Obligations of states and political subdivisions		8,018		(91	)		—		—			8,018		(91	)
Corporate securities		2,066		(15	)		650		(1	)		2,716		(16	)
Residential mortgage-backed securities		2,911		(9	)		2,583		(13	)		5,494		(22	)
Commercial mortgage-backed securities		4,841		(35	)		653		(16	)		5,494		(51	)
Asset-backed securities		8,511		(96	)		7,686		(74	)		16,197		(170	)
Total fixed income securities		26,841		(250	)		11,572		(104	)		38,413		(354	)

Equity securities:
Basic materials		258		(7	)		—		—			258		(7	)
Communications		506		(—	)		658		(169	)		1,164		(169	)
Consumer, cyclical		595		(30	)		146		(42	)		741		(72	)
Consumer, non-cyclical		1,033		(171	)		—		—			1,033		(171	)
Energy		823		(432	)		6		(53	)		829		(485	)
Financial		393		(35	)		—		—			393		(35	)
Industrial		620		(17	)		—		—			620		(17	)
Technology		575		(26	)		—		—			575		(26	)
Total equity securities		4,803		(718	)		810		(264	)		5,613		(982	)
Total investments	$	31,644	$	(968	)	$	12,382	$	(368	)	$	44,026	$	(1,336	)

Schedule of net investment income

Net investment income consisted of the following:

	Three Months Ended March 31,
	2020		2019
Fixed income securities	$	2,309	$	1,976
Equity securities		325		224
Real estate		146		91
Cash and cash equivalents		20		17
Total gross investment income		2,800		2,308
Investment expenses		829		565
Net investment income	$	1,971	$	1,743

Schedule of net realized gain (loss) on investments

Net capital gain (loss) on investments consisted of the following:

	Three Months Ended March 31,
	2020			2019
Gross realized gains:
Fixed income securities	$	85		$	3
Equity securities		1,515			698
Total gross realized gains		1,600			701

Gross realized losses, excluding other-than-temporary impairment losses:
Fixed income securities		(23	)		(30	)
Equity securities		(562	)		(112	)
Total gross realized losses, excluding other-than-temporary impairment losses		(585	)		(142	)

Net realized gain on investments		1,015			559

Change in net unrealized gain on equity securities		(15,934	)		7,300
Net capital gain (loss) on investments	$	(14,919	)	$	7,859

Fair Value Measurements (Tables)

3 Months Ended

Mar. 31, 2020

Investments, All Other Investments [Abstract]

Schedule of Financial Instruments at Fair Value Measured on a Recurring Basis

The following tables set forth our assets which are measured on a recurring basis by the level within the fair value hierarchy in which fair value measurements fall:

	March 31, 2020
	Total		Level I		Level II		Level III
Fixed income securities:
U.S. Government and agencies	$	19,767	$	—	$	19,767	$	—
Obligations of states and political subdivisions		62,206		—		62,206		—
Corporate securities		118,103		—		118,103		—
Residential mortgage-backed securities		50,642		—		50,642		—
Commercial mortgage-backed securities		27,589		—		27,589		—
Asset-backed securities		32,312		—		32,312		—
Total fixed income securities		310,619		—		310,619		—

Equity securities:
Basic materials		1,079		1,079		—		—
Communications		5,468		5,468		—		—
Consumer, cyclical		6,045		6,045		—		—
Consumer, non-cyclical		10,798		10,798		—		—
Energy		1,569		1,569		—		—
Financial		4,780		4,780		—		—
Industrial		7,216		7,216		—		—
Technology		10,155		10,155
Utility		32		32		—		—
Total equity securities		47,142		47,142		—		—

Cash and cash equivalents		56,637		56,637		—		—
Total assets at fair value	$	414,398	$	103,779	$	310,619	$	—

	December 31, 2019
	Total		Level I		Level II		Level III
Fixed income securities:
U.S. Government and agencies	$	17,546	$	—	$	17,546	$	—
Obligations of states and political subdivisions		56,652		—		56,652		—
Corporate securities		113,213		—		113,213		—
Residential mortgage-backed securities		51,486		—		51,486		—
Commercial mortgage-backed securities		27,057		—		27,057		—
Asset-backed securities		29,991		—		29,991		—
Total fixed income securities		295,945		—		295,945		—

Equity securities:
Basic materials		1,210		1,210		—		—
Communications		6,996		6,996		—		—
Consumer, cyclical		9,612		9,612		—		—
Consumer, non-cyclical		12,567		12,567		—		—
Energy		2,456		2,456		—		—
Financial		5,929		5,929		—		—
Industrial		9,299		9,299		—		—
Technology		11,863		11,863		—		—
Total equity securities		59,932		59,932		—		—

Cash and cash equivalents		62,132		62,132		—		—
Total assets at fair value	$	418,009	$	122,064	$	295,945	$	—

Reinsurance (Tables)

3 Months Ended

Mar. 31, 2020

Reinsurance Disclosures [Abstract]

Schedule of reconciliation of direct to net premiums on both a written and an earned basis

A reconciliation of direct to net premiums on both a written and an earned basis is as follows:

	Three Months Ended March 31, 2020
	Premiums Written			Premiums Earned
Direct premium	$	62,972		$	62,393
Assumed premium		1,600			1,600
Ceded premium		(5,170	)		(5,221	)
Net premiums	$	59,402		$	58,772

Percentage of assumed earned premium to direct earned premium					2.6%

	Three Months Ended March 31, 2019
	Premiums Written			Premiums Earned
Direct premium	$	55,653		$	52,253
Assumed premium		1,029			1,026
Ceded premium		(2,773	)		(2,773	)
Net premiums	$	53,909		$	50,506

Percentage of assumed earned premium to direct earned premium					2.0%

Schedule of reconciliation of direct to net losses and loss adjustment expenses

A reconciliation of direct to net losses and loss adjustment expenses is as follows:

	Three Months Ended March 31,
	2020			2019
Direct losses and loss adjustment expenses	$	33,892		$	26,631
Assumed losses and loss adjustment expenses		308			443
Ceded losses and loss adjustment expenses		(3,778	)		(840	)
Net losses and loss adjustment expenses	$	30,422		$	26,234

Deferred Policy Acquisition Costs (Tables)

3 Months Ended

Mar. 31, 2020

Reinsurance Disclosures [Abstract]

Schedule of deferred policy acquisition costs

Activity with regards to our deferred policy acquisition costs was as follows:

	Three Months Ended March 31,
	2020			2019
Balance, beginning of period	$	15,399		$	12,866
Deferral of policy acquisition costs		13,152			11,147
Amortization of deferred policy acquisition costs		(9,387	)		(9,222	)
Balance, end of period	$	19,164		$	14,791

Unpaid Losses and Loss Adjustment Expenses (Tables)

3 Months Ended

Mar. 31, 2020

Liability for Unpaid Claims and Claims Adjustment Expense, Activity in Liability [Abstract]

Schedule of Activity in the liability for unpaid losses and loss adjustment expenses

Activity in the liability for unpaid losses and loss adjustment expenses is summarized as follows:

	Three Months Ended March 31,
	2020		2019
Balance at beginning of period:
Liability for unpaid losses and loss adjustment expenses	$	93,250	$	87,121
Reinsurance recoverables on losses		4,045		2,232
Net balance at beginning of period		89,205		84,889

Acquired unpaid losses and loss adjustment expenses related to:
Current year		—		—
Prior years		8,568		—
Total incurred		8,568		—

Incurred related to:
Current year		29,912		31,203
Prior years		510		(4,969	)
Total incurred		30,422		26,234

Paid related to:
Current year		12,532		11,064
Prior years		26,330		17,642
Total paid		38,862		28,706

Balance at end of period:
Liability for unpaid losses and loss adjustment expenses		97,400		85,560
Reinsurance recoverables on losses		8,067		3,143
Net balance at end of period	$	89,333	$	82,417

Property and Equipment (Tables)

3 Months Ended

Mar. 31, 2020

Reinsurance Disclosures [Abstract]

Schedule of Property and equipment

Property and equipment consisted of the following:

	March 31, 2020			December 31, 2019			Estimated Useful Life
Cost:
Real estate	$	15,014		$	12,733		10 - 31 years
Electronic data processing equipment		1,323			1,271		5-7 years
Furniture and fixtures		2,944			2,796		5-7 years
Automobiles		1,263			1,130		2-3 years
Gross cost		20,544			17,930

Accumulated depreciation		(10,424	)		(10,236	)
Total property and equipment, net	$	10,120		$	7,694

Goodwill and Other Intangibles (Tables)

3 Months Ended

Mar. 31, 2020

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Carrying Amount of Goodwill by Segment

The following table presents the carrying amount of the Company’s goodwill by segment:

	March 31, 2020		December 31, 2019
Non-standard auto from acquisition of Primero	$	2,628	$	2,628
Commercial from acquisition of Westminster		7,044		—
Total	$	9,672	$	2,628

Schedule of Carrying Amount of Other Intangible Assets

The following table presents the carrying amount of the Company’s other intangible assets:

March 31, 2020	Gross Carrying Amount		Accumulated Amortization		Net
Subject to amortization:
Trade names	$	748	$	91	$	657
Distribution network		6,700		93		6,607
Value of business acquired		4,177		1,762		2,415
Total subject to amortization		11,625		1,946		9,679

Not subject to amortization – state insurance licenses		1,900		—		1,900
Total	$	13,525	$	1,946	$	11,579

December 31, 2019	Gross Carrying Amount		Accumulated Amortization		Net
Subject to amortization:
Trade names	$	248	$	66	$	182
Other		20		18		2
Total subject to amortization		268		84		184

Not subject to amortization – state insurance license		100		—		100
Total	$	368	$	84	$	284

Related Party Transactions (Tables)

3 Months Ended

Mar. 31, 2020

Schedule of illustrates the impact of consolidating Battle Creek into our consolidated balance sheets prior to intercompany eliminations

The following table illustrates the impact of including Battle Creek in our Consolidated Balance Sheets prior to intercompany eliminations:

	March 31, 2020		December 31, 2019
Assets:
Cash and cash equivalents (overdraft)	$	1,280	$	(716	)
Investments		4,602		4,661
Premiums and agents’ balances receivable		4,608		4,801
Reinsurance recoverables on losses ⁽¹⁾		26,907		26,330
Accrued investment income		35		33
Deferred income tax asset, net		352		343
Property and equipment		346		348
Other assets		45		45
Total assets	$	38,175	$	35,845

Liabilities:
Unpaid losses and loss adjustment expenses	$	11,221	$	10,622
Unearned premiums		15,686		15,708
Notes payable ⁽¹⁾		3,000		3,000
Reinsurance premiums payable ⁽¹⁾		824		1,706
Accrued expenses and other liabilities		3,985		1,310
Total liabilities		34,716		32,346

Equity:
Non-controlling interest		3,459		3,499
Total equity		3,459		3,499

Total liabilities and equity	$	38,175	$	35,845

(1) Amount eliminated in consolidation.

Operating Leases (Tables)

3 Months Ended

Mar. 31, 2020

Operating Leases Tables Abstract

Schedule of Minimum Future Commitments Under Non-Cancellable Leases

As of March 31, 2020, we have minimum future commitments under non-cancellable leases as follows:

Year ending December 31,	Estimated Future Minimum Commitments
2020	$	281
2021		249
2022		319
2023		358
2024		320
Thereafter		1,353

Common Stock (Tables)

3 Months Ended

Mar. 31, 2020

Common Stock Tables Abstract

Schedule of number of common stock shares

Changes in the number of common stock shares outstanding are as follows:

	Three Months Ended March 31,
	2020			2019
Shares outstanding, beginning of period		22,119,380			22,192,894
Treasury shares repurchased through stock repurchase authorization		(123,264	)		(100	)
Issuance of treasury shares for vesting of restricted stock units		19,042			16,705
Shares outstanding, end of period		22,015,158			22,209,499

Stock Based Compensation (Tables)

3 Months Ended

Mar. 31, 2020

Share-based Payment Arrangement [Abstract]

Schedule of Restricted Stock Outstanding

A summary of the Company’s outstanding and unearned restricted stock units is presented below:

	RSUs			Weighted-Average Grant-Date Fair Value Per Share
Units outstanding and unearned at January 1, 2019		73,880		$	16.87
RSUs granted during 2019		57,100			15.81
RSUs earned during 2019		(34,440	)		16.24
Units outstanding and unearned at December 31, 2019		96,540		$	16.47

RSUs granted during 2020		42,600			14.26
RSUs earned during 2020		(31,260	)		15.79
Units outstanding and unearned at March 31, 2020		107,880		$	15.79

Schedule of RSU activity

The following table shows the impact of RSU activity to the Company’s financial results:

	Three Months Ended March 31,
	2020			2019
RSU compensation expense	$	420		$	319
Income tax benefit		(88	)		(67	)
RSU compensation expense, net of income taxes	$	332		$	252

Schedule of Performance Stock Outstanding

A summary of the Company’s outstanding performance share units is presented below:

	PSUs		Weighted-Average Grant-Date Fair Value Per Share
Units outstanding at January 1, 2019		48,600	$	16.25
PSUs granted during 2019 (at target)		62,400		15.21
Units outstanding at December 31, 2019		111,000	$	15.27

PSUs granted during 2020 (at target)		63,600		14.26
Units outstanding at March 31, 2020		174,600	$	15.15

Schedule of PSU activity

The following table shows the impact of PSU activity to the Company’s financial results:

	Three Months Ended March 31,
	2020			2019
PSU compensation expense	$	293		$	297
Income tax benefit		(62	)		(62	)
PSU compensation expense, net of income taxes	$	231		$	235

Earnings Per Share (Tables)

3 Months Ended

Mar. 31, 2020

Earnings Per Share [Abstract]

Schedule of reconciliation of the numerators and denominators we used in the basic and diluted per share

The following table presents a reconciliation of the numerators and denominators we used in the basic and diluted per share computations for our common stock:

	Three Months Ended March 31,
	2020			2019
Basic earnings (loss) per common share:
Numerator:
Net income (loss) attributable to NI Holdings, Inc.	$	(3,587	)	$	13,773
Denominator:
Weighted average shares outstanding		22,218,073			22,228,630
Basic earnings (loss) per common share	$	(0.16	)	$	0.62

Diluted earnings (loss) per common share:
Numerator:
Net income (loss) attributable to NI Holdings, Inc.	$	(3,587	)	$	13,773
Denominator:
Number of shares used in basic computation		22,218,073			22,228,630
Weighted average effect of dilutive securities
Add: RSUs and PSUs		121,251			50,149
Number of shares used in diluted computation		22,339,324			22,278,779
Diluted earnings (loss) per common share	$	(0.16	)	$	0.62

Segment Information (Tables)

3 Months Ended

Mar. 31, 2020

Income Tax Disclosure [Abstract]

Schedule of revenue by insurance product line

	Three Months Ended March 31, 2020
	Private Passenger Auto			Non-Standard Auto			Home and Farm			Crop			Commercial			All Other			Total
Direct premiums earned	$	18,397		$	13,194		$	20,158		$	(5	)	$	9,505		$	1,144		$	62,393
Assumed premiums earned		—			—			—			—			—			1,600			1,600
Ceded premiums earned		(1,098	)		(43	)		(2,537	)		184			(1,652	)		(75	)		(5,221	)
Net premiums earned		17,299			13,151			17,621			179			7,853			2,669			58,772

Direct losses and LAE		11,129			5,940			7,668			2,811			5,919			425			33,892
Assumed losses and LAE		—			—			—			—			—			308			308
Ceded losses and LAE		—			—			(1,130	)		(444	)		(2,204	)		—			(3,778	)
Net losses and LAE		11,129			5,940			6,538			2,367			3,715			733			30,422

Gross margin		6,170			7,211			11,083			(2,188	)		4,138			1,936			28,350

Underwriting and general expenses		4,810			5,197			4,889			702			3,929			632			20,159
Underwriting gain (loss)		1,360			2,014			6,194			(2,890	)		209			1,304			8,191

Fee and other income					329															362
					2,343
Net investment income																				1,971
Net capital loss on investments																				(14,919	)
Loss before income taxes																				(4,395	)
Income taxes																				(840	)
Net loss																				(3,555	)
Net income attributable to non-controlling interest																				32
Net loss attributable to NI Holdings, Inc.																				(3,587	)

Non-GAAP Ratios:
Loss and LAE ratio		64.3%			45.2%			37.1%			n/a			47.3%			27.5%			51.8%
Expense ratio		27.8%			39.5%			27.7%			n/a			50.0%			23.7%			34.3%
Combined ratio		92.1%			84.7%			64.8%			n/a			97.3%			51.1%			86.1%


Balances at March 31, 2020:
Premiums and agents’ balances receivable	$	18,657		$	10,557		$	9,204		$	—		$	9,254		$	611		$	48,283
Deferred policy acquisition costs		5,175			4,952			7,124			—			1,504			409			19,164
Reinsurance recoverables		500			—			2,060			600			3,434			1,473			8,067
Receivable from Federal Crop Insurance Corporation		—			—			—			5,240			—			—			5,240
Goodwill and other intangibles		—			2,897			—			—			18,354			—			21,251

Unpaid losses and LAE		19,952			42,000			10,401			3,945			12,248			8,854			97,400
Unearned premiums		28,426			17,260			39,542			—			18,444			2,738			106,410

	Three Months Ended March 31, 2019
	Private Passenger Auto			Non-Standard Auto		Home and Farm			Crop			Commercial			All Other			Total
Direct premiums earned	$	16,944		$	14,591	$	18,533		$	12		$	1,107		$	1,066		$	52,253
Assumed premiums earned		4			—		(4	)		—			—			1,026			1,026
Ceded premiums earned		(856	)		—		(1,740	)		(1	)		(118	)		(58	)		(2,773	)
Net premiums earned		16,092			14,591		16,789			11			989			2,034			50,506

Direct losses and LAE		10,102			7,156		8,256			(486	)		320			1,283			26,631
Assumed losses and LAE		49			—		—			—			—			394			443
Ceded losses and LAE		(46	)		—		(254	)		460			—			(1,000	)		(840	)
Net losses and LAE		10,105			7,156		8,002			(26	)		320			677			26,234

Gross margin		5,987			7,435		8,787			37			669			1,357			24,272

Underwriting and general expenses		4,750			5,478		5,202			331			314			619			16,694
Underwriting gain (loss)		1,237			1,957		3,585			(294	)		355			738			7,578

Fee and other income					470														464
					2,427
Net investment income																			1,743
Net capital gain on investments																			7,859
Loss before income taxes																			17,644
Income taxes																			3,848
Net loss																			13,796
Net income attributable to non-controlling interest																			23
Net loss attributable to NI Holdings, Inc.																			13,773

Non-GAAP Ratios:
Loss and LAE ratio		62.8%			49.0%		47.7%			n/a			32.4%			33.3%			51.9%
Expense ratio		29.5%			37.5%		31.0%			n/a			31.7%			30.4%			33.1%
Combined ratio		92.3%			86.6%		78.6%			n/a			64.1%			63.7%			85.0%


Balances at March 31, 2019:
Premiums and agents’ balances receivable	$	17,561		$	9,978	$	9,424		$	12		$	964		$	563		$	38,502
Deferred policy acquisition costs		3,925			4,816		5,452			—			—			598			14,791
Reinsurance recoverables		177			—		916			108			(28	)		1,970			3,143
Receivable from Federal Crop Insurance Corporation		—			—		—			14,282			—			—			14,282
Goodwill and other intangibles		—			3,488		—			—			—			—			3,488

Unpaid losses and LAE		17,737			46,641		12,061			621			852			7,648			85,560
Unearned premiums		27,110			18,845		37,476			—			2,141			2,599			88,171

Organization (Details) - Nodak Insurance [Member]	3 Months Ended
Organization (Details) - Nodak Insurance [Member]	Mar. 31, 2020
Percentage of shares exchanged	55.00%
Percentage of quota share agreement	100.00%

Summary of Significant Accounting Policies (Narrative) (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Other invested assets	$ 2,583	$ 1,914
Federal Deposit Insurance Corporation amount	250
Short-term investment balances in investment that are insured by SIPC	$ 500
Nodak Insurance [Member]
Ownership percentage	100.00%
Battle Creek [Member]
Ownership percentage	100.00%

Acquisition of Westminster American Insurance Company (Narrative) (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2020 USD ($) Number	Mar. 31, 2019 USD ($)	Jan. 02, 2020	Dec. 31, 2019 USD ($)	Sep. 30, 2019 USD ($)
Business Acquisition [Line Items]
Revenue contribution	$ 46,186	$ 60,572
Net loss	(3,555)	$ 13,796
Westminster American Insurance Company [Member]
Business Acquisition [Line Items]
Ownership percentage in acquisition			100.00%
Revenue contribution	6,329
Net loss	158
Acquisition related costs incurred	828			$ 83	$ 83
Additional acquisition of entity	$ 20,000
Number of installments \| Number	3

- Definition

The consolidated profit or loss for the period, net of income taxes, including the portion attributable to the noncontrolling interest.

+ References

+ Details

- Definition

Amount of revenue recognized from goods sold, services rendered, insurance premiums, or other activities that constitute an earning process. Includes, but is not limited to, investment and interest income before deduction of interest expense when recognized as a component of revenue, and sales and trading gain (loss).

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 22
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8736-108599

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 323
-SubTopic 10
-Section 50
-Paragraph 3
-Subparagraph (c)
-URI http://asc.fasb.org/extlink&oid=114001798&loc=d3e33918-111571

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 825
-SubTopic 10
-Section 50
-Paragraph 28
-Subparagraph (f)
-URI http://asc.fasb.org/extlink&oid=75031198&loc=d3e14064-108612

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 22
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8736-108599

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 40
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Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
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-Paragraph 30
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8906-108599

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
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Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
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Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
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Reference 12: http://www.xbrl.org/2003/role/disclosureRef
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-Topic 942
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-Section S99
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Reference 13: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section S99
-Paragraph 2
-Subparagraph (SX 210.5-03(1))
-URI http://asc.fasb.org/extlink&oid=120395209&loc=SL114868664-224227

+ Details

Acquisition of Westminster American Insurance Company (Schedule of Proforma Information of Business Combination) (Details) - Westminster American Insurance Company [Member] - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Business Acquisition [Line Items]
Revenues	$ 46,186	$ 65,757
Net income (loss) attributable to NI Holdings, Inc.	$ (2,598)	$ 12,375
Basic earnings (loss) per share attributable to NI Holdings, Inc.	$ (0.12)	$ 0.56

Acquisition of Westminster American Insurance Company (Schedule of Assets Acquired and Liabilities Assumed) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Dec. 31, 2019
Identifiable net assets:
Goodwill	$ 9,672	$ 2,628
Westminster American Insurance Company [Member]
Fair Value of Consideration:
Cash consideration transferred	20,000
Present value of future cash consideration	18,787
Total cash consideration transferred	38,787
Identifiable net assets:
Cash and cash equivalents	19,297
Fixed income securities, at fair value	12,353
Equity securities, at fair value	2,705
Other investments	735
Premiums and agents' balances receivable	8,507
Reinsurance recoverables on losses	763
Accrued investment income	70
Property and equipment	2,304
Federal income tax recoverable	138
State insurance licenses (included in goodwill and other intangibles)	1,800
Distribution network (included in goodwill and other intangibles)	6,700
Trade name (included in goodwill and other intangibles)	500
Value of business acquired (included in goodwill and other intangibles)	4,177
Other assets	76
Unpaid losses and loss adjustment expenses	(8,568)
Unearned premiums	(16,611)
Deferred income taxes, net	(1,506)
Reinsurance premiums payable	(565)
Accrued expenses and other liabilities	(1,132)
Total identifiable net assets	31,743
Goodwill	$ 7,044

Recent Accounting Pronouncements (Narrative) (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2020 USD ($)
Recent Accounting Pronouncements Narrative
Pre-tax unrealized net capital gains	$ 8,184

Investments (Narrative) (Details) $ in Thousands	3 Months Ended
Investments (Narrative) (Details) $ in Thousands	Mar. 31, 2020 USD ($)	Dec. 31, 2019 USD ($)
Investments [Abstract]
Fixed income securities with a fair value	$ 6,028	$ 5,585
Percentage of fixed maturities amortized cost values	80.00%
Fixed income securities [Member]
Investments [Abstract]
Number of securities	214	88

Investments (Schedule of amortized cost and estimated fair value of investment securities) (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Cost or Amortized Cost	$ 349,162	$ 326,740
Gross Unrealized Gains	20,055	30,473
Gross Unrealized Losses	(11,456)	(1,336)
Fair Value	357,761	355,877
Fixed income securities [Member]
Cost or Amortized Cost	307,982	288,704
Gross Unrealized Gains	7,912	7,595
Gross Unrealized Losses	(5,275)	(354)
Fair Value	310,619	295,945
Fixed income securities [Member] \| U.S. Government and agencies [Member]
Cost or Amortized Cost	18,594	17,078
Gross Unrealized Gains	1,173	472
Gross Unrealized Losses		(4)
Fair Value	19,767	17,546
Fixed income securities [Member] \| Obligations of states and political subdivisions [Member]
Cost or Amortized Cost	61,010	55,232
Gross Unrealized Gains	1,498	1,511
Gross Unrealized Losses	(302)	(91)
Fair Value	62,206	56,652
Fixed income securities [Member] \| Corporate securities [Member]
Cost or Amortized Cost	118,213	109,457
Gross Unrealized Gains	2,454	3,772
Gross Unrealized Losses	(2,564)	(16)
Fair Value	118,103	113,213
Fixed income securities [Member] \| Residential mortgage-backed securities [Member]
Cost or Amortized Cost	48,954	50,458
Gross Unrealized Gains	1,908	1,050
Gross Unrealized Losses	(220)	(22)
Fair Value	50,642	51,486
Fixed income securities [Member] \| Commercial mortgage-backed securities [Member]
Cost or Amortized Cost	26,817	26,450
Gross Unrealized Gains	820	658
Gross Unrealized Losses	(48)	(51)
Fair Value	27,589	27,057
Fixed income securities [Member] \| Asset backed securities [Member]
Cost or Amortized Cost	34,394	30,029
Gross Unrealized Gains	59	132
Gross Unrealized Losses	(2,141)	(170)
Fair Value	32,312	29,991
Equity Securities [Member]
Cost or Amortized Cost	41,180	38,036
Gross Unrealized Gains	12,143	22,878
Gross Unrealized Losses	(6,181)	(982)
Fair Value	47,142	59,932
Equity Securities [Member] \| Basic materials [Member]
Cost or Amortized Cost	1,331	1,062
Gross Unrealized Gains	5	155
Gross Unrealized Losses	(257)	(7)
Fair Value	1,079	1,210
Equity Securities [Member] \| Communications [Member]
Cost or Amortized Cost	4,761	4,823
Gross Unrealized Gains	1,439	2,342
Gross Unrealized Losses	(732)	(169)
Fair Value	5,468	6,996
Equity Securities [Member] \| Consumer, cyclical [Member]
Cost or Amortized Cost	5,818	5,477
Gross Unrealized Gains	1,481	4,207
Gross Unrealized Losses	(1,254)	(72)
Fair Value	6,045	9,612
Equity Securities [Member] \| Consumer, non-cyclical [Member]
Cost or Amortized Cost	8,723	7,483
Gross Unrealized Gains	2,837	5,255
Gross Unrealized Losses	(762)	(171)
Fair Value	10,798	12,567
Equity Securities [Member] \| Energy [Member]
Cost or Amortized Cost	2,517	2,817
Gross Unrealized Gains	9	124
Gross Unrealized Losses	(957)	(485)
Fair Value	1,569	2,456
Equity Securities [Member] \| Financial [Member]
Cost or Amortized Cost	5,948	5,059
Gross Unrealized Gains	82	905
Gross Unrealized Losses	(1,250)	(35)
Fair Value	4,780	5,929
Equity Securities [Member] \| Industrial [Member]
Cost or Amortized Cost	5,634	5,293
Gross Unrealized Gains	2,142	4,023
Gross Unrealized Losses	(560)	(17)
Fair Value	7,216	9,299
Equity Securities [Member] \| Technology [Member]
Cost or Amortized Cost	6,411	6,022
Gross Unrealized Gains	4,148	5,867
Gross Unrealized Losses	(404)	(26)
Fair Value	10,155	$ 11,863
Equity Securities [Member] \| Utility [Member]
Cost or Amortized Cost	37
Gross Unrealized Gains
Gross Unrealized Losses	(5)
Fair Value	$ 32

Investments (Schedule of Fixed Maturities) (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Marketable Securities [Abstract]
Amortized Cost, Due to mature One year or less	$ 14,920	$ 19,567
Amortized Cost, Due to mature After one year through five years	96,793	84,937
Amortized Cost, Due to mature After five years through ten years	54,366	55,927
Amortized Cost, Due to mature After ten years	31,738	21,336
Amortized Cost, Due to mature Mortgage/asset-backed securities	110,165	106,937
Available-for-sale Securities, Debt Maturities, Amortized Cost	307,982	288,704
Fair Value, Due to mature One year or less	14,933	19,663
Fair Value, Due to mature After one year through five years	98,330	87,134
Fair Value, Due to mature After five years through ten years	55,110	58,466
Fair Value, Due to mature After ten years	31,703	22,148
Fair Value, Due to mature Mortgage/asset-backed securities	110,543	108,534
Available-for-sale Securities, Debt Securities, Estimated Fair Value	$ 310,619	$ 295,945

Investments (Schedule of aggregate fair value and unrealized loss) (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Less than 12 months Fair Value	$ 94,966	$ 31,644
Less than 12 months Unrealized Losses	(10,600)	(968)
Greater than 12 months Fair Value	5,059	12,382
Greater than 12 months Unrealized Losses	(856)	(368)
Fair Value, Total	100,025	44,026
Unrealized Losses, Total	(11,456)	(1,336)
Fixed income securities [Member]
Less than 12 months Fair Value	76,741	26,841
Less than 12 months Unrealized Losses	(4,768)	(250)
Greater than 12 months Fair Value	4,292	11,572
Greater than 12 months Unrealized Losses	(507)	(104)
Fair Value, Total	81,033	38,413
Unrealized Losses, Total	(5,275)	(354)
Fixed income securities [Member] \| Obligations of states and political subdivisions [Member]
Less than 12 months Fair Value	12,239	8,018
Less than 12 months Unrealized Losses	(302)	(91)
Greater than 12 months Fair Value
Greater than 12 months Unrealized Losses
Fair Value, Total	12,239	8,018
Unrealized Losses, Total	(302)	(91)
Fixed income securities [Member] \| Corporate securities [Member]
Less than 12 months Fair Value	37,453	2,066
Less than 12 months Unrealized Losses	(2,564)	(15)
Greater than 12 months Fair Value		650
Greater than 12 months Unrealized Losses		(1)
Fair Value, Total	37,453	2,716
Unrealized Losses, Total	(2,564)	(16)
Fixed income securities [Member] \| Residential mortgage-backed securities [Member]
Less than 12 months Fair Value	1,884	2,911
Less than 12 months Unrealized Losses	(220)	(9)
Greater than 12 months Fair Value		2,583
Greater than 12 months Unrealized Losses		(13)
Fair Value, Total	1,884	5,494
Unrealized Losses, Total	(220)	(22)
Fixed income securities [Member] \| Commercial mortgage-backed securities [Member]
Less than 12 months Fair Value	3,522	4,841
Less than 12 months Unrealized Losses	(48)	(35)
Greater than 12 months Fair Value		653
Greater than 12 months Unrealized Losses		(16)
Fair Value, Total	3,522	5,494
Unrealized Losses, Total	(48)	(51)
Fixed income securities [Member] \| Asset backed securities [Member]
Less than 12 months Fair Value	21,643	8,511
Less than 12 months Unrealized Losses	(1,634)	(96)
Greater than 12 months Fair Value	4,292	7,686
Greater than 12 months Unrealized Losses	(407)	(74)
Fair Value, Total	25,935	16,197
Unrealized Losses, Total	(2,141)	(170)
Fixed income securities [Member] \| U.S. Government and agencies [Member]
Less than 12 months Fair Value		494
Less than 12 months Unrealized Losses		(4)
Greater than 12 months Fair Value
Greater than 12 months Unrealized Losses
Fair Value, Total		494
Unrealized Losses, Total		(4)
Equity Securities [Member]
Less than 12 months Fair Value	18,225	4,803
Less than 12 months Unrealized Losses	(5,832)	(718)
Greater than 12 months Fair Value	767	810
Greater than 12 months Unrealized Losses	(349)	(264)
Fair Value, Total	18,992	5,613
Unrealized Losses, Total	(6,181)	(982)
Equity Securities [Member] \| Basic materials [Member]
Less than 12 months Fair Value	532	258
Less than 12 months Unrealized Losses	(257)	(7)
Greater than 12 months Fair Value
Greater than 12 months Unrealized Losses
Fair Value, Total	532	258
Unrealized Losses, Total	(257)	(7)
Equity Securities [Member] \| Communications [Member]
Less than 12 months Fair Value	2,129	506
Less than 12 months Unrealized Losses	(553)
Greater than 12 months Fair Value	649	658
Greater than 12 months Unrealized Losses	(179)	(169)
Fair Value, Total	2,778	1,164
Unrealized Losses, Total	(732)	(169)
Equity Securities [Member] \| Consumer, cyclical [Member]
Less than 12 months Fair Value	3,371	595
Less than 12 months Unrealized Losses	(1,139)	(30)
Greater than 12 months Fair Value	114	146
Greater than 12 months Unrealized Losses	(115)	(42)
Fair Value, Total	3,485	741
Unrealized Losses, Total	(1,254)	(72)
Equity Securities [Member] \| Consumer, non-cyclical [Member]
Less than 12 months Fair Value	3,439	1,033
Less than 12 months Unrealized Losses	(762)	(171)
Greater than 12 months Fair Value
Greater than 12 months Unrealized Losses
Fair Value, Total	3,439	1,033
Unrealized Losses, Total	(762)	(171)
Equity Securities [Member] \| Energy [Member]
Less than 12 months Fair Value	647	823
Less than 12 months Unrealized Losses	(902)	(432)
Greater than 12 months Fair Value	4	6
Greater than 12 months Unrealized Losses	(55)	(53)
Fair Value, Total	651	829
Unrealized Losses, Total	(957)	(485)
Equity Securities [Member] \| Financial [Member]
Less than 12 months Fair Value	3,846	393
Less than 12 months Unrealized Losses	(1,250)	(35)
Greater than 12 months Fair Value
Greater than 12 months Unrealized Losses
Fair Value, Total	3,846	393
Unrealized Losses, Total	(1,250)	(35)
Equity Securities [Member] \| Industrial [Member]
Less than 12 months Fair Value	2,558	620
Less than 12 months Unrealized Losses	(560)	(17)
Greater than 12 months Fair Value
Greater than 12 months Unrealized Losses
Fair Value, Total	2,558	620
Unrealized Losses, Total	(560)	(17)
Equity Securities [Member] \| Technology [Member]
Less than 12 months Fair Value	1,666	575
Less than 12 months Unrealized Losses	(404)	(26)
Greater than 12 months Fair Value
Greater than 12 months Unrealized Losses
Fair Value, Total	1,666	575
Unrealized Losses, Total	(404)	$ (26)
Equity Securities [Member] \| Utility [Member]
Less than 12 months Fair Value	37
Less than 12 months Unrealized Losses	(5)
Greater than 12 months Fair Value
Greater than 12 months Unrealized Losses
Fair Value, Total	37
Unrealized Losses, Total	$ (5)

Investments (Schedule of Net Investment Income) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Total gross investment income	$ 2,800	$ 2,308
Investment expenses	829	565
Net investment income	1,971	1,743
Fixed income securities [Member]
Total gross investment income	2,309	1,976
Equity Securities [Member]
Total gross investment income	325	224
Real estate [Member]
Total gross investment income	146	91
Cash and Cash Equivalents [Member]
Total gross investment income	$ 20	$ 17

Investments (Schedule of components of Net realized capital gains on investments) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Gross realized gains	$ 1,600	$ 701
Gross realized losses, excluding other-than-temporary impairment losses	(585)	(142)
Net realized gain on investments	1,015	559
Change in net unrealized gain on equity securities	(15,934)	7,300
Net capital gain (loss) on investments	(14,919)	7,859
Fixed income securities [Member]
Gross realized gains	85	3
Gross realized losses, excluding other-than-temporary impairment losses	(23)	(30)
Equity Securities [Member]
Gross realized gains	1,515	698
Gross realized losses, excluding other-than-temporary impairment losses	$ (562)	$ (112)

Fair Value Measurements (Schedule of assets, which are measured on a recurring basis) (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019	Mar. 31, 2019	Dec. 31, 2018
Total fixed income securities	$ 310,619	$ 295,945
Total equity securities	47,142	59,932
Cash and cash equivalents	56,637	62,132	$ 70,127	$ 68,950
Total assets at fair value	414,398	418,009
U.S. Government and agencies [Member]
Total fixed income securities	19,767	17,546
Obligations of states and political subdivisions [Member]
Total fixed income securities	62,206	56,652
Corporate securities [Member]
Total fixed income securities	118,103	113,213
Residential mortgage-backed securities [Member]
Total fixed income securities	50,642	51,486
Commercial mortgage-backed securities [Member]
Total fixed income securities	27,589	27,057
Asset backed securities [Member]
Total fixed income securities	32,312	29,991
Basic materials [Member]
Total equity securities	1,079	1,210
Communications [Member]
Total equity securities	5,468	6,996
Consumer, cyclical [Member]
Total equity securities	6,045	9,612
Consumer, non-cyclical [Member]
Total equity securities	10,798	12,567
Energy [Member]
Total equity securities	1,569	2,456
Financial [Member]
Total equity securities	4,780	5,929
Industrial [Member]
Total equity securities	7,216	9,299
Technology [Member]
Total equity securities	10,155	11,863
Utility [Member]
Total equity securities	32
Level I [Member]
Total fixed income securities
Total equity securities	47,142	59,932
Cash and cash equivalents	56,637	62,132
Total assets at fair value	103,779	122,064
Level I [Member] \| U.S. Government and agencies [Member]
Total fixed income securities
Level I [Member] \| Obligations of states and political subdivisions [Member]
Total fixed income securities
Level I [Member] \| Corporate securities [Member]
Total fixed income securities
Level I [Member] \| Residential mortgage-backed securities [Member]
Total fixed income securities
Level I [Member] \| Commercial mortgage-backed securities [Member]
Total fixed income securities
Level I [Member] \| Asset backed securities [Member]
Total fixed income securities
Level I [Member] \| Basic materials [Member]
Total equity securities	1,079	1,210
Level I [Member] \| Communications [Member]
Total equity securities	5,468	6,996
Level I [Member] \| Consumer, cyclical [Member]
Total equity securities	6,045	9,612
Level I [Member] \| Consumer, non-cyclical [Member]
Total equity securities	10,798	12,567
Level I [Member] \| Energy [Member]
Total equity securities	1,569	2,456
Level I [Member] \| Financial [Member]
Total equity securities	4,780	5,929
Level I [Member] \| Industrial [Member]
Total equity securities	7,216	9,299
Level I [Member] \| Technology [Member]
Total equity securities	10,155	11,863
Level I [Member] \| Utility [Member]
Total equity securities	32
Level II [Member]
Total fixed income securities	310,619	295,945
Total equity securities
Cash and cash equivalents
Total assets at fair value	310,619	295,945
Level II [Member] \| U.S. Government and agencies [Member]
Total fixed income securities	19,767	17,546
Level II [Member] \| Obligations of states and political subdivisions [Member]
Total fixed income securities	62,206	56,652
Level II [Member] \| Corporate securities [Member]
Total fixed income securities	118,103	113,213
Level II [Member] \| Residential mortgage-backed securities [Member]
Total fixed income securities	50,642	51,486
Level II [Member] \| Commercial mortgage-backed securities [Member]
Total fixed income securities	27,589	27,057
Level II [Member] \| Asset backed securities [Member]
Total fixed income securities	32,312	29,991
Level II [Member] \| Basic materials [Member]
Total equity securities
Level II [Member] \| Communications [Member]
Total equity securities
Level II [Member] \| Consumer, cyclical [Member]
Total equity securities
Level II [Member] \| Consumer, non-cyclical [Member]
Total equity securities
Level II [Member] \| Energy [Member]
Total equity securities
Level II [Member] \| Financial [Member]
Total equity securities
Level II [Member] \| Industrial [Member]
Total equity securities
Level II [Member] \| Technology [Member]
Total equity securities
Level II [Member] \| Utility [Member]
Total equity securities
Level III [Member]
Total fixed income securities
Total equity securities
Cash and cash equivalents
Total assets at fair value
Level III [Member] \| U.S. Government and agencies [Member]
Total fixed income securities
Level III [Member] \| Obligations of states and political subdivisions [Member]
Total fixed income securities
Level III [Member] \| Corporate securities [Member]
Total fixed income securities
Level III [Member] \| Residential mortgage-backed securities [Member]
Total fixed income securities
Level III [Member] \| Commercial mortgage-backed securities [Member]
Total fixed income securities
Level III [Member] \| Asset backed securities [Member]
Total fixed income securities
Level III [Member] \| Basic materials [Member]
Total equity securities
Level III [Member] \| Communications [Member]
Total equity securities
Level III [Member] \| Consumer, cyclical [Member]
Total equity securities
Level III [Member] \| Consumer, non-cyclical [Member]
Total equity securities
Level III [Member] \| Energy [Member]
Total equity securities
Level III [Member] \| Financial [Member]
Total equity securities
Level III [Member] \| Industrial [Member]
Total equity securities
Level III [Member] \| Technology [Member]
Total equity securities
Level III [Member] \| Utility [Member]
Total equity securities

Reinsurance (Narrative) (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
Reinsurance (Narrative) (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Reinsurance Disclosures [Abstract]
Reinsurance Retention Policy, Amount Retained	$ 10,000	$ 10,000
Reinsurance Retention Policy, Excess Retention, Amount Reinsured	97,000	78,600
Retained risk amount	$ 10,000	$ 10,000
Ceded reinsurance commission percentage	100.00%	100.00%

Reinsurance (Schedule of reconciliation of direct to net premiums on both a written and an earned basis) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Premiums Written
Direct premium	$ 62,972	$ 55,653
Assumed premium	1,600	1,029
Ceded premium	(5,170)	(2,773)
Net premiums	59,402	53,909
Premiums Earned
Direct premium	62,393	52,253
Assumed premium	1,600	1,026
Ceded premium	(5,221)	(2,773)
Net premiums	$ 58,772	$ 50,506
Percentage of assumed earned premium to direct earned premium	2.60%	2.00%

Reinsurance (Schedule of reconciliation of direct to net losses and loss adjustment expenses) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Reinsurance Disclosures [Abstract]
Direct losses and loss adjustment expenses	$ 33,892	$ 26,631
Assumed losses and loss adjustment expenses	308	443
Ceded losses and loss adjustment expenses	(3,778)	(840)
Net losses and loss adjustment expenses	$ 30,422	$ 26,234

Deferred Policy Acquisition Costs (Schedule of deferred policy acquisition costs) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Deferred Policy Acquisition Costs Disclosures [Abstract]
Balance, beginning of period	$ 15,399	$ 12,866
Deferral of policy acquisition costs	13,152	11,147
Amortization of deferred policy acquisition costs	(9,387)	(9,222)
Balance, end of period	$ 19,164	$ 14,791

- Definition

Amount of amortization expense (reversal of expense) for deferred policy acquisition costs.

+ References + Details

Unpaid Losses and Loss Adjustment Expenses (Schedule of liability for unpaid losses and loss adjustment expenses) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Liability for Unpaid Claims and Claims Adjustment Expense, Activity in Liability [Abstract]
Liability for unpaid losses and loss adjustment expenses	$ 93,250	$ 87,121
Reinsurance recoverables on losses	4,045	2,232
Net balance at beginning of period	89,205	84,889
Acquired unpaid losses and loss adjustment expenses related to:
Current year
Prior years	8,568
Total incurred	8,568
Incurred related to:
Current year	29,912	31,203
Prior years	510	(4,969)
Total Incurred	30,422	26,234
Paid related to:
Current year	12,532	11,064
Prior years	26,330	17,642
Total paid	38,862	28,706
Liability for unpaid losses and loss adjustment expenses	97,400	85,560
Reinsurance recoverables on losses	8,067	3,143
Net balance at end of period	$ 89,333	$ 82,417

Property and Equipment (Details) - USD ($) $ in Thousands	3 Months Ended
Property and Equipment (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Mar. 31, 2019	Dec. 31, 2019
Cost:	$ 20,544		$ 17,930
Accumulated depreciation	(10,424)		(10,236)
Total property and equipment, net	10,120		7,694
Depreciation expense	187	$ 142
Real estate [Member]
Cost:	$ 15,014		12,733
Real estate [Member] \| Minimum [Member]
Estimated Useful Life	10 years
Real estate [Member] \| Maximum [Member]
Estimated Useful Life	31 years
Electronic data processing equipment [Member]
Cost:	$ 1,323		1,271
Electronic data processing equipment [Member] \| Minimum [Member]
Estimated Useful Life	5 years
Electronic data processing equipment [Member] \| Maximum [Member]
Estimated Useful Life	7 years
Furniture and Fixtures [Member]
Cost:	$ 2,944		2,796
Furniture and Fixtures [Member] \| Minimum [Member]
Estimated Useful Life	5 years
Furniture and Fixtures [Member] \| Maximum [Member]
Estimated Useful Life	7 years
Automobiles [Member]
Cost:	$ 1,263		$ 1,130
Automobiles [Member] \| Minimum [Member]
Estimated Useful Life	2 years
Automobiles [Member] \| Maximum [Member]
Estimated Useful Life	3 years

Goodwill and Other Intangibles (Schedule of Carrying Amount of Goodwill by Segment) (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Goodwill [Line Items]
Goodwill	$ 9,672	$ 2,628
Primero Insurance Company [Member]
Goodwill [Line Items]
Goodwill	2,628	2,628
Westminster American Insurance Company [Member]
Goodwill [Line Items]
Goodwill	$ 7,044

Goodwill and Other Intangibles (Schedule of Carrying Amount of Other Intangible Assets) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019	Dec. 31, 2019
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	$ 13,525		$ 368
Accumulated Amortization	1,946		84
Net	11,579		284
Amortization expense	1,882	$ 1,135
Trade Names [Member]
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	748		248
Accumulated Amortization	91		66
Net	657		182
Distribution Network [Member]
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	6,700
Accumulated Amortization	93
Net	6,607
Value of Business Acquired [Member]
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	4,177
Accumulated Amortization	1,762
Net	2,415
Other [Member]
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount			20
Accumulated Amortization			18
Net			2
Subject to Amortization [Member]
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	11,625		268
Accumulated Amortization	1,946		84
Net	9,679		184
Not Subject to Amortization - State Insurance Licenses [Member]
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	1,900		100
Accumulated Amortization
Net	$ 1,900		$ 100

Related Party Transactions (Narrative) (Details) - USD ($) $ in Thousands	3 Months Ended		12 Months Ended
	Mar. 31, 2020	Mar. 31, 2019	Dec. 31, 2019
Related Party Transaction [Line Items]
Payment of dividends			$ 18,984
NDFB [Member]
Related Party Transaction [Line Items]
Royalties	$ 336	$ 324
Accrued royalties	124		115
Direct Auto Insurance Company [Member]
Related Party Transaction [Line Items]
Payment of dividends			6,881
Battle Creek [Member]
Related Party Transaction [Line Items]
Related party revenues	$ 42	$ 31
Westminster Insurance Company [Member]
Related Party Transaction [Line Items]
Payment of dividends			$ 636

Related Party Transactions (Schedule of impact of consolidating Battle Creek into our consolidated balance sheets) (Details) - USD ($)
$ in Thousands

Mar. 31, 2020

Dec. 31, 2019

Mar. 31, 2019

Dec. 31, 2018

Assets:

Accrued investment income

$ 2,098

$ 2,089

Property and equipment

10,120

7,694

Other assets

5,180

5,176

Total assets

536,384

508,159

Liabilities:

Unpaid losses and loss adjustment expenses

97,400

93,250

$ 85,560

Unearned premiums

106,410

89,276

88,171

Reinsurance premiums payable

916

170

Total liabilities

234,593

198,356

Equity:

Non-controlling interest

3,459

3,499

Total shareholders' equity

301,791

309,803

$ 293,455

$ 275,753

Total liabilities and shareholders' equity

536,384

508,159

Battle Creek [Member]

Assets:

Cash and cash equivalents (overdraft)

1,280

(716)

Investments

4,602

4,661

Premiums and agents' balances receivable

4,608

4,801

Reinsurance recoverables on losses

^[1]

26,907

26,330

Accrued investment income

Deferred income tax asset, net

352

343

Property and equipment

346

348

Other assets

Total assets

38,175

35,845

Liabilities:

Unpaid losses and loss adjustment expenses

11,221

10,622

Unearned premiums

15,686

15,708

Notes payable

^[1]

3,000

Reinsurance premiums payable

^[1]

824

1,706

Accrued expenses and other liabilities

3,985

1,310

Total liabilities

34,716

32,346

Equity:

Non-controlling interest

3,459

3,499

Total shareholders' equity

3,459

3,499

Total liabilities and shareholders' equity

$ 38,175

$ 35,845

[1]	Amount eliminated in consolidation.

Benefit Plans (Details) - USD ($) $ / shares in Units, $ in Thousands	1 Months Ended	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2020	Mar. 31, 2019	Dec. 31, 2019
Company's Total contribution to the profit sharing plan		$ 219	$ 199
Company's total contributions to the 401(k) plan		144	139
Compensation expense		$ 89	94
ESOP shares were released and allocated		72,945		72,945
ESOP shares in suspense		167,055		167,055
Market price		$ 13.56
Fair value of unearned ESOP shares		$ 2,265
Debt from ESOP	$ 2,400
Debt term	10 years
Interest rate	2.79%
Percentage of ESOP in authorized shares	1.00%
Per share price	$ 10.00
Deferred compensation plan expenses		$ 14	$ 13
Minimum [Member]
Employee contribution in percentage		3.00%
Maximum [Member]
Employee contribution in percentage		50.00%

Line of Credit (Details) $ in Thousands	3 Months Ended
Line of Credit (Details) $ in Thousands	Mar. 31, 2020 USD ($)
Debt Disclosure [Abstract]
Line of credit with Wells Fargo	$ 5,000
Line of credit expiration date	Oct. 31, 2020

Income Taxes (Narrative) (Details) - USD ($) $ in Thousands	3 Months Ended
Income Taxes (Narrative) (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Unrecognized tax benefits
Interest and penalties
Battle Creek [Member]
Net operating loss carryover		4,652
Expiration date	Dec. 31, 2030
Westminster [Member]
Net operating loss carryover		$ 874
Expiration date	Dec. 31, 2023

Operating Leases (Details) - USD ($) $ in Thousands	3 Months Ended
Operating Leases (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Mar. 31, 2019
Operating Leased Assets [Line Items]
Operating lease expenses	$ 89	$ 75
Primero Subsidiary Lease [Member]
Operating Leased Assets [Line Items]
Lease expiration date	Dec. 31, 2023
Direct Auto Subsidiary Lease [Member]
Operating Leased Assets [Line Items]
Lease expiration date	Dec. 31, 2029

Operating Leases (Schedule of Minimum Future Commitments Under Non-Cancellable Leases) (Details) $ in Thousands	Mar. 31, 2020 USD ($)
Leases, Operating [Abstract]
2020	$ 281
2021	249
2022	319
2023	358
2024	320
Thereafter	$ 1,353

Common Stock (Narrative) (Details) - USD ($) $ in Thousands	3 Months Ended		12 Months Ended
Common Stock (Narrative) (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Mar. 31, 2019	Dec. 31, 2019	Dec. 31, 2018	Feb. 28, 2018
Equity [Abstract]
Authorization for repurchase of shares value					$ 10,000
Shares repurchased	123,264	100	116,034	191,265
Shares repurchased, value	$ 1,502	$ 2	$ 2,006	$ 2,966

Common Stock (Schedule of changes in number of common stock) (Details) - shares	3 Months Ended		12 Months Ended
	Mar. 31, 2020	Mar. 31, 2019	Dec. 31, 2019	Dec. 31, 2018
Equity [Abstract]
Shares outstanding, beginning of period	22,119,380	22,192,894	22,192,894
Treasury shares repurchased through stock repurchase authorization	(123,264)	(100)	(116,034)	(191,265)
Issuance of treasury shares for vesting of restricted stock units	19,042	16,705
Shares outstanding, end of period	22,015,158	22,209,499	22,119,380	22,192,894

Stock Based Compensation (Narrative) (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2020	Dec. 31, 2019
All award [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share issued	500,000
Shares granted	100,000
Outstanding, Aggregate Intrinsic Value	$ 1,000
All award [Member] \| Director [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share granted not exceed	$ 100
Restricted Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares granted	42,600	57,100
Vesting period	5 years
Total unrecognized compensation cost	$ 962
Total unrecognized compensation cost, weighted average period	2 years 6 months 14 days
Percentage of RSU granted to employees per year	20.00%
Percentage of RSU granted to non-employee directors per year	100.00%
Performance Stock Units [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares granted	63,600	62,400
Total unrecognized compensation cost	$ 1,834
Total unrecognized compensation cost, weighted average period	2 years 26 days

Stock Based Compensation (Schedule of Restricted Stock Outstanding) (Details) - Restricted Stock [Member] - $ / shares	3 Months Ended	12 Months Ended
	Mar. 31, 2020	Dec. 31, 2019
Shares
Units outstanding at Begning	96,540	73,880
RSUs granted during 2019	42,600	57,100
RSUs earned during 2019	(31,260)	(34,440)
Units outstanding at Ending	107,880	96,540
Weighted Average Grant-Date Fair Value Per Share
Units outstanding at Begning	$ 16.47	$ 16.87
RSUs granted during 2020	14.26	15.81
RSUs earned during 2020	15.79	16.24
Units outstanding at Ending	$ 15.79	$ 16.47

Stock Based Compensation (Schedule of RSU activity) (Details) - Restricted Stock [Member] - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
RSU compensation expense	$ 420	$ 319
Income tax benefit	(88)	(67)
RSU compensation expense, net of income taxes	$ 332	$ 252

Stock Based Compensation (Schedule of Outstanding Performance Stock Units) (Details) - Performance Stock Units [Member] - $ / shares	3 Months Ended	12 Months Ended
	Mar. 31, 2020	Dec. 31, 2019
Shares
Units outstanding at Begning	111,000	48,600
Grants (at target)	63,600	62,400
Units outstanding at Ending	174,600	111,000
Weighted Average Grant Date Fair Value
Units outstanding at Begning	$ 15.27	$ 16.25
Grants (at target)	14.26	15.21
Units outstanding at Ending	$ 15.15	$ 15.27

Stock Based Compensation (Schedule of PSU Activity) (Details) - Performance Stock Units [Member] - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
PSU compensation expense	$ 293	$ 297
Income tax benefit	(62)	(62)
PSU compensation expense, net of income taxes	$ 231	$ 235

Earnings Per Share (Details) - shares	3 Months Ended
Earnings Per Share (Details) - shares	Mar. 31, 2020	Mar. 31, 2019	Dec. 31, 2019
Weighted average shares outstanding	22,218,073	22,228,630
Net common shares outstanding	22,015,158		22,119,380
Common Stock [Member]
Net common shares outstanding

Earnings per Share (Schedule of Calculations of Basic and Diluted Earnings Per Share) (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Basic earnings (loss) per common share:
Net income (loss) attributable to NI Holdings, Inc.	$ (3,587)	$ 13,773
Weighted average shares outstanding	22,218,073	22,228,630
Basic earnings (loss) per common share	$ (0.16)	$ 0.62
Numerator:
Net income (loss) attributable to NI Holdings, Inc.	$ (3,587)	$ 13,773
Denominator:
Number of shares used in basic computation	22,218,073	22,228,630
Weighted average effect of dilutive securities
Add: Restricted stock units and performance share units	121,251	50,149
Number of shares used in diluted computation	22,339,324	22,278,779
Diluted earnings (loss) per common share	$ (0.16)	$ 0.62

Segment Information (Schedule of revenue by insurance product line) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019	Dec. 31, 2019	Dec. 31, 2018
Direct premiums earned	$ 62,393	$ 52,253
Assumed premiums earned	1,600	1,026
Ceded premiums earned	(5,221)	(2,773)
Net premiums earned	58,772	50,506
Direct losses and LAE	33,892	26,631
Assumed losses and LAE	308	443
Ceded losses and LAE	(3,778)	(840)
Net losses and LAE	30,422	26,234
Gross margin	28,350	24,272
Underwriting and general expenses	20,159	16,694
Underwriting gain (loss)	8,191	7,578
Fee and other income	362	464
Net investment income	1,971	1,743
Net capital gain on investments	(14,919)	7,859
Loss before income taxes	(4,395)	17,644
Income taxes	(840)	3,848
Net loss	(3,555)	13,796
Net income attributable to non-controlling interest	32	23
Net loss attributable to NI Holdings, Inc.	$ (3,587)	$ 13,773
Non-GAAP Ratios:
Loss and LAE ratio	51.80%	51.90%
Expense ratio	34.30%	33.10%
Combined ratio	86.10%	85.00%
Premiums and agents' balances receivable	$ 48,283	$ 38,502	$ 36,691
Deferred policy acquisition costs	19,164	14,791	15,399	$ 12,866
Reinsurance recoverables	8,067	3,143	4,045
Receivable from Federal Crop Insurance Corporation	5,240	14,282	14,230
Goodwill and other intangibles	21,251	3,488	2,912
Unpaid losses and LAE	97,400	85,560	93,250
Unearned premiums	106,410	88,171	$ 89,276
Private Passenger Auto [Member]
Direct premiums earned	18,397	16,944
Assumed premiums earned		4
Ceded premiums earned	(1,098)	(856)
Net premiums earned	17,299	16,092
Direct losses and LAE	11,129	10,102
Assumed losses and LAE		49
Ceded losses and LAE		(46)
Net losses and LAE	11,129	10,105
Gross margin	6,170	5,987
Underwriting and general expenses	4,810	4,750
Underwriting gain (loss)	$ 1,360	$ 1,237
Non-GAAP Ratios:
Loss and LAE ratio	64.30%	62.80%
Expense ratio	27.80%	29.50%
Combined ratio	92.10%	92.30%
Premiums and agents' balances receivable	$ 18,657	$ 17,561
Deferred policy acquisition costs	5,175	3,925
Reinsurance recoverables	500	177
Receivable from Federal Crop Insurance Corporation
Goodwill and other intangibles
Unpaid losses and LAE	19,952	17,737
Unearned premiums	28,426	27,110
Non Standard Auto [Member]
Direct premiums earned	13,194	14,591
Assumed premiums earned
Ceded premiums earned	(43)
Net premiums earned	13,151	14,591
Direct losses and LAE	5,940	7,156
Assumed losses and LAE
Ceded losses and LAE
Net losses and LAE	5,940	7,156
Gross margin	7,211	7,435
Underwriting and general expenses	5,197	5,478
Underwriting gain (loss)	2,014	1,957
Fee and other income	329	470
Other income net	$ 2,343	$ 2,427
Non-GAAP Ratios:
Loss and LAE ratio	45.20%	49.00%
Expense ratio	39.50%	37.50%
Combined ratio	84.70%	86.60%
Premiums and agents' balances receivable	$ 10,557	$ 9,978
Deferred policy acquisition costs	4,952	4,816
Reinsurance recoverables
Receivable from Federal Crop Insurance Corporation
Goodwill and other intangibles	2,897	3,488
Unpaid losses and LAE	42,000	46,641
Unearned premiums	17,260	18,845
Home and Farm [Member]
Direct premiums earned	20,158	18,533
Assumed premiums earned		4
Ceded premiums earned	(2,537)	(1,740)
Net premiums earned	17,621	16,789
Direct losses and LAE	7,668	8,256
Assumed losses and LAE		254
Ceded losses and LAE	(1,130)	(8,002)
Net losses and LAE	6,538	8,787
Gross margin	11,083	5,202
Underwriting and general expenses	4,889	3,585
Underwriting gain (loss)	$ 6,194
Non-GAAP Ratios:
Loss and LAE ratio	37.10%	47.70%
Expense ratio	27.70%	31.00%
Combined ratio	64.80%	78.60%
Premiums and agents' balances receivable	$ 9,204	$ 9,424
Deferred policy acquisition costs	7,124	5,452
Reinsurance recoverables	2,060	916
Receivable from Federal Crop Insurance Corporation
Goodwill and other intangibles
Unpaid losses and LAE	10,401	12,061
Unearned premiums	39,542	37,476
Crop [Member]
Direct premiums earned	5	12
Assumed premiums earned
Ceded premiums earned	(184)	(1)
Net premiums earned	179	11
Direct losses and LAE	2,811	486
Assumed losses and LAE
Ceded losses and LAE	(444)	(460)
Net losses and LAE	2,367	26
Gross margin	(2,188)	37
Underwriting and general expenses	702	331
Underwriting gain (loss)	$ (2,890)	$ (294)
Non-GAAP Ratios:
Loss and LAE ratio
Expense ratio
Combined ratio
Premiums and agents' balances receivable		$ 12
Deferred policy acquisition costs
Reinsurance recoverables	600	108
Receivable from Federal Crop Insurance Corporation	5,240	14,282
Goodwill and other intangibles
Unpaid losses and LAE	3,945	621
Unearned premiums
Commercial [Member]
Direct premiums earned	9,505	1,107
Assumed premiums earned
Ceded premiums earned	(1,652)	(118)
Net premiums earned	7,853	989
Direct losses and LAE	5,919	320
Assumed losses and LAE
Ceded losses and LAE	(2,204)
Net losses and LAE	3,715	320
Gross margin	4,138	669
Underwriting and general expenses	3,929	314
Underwriting gain (loss)	$ 209	$ 355
Non-GAAP Ratios:
Loss and LAE ratio	47.30%	32.40%
Expense ratio	50.00%	31.70%
Combined ratio	97.30%	64.10%
Premiums and agents' balances receivable	$ 9,254	$ 964
Deferred policy acquisition costs	1,504
Reinsurance recoverables	3,434	28
Receivable from Federal Crop Insurance Corporation
Goodwill and other intangibles	18,354
Unpaid losses and LAE	12,248	852
Unearned premiums	18,444	2,141
All Other [Member]
Direct premiums earned	1,144	1,066
Assumed premiums earned	1,600	1,026
Ceded premiums earned	(75)	(58)
Net premiums earned	2,669	2,034
Direct losses and LAE	425	1,283
Assumed losses and LAE	308	394
Ceded losses and LAE		(1,000)
Net losses and LAE	733	677
Gross margin	1,936	1,357
Underwriting and general expenses	632	619
Underwriting gain (loss)	$ 1,304	$ 738
Non-GAAP Ratios:
Loss and LAE ratio	27.50%	33.30%
Expense ratio	23.70%	30.40%
Combined ratio	51.10%	63.70%
Premiums and agents' balances receivable	$ 611	$ 563
Deferred policy acquisition costs	409	598
Reinsurance recoverables	1,473	1,970
Receivable from Federal Crop Insurance Corporation
Goodwill and other intangibles
Unpaid losses and LAE	8,854	7,648
Unearned premiums	$ 2,738	$ 2,599