0001174947-22-001176 | 10-Q | XBRL Viewer

Investments (Schedule of Net Investment Income) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Total gross investment income	$ 2,872	$ 2,536	$ 8,416	$ 7,519
Investment expenses	837	823	2,713	2,560
Net investment income	2,035	1,713	5,703	4,959
Fixed income securities [Member]
Total gross investment income	2,303	2,104	6,870	6,227
Equity securities [Member]
Total gross investment income	402	275	1,126	820
Real estate [Member]
Total gross investment income	149	156	390	469
Cash and cash equivalents [Member]
Total gross investment income	$ 18	$ 1	$ 30	$ 3

Fair Value Measurements (Schedule of assets, which are measured on a recurring basis) (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Total fixed income securities	$ 294,211	$ 364,651
Total equity securities	58,377	77,690
Cash equivalents	26,357	45,741
Total assets at fair value	378,945	488,082
Common stock [Member]
Total equity securities	56,569	75,143
Redeemable preferred stock [Member]
Total fixed income securities	3,969	4,128
Non-redeemable preferred stock [Member]
Total equity securities	1,808	2,547
U.S. Government and agencies [Member]
Total fixed income securities	10,137	13,498
Obligations of states and political subdivisions [Member]
Total fixed income securities	55,375	87,294
Corporate securities [Member]
Total fixed income securities	120,780	147,621
Residential mortgage-backed securities [Member]
Total fixed income securities	36,394	26,156
Commercial mortgage-backed securities [Member]
Total fixed income securities	27,667	33,532
Asset backed securities [Member]
Total fixed income securities	39,889	52,422
Level I [Member]
Total fixed income securities
Total equity securities	58,377	77,690
Cash equivalents	26,357	45,741
Total assets at fair value	84,734	123,431
Level I [Member] \| Common stock [Member]
Total equity securities	56,569	75,143
Level I [Member] \| Redeemable preferred stock [Member]
Total fixed income securities
Level I [Member] \| Non-redeemable preferred stock [Member]
Total equity securities	1,808	2,547
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 II [Member]
Total fixed income securities	294,211	364,651
Total equity securities
Cash equivalents
Total assets at fair value	294,211	364,651
Level II [Member] \| Common stock [Member]
Total equity securities
Level II [Member] \| Redeemable preferred stock [Member]
Total fixed income securities	3,969	4,128
Level II [Member] \| Non-redeemable preferred stock [Member]
Total equity securities
Level II [Member] \| U.S. Government and agencies [Member]
Total fixed income securities	10,137	13,498
Level II [Member] \| Obligations of states and political subdivisions [Member]
Total fixed income securities	55,375	87,294
Level II [Member] \| Corporate securities [Member]
Total fixed income securities	120,780	147,621
Level II [Member] \| Residential mortgage-backed securities [Member]
Total fixed income securities	36,394	26,156
Level II [Member] \| Commercial mortgage-backed securities [Member]
Total fixed income securities	27,667	33,532
Level II [Member] \| Asset backed securities [Member]
Total fixed income securities	39,889	52,422
Level III [Member]
Total fixed income securities
Total equity securities
Cash equivalents
Total assets at fair value
Level III [Member] \| Common stock [Member]
Total equity securities
Level III [Member] \| Redeemable preferred stock [Member]
Total fixed income securities
Level III [Member] \| Non-redeemable preferred stock [Member]
Total equity securities
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

Deferred Policy Acquisition Costs (Schedule of deferred policy acquisition costs) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Deferred Policy Acquisition Costs Disclosures [Abstract]
Balance, beginning of period	$ 30,917	$ 29,657	$ 24,947	$ 23,968
Deferral of policy acquisition costs	16,491	8,717	54,328	47,879
Amortization of deferred policy acquisition costs	(17,589)	(12,898)	(49,456)	(46,371)
Balance, end of period	$ 29,819	$ 25,476	$ 29,819	$ 25,476

- Definition

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

+ References + Details

Investments (Schedule of aggregate fair value and unrealized loss) (Details) - Fixed income securities [Member] - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Less than 12 months Fair Value	$ 224,558	$ 128,694
Less than 12 months Unrealized Losses	(28,033)	(2,197)
Greater than 12 months Fair Value	65,966	4,762
Greater than 12 months Unrealized Losses	(15,250)	(102)
Fair Value, Total	290,524	133,456
Unrealized Losses, Total	(43,283)	(2,299)
Redeemable preferred stocks [Member]
Less than 12 months Fair Value	3,171	1,493
Less than 12 months Unrealized Losses	(575)	(16)
Greater than 12 months Fair Value	798
Greater than 12 months Unrealized Losses	(202)
Fair Value, Total	3,969	1,493
Unrealized Losses, Total	(777)	(16)
U.S. Government and agencies [Member]
Less than 12 months Fair Value	7,546	3,125
Less than 12 months Unrealized Losses	(584)	(87)
Greater than 12 months Fair Value	2,227
Greater than 12 months Unrealized Losses	(458)
Fair Value, Total	9,773	3,125
Unrealized Losses, Total	(1,042)	(87)
Obligations of states and political subdivisions [Member]
Less than 12 months Fair Value	47,043	19,769
Less than 12 months Unrealized Losses	(5,250)	(350)
Greater than 12 months Fair Value	7,205	222
Greater than 12 months Unrealized Losses	(2,226)	(3)
Fair Value, Total	54,248	19,991
Unrealized Losses, Total	(7,476)	(353)
Corporate securities [Member]
Less than 12 months Fair Value	89,929	46,816
Less than 12 months Unrealized Losses	(11,092)	(1,015)
Greater than 12 months Fair Value	28,951	1,895
Greater than 12 months Unrealized Losses	(6,771)	(54)
Fair Value, Total	118,880	48,711
Unrealized Losses, Total	(17,863)	(1,069)
Residential mortgage-backed securities [Member]
Less than 12 months Fair Value	24,399	17,407
Less than 12 months Unrealized Losses	(3,460)	(261)
Greater than 12 months Fair Value	11,995	1,434
Greater than 12 months Unrealized Losses	(2,778)	(39)
Fair Value, Total	36,394	18,841
Unrealized Losses, Total	(6,238)	(300)
Commercial mortgage-backed securities [Member]
Less than 12 months Fair Value	24,091	11,287
Less than 12 months Unrealized Losses	(3,841)	(160)
Greater than 12 months Fair Value	3,303	216
Greater than 12 months Unrealized Losses	(847)	(1)
Fair Value, Total	27,394	11,503
Unrealized Losses, Total	(4,688)	(161)
Asset-backed securities [Member]
Less than 12 months Fair Value	28,379	28,797
Less than 12 months Unrealized Losses	(3,231)	(308)
Greater than 12 months Fair Value	11,487	995
Greater than 12 months Unrealized Losses	(1,968)	(5)
Fair Value, Total	39,866	29,792
Unrealized Losses, Total	$ (5,199)	$ (313)

Stock Based Compensation (Schedule of outstanding and unearned restricted stock units) (Details) - Restricted Stock [Member] - $ / shares	9 Months Ended	12 Months Ended
	Sep. 30, 2022	Dec. 31, 2021
RSUs
Units outstanding at Beginning	108,380	115,780
RSUs granted	59,600	58,700
RSUs earned	(52,620)	(66,100)
Units outstanding at Ending	115,360	108,380
Weighted-Average Grant-Date Fair Value Per Share
Units outstanding at Beginning	$ 16.86	$ 15.27
RSUs granted	17.61	18.76
RSUs earned	17.39	15.77
Units outstanding at Ending	$ 17.00	$ 16.86

Reinsurance (Schedule of reconciliation of direct to net premiums on both a written and an earned basis) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Premiums Written
Direct premium	$ 81,147	$ 68,905	$ 301,642	$ 266,877
Assumed premium	680	1,316	5,767	6,342
Ceded premium	(10,765)	(3,495)	(36,600)	(36,812)
Net premiums	71,062	66,726	270,809	236,407
Premiums Earned
Direct premium	102,173	93,740	269,823	249,542
Assumed premium	2,460	1,336	6,012	6,300
Ceded premium	(15,101)	(12,903)	(32,220)	(34,253)
Net premiums	$ 89,532	$ 82,173	$ 243,615	$ 221,589

Reinsurance (Tables)

9 Months Ended

Sep. 30, 2022

Reinsurance Disclosures [Abstract]

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

NI Holdings, Inc.

Notes to Consolidated Financial Statements (Unaudited)

(dollar amounts in thousands, except per share amounts)

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

	Three Months Ended September 30, 2022						Nine Months Ended September 30, 2022
	Premiums Written			Premiums Earned			Premiums Written			Premiums Earned
Direct premium	$	81,147		$	102,173		$	301,642		$	269,823
Assumed premium		680			2,460			5,767			6,012
Ceded premium		(10,765	)		(15,101	)		(36,600	)		(32,220	)
Net premiums	$	71,062		$	89,532		$	270,809		$	243,615

	Three Months Ended September 30, 2021						Nine Months Ended September 30, 2021
	Premiums Written			Premiums Earned			Premiums Written			Premiums Earned
Direct premium	$	68,905		$	93,740		$	266,877		$	249,542
Assumed premium		1,316			1,336			6,342			6,300
Ceded premium		(3,495	)		(12,903	)		(36,812	)		(34,253	)
Net premiums	$	66,726		$	82,173		$	236,407		$	221,589

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 September 30,						Nine Months Ended September 30,
	2022			2021			2022			2021
Direct losses and loss adjustment expenses	$	94,446		$	87,453		$	250,611		$	201,630
Assumed losses and loss adjustment expenses		868			2,308			2,413			5,216
Ceded losses and loss adjustment expenses		(16,397	)		(24,019	)		(25,383	)		(41,297	)
Net losses and loss adjustment expenses	$	78,917		$	65,742		$	227,641		$	165,549

Investments (Schedule of amortized cost and estimated fair value of investment securities) (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Cost or Amortized Cost	$ 337,448	$ 357,942
Fair Value	294,211	364,651
Redeemable preferred stocks [Member]
Fair Value	3,969	4,128
U.S. Government and agencies [Member]
Fair Value	10,137	13,498
Obligations of states and political subdivisions [Member]
Fair Value	55,375	87,294
Corporate securities [Member]
Fair Value	120,780	147,621
Residential mortgage-backed securities [Member]
Fair Value	36,394	26,156
Commercial mortgage-backed securities [Member]
Fair Value	27,667	33,532
Asset-backed securities [Member]
Fair Value	39,889	52,422
Fixed income securities [Member]
Cost or Amortized Cost	337,448	357,942
Gross Unrealized Gains	46	9,008
Gross Unrealized Losses	(43,283)	(2,299)
Fair Value	294,211	364,651
Fixed income securities [Member] \| Redeemable preferred stocks [Member]
Cost or Amortized Cost	4,746	4,008
Gross Unrealized Gains		136
Gross Unrealized Losses	(777)	(16)
Fair Value	3,969	4,128
Fixed income securities [Member] \| U.S. Government and agencies [Member]
Cost or Amortized Cost	11,176	13,118
Gross Unrealized Gains	3	467
Gross Unrealized Losses	(1,042)	(87)
Fair Value	10,137	13,498
Fixed income securities [Member] \| Obligations of states and political subdivisions [Member]
Cost or Amortized Cost	62,849	84,668
Gross Unrealized Gains	2	2,979
Gross Unrealized Losses	(7,476)	(353)
Fair Value	55,375	87,294
Fixed income securities [Member] \| Corporate securities [Member]
Cost or Amortized Cost	138,603	144,476
Gross Unrealized Gains	40	4,214
Gross Unrealized Losses	(17,863)	(1,069)
Fair Value	120,780	147,621
Fixed income securities [Member] \| Residential mortgage-backed securities [Member]
Cost or Amortized Cost	42,632	26,190
Gross Unrealized Gains		266
Gross Unrealized Losses	(6,238)	(300)
Fair Value	36,394	26,156
Fixed income securities [Member] \| Commercial mortgage-backed securities [Member]
Cost or Amortized Cost	32,355	32,878
Gross Unrealized Gains		815
Gross Unrealized Losses	(4,688)	(161)
Fair Value	27,667	33,532
Fixed income securities [Member] \| Asset-backed securities [Member]
Cost or Amortized Cost	45,087	52,604
Gross Unrealized Gains	1	131
Gross Unrealized Losses	(5,199)	(313)
Fair Value	$ 39,889	$ 52,422

Consolidated Balance Sheets (Parenthetical) - $ / shares	Sep. 30, 2022	Dec. 31, 2021
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	21,147,681	21,219,808
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	1,733,894	1,661,767

Operating Leases

9 Months Ended

Sep. 30, 2022

Leases, Operating [Abstract]

Operating Leases

14.Operating Leases

Primero leases a facility in Spearfish, South Dakota under a non-cancellable operating lease expiring in 2023 and leases a facility in Las Vegas, Nevada on a month-to-month basis. Direct Auto leases a facility in Chicago, Illinois under a non-cancellable operating lease expiring in 2029. Nodak Insurance leases a facility in Fargo, North Dakota under a non-cancellable operating lease expiring in 2024. There were expenses of $102 and $63 related to these leases during the three months ended September 30, 2022 and 2021, respectively, and $239 and $187 related to these leases during the nine months ended September 30, 2022 and 2021, respectively.

As of September 30, 2022, we have minimum future commitments under non-cancellable leases for the next five years and thereafter as follows:

Year ending December 31,	Estimated Future Minimum Commitments
2022 (three months remaining)	$	96
2023		358
2024		320
2025		286
2026		291
Thereafter		775
Total minimum future commitments	$	2,126

Organization (Details) - Nodak Insurance [Member]	9 Months Ended
Organization (Details) - Nodak Insurance [Member]	Sep. 30, 2022
Percentage of shares exchanged	55.00%
Ownership percentage	100.00%

Goodwill and Other Intangibles (Tables)

9 Months Ended

Sep. 30, 2022

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:

	September 30, 2022		December 31, 2021
Non-standard auto from acquisition of Primero	$	2,628	$	2,628
Commercial from acquisition of Westminster		6,756		6,756
Total	$	9,384	$	9,384

Schedule of Carrying Amount of Other Intangible Assets

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

September 30, 2022	Gross Carrying Amount		Accumulated Amortization		Net
Subject to amortization:
Trade names	$	748	$	340	$	408
Distribution network		6,700		1,024		5,676
Total subject to amortization		7,448		1,364		6,084

Not subject to amortization:
State insurance licenses		1,900		-		1,900
Total	$	9,348	$	1,364	$	7,984

December 31, 2021	Gross Carrying Amount		Accumulated Amortization		Net
Subject to amortization:
Trade names	$	748	$	265	$	483
Distribution network		6,700		745		5,955
Total subject to amortization		7,448		1,010		6,438
Not subject to amortization:
State insurance license		1,900		-		1,900
Total	$	9,348	$	1,010	$	8,338

Schedule of Estimated Amortization of Other Intangible Assets

Other intangible assets that have finite lives, including trade names and distribution networks, are amortized over their useful lives. As of September 30, 2022, the estimated amortization of other intangible assets with finite lives for the next five years and thereafter is as follows:

Year ending December 31,	Amount
2022 (three months remaining)	$	118
2023		455
2024		422
2025		422
2026		422
Thereafter		4,245
Total other intangible assets with finite lives	$	6,084

- Definition

Tabular disclosure of goodwill by reportable segment and in total which includes a rollforward schedule.

+ References

Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 350
-SubTopic 20
-Section 50
-Paragraph 1
-Subparagraph (h)
-URI https://asc.fasb.org/extlink&oid=121556970&loc=d3e13816-109267

Reference 2: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 350
-SubTopic 20
-Section 50
-Paragraph 1
-Subparagraph (c)
-URI https://asc.fasb.org/extlink&oid=121556970&loc=d3e13816-109267

Reference 3: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 350
-SubTopic 20
-Section 50
-Paragraph 1
-Subparagraph (g)
-URI https://asc.fasb.org/extlink&oid=121556970&loc=d3e13816-109267

Reference 4: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 350
-SubTopic 20
-Section 50
-Paragraph 1
-URI https://asc.fasb.org/extlink&oid=121556970&loc=d3e13816-109267

Reference 5: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 350
-SubTopic 20
-Section 50
-Paragraph 1
-Subparagraph (e)
-URI https://asc.fasb.org/extlink&oid=121556970&loc=d3e13816-109267

Reference 6: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 350
-SubTopic 20
-Section 50
-Paragraph 1
-Subparagraph (d)
-URI https://asc.fasb.org/extlink&oid=121556970&loc=d3e13816-109267

Reference 7: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 350
-SubTopic 20
-Section 50
-Paragraph 1A
-URI https://asc.fasb.org/extlink&oid=121556970&loc=SL108378252-109267

Reference 8: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 350
-SubTopic 20
-Section 50
-Paragraph 1
-Subparagraph (f)
-URI https://asc.fasb.org/extlink&oid=121556970&loc=d3e13816-109267

Reference 9: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 350
-SubTopic 20
-Section 50
-Paragraph 1
-Subparagraph (a)
-URI https://asc.fasb.org/extlink&oid=121556970&loc=d3e13816-109267

Reference 10: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 350
-SubTopic 20
-Section 50
-Paragraph 2
-Subparagraph (b)
-URI https://asc.fasb.org/extlink&oid=121556970&loc=d3e13854-109267

Reference 11: http://www.xbrl.org/2003/role/exampleRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 350
-SubTopic 20
-Section 55
-Paragraph 24
-URI https://asc.fasb.org/extlink&oid=122137925&loc=d3e14258-109268

Reference 12: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 350
-SubTopic 20
-Section 50
-Paragraph 1
-Subparagraph (b)
-URI https://asc.fasb.org/extlink&oid=121556970&loc=d3e13816-109267

+ Details

Goodwill and Other Intangibles (Schedule of Estimated Amortization of Other Intangible Assets) (Details) $ in Thousands	Sep. 30, 2022 USD ($)
Goodwill and Intangible Assets Disclosure [Abstract]
2022	$ 118
2023	455
2024	422
2025	422
2026	422
Thereafter	4,245
Total other intangible assets with finite lives	$ 6,084

Goodwill and Other Intangibles

9 Months Ended

Sep. 30, 2022

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Other Intangibles

9.Goodwill and Other Intangibles

Goodwill

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

	September 30, 2022		December 31, 2021
Non-standard auto from acquisition of Primero	$	2,628	$	2,628
Commercial from acquisition of Westminster		6,756		6,756
Total	$	9,384	$	9,384

Other Intangible Assets

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

September 30, 2022	Gross Carrying Amount		Accumulated Amortization		Net
Subject to amortization:
Trade names	$	748	$	340	$	408
Distribution network		6,700		1,024		5,676
Total subject to amortization		7,448		1,364		6,084

Not subject to amortization:
State insurance licenses		1,900		-		1,900
Total	$	9,348	$	1,364	$	7,984

December 31, 2021	Gross Carrying Amount		Accumulated Amortization		Net
Subject to amortization:
Trade names	$	748	$	265	$	483
Distribution network		6,700		745		5,955
Total subject to amortization		7,448		1,010		6,438
Not subject to amortization:
State insurance license		1,900		-		1,900
Total	$	9,348	$	1,010	$	8,338

Amortization expense was $118 and $118 for the three months ended September 30, 2022 and 2021, respectively, and $354 and $354 for the nine months ended September 30, 2022 and 2021, respectively.

Year ending December 31,	Amount
2022 (three months remaining)	$	118
2023		455
2024		422
2025		422
2026		422
Thereafter		4,245
Total other intangible assets with finite lives	$	6,084

Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021
Cash flows from operating activities:
Net income (loss)	$ (54,766)	$ 2,189
Adjustments to reconcile net income (loss) to net cash flows from operating activities:
Net investment losses (gains)	19,532	(10,734)
Deferred income tax expense (benefit)	(6,128)	(1,304)
Depreciation of property and equipment	517	503
Amortization of intangibles	354	354
Share-based compensation	406	1,704
Amortization of deferred policy acquisition costs	49,456	46,371
Deferral of policy acquisition costs	(54,328)	(47,879)
Net amortization of premiums and discounts on investments	1,251	1,546
Loss (gain) on sale of property and equipment	(186)	4
Changes in operating assets and liabilities:
Premiums and agents’ balances receivable	(51,518)	(33,865)
Reinsurance premiums receivable / payable	1,223	1,298
Reinsurance recoverables on losses	(11,790)	(33,968)
Accrued investment income	327	(72)
Federal Crop Insurance Corporation receivable / payable	(262)	(2,716)
Income tax recoverable / payable	(11,020)	(3,429)
Other assets	(305)	(3,163)
Unpaid losses and loss adjustment expenses	46,275	73,826
Unearned premiums	26,620	17,736
Accrued expenses and other liabilities	19,662	1,088
Net cash flows from operating activities	(24,680)	9,489
Cash flows from investing activities:
Proceeds from maturities and sales of fixed income securities	68,584	54,492
Proceeds from sales of equity securities	13,598	26,790
Purchases of fixed income securities	(49,444)	(112,940)
Purchases of equity securities	(13,715)	(21,091)
Purchases of property and equipment	(384)	(557)
Proceeds from sale of other investments and other		835
Net cash flows from investing activities	18,639	(52,471)
Cash flows from financing activities:
Purchases of treasury stock	(2,870)	(3,211)
Installment payment on Westminster consideration payable	(6,667)	(6,667)
Issuance of vested award shares	(768)	(488)
Net cash flows from financing activities	(10,305)	(10,366)
Net decrease in cash and cash equivalents	(16,346)	(53,348)
Cash and cash equivalents at beginning of period	70,623	101,077
Cash and cash equivalents at end of period	54,277	47,729
Federal and state income taxes paid	$ 2,360	$ 5,440

Property and Equipment

9 Months Ended

Sep. 30, 2022

Property, Plant and Equipment [Abstract]

Property and Equipment

8.Property and Equipment

Property and equipment consisted of the following:

	September 30, 2022			December 31, 2021			Estimated Useful Life
Cost:
Land	$	1,403		$	1,403		indefinite
Building and improvements		14,160			14,193		10–40 years
Electronic data processing equipment		1,565			1,518		5–7 years
Furniture and fixtures		2,919			2,885		5–7 years
Automobiles		1,310			1,228		2–3 years
Gross cost		21,357			21,227

Accumulated depreciation		(11,433	)		(11,358	)
Total property and equipment, net	$	9,924		$	9,869

Depreciation expense was $174 and $162 for the three months ended September 30, 2022 and 2021, respectively, and $517 and $503 for the nine months ended September 30, 2022 and 2021, respectively.

Investments (Tables)

9 Months Ended

Sep. 30, 2022

Marketable Securities [Abstract]

Schedule of amortized cost and estimated fair value of securities

The amortized cost and estimated fair value of fixed income securities as of September 30, 2022, and December 31, 2021, were as follows:

	September 30, 2022
	Cost or Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
Fixed income securities:
U.S. Government and agencies	$	11,176	$	3	$	(1,042	)	$	10,137
Obligations of states and political subdivisions		62,849		2		(7,476	)		55,375
Corporate securities		138,603		40		(17,863	)		120,780
Residential mortgage-backed securities		42,632		-		(6,238	)		36,394
Commercial mortgage-backed securities		32,355		-		(4,688	)		27,667
Asset-backed securities		45,087		1		(5,199	)		39,889
Redeemable preferred stocks		4,746		-		(777	)		3,969
Total fixed income securities	$	337,448	$	46	$	(43,283	)	$	294,211

	December 31, 2021
	Cost or Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
Fixed income securities:
U.S. Government and agencies	$	13,118	$	467	$	(87	)	$	13,498
Obligations of states and political subdivisions		84,668		2,979		(353	)		87,294
Corporate securities		144,476		4,214		(1,069	)		147,621
Residential mortgage-backed securities		26,190		266		(300	)		26,156
Commercial mortgage-backed securities		32,878		815		(161	)		33,532
Asset-backed securities		52,604		131		(313	)		52,422
Redeemable preferred stocks		4,008		136		(16	)		4,128
Total fixed income securities	$	357,942	$	9,008	$	(2,299	)	$	364,651

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

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 may have the right to call or prepay these securities.

	September 30, 2022
	Amortized Cost		Fair Value
Due to mature:
One year or less	$	10,662	$	10,534
After one year through five years		83,431		77,755
After five years through ten years		77,360		65,378
After ten years		41,175		32,625
Mortgage / asset-backed securities		120,074		103,950
Redeemable preferred stocks		4,746		3,969
Total fixed income securities	$	337,448	$	294,211

	December 31, 2021
	Amortized Cost		Fair Value
Due to mature:
One year or less	$	14,457	$	14,586
After one year through five years		82,429		84,760
After five years through ten years		82,270		84,173
After ten years		63,106		64,894
Mortgage / asset-backed securities		111,672		112,110
Redeemable preferred stocks		4,008		4,128
Total fixed income securities	$	357,942	$	364,651

Schedule of unrealized loss of securities

The investment category and duration of the Company’s gross unrealized losses on fixed income securities are shown below. 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.

	September 30, 2022
	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	$	7,546	$	(584	)	$	2,227	$	(458	)	$	9,773	$	(1,042	)
Obligations of states and political subdivisions		47,043		(5,250	)		7,205		(2,226	)		54,248		(7,476	)
Corporate securities		89,929		(11,092	)		28,951		(6,771	)		118,880		(17,863	)
Residential mortgage-backed securities		24,399		(3,460	)		11,995		(2,778	)		36,394		(6,238	)
Commercial mortgage-backed securities		24,091		(3,841	)		3,303		(847	)		27,394		(4,688	)
Asset-backed securities		28,379		(3,231	)		11,487		(1,968	)		39,866		(5,199	)
Redeemable preferred stocks		3,171		(575	)		798		(202	)		3,969		(777	)
Total fixed income securities	$	224,558	$	(28,033	)	$	65,966	$	(15,250	)	$	290,524	$	(43,283	)

	December 31, 2021
	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	$	3,125	$	(87	)	$	-	$	-		$	3,125	$	(87	)
Obligations of states and political subdivisions		19,769		(350	)		222		(3	)		19,991		(353	)
Corporate securities		46,816		(1,015	)		1,895		(54	)		48,711		(1,069	)
Residential mortgage-backed securities		17,407		(261	)		1,434		(39	)		18,841		(300	)
Commercial mortgage-backed securities		11,287		(160	)		216		(1	)		11,503		(161	)
Asset-backed securities		28,797		(308	)		995		(5	)		29,792		(313	)
Redeemable preferred stocks		1,493		(16	)		-		-			1,493		(16	)
Total fixed income securities	$	128,694	$	(2,197	)	$	4,762	$	(102	)	$	133,456	$	(2,299	)

Schedule of net investment income

Net investment income consisted of the following:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021
Fixed income securities	$	2,303	$	2,104	$	6,870	$	6,227
Equity securities		402		275		1,126		820
Real estate		149		156		390		469
Cash and cash equivalents		18		1		30		3
Total gross investment income		2,872		2,536		8,416		7,519
Investment expenses		837		823		2,713		2,560
Net investment income	$	2,035	$	1,713	$	5,703	$	4,959

Schedule of net realized gain (loss) on investments

Net investment gains (losses) consisted of the following:

	Three Months Ended September 30,						Nine Months Ended September 30,
	2022			2021			2022			2021
Gross realized gains:
Fixed income securities	$	67		$	131		$	118		$	572
Equity securities		1,219			2,674			3,488			9,194
Total gross realized gains		1,286			2,805			3,606			9,766

Gross realized losses, excluding other-than-temporary impairment losses:
Fixed income securities		(106	)		(12	)		(219	)		(26	)
Equity securities		(1,097	)		(60	)		(1,339	)		(230	)
Total gross realized losses, excluding other-than-temporary impairment losses		(1,203	)		(72	)		(1,558	)		(256	)

Net realized gains		83			2,733			2,048			9,510

Change in net unrealized gain on equity securities		(2,951	)		(2,511	)		(21,580	)		1,224
Net investment gains (losses)	$	(2,868	)	$	222		$	(19,532	)	$	10,734

Unpaid Losses and Loss Adjustment Expenses (Tables)

9 Months Ended

Sep. 30, 2022

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:

	Nine Months Ended September 30,
	2022			2021
Balance, beginning of period:
Liability for unpaid losses and loss adjustment expenses	$	139,662		$	105,750
Reinsurance recoverables on losses		21,200			8,710
Net balance, beginning of period		118,462			97,040

Incurred related to:
Current year		234,823			172,443
Prior years		(7,182	)		(6,894	)
Total incurred		227,641			165,549

Paid related to:
Current year		141,810			86,251
Prior years		51,346			39,440
Total paid		193,156			125,691

Balance, end of period:
Liability for unpaid losses and loss adjustment expenses		185,937			179,576
Reinsurance recoverables on losses		32,990			42,678
Net balance, end of period	$	152,947		$	136,898

Reinsurance (Schedule of reconciliation of direct to net losses and loss adjustment expenses) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Reinsurance Disclosures [Abstract]
Direct losses and loss adjustment expenses	$ 94,446	$ 87,453	$ 250,611	$ 201,630
Assumed losses and loss adjustment expenses	868	2,308	2,413	5,216
Ceded losses and loss adjustment expenses	(16,397)	(24,019)	(25,383)	(41,297)
Net losses and loss adjustment expenses	$ 78,917	$ 65,742	$ 227,641	$ 165,549

Segment Information (Schedule of revenue by insurance product line) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021	Jun. 30, 2022	Dec. 31, 2021	Jun. 30, 2021	Dec. 31, 2020
Direct premiums earned	$ 102,173	$ 93,740	$ 269,823	$ 249,542
Assumed premiums earned	2,460	1,336	6,012	6,300
Ceded premiums earned	(15,101)	(12,903)	(32,220)	(34,253)
Net premiums earned	89,532	82,173	243,615	221,589
Direct losses and loss adjustment expenses	94,446	87,453	250,611	201,630
Assumed losses and loss adjustment expenses	868	2,308	2,413	5,216
Ceded losses and loss adjustment expenses	(16,397)	(24,019)	(25,383)	(41,297)
Net losses and loss adjustment expenses	78,917	65,742	227,641	165,549
Gross margin	10,615	16,431	15,974	56,040
Underwriting and general expenses	23,501	25,348	73,151	70,175
Underwriting gain (loss)	(12,886)	(8,917)	(57,177)	(14,135)
Fee and other income	476	501	1,319	1,338
Net investment income	2,035	1,713	5,703	4,959
Net capital gain on investments	(2,868)	222	(19,532)	10,734
Income (loss) before income taxes	(13,243)	(6,481)	(69,687)	2,896
Income tax expense (benefit)	(3,074)	(1,622)	(14,921)	707
Net Income (loss)	(10,169)	(4,859)	(54,766)	2,189
Net loss attributable to non-controlling interest	(184)	(122)	(780)	(99)
Net income (loss) attributable to NI Holdings, Inc.	$ (9,985)	$ (4,737)	$ (53,986)	$ 2,288
Non-GAAP Ratios:
Loss and loss adjustment expense ratio	88.10%	80.00%	93.50%	74.70%
Expense ratio	26.30%	30.80%	30.00%	31.70%
Combined ratio	114.40%	110.80%	123.50%	106.40%
Premiums and agents' balances receivable	$ 102,970	$ 82,388	$ 102,970	$ 82,388		$ 51,452
Deferred policy acquisition costs	29,819	25,476	29,819	25,476	$ 30,917	24,947	$ 29,657	$ 23,968
Reinsurance recoverables on losses	32,990	42,678	32,990	42,678		21,200
Receivable from Federal Crop Insurance Corporation		9,362		9,362
Goodwill and other intangibles	17,368	17,840	17,368	17,840		17,722
Unpaid losses and loss adjustment expenses	185,937	179,576	185,937	179,576		139,662
Unearned premiums	154,409	137,099	154,409	137,099		$ 127,789
Payable to Federal Crop Insurance Corporation	4,700
Private Passenger Auto [Member]
Direct premiums earned	20,523	19,453	59,648	57,153
Assumed premiums earned
Ceded premiums earned	(710)	(962)	(1,830)	(3,096)
Net premiums earned	19,813	18,491	57,818	54,057
Direct losses and loss adjustment expenses	20,969	17,646	52,360	45,299
Assumed losses and loss adjustment expenses
Ceded losses and loss adjustment expenses	(615)	(516)	(442)	(1,010)
Net losses and loss adjustment expenses	20,354	17,130	51,918	44,289
Gross margin	(541)	1,361	5,900	9,768
Underwriting and general expenses	5,061	5,892	16,382	16,018
Underwriting gain (loss)	$ (5,602)	$ (4,531)	$ (10,482)	$ (6,250)
Non-GAAP Ratios:
Loss and loss adjustment expense ratio	102.70%	92.60%	89.80%	81.90%
Expense ratio	25.60%	31.90%	28.30%	29.60%
Combined ratio	128.30%	124.50%	118.10%	111.50%
Premiums and agents' balances receivable	$ 765	$ 19,531	$ 765	$ 19,531
Deferred policy acquisition costs	444	5,234	444	5,234
Reinsurance recoverables on losses	831	1,422	831	1,422
Receivable from Federal Crop Insurance Corporation
Goodwill and other intangibles
Unpaid losses and loss adjustment expenses	29,821	26,073	29,821	26,073
Unearned premiums	3,093	29,462	3,093	29,462
Payable to Federal Crop Insurance Corporation
Non Standard Auto [Member]
Direct premiums earned	17,646	15,258	47,665	44,102
Assumed premiums earned
Ceded premiums earned	(67)	(369)	(196)	(1,057)
Net premiums earned	17,579	14,889	47,469	43,045
Direct losses and loss adjustment expenses	11,958	9,620	24,582	25,910
Assumed losses and loss adjustment expenses
Ceded losses and loss adjustment expenses
Net losses and loss adjustment expenses	11,958	9,620	24,582	25,910
Gross margin	5,621	5,269	22,887	17,135
Underwriting and general expenses	6,399	6,010	19,357	16,949
Underwriting gain (loss)	(778)	(741)	3,530	186
Fee and other income	246	301	888	994
Other income net	$ (532)	$ (440)	$ 4,418	$ 1,180
Non-GAAP Ratios:
Loss and loss adjustment expense ratio	68.00%	64.60%	51.80%	60.20%
Expense ratio	36.40%	40.40%	40.80%	39.40%
Combined ratio	104.40%	105.00%	92.60%	99.60%
Premiums and agents' balances receivable	$ 11,343	$ 8,789	$ 11,343	$ 8,789
Deferred policy acquisition costs	6,928	6,226	6,928	6,226
Reinsurance recoverables on losses
Receivable from Federal Crop Insurance Corporation
Goodwill and other intangibles	14,595	2,823	14,595	2,823
Unpaid losses and loss adjustment expenses	41,231	44,114	41,231	44,114
Unearned premiums	37,042	19,489	37,042	19,489
Payable to Federal Crop Insurance Corporation
Home and Farm [Member]
Direct premiums earned	22,429	21,256	65,312	62,647
Assumed premiums earned
Ceded premiums earned	(2,678)	(2,481)	(6,393)	(8,045)
Net premiums earned	19,751	18,775	58,919	54,602
Direct losses and loss adjustment expenses	34,051	19,839	103,430	47,163
Assumed losses and loss adjustment expenses
Ceded losses and loss adjustment expenses	(5,229)	(3,684)	(5,938)	(5,168)
Net losses and loss adjustment expenses	28,822	16,155	97,492	41,995
Gross margin	(9,071)	2,620	(38,573)	12,607
Underwriting and general expenses	5,396	6,627	17,425	17,311
Underwriting gain (loss)	$ (14,467)	$ (4,007)	$ (55,998)	$ (4,704)
Non-GAAP Ratios:
Loss and loss adjustment expense ratio	145.90%	86.00%	165.50%	76.90%
Expense ratio	27.30%	35.30%	29.60%	31.70%
Combined ratio	173.20%	121.30%	195.10%	108.60%
Premiums and agents' balances receivable	$ 42,395	$ 9,246	$ 42,395	$ 9,246
Deferred policy acquisition costs	436	7,539	436	7,539
Reinsurance recoverables on losses	15,763	2,680	15,763	2,680
Receivable from Federal Crop Insurance Corporation
Goodwill and other intangibles
Unpaid losses and loss adjustment expenses	31,792	17,443	31,792	17,443
Unearned premiums	11,071	42,664	11,071	42,664
Payable to Federal Crop Insurance Corporation
Crop [Member]
Direct premiums earned	20,921	19,654	38,612	34,212
Assumed premiums earned	1,768	24	2,259	2,108
Ceded premiums earned	(8,123)	(6,954)	(14,023)	(15,196)
Net premiums earned	14,566	12,724	26,848	21,124
Direct losses and loss adjustment expenses	12,040	27,237	25,173	49,612
Assumed losses and loss adjustment expenses	539	151	781	674
Ceded losses and loss adjustment expenses	(5,605)	(14,906)	(8,819)	(27,911)
Net losses and loss adjustment expenses	6,974	12,482	17,135	22,375
Gross margin	7,592	242	9,713	(1,251)
Underwriting and general expenses	343	864	1,400	2,831
Underwriting gain (loss)	$ 7,249	$ (622)	$ 8,313	$ (4,082)
Non-GAAP Ratios:
Loss and loss adjustment expense ratio	47.90%	98.10%	63.80%	105.90%
Expense ratio	2.30%	6.80%	5.20%	13.40%
Combined ratio	50.20%	104.90%	69.00%	119.30%
Premiums and agents' balances receivable	$ 9,461	$ 33,376	$ 9,461	$ 33,376
Deferred policy acquisition costs	7,708	1	7,708	1
Reinsurance recoverables on losses	8,226	28,824	8,226	28,824
Receivable from Federal Crop Insurance Corporation		9,362		9,362
Goodwill and other intangibles
Unpaid losses and loss adjustment expenses	25,244	50,393	25,244	50,393
Unearned premiums	44,841	9,369	44,841	9,369
Payable to Federal Crop Insurance Corporation	4,700
Commercial [Member]
Direct premiums earned	19,342	16,864	54,733	47,781
Assumed premiums earned
Ceded premiums earned	(3,458)	(2,066)	(9,630)	(6,625)
Net premiums earned	15,884	14,798	45,103	41,156
Direct losses and loss adjustment expenses	14,646	13,058	42,791	33,016
Assumed losses and loss adjustment expenses
Ceded losses and loss adjustment expenses	(4,834)	(5,288)	(9,970)	(7,583)
Net losses and loss adjustment expenses	9,812	7,770	32,821	25,433
Gross margin	6,072	7,028	12,282	15,723
Underwriting and general expenses	5,840	5,257	16,752	15,049
Underwriting gain (loss)	$ 232	$ 1,771	$ (4,470)	$ 674
Non-GAAP Ratios:
Loss and loss adjustment expense ratio	61.80%	52.50%	72.80%	61.80%
Expense ratio	36.80%	35.50%	37.10%	36.60%
Combined ratio	98.60%	88.00%	109.90%	98.40%
Premiums and agents' balances receivable	$ 17,754	$ 10,737	$ 17,754	$ 10,737
Deferred policy acquisition costs	8,992	6,027	8,992	6,027
Reinsurance recoverables on losses	7,035	7,911	7,035	7,911
Receivable from Federal Crop Insurance Corporation
Goodwill and other intangibles	2,773	15,017	2,773	15,017
Unpaid losses and loss adjustment expenses	49,545	30,547	49,545	30,547
Unearned premiums	27,031	32,930	27,031	32,930
Payable to Federal Crop Insurance Corporation
All Other [Member]
Direct premiums earned	1,312	1,255	3,853	3,647
Assumed premiums earned	692	1,312	3,753	4,192
Ceded premiums earned	(65)	(71)	(148)	(234)
Net premiums earned	1,939	2,496	7,458	7,605
Direct losses and loss adjustment expenses	782	53	2,275	630
Assumed losses and loss adjustment expenses	329	2,157	1,632	4,542
Ceded losses and loss adjustment expenses	(114)	375	(214)	375
Net losses and loss adjustment expenses	997	2,585	3,693	5,547
Gross margin	942	(89)	3,765	2,058
Underwriting and general expenses	462	698	1,835	2,017
Underwriting gain (loss)	$ 480	$ (787)	$ 1,930	$ 41
Non-GAAP Ratios:
Loss and loss adjustment expense ratio	51.40%	103.60%	49.50%	72.90%
Expense ratio	23.80%	27.90%	24.60%	26.50%
Combined ratio	75.20%	131.50%	74.10%	99.40%
Premiums and agents' balances receivable	$ 21,252	$ 709	$ 21,252	$ 709
Deferred policy acquisition costs	5,311	449	5,311	449
Reinsurance recoverables on losses	1,135	1,841	1,135	1,841
Receivable from Federal Crop Insurance Corporation
Goodwill and other intangibles
Unpaid losses and loss adjustment expenses	8,304	11,006	8,304	11,006
Unearned premiums	31,331	$ 3,185	$ 31,331	$ 3,185
Payable to Federal Crop Insurance Corporation

Stock Based Compensation (Schedule of Outstanding Performance Stock Units) (Details) - Performance Stock Units [Member] - $ / shares	9 Months Ended	12 Months Ended
	Sep. 30, 2022	Dec. 31, 2021
PSUs
Units outstanding at Beginning	190,600	174,600
PSUs granted (at target)	61,800	64,600
PSUs earned	(86,684)	(70,363)
Performance adjustment	31,200	24,300
Forfeitures	(6,916)	(2,537)
Units outstanding at Ending	190,000	190,600
Weighted-Average Grant-Date Fair Value Per Share
Units outstanding at Beginning	$ 16.06	$ 15.15
PSUs granted (at target)	18.10	18.64
PSUs earned	15.21	16.25
Performance adjustment	15.21	16.25
Forfeitures	15.21	16.25
Units outstanding at Ending	$ 17.00	$ 16.06

Common Stock (Narrative) (Details) - USD ($) $ in Thousands	3 Months Ended	9 Months Ended		12 Months Ended
Common Stock (Narrative) (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Sep. 30, 2022	Sep. 30, 2021	Dec. 31, 2021	Dec. 31, 2020	May 09, 2022	Aug. 11, 2021	May 04, 2020
Authorization for repurchase of shares value						$ 10,000	$ 10,000	$ 5,000
Shares repurchased		173,419	168,393
Outstanding common stock amount							$ 575
Weighted Average [Member]
Net loss per diluted common share	176,037	207,424
First Authorization [Member]
Shares repurchased	62,175	173,419	144,110
Shares repurchased, value	$ 939	$ 2,870	$ 2,762
Additional Authorization [Member]
Shares repurchased				81,095	454,443
Shares repurchased, value				$ 1,554	$ 7,238

Unpaid Losses and Loss Adjustment Expenses (Schedule of liability for unpaid losses and loss adjustment expenses) (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021
Liability for Unpaid Claims and Claims Adjustment Expense, Activity in Liability [Abstract]
Liability for unpaid losses and loss adjustment expenses	$ 139,662	$ 105,750
Reinsurance recoverables on losses	21,200	8,710
Net balance, beginning of period	118,462	97,040
Incurred related to:
Current year	234,823	172,443
Prior years	(7,182)	(6,894)
Total Incurred	227,641	165,549
Paid related to:
Current year	141,810	86,251
Prior years	51,346	39,440
Total paid	193,156	125,691
Liability for unpaid losses and loss adjustment expenses	185,937	179,576
Reinsurance recoverables on losses	32,990	42,678
Net balance, end of period	$ 152,947	$ 136,898

Property and Equipment (Narrative) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Property, Plant and Equipment [Abstract]
Depreciation expense	$ 174	$ 162	$ 517	$ 503

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

3 Months Ended

9 Months Ended

Sep. 30, 2022

Sep. 30, 2021

Sep. 30, 2022

Sep. 30, 2021

Jun. 30, 2022

Dec. 31, 2021

Jun. 30, 2021

Dec. 31, 2020

Assets:

Cash and cash equivalents

$ 26,357

$ 45,741

Deferred policy acquisition costs

29,819

$ 25,476

29,819

$ 25,476

$ 30,917

24,947

$ 29,657

$ 23,968

Accrued investment income

2,197

2,524

Deferred income taxes

11,975

Property and equipment

9,924

9,869

Other assets

9,040

8,735

Total assets

636,537

651,782

Liabilities:

Unpaid losses and loss adjustment expenses

185,937

179,576

185,937

179,576

139,662

Unearned premiums

154,409

137,099

154,409

137,099

127,789

Total liabilities

385,716

304,369

Equity:

Non-controlling interest

2,058

4,209

Total liabilities and equity

636,537

651,782

Revenues:

Net premiums earned

89,532

82,173

243,615

221,589

Fee and other income (expenses)

476

501

1,319

1,338

Net investment income (loss)

2,035

1,713

5,703

4,959

Total revenues

89,175

84,609

231,105

238,620

Expenses:

Losses and loss adjustment expenses

78,917

65,742

227,641

165,549

Amortization of deferred policy acquisition costs

17,589

12,898

49,456

46,371

Other underwriting and general expenses

5,912

12,450

23,695

23,804

Total expenses

102,418

91,090

300,792

235,724

Income (loss) before income taxes

(13,243)

(6,481)

(69,687)

2,896

Income tax expense (benefit)

(3,074)

(1,622)

(14,921)

707

Net income (loss)

(10,169)

(4,859)

(54,766)

2,189

Battle Creek [Member]

Assets:

Cash and cash equivalents

9,003

4,398

Investments

8,339

10,610

Premiums and agents' balances receivable

5,696

5,038

Deferred policy acquisition costs

596

499

Reinsurance recoverables on losses

^[1]

6,094

10,173

Accrued investment income

Deferred income taxes

774

142

Property and equipment

323

325

Pooling receivable

^[2]

277

Other assets

Total assets

31,198

31,288

Liabilities:

Unpaid losses and loss adjustment expenses

6,675

2,937

Unearned premiums

3,088

2,544

Notes payable

^[2]

3,000

Pooling payable

^[2]

5,580

Reinsurance losses payable

^[1]

11,558

12,754

Accrued expenses and other liabilities

4,819

264

Total liabilities

29,140

27,079

Equity:

Non-controlling interest

2,058

4,209

Total equity

2,058

4,209

Total liabilities and equity

31,198

$ 31,288

Revenues:

Net premiums earned

1,790

1,499

4,872

4,594

Fee and other income (expenses)

(1)

(6)

(8)

Net investment income (loss)

(8)

Total revenues

1,781

1,510

4,896

4,626

Expenses:

Losses and loss adjustment expenses

1,579

1,179

4,553

3,448

Amortization of deferred policy acquisition costs

352

258

989

927

Other underwriting and general expenses

209

363

356

Total expenses

2,020

1,646

5,905

4,731

Income (loss) before income taxes

(239)

(136)

(1,009)

(105)

Income tax expense (benefit)

(55)

(14)

(229)

(6)

Net income (loss)

$ (184)

$ (122)

$ (780)

$ (99)

[1]	Amount partially eliminated in consolidation.
[2]	Amount fully eliminated in consolidation.

Common Stock (Tables)

9 Months Ended

Sep. 30, 2022

Common Stock Tables Abstract

Schedule of number of common stock shares

	Nine Months Ended September 30,
	2022			2021
Shares outstanding, beginning of period		21,219,808			21,318,638
Treasury shares repurchased through stock repurchase authorization		(173,419	)		(168,393	)
Issuance of treasury shares for vesting of restricted stock units		101,292			102,060
Shares outstanding, end of period		21,147,681			21,252,305

Line of Credit (Details) $ in Thousands	9 Months Ended
Line of Credit (Details) $ in Thousands	Sep. 30, 2022 USD ($)
Debt Disclosure [Abstract]
Line of credit with Wells Fargo	$ 5,000
Interest rate	3.25%
Line of credit expiration date	May 31, 2023

Investments (Schedule of components of Net realized capital gains on investments) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Gross realized gains	$ 1,286	$ 2,805	$ 3,606	$ 9,766
Gross realized losses, excluding other-than-temporary impairment losses	(1,203)	(72)	(1,558)	(256)
Net realized gain on investments	83	2,733	2,048	9,510
Change in net unrealized gains on equity securities	(2,951)	(2,511)	(21,580)	1,224
Net capital gain on investments	(2,868)	222	(19,532)	10,734
Fixed income securities [Member]
Gross realized gains	67	131	118	572
Gross realized losses, excluding other-than-temporary impairment losses	(106)	(12)	(219)	(26)
Equity securities [Member]
Gross realized gains	1,219	2,674	3,488	9,194
Gross realized losses, excluding other-than-temporary impairment losses	$ (1,097)	$ (60)	$ (1,339)	$ (230)

Investments (Schedule of Fixed Maturities) (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Marketable Securities [Abstract]
Amortized Cost, Due to mature One year or less	$ 10,662	$ 14,457
Amortized Cost, Due to mature After one year through five years	83,431	82,429
Amortized Cost, Due to mature After five years through ten years	77,360	82,270
Amortized Cost, Due to mature After ten years	41,175	63,106
Amortized Cost, Due to mature Mortgage/asset-backed securities	120,074	111,672
Amortized Cost, Due to mature Redeemable preferred stocks	4,746	4,008
Available-for-sale Securities, Debt Maturities, Amortized Cost	337,448	357,942
Fair Value, Due to mature One year or less	10,534	14,586
Fair Value, Due to mature After one year through five years	77,755	84,760
Fair Value, Due to mature After five years through ten years	65,378	84,173
Fair Value, Due to mature After ten years	32,625	64,894
Fair Value, Due to mature Mortgage/asset-backed securities	103,950	112,110
Fair Value, Due to mature Redeemable preferred stocks	3,969	4,128
Available-for-sale Securities, Debt Securities, Estimated Fair Value	$ 294,211	$ 364,651

Income Taxes (Narrative) (Details) - USD ($) $ in Thousands	9 Months Ended
Income Taxes (Narrative) (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Westminster [Member]
Net operating loss carryover		$ 2,122
Expiration date	Dec. 31, 2023
Battle Creek [Member]
Net operating loss carryover		$ 3,215
Expiration date	Dec. 31, 2032

Segment Information

9 Months Ended

Sep. 30, 2022

Segment Reporting [Abstract]

Segment Information

18.Segment Information

We have six reportable operating segments, which consist of private passenger auto insurance, non-standard auto insurance, home and farm insurance, crop insurance, commercial insurance, and all other (which primarily consists of assumed reinsurance and our excess liability business). We operate only in the U.S., 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- and nine- month periods ended September 30, 2022 and 2021.

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 tables below. The remaining fee and other income amounts are not allocated to any segment.

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

Table of Contents

NI Holdings, Inc.

Notes to Consolidated Financial Statements (Unaudited)

(dollar amounts in thousands, except per share amounts)

	Three Months Ended September 30, 2022
	Private Passenger Auto			Non- Standard Auto			Home and Farm			Crop			Commercial			All Other				Total
Direct premiums earned	$	20,523		$	17,646		$	22,429		$	20,921		$	19,342		$	1,312		$	102,173
Assumed premiums earned		-			-			-			1,768			-			692			2,460
Ceded premiums earned		(710	)		(67	)		(2,678	)		(8,123	)		(3,458	)		(65	)		(15,101	)
Net premiums earned		19,813			17,579			19,751			14,566			15,884			1,939			89,532

Direct losses and loss adjustment expenses		20,969			11,958			34,051			12,040			14,646			782			94,446
Assumed losses and loss adjustment expenses		-			-			-			539			-			329			868
Ceded losses and loss adjustment expenses		(615	)		-			(5,229	)		(5,605	)		(4,834	)		(114	)		(16,397	)
Net losses and loss adjustment expenses		20,354			11,958			28,822			6,974			9,812			997			78,917

Gross margin		(541	)		5,621			(9,071	)		7,592			6,072			942			10,615

Underwriting and general expenses		5,061			6,399			5,396			343			5,840			462			23,501
Underwriting gain (loss)		(5,602	)		(778	)		(14,467	)		7,249			232			480			(12,886	)

Fee and other income					246															476
					(532	)
Net investment income																				2,035
Net investment losses																				(2,868	)
Loss before income taxes																				(13,243	)
Income tax benefit																				(3,074	)
Net loss																				(10,169	)
Net loss attributable to non-controlling interest																				(184	)
Net loss attributable to NI Holdings, Inc.																			$	(9,985	)

Operating Ratios:
Loss and loss adjustment expense ratio		102.7%			68.0%			145.9%			47.9%			61.8%			51.4%			88.1%
Expense ratio		25.6%			36.4%			27.3%			2.3%			36.8%			23.8%			26.3%
Combined ratio		128.3%			104.4%			173.2%			50.2%			98.6%			75.2%			114.4%


Balances at September 30, 2022:
Premiums and agents’ balances receivable	$	21,252		$	17,754		$	9,461		$	42,395		$	11,343		$	765		$	102,970
Deferred policy acquisition costs		5,311			8,992			7,708			436			6,928			444			29,819
Reinsurance recoverables on losses		1,135			-			7,035			8,226			15,763			831			32,990
Goodwill and other intangibles		-			2,773			-			-			14,595			-			17,368
Unpaid losses and loss adjustment expenses		29,821			41,231			31,792			25,244			49,545			8,304			185,937
Unearned premiums		31,331			27,031			44,841			11,071			37,042			3,093			154,409
Payable to Federal Crop Insurance Corporation		-			-			-			4,700			-			-			4,700

Table of Contents

NI Holdings, Inc.

Notes to Consolidated Financial Statements (Unaudited)

(dollar amounts in thousands, except per share amounts)

	Three Months Ended September 30, 2021
	Private Passenger Auto			Non- Standard Auto			Home and Farm			Crop			Commercial			All Other				Total
Direct premiums earned	$	19,453		$	15,258		$	21,256		$	19,654		$	16,864		$	1,255		$	93,740
Assumed premiums earned		-			-			-			24			-			1,312			1,336
Ceded premiums earned		(962	)		(369	)		(2,481	)		(6,954	)		(2,066	)		(71	)		(12,903	)
Net premiums earned		18,491			14,889			18,775			12,724			14,798			2,496			82,173

Direct losses and loss adjustment expenses		17,646			9,620			19,839			27,237			13,058			53			87,453
Assumed losses and loss adjustment expenses		-			-			-			151			-			2,157			2,308
Ceded losses and loss adjustment expenses		(516	)		-			(3,684	)		(14,906	)		(5,288	)		375			(24,019	)
Net losses and loss adjustment expenses		17,130			9,620			16,155			12,482			7,770			2,585			65,742

Gross margin		1,361			5,269			2,620			242			7,028			(89	)		16,431

Underwriting and general expenses		5,892			6,010			6,627			864			5,257			698			25,348
Underwriting gain (loss)		(4,531	)		(741	)		(4,007	)		(622	)		1,771			(787	)		(8,917	)

Fee and other income					301															501
					(440	)
Net investment income																				1,713
Net investment gains																				222
Loss before income taxes																				(6,481	)
Income tax benefit																				(1,622	)
Net loss																				(4,859	)
Net loss attributable to non-controlling interest																				(122	)
Net loss attributable to NI Holdings, Inc.																			$	(4,737	)

Operating Ratios:
Loss and loss adjustment expense ratio		92.6%			64.6%			86.0%			98.1%			52.5%			103.6%			80.0%
Expense ratio		31.9%			40.4%			35.3%			6.8%			35.5%			27.9%			30.8%
Combined ratio		124.5%			105.0%			121.3%			104.9%			88.0%			131.5%			110.8%


Balances at September 30, 2021:
Premiums and agents’ balances receivable	$	19,531		$	8,789		$	9,246		$	33,376		$	10,737		$	709		$	82,388
Deferred policy acquisition costs		5,234			6,226			7,539			1			6,027			449			25,476
Reinsurance recoverables on losses		1,422			-			2,680			28,824			7,911			1,841			42,678
Receivable from Federal Crop Insurance Corporation		-			-			-			9,362			-			-			9,362
Goodwill and other intangibles		-			2,823			-			-			15,017			-			17,840
Unpaid losses and loss adjustment expenses		26,073			44,114			17,443			50,393			30,547			11,006			179,576
Unearned premiums		29,462			19,489			42,664			9,369			32,930			3,185			137,099

Table of Contents

NI Holdings, Inc.

Notes to Consolidated Financial Statements (Unaudited)

(dollar amounts in thousands, except per share amounts)

	Nine Months Ended September 30, 2022
	Private Passenger Auto			Non- Standard Auto			Home and Farm			Crop			Commercial			All Other				Total
Direct premiums earned	$	59,648		$	47,665		$	65,312		$	38,612		$	54,733		$	3,853		$	269,823
Assumed premiums earned		-			-			-			2,259			-			3,753			6,012
Ceded premiums earned		(1,830	)		(196	)		(6,393	)		(14,023	)		(9,630	)		(148	)		(32,220	)
Net premiums earned		57,818			47,469			58,919			26,848			45,103			7,458			243,615

Direct losses and loss adjustment expenses		52,360			24,582			103,430			25,173			42,791			2,275			250,611
Assumed losses and loss adjustment expenses		-			-			-			781			-			1,632			2,413
Ceded losses and loss adjustment expenses		(442	)		-			(5,938	)		(8,819	)		(9,970	)		(214	)		(25,383	)
Net losses and loss adjustment expenses		51,918			24,582			97,492			17,135			32,821			3,693			227,641

Gross margin		5,900			22,887			(38,573	)		9,713			12,282			3,765			15,974

Underwriting and general expenses		16,382			19,357			17,425			1,400			16,752			1,835			73,151
Underwriting gain (loss)		(10,482	)		3,530			(55,998	)		8,313			(4,470	)		1,930			(57,177	)

Fee and other income					888															1,319
					4,418
Net investment income																				5,703
Net investment losses																				(19,532	)
Loss before income taxes																				(69,687	)
Income tax benefit																				(14,921	)
Net loss																				(54,766	)
Net loss attributable to non-controlling interest																				(780	)
Net loss attributable to NI Holdings, Inc.																			$	(53,986	)

Operating Ratios:
Loss and loss adjustment expense ratio		89.8%			51.8%			165.5%			63.8%			72.8%			49.5%			93.5%
Expense ratio		28.3%			40.8%			29.6%			5.2%			37.1%			24.6%			30.0%
Combined ratio		118.1%			92.6%			195.1%			69.0%			109.9%			74.1%			123.5%

Table of Contents

NI Holdings, Inc.

Notes to Consolidated Financial Statements (Unaudited)

(dollar amounts in thousands, except per share amounts)

	Nine Months Ended September 30, 2021
	Private Passenger Auto			Non- Standard Auto			Home and Farm			Crop			Commercial			All Other				Total
Direct premiums earned	$	57,153		$	44,102		$	62,647		$	34,212		$	47,781		$	3,647		$	249,542
Assumed premiums earned		-			-			-			2,108			-			4,192			6,300
Ceded premiums earned		(3,096	)		(1,057	)		(8,045	)		(15,196	)		(6,625	)		(234	)		(34,253	)
Net premiums earned		54,057			43,045			54,602			21,124			41,156			7,605			221,589

Direct losses and loss adjustment expenses		45,299			25,910			47,163			49,612			33,016			630			201,630
Assumed losses and loss adjustment expenses		-			-			-			674			-			4,542			5,216
Ceded losses and loss adjustment expenses		(1,010	)		-			(5,168	)		(27,911	)		(7,583	)		375			(41,297	)
Net losses and loss adjustment expenses		44,289			25,910			41,995			22,375			25,433			5,547			165,549

Gross margin		9,768			17,135			12,607			(1,251	)		15,723			2,058			56,040

Underwriting and general expenses		16,018			16,949			17,311			2,831			15,049			2,017			70,175
Underwriting gain (loss)		(6,250	)		186			(4,704	)		(4,082	)		674			41			(14,135	)

Fee and other income					994															1,338
					1,180
Net investment income																				4,959
Net investment gains																				10,734
Income before income taxes																				2,896
Income tax expense																				707
Net income																				2,189
Net loss attributable to non-controlling interest																				(99	)
Net income attributable to NI Holdings, Inc.																			$	2,288

Operating Ratios:
Loss and loss adjustment expense ratio		81.9%			60.2%			76.9%			105.9%			61.8%			72.9%			74.7%
Expense ratio		29.6%			39.4%			31.7%			13.4%			36.6%			26.5%			31.7%
Combined ratio		111.5%			99.6%			108.6%			119.3%			98.4%			99.4%			106.4%

- 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 https://asc.fasb.org/extlink&oid=126901519&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 https://asc.fasb.org/extlink&oid=126901519&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 https://asc.fasb.org/extlink&oid=126901519&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 https://asc.fasb.org/extlink&oid=126901519&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 https://asc.fasb.org/extlink&oid=126901519&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 https://asc.fasb.org/extlink&oid=126901519&loc=d3e8933-108599

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 26
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8844-108599

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 41
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e9038-108599

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (d)
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8933-108599

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 22
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8736-108599

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 42
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e9054-108599

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 15
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8657-108599

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 21
-Subparagraph (b)
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8721-108599

Reference 14: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-URI https://asc.fasb.org/topic&trid=2134510

+ Details

Deferred Policy Acquisition Costs (Tables)

9 Months Ended

Sep. 30, 2022

Reinsurance Disclosures [Abstract]

Schedule of deferred policy acquisition costs

	Three Months Ended September 30,						Nine Months Ended September 30,
	2022			2021			2022			2021
Balance, beginning of period	$	30,917		$	29,657		$	24,947		$	23,968
Deferral of policy acquisition costs		16,491			8,717			54,328			47,879
Amortization of deferred policy acquisition costs		(17,589	)		(12,898	)		(49,456	)		(46,371	)
Balance, end of period	$	29,819		$	25,476		$	29,819		$	25,476

Stock Based Compensation (Schedule of RSU activity) (Details) - Restricted Stock [Member] - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
RSU compensation expense	$ 227	$ 226	$ 725	$ 843
Income tax benefit	(52)	(47)	(165)	(177)
RSU compensation expense, net of income taxes	$ 175	$ 179	$ 560	$ 666

Income Taxes

9 Months Ended

Sep. 30, 2022

Income Tax Disclosure [Abstract]

Income Taxes

13.Income Taxes

At September 30, 2022, and December 31, 2021, 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 nine-month period ended September 30, 2022, or the year ended December 31, 2021.

At September 30, 2022, and December 31, 2021, the Company, other than Battle Creek and Westminster, had no income tax related carryforwards 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 net operating loss carryforwards of $3,215 at December 31, 2021. These net operating loss carryforwards began expiring in 2021 and will continue to expire through 2032.

Westminster had a $2,122 net operating loss carryforward at December 31, 2021. This net operating loss carryforward expires in 2023.

As of September 30, 2022, federal income tax years 2018 through 2020 remain open for examination.

- 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

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 21
-URI https://asc.fasb.org/extlink&oid=121826272&loc=d3e32857-109319

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section S99
-Paragraph 2
-Subparagraph (SAB Topic 11.C)
-URI https://asc.fasb.org/extlink&oid=122134291&loc=d3e330215-122817

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 17
-Subparagraph (b)
-URI https://asc.fasb.org/extlink&oid=121826272&loc=d3e32809-109319

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SAB TOPIC 6.I.5.Q1)
-URI https://asc.fasb.org/extlink&oid=122134291&loc=d3e330036-122817

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 14
-URI https://asc.fasb.org/extlink&oid=121826272&loc=d3e32705-109319

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 270
-Section 50
-Paragraph 1
-URI https://asc.fasb.org/extlink&oid=6424409&loc=d3e44925-109338

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-URI https://asc.fasb.org/topic&trid=2144680

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 30
-Section 50
-Paragraph 2
-Subparagraph (a)
-URI https://asc.fasb.org/extlink&oid=6424122&loc=d3e41874-109331

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(h)(2))
-URI https://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690

+ Details

Reinsurance

9 Months Ended

Sep. 30, 2022

Reinsurance Disclosures [Abstract]

Reinsurance

5.Reinsurance

The Company cedes and assumes certain premiums and losses to and from various companies and associations under a variety of 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 through facultative contracts on substantial individual risks. Reinsurance contracts do not relieve the Company from its obligation to policyholders.

During the nine-month period ended September 30, 2022, the Company retained the first $15,000 of weather-related losses from catastrophic events and had reinsurance under various reinsurance agreements up to $125,000 in excess of its $15,000 retained risk. The Company experienced multiple severe weather events during the second quarter of 2022 which have continued to develop during the third quarter of 2022 and resulted in an accrual for reinsurance recoveries at September 30, 2022.

During the year ended December 31, 2021, the Company retained the first $10,000 of weather-related losses from catastrophic events and had reinsurance under various reinsurance agreements up to $117,000 in excess of its $10,000 retained risk. The Company experienced one catastrophe event during the second quarter of 2021 in excess of the retention level.

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 reinsurance recoverables on paid and unpaid losses were due from reinsurance companies with AM Best ratings of “A” or higher.

Table of Contents

NI Holdings, Inc.

Notes to Consolidated Financial Statements (Unaudited)

(dollar amounts in thousands, except per share amounts)

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

	Three Months Ended September 30, 2022						Nine Months Ended September 30, 2022
	Premiums Written			Premiums Earned			Premiums Written			Premiums Earned
Direct premium	$	81,147		$	102,173		$	301,642		$	269,823
Assumed premium		680			2,460			5,767			6,012
Ceded premium		(10,765	)		(15,101	)		(36,600	)		(32,220	)
Net premiums	$	71,062		$	89,532		$	270,809		$	243,615

	Three Months Ended September 30, 2021						Nine Months Ended September 30, 2021
	Premiums Written			Premiums Earned			Premiums Written			Premiums Earned
Direct premium	$	68,905		$	93,740		$	266,877		$	249,542
Assumed premium		1,316			1,336			6,342			6,300
Ceded premium		(3,495	)		(12,903	)		(36,812	)		(34,253	)
Net premiums	$	66,726		$	82,173		$	236,407		$	221,589

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

	Three Months Ended September 30,						Nine Months Ended September 30,
	2022			2021			2022			2021
Direct losses and loss adjustment expenses	$	94,446		$	87,453		$	250,611		$	201,630
Assumed losses and loss adjustment expenses		868			2,308			2,413			5,216
Ceded losses and loss adjustment expenses		(16,397	)		(24,019	)		(25,383	)		(41,297	)
Net losses and loss adjustment expenses	$	78,917		$	65,742		$	227,641		$	165,549

If 100% of our ceded reinsurance was cancelled as of September 30, 2022, or December 31, 2021, no ceded commissions would need to be returned to the reinsurers. Reinsurance contracts are typically effective from January 1 through December 31 each year.

Related Party Transactions (Tables)

9 Months Ended

Sep. 30, 2022

Schedule of Pooling Share Percentages

	Pool Percentage
Nodak Insurance Company		66.0	%
American West Insurance Company		7.0	%
Primero Insurance Company		3.0	%
Battle Creek Mutual Insurance Company		2.0	%
Direct Auto Insurance Company		13.0	%
Westminster American Insurance Company		9.0	%
Total		100.0	%

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

The following tables illustrates the impact of including Battle Creek in our Unaudited Consolidated Balance Sheets and Statements of Operations prior to intercompany eliminations:

	September 30, 2022		December 31, 2021
Assets:
Cash and cash equivalents	$	9,003	$	4,398
Investments		8,339		10,610
Premiums and agents’ balances receivable		5,696		5,038
Deferred policy acquisition costs		596		499
Reinsurance recoverables on losses (2)		6,094		10,173
Accrued investment income		43		51
Property and equipment		323		325
Pooling receivable (1)		277		-
Deferred income taxes		774		142
Other assets		53		52
Total assets	$	31,198	$	31,288

Liabilities:
Unpaid losses and loss adjustment expenses	$	6,675	$	2,937
Unearned premiums		3,088		2,544
Notes payable (1)		3,000		3,000
Pooling payable (1)		-		5,580
Reinsurance losses payable (2)		11,558		12,754
Accrued expenses and other liabilities		4,819		264
Total liabilities		29,140		27,079

Equity:
Non-controlling interest		2,058		4,209
Total equity		2,058		4,209

Total liabilities and equity	$	31,198	$	31,288

	(1)	Amount fully eliminated in consolidation.
	(2)	Amount partially eliminated in consolidation.

Table of Contents

NI Holdings, Inc.

Notes to Consolidated Financial Statements (Unaudited)

(dollar amounts in thousands, except per share amounts)

	Three Months Ended September 30,						Nine Months Ended September 30,
	2022			2021			2022			2021
Revenues:
Net premiums earned	$	1,790		$	1,499		$	4,872		$	4,594
Fee and other income (expenses)		(1	)		(6	)		(8	)		(8	)
Net investment income (loss)		(8	)		17			32			40
Total revenues		1,781			1,510			4,896			4,626

Expenses:
Losses and loss adjustment expenses		1,579			1,179			4,553			3,448
Amortization of deferred policy acquisition costs		352			258			989			927
Other underwriting and general expenses		89			209			363			356
Total expenses		2,020			1,646			5,905			4,731

Income (loss) before income taxes		(239	)		(136	)		(1,009	)		(105	)
Income tax expense (benefit)		(55	)		(14	)		(229	)		(6	)
Net income (loss)	$	(184	)	$	(122	)	$	(780	)	$	(99	)

Stock Based Compensation

9 Months Ended

Sep. 30, 2022

Share-Based Payment Arrangement [Abstract]

Stock Based Compensation

17.Stock Based Compensation

At its 2020 Annual Shareholders’ Meeting, the NI Holdings, Inc. 2020 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, independent contractors, 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 and to afford such persons an opportunity to acquire an ownership interest 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 may be issued under the Plan shall not exceed 1,000,000 shares, subject to adjustments as provided in the Plan. No eligible participant may be granted any awards for more than 100,000 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 $150 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 for RSUs 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 RSUs is presented below:

	RSUs			Weighted-Average Grant-Date Fair Value Per Share
Units outstanding and unearned at January 1, 2021		115,780		$	15.27
RSUs granted during 2021		58,700			18.76
RSUs earned during 2021		(66,100	)		15.77
Units outstanding and unearned at December 31, 2021		108,380			16.86

RSUs granted during 2022		59,600			17.61
RSUs earned during 2022		(52,620	)		17.39
Units outstanding and unearned at September 30, 2022		115,360			17.00

Table of Contents

NI Holdings, Inc.

Notes to Consolidated Financial Statements (Unaudited)

(dollar amounts in thousands, except per share amounts)

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

	Three Months Ended September 30,						Nine Months Ended September 30,
	2022			2021			2022			2021
RSU compensation expense	$	227		$	226		$	725		$	843
Income tax benefit		(52	)		(47	)		(165	)		(177	)
RSU compensation expense, net of income taxes	$	175		$	179		$	560		$	666

At September 30, 2022, there was $1,043 of unrecognized compensation cost related to outstanding RSUs. That cost is expected to be recognized over a weighted-average period of 1.94 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 for PSUs based on the grant date fair value over the performance period of the awards. Estimated forfeitures are included in the determination of compensation costs. The current cost estimates represent the Company’s forecasted performance against cumulative growth targets.

A summary of the Company’s outstanding PSUs is presented below:

	PSUs			Weighted-Average Grant-Date Fair Value Per Share
Units outstanding at January 1, 2021		174,600		$	15.15
PSUs granted during 2021 (at target)		64,600			18.64
PSUs earned during 2021		(70,363	)		16.25
Performance adjustment (1)		24,300			16.25
Forfeitures		(2,537	)		16.25
Units outstanding at December 31, 2021		190,600			16.06

PSUs granted during 2022 (at target)		61,800			18.10
PSUs earned during 2022		(86,684	)		15.21
Performance adjustment (1)		31,200			15.21
Forfeitures		(6,916	)		15.21
Units outstanding at September 30, 2022		190,000			17.00

(1) Represents the change in PSUs issued based upon the attainment of performance goals established by the Company.

Table of Contents

NI Holdings, Inc.

Notes to Consolidated Financial Statements (Unaudited)

(dollar amounts in thousands, except per share amounts)

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

	Three Months Ended September 30,						Nine Months Ended September 30,
	2022			2021			2022			2021
PSU compensation expense (benefit)	$	(872	)	$	290		$	(349	)	$	861
Income tax expense (benefit)		198			(61	)		79			(181	)
PSU compensation expense (benefit), net of income taxes	$	(674	)	$	229		$	(270	)	$	680

The cost estimates for PSU grants represent initial target awards until the Company can reasonably forecast the financial performance of each PSU award grant. As of September 30, 2022, the compensation expense related to the PSU awards granted during 2020 was decreased due to the Company’s expectation that the threshold performance objective will not be met. The PSU awards granted during 2021 and 2022 continue to represent the initial target awards. The actual number of shares to be issued at the end of each performance period will range from 0% to 150% of the initial target awards.

At September 30, 2022, there was $1,295 of unrecognized compensation cost related to outstanding PSUs. That cost is expected to be recognized over a weighted-average period of 2.07 years.

Basis of Presentation and Accounting Policies (Policies)	9 Months Ended
	Sep. 30, 2022
Accounting Policies [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 and are unaudited. 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. All material intercompany transactions and balances have been eliminated. These financial statements should be read in conjunction with the financial statements and notes thereto included in our 2021 Annual Report. The Consolidated Balance Sheet at December 31, 2021, has been derived from the Audited Consolidated Financial Statements at that date but does not include all of the information and footnotes required by GAAP for complete financial statements. The preparation of the interim Unaudited Consolidated Financial Statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the interim Unaudited Consolidated Financial Statements and the reported amounts of revenues, claims, and expenses during the reporting period. Actual results could differ from those estimates. Operating results for the interim period ended September 30, 2022, are not necessarily indicative of the results that may be expected for the year ended December 31, 2022. Our 2021 Annual Report describes the accounting policies and estimates that are critical to the understanding of our results of operations, financial condition, and liquidity. The accounting policies and estimation processes described in the 2021 Annual Report were consistently applied to the Unaudited Consolidated Financial Statements as of and for the nine months ended September 30, 2022 and 2021.
Recent Accounting Pronouncements	10 Table of Contents NI Holdings, Inc. Notes to Consolidated Financial Statements (Unaudited) (dollar amounts in thousands, except per share amounts) Recent Accounting Pronouncements As an emerging growth company (“EGC”), we have elected to use the extended transition period for complying with any new or revised financial accounting standards from the Financial Accounting Standards Board (“FASB”) pursuant to Section 13(a) of the Exchange Act. We will lose our EGC status December 31, 2022. The following discussion includes effective dates for both public business entities and EGCs, as well as whether specific guidance may be adopted early. 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 lease 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 was effective for annual and interim reporting periods beginning after December 15, 2018, for public business entities. For private companies and EGCs, this guidance is effective for annual reporting periods beginning after December 15, 2021, and interim periods within fiscal years beginning after December 15, 2022. We will adopt this guidance in the fourth quarter of the year ended December 31, 2022, when we lose our EGC status. 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. Upon adoption, the Company will recognize a right of use asset and operating lease liability on its Consolidated Balance Sheet. The cumulative adjustment to retained earnings is not expected to be significant. In June 2016, the FASB issued a new standard that requires timelier recording of credit losses on loans and other financial instruments held by financial institutions and other organizations. The guidance requires 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. The guidance also requires financial institutions and other organizations to use forward-looking information to better form their credit loss estimates. Many of the loss estimation techniques applied prior to adoption of this standard are still permitted, although the inputs to those techniques have changed to reflect the full amount of expected credit losses. Organizations are to 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 was 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 EGCs that did not relinquish private company relief. For all other entities, this guidance will be effective for annual reporting periods beginning after December 15, 2022, and interim periods within those fiscal years. We will adopt this guidance in the fourth quarter of the year ended December 31, 2022, when we lose our EGC status. Based on our evaluation, adoption of this new standard will not have a significant impact on our financial position, results of operations, and cash flows. In December 2019, the FASB issued amended guidance to simplify the accounting for income taxes. The amended guidance was effective for fiscal years beginning after December 15, 2020, including interim periods within those fiscal years, for public business entities. For private companies and EGCs, the amended guidance will be effective for fiscal years beginning after December 15, 2021, and interim periods within fiscal years beginning after December 15, 2022. We will adopt this guidance in the fourth quarter of the year ended December 31, 2022, when we lose our EGC status. Based on our evaluation, adoption of this new standard will not have a significant impact on our financial position, results of operations, and cash flows. On August 16, 2022, the government of the United States of America (“U.S.”) enacted the Inflation Reduction Act (“IRA”) which, among other changes, created a new corporate alternative minimum tax (“AMT”) based on adjusted financial statement income and imposes a 1% excise tax on corporate stock repurchases. The effective date of these provisions is January 1, 2023. The Company is not expected to be subject to the AMT based on its reported GAAP earnings for the past three years. While we periodically repurchase our stock, it is expected that any excise tax incurred on corporate stock repurchases will be recognized as part of the cost basis of the treasury stock acquired and not reported as part of income tax or other expense. Based on our evaluation, the Company does not expect this legislation to have a significant impact on our financial position, results of operations, and cash flows.

Goodwill and Other Intangibles (Schedule of Carrying Amount of Other Intangible Assets) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021	Dec. 31, 2021
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	$ 9,348		$ 9,348		$ 9,348
Accumulated Amortization	1,364		1,364		1,010
Net	7,984		7,984		8,338
Amortization expense	118	$ 118	354	$ 354
Subject to Amortization [Member]
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	7,448		7,448		7,448
Accumulated Amortization	1,364		1,364		1,010
Net	6,084		6,084		6,438
Not Subject to Amortization - State Insurance Licenses [Member]
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	1,900		1,900		1,900
Accumulated Amortization
Net	1,900		1,900		1,900
Trade Names [Member]
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	748		748		748
Accumulated Amortization	340		340		265
Net	408		408		483
Distribution Network [Member]
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	6,700		6,700		6,700
Accumulated Amortization	1,024		1,024		745
Net	$ 5,676		$ 5,676		$ 5,955

Goodwill and Other Intangibles (Schedule of Carrying Amount of Goodwill by Segment) (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Goodwill [Line Items]
Goodwill	$ 9,384	$ 9,384
Primero Insurance Company [Member]
Goodwill [Line Items]
Goodwill	2,628	2,628
Westminster American Insurance Company [Member]
Goodwill [Line Items]
Goodwill	$ 6,756	$ 6,756

- Definition

Amount after accumulated impairment loss of an asset representing future economic benefits arising from other assets acquired in a business combination that are not individually identified and separately recognized.

+ References + Details

Common Stock

9 Months Ended

Sep. 30, 2022

Equity [Abstract]

Common Stock

16.Common Stock

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

	Nine Months Ended September 30,
	2022			2021
Shares outstanding, beginning of period		21,219,808			21,318,638
Treasury shares repurchased through stock repurchase authorization		(173,419	)		(168,393	)
Issuance of treasury shares for vesting of restricted stock units		101,292			102,060
Shares outstanding, end of period		21,147,681			21,252,305

The changes in the number of common shares outstanding excludes certain non-forfeitable stock award shares that are included in the weighted average common shares outstanding used in basic earnings per common share calculations. In addition, the net loss per diluted common share for the three- and nine-month periods ended September 30, 2022, excluded the weighted average effects of 176,037 and 207,424 shares of stock awards, respectively, since the impacts of these potential shares of common stock were anti-dilutive.

On May 4, 2020, our Board of Directors approved an authorization for the repurchase of up to approximately $10,000 of the Company’s outstanding common stock. During the year ended December 31, 2020, we completed the repurchase of 454,443 shares of our common stock for $7,238 under this authorization. During the nine months ended September 30, 2021, we completed the repurchase of 144,110 shares of our common stock for $2,762 to close out this authorization.

On August 11, 2021, our Board of Directors approved an authorization for the repurchase of up to approximately $5,000 of the Company’s outstanding common stock. During the year ended December 31, 2021, we completed the repurchase of 81,095 shares of our common stock for $1,554 under this authorization. During the three months ended September 30, 2022, we completed the repurchase of 62,175 shares of our common stock for $939. During the nine months ended September 30, 2022, we completed the repurchase of 173,419 shares of our common stock for $2,870.

Table of Contents

NI Holdings, Inc.

Notes to Consolidated Financial Statements (Unaudited)

(dollar amounts in thousands, except per share amounts)

On May 9, 2022, our Board of Directors approved an authorization for the repurchase of up to approximately $10,000 of the Company’s outstanding common stock in addition to the $575 remaining from the August 11, 2021, repurchase authorization as of September 30, 2022. No shares were repurchased as part of the May 9, 2022, authorization during the nine months ended September 30, 2022.

The cost of this treasury stock is a reduction of shareholders’ equity within our Unaudited Consolidated Balance Sheets.

- Definition

The entire disclosure for shareholders' equity comprised of portions attributable to the parent entity and noncontrolling interest, including other comprehensive income. Includes, but is not limited to, balances of common stock, preferred stock, additional paid-in capital, other capital and retained earnings, accumulated balance for each classification of other comprehensive income and amount of comprehensive income.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-URI https://asc.fasb.org/topic&trid=2208762

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 13
-Subparagraph (b)
-URI https://asc.fasb.org/extlink&oid=126973232&loc=SL123496158-112644

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 13
-URI https://asc.fasb.org/extlink&oid=126973232&loc=SL123496158-112644

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 14
-Subparagraph (c)
-URI https://asc.fasb.org/extlink&oid=126973232&loc=SL123496171-112644

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 14
-Subparagraph (b)
-URI https://asc.fasb.org/extlink&oid=126973232&loc=SL123496171-112644

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.3-04)
-URI https://asc.fasb.org/extlink&oid=120397183&loc=d3e187085-122770

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 18
-Subparagraph (d)
-URI https://asc.fasb.org/extlink&oid=126973232&loc=SL123496189-112644

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 13
-Subparagraph (g)
-URI https://asc.fasb.org/extlink&oid=126973232&loc=SL123496158-112644

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 18
-Subparagraph (a)
-URI https://asc.fasb.org/extlink&oid=126973232&loc=SL123496189-112644

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 13
-Subparagraph (h)
-URI https://asc.fasb.org/extlink&oid=126973232&loc=SL123496158-112644

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 14
-Subparagraph (a)
-URI https://asc.fasb.org/extlink&oid=126973232&loc=SL123496171-112644

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 18
-Subparagraph (b)
-URI https://asc.fasb.org/extlink&oid=126973232&loc=SL123496189-112644

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 16
-Subparagraph (b)
-URI https://asc.fasb.org/extlink&oid=126973232&loc=SL123496180-112644

Reference 14: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 13
-Subparagraph (i)
-URI https://asc.fasb.org/extlink&oid=126973232&loc=SL123496158-112644

Reference 15: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(e)(1))
-URI https://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690

Reference 16: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 40
-Section 50
-Paragraph 6
-Subparagraph (a)
-URI https://asc.fasb.org/extlink&oid=126731327&loc=SL126733271-114008

+ Details

Operating Leases (Schedule of Minimum Future Commitments Under Non-Cancellable Leases) (Details) $ in Thousands	Sep. 30, 2022 USD ($)
Leases, Operating [Abstract]
2022	$ 96
2023	358
2024	320
2025	286
2026	291
Thereafter	775
Total minimum future commitments	$ 2,126

Line of Credit

9 Months Ended

Sep. 30, 2022

Debt Disclosure [Abstract]

Line of Credit

12.Line of Credit

Nodak Insurance has a $5,000 line of credit with Wells Fargo Bank, N.A. The terms of the line of credit include a floating interest rate of the bank’s Prime Rate with a floor rate of 3.25%. There were no outstanding amounts during the nine months ended September 30, 2022, or the year ended December 31, 2021. This line of credit is scheduled to expire on May 31, 2023.

- Definition

The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-URI https://asc.fasb.org/topic&trid=2208564

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1B
-Subparagraph (h)
-URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495323-112611

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1C
-Subparagraph (c)
-URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495334-112611

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1I
-Subparagraph (a)
-URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495371-112611

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1I
-Subparagraph (d)
-URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495371-112611

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(c))
-URI https://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1B
-Subparagraph (g)
-URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495323-112611

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1C
-Subparagraph (b)
-URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495334-112611

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1C
-Subparagraph (a)
-URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495334-112611

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1E
-Subparagraph (b)
-URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495348-112611

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1B
-URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495323-112611

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1I
-Subparagraph (b)
-URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495371-112611

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1B
-Subparagraph (i)
-URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495323-112611

+ Details

Unpaid Losses and Loss Adjustment Expenses (Narrative) (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021
Unpaid Losses And Loss Adjustment Expenses Narrative
Loss adjustment expenses on prior accident years	$ (7,182)	$ (6,894)

Consolidated Balance Sheets - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Assets:
Cash and cash equivalents	$ 54,277	$ 70,623
Fixed income securities, at fair value	294,211	364,651
Equity securities, at fair value	58,377	77,690
Other investments	2,005	2,005
Total cash and investments	408,870	514,969
Premiums and agents' balances receivable	102,970	51,452
Deferred policy acquisition costs	29,819	24,947
Reinsurance recoverables on losses	32,990	21,200
Income tax recoverable	11,384	364
Accrued investment income	2,197	2,524
Property and equipment	9,924	9,869
Deferred income taxes	11,975
Goodwill and other intangibles	17,368	17,722
Other assets	9,040	8,735
Total assets	636,537	651,782
Liabilities:
Unpaid losses and loss adjustment expenses	185,937	139,662
Unearned premiums	154,409	127,789
Reinsurance premiums payable	1,549	326
Deferred income taxes		5,506
Payable to Federal Crop Insurance Corporation	4,700	4,962
Westminster consideration payable	6,654	13,020
Accrued expenses and other liabilities	32,467	13,104
Total liabilities	385,716	304,369
Commitments and contingencies
Shareholders' equity:
Common stock, $0.01 par value, authorized: 25,000,000 shares; issued: 23,000,000 shares; and outstanding: 2022 – 21,147,681 shares, 2021 – 21,219,808 shares	230	230
Preferred stock, without par value, authorized 5,000,000 shares; no shares issued or outstanding
Additional paid-in capital	95,980	98,166
Unearned employee stock ownership plan shares	(1,184)	(1,184)
Retained earnings	213,231	267,207
Accumulated other comprehensive income (loss), net of income taxes	(31,986)	5,237
Treasury stock, at cost, 2022 – 1,733,894 shares, 2021 – 1,661,767 shares	(27,508)	(26,452)
Non-controlling interest	2,058	4,209
Total shareholders' equity	250,821	347,413
Total liabilities and shareholders' equity	$ 636,537	$ 651,782

Unpaid Losses and Loss Adjustment Expenses

9 Months Ended

Sep. 30, 2022

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

Unpaid Losses and Loss Adjustment Expenses

7.Unpaid Losses and Loss Adjustment Expenses

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

	Nine Months Ended September 30,
	2022			2021
Balance, beginning of period:
Liability for unpaid losses and loss adjustment expenses	$	139,662		$	105,750
Reinsurance recoverables on losses		21,200			8,710
Net balance, beginning of period		118,462			97,040

Incurred related to:
Current year		234,823			172,443
Prior years		(7,182	)		(6,894	)
Total incurred		227,641			165,549

Paid related to:
Current year		141,810			86,251
Prior years		51,346			39,440
Total paid		193,156			125,691

Balance, end of period:
Liability for unpaid losses and loss adjustment expenses		185,937			179,576
Reinsurance recoverables on losses		32,990			42,678
Net balance, end of period	$	152,947		$	136,898

During the nine months ended September 30, 2022, the Company’s reported incurred losses and loss adjustment expenses included $7,182 of net favorable development on prior accident years, primarily attributable to Battle Creek and American West. During the nine months ended September 30, 2021, the Company’s incurred reported losses and loss adjustment expenses included $6,894 of net favorable development on prior accident years, primarily attributable to Nodak Insurance, Direct Auto, and American West.

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.

Related Party Transactions (Schedule of Pooling Share Percentages) (Details)	9 Months Ended	12 Months Ended
	Sep. 30, 2022	Dec. 31, 2021
Nodak Insurance Company [Member]
Subsidiary of Limited Liability Company or Limited Partnership [Line Items]
Total pooling share percentages	66.00%	66.00%
American West Insurance Company [Member]
Subsidiary of Limited Liability Company or Limited Partnership [Line Items]
Total pooling share percentages	7.00%	7.00%
Primero Insurance Company [Member]
Subsidiary of Limited Liability Company or Limited Partnership [Line Items]
Total pooling share percentages	3.00%	3.00%
Battle Creek Mutual Insurance Company [Member]
Subsidiary of Limited Liability Company or Limited Partnership [Line Items]
Total pooling share percentages	2.00%	2.00%
Direct Auto Insurance Company [Member]
Subsidiary of Limited Liability Company or Limited Partnership [Line Items]
Total pooling share percentages	13.00%	13.00%
Westminster American Insurance Company [Member]
Subsidiary of Limited Liability Company or Limited Partnership [Line Items]
Total pooling share percentages	9.00%	9.00%
Total [Member]
Subsidiary of Limited Liability Company or Limited Partnership [Line Items]
Total pooling share percentages	100.00%	100.00%

Contingencies

9 Months Ended

Sep. 30, 2022

Commitments and Contingencies Disclosure [Abstract]

Contingencies

15.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.

Common Stock (Schedule of changes in number of common stock) (Details) - shares	9 Months Ended		12 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Dec. 31, 2021
Equity [Abstract]
Shares outstanding, beginning of period	21,219,808	21,318,638	21,318,638
Treasury shares repurchased through stock repurchase authorization	(173,419)	(168,393)
Issuance of treasury shares for vesting of restricted stock units	101,292	102,060
Shares outstanding, end of period	21,147,681	21,252,305	21,219,808

Operating Leases (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
Operating Leases (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Operating Leased Assets [Line Items]
Operating lease expenses	$ 102	$ 63	$ 239	$ 187
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
Nodak Insurance Lease [Member]
Operating Leased Assets [Line Items]
Lease expiration date			Dec. 31, 2024

Related Party Transactions (Narrative) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021	Dec. 31, 2021
Related Party Transaction [Line Items]
Payment of dividends					$ 21,493
Direct Auto Insurance Company [Member]
Related Party Transaction [Line Items]
Payment of dividends					3,796
Westminster Insurance Company [Member]
Related Party Transaction [Line Items]
Payment of dividends					2,471
NDFB [Member]
Related Party Transaction [Line Items]
Royalties	$ 397	$ 370	$ 1,141	$ 1,102
Accrued royalties	$ 74		$ 74		$ 113

Property and Equipment (Schedule of property and equipment) (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2022	Dec. 31, 2021
Cost	$ 21,357	$ 21,227
Accumulated depreciation	(11,433)	(11,358)
Total property and equipment, net	9,924	9,869
Land [Member]
Cost	$ 1,403	1,403
Estimated Useful Life, description	indefinite
Building and improvements [Member]
Cost	$ 14,160	14,193
Building and improvements [Member] \| Minimum [Member]
Estimated Useful Life	10 years
Building and improvements [Member] \| Maximum [Member]
Estimated Useful Life	40 years
Electronic data processing equipment [Member]
Cost	$ 1,565	1,518
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	$ 2,919	2,885
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	$ 1,310	$ 1,228
Automobiles [Member] \| Minimum [Member]
Estimated Useful Life	2 years
Automobiles [Member] \| Maximum [Member]
Estimated Useful Life	3 years

Fair Value Measurements (Tables)

9 Months Ended

Sep. 30, 2022

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 at fair value on a recurring basis by the level within the fair value hierarchy in which fair value measurements fall:

	September 30, 2022
	Total		Level I		Level II		Level III
Fixed income securities:
U.S. Government and agencies	$	10,137	$	-	$	10,137	$	-
Obligations of states and political subdivisions		55,375		-		55,375		-
Corporate securities		120,780		-		120,780		-
Residential mortgage-backed securities		36,394		-		36,394		-
Commercial mortgage-backed securities		27,667		-		27,667		-
Asset-backed securities		39,889		-		39,889		-
Redeemable preferred stock		3,969		-		3,969		-
Total fixed income securities		294,211		-		294,211		-

Equity securities:
Common stock		56,569		56,569		-		-
Non-redeemable preferred stock		1,808		1,808		-		-
Total equity securities		58,377		58,377		-		-

Cash equivalents		26,357		26,357		-		-
Total assets at fair value	$	378,945	$	84,734	$	294,211	$	-

Table of Contents

NI Holdings, Inc.

Notes to Consolidated Financial Statements (Unaudited)

(dollar amounts in thousands, except per share amounts)

	December 31, 2021
	Total		Level I		Level II		Level III
Fixed income securities:
U.S. Government and agencies	$	13,498	$	-	$	13,498	$	-
Obligations of states and political subdivisions		87,294		-		87,294		-
Corporate securities		147,621		-		147,621		-
Residential mortgage-backed securities		26,156		-		26,156		-
Commercial mortgage-backed securities		33,532		-		33,532		-
Asset-backed securities		52,422		-		52,422		-
Redeemable preferred stock		4,128		-		4,128		-
Total fixed income securities		364,651		-		364,651		-

Equity securities:
Common Stock		75,143		75,143		-		-
Non-redeemable preferred stock		2,547		2,547		-		-
Total equity securities		77,690		77,690		-		-

Cash equivalents		45,741		45,741		-		-
Total assets at fair value	$	488,082	$	123,431	$	364,651	$	-

Stock Based Compensation (Tables)

9 Months Ended

Sep. 30, 2022

Share-Based Payment Arrangement [Abstract]

Schedule of RSU activity

A summary of the Company’s outstanding and unearned RSUs is presented below:

	RSUs			Weighted-Average Grant-Date Fair Value Per Share
Units outstanding and unearned at January 1, 2021		115,780		$	15.27
RSUs granted during 2021		58,700			18.76
RSUs earned during 2021		(66,100	)		15.77
Units outstanding and unearned at December 31, 2021		108,380			16.86

RSUs granted during 2022		59,600			17.61
RSUs earned during 2022		(52,620	)		17.39
Units outstanding and unearned at September 30, 2022		115,360			17.00

Table of Contents

NI Holdings, Inc.

Notes to Consolidated Financial Statements (Unaudited)

(dollar amounts in thousands, except per share amounts)

Schedule of Restricted Stock Outstanding

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

	Three Months Ended September 30,						Nine Months Ended September 30,
	2022			2021			2022			2021
RSU compensation expense	$	227		$	226		$	725		$	843
Income tax benefit		(52	)		(47	)		(165	)		(177	)
RSU compensation expense, net of income taxes	$	175		$	179		$	560		$	666

Schedule of Performance Stock Outstanding

A summary of the Company’s outstanding PSUs is presented below:

	PSUs			Weighted-Average Grant-Date Fair Value Per Share
Units outstanding at January 1, 2021		174,600		$	15.15
PSUs granted during 2021 (at target)		64,600			18.64
PSUs earned during 2021		(70,363	)		16.25
Performance adjustment (1)		24,300			16.25
Forfeitures		(2,537	)		16.25
Units outstanding at December 31, 2021		190,600			16.06

PSUs granted during 2022 (at target)		61,800			18.10
PSUs earned during 2022		(86,684	)		15.21
Performance adjustment (1)		31,200			15.21
Forfeitures		(6,916	)		15.21
Units outstanding at September 30, 2022		190,000			17.00

(1) Represents the change in PSUs issued based upon the attainment of performance goals established by the Company.

Table of Contents

NI Holdings, Inc.

Notes to Consolidated Financial Statements (Unaudited)

(dollar amounts in thousands, except per share amounts)

Schedule of PSU activity

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

	Three Months Ended September 30,						Nine Months Ended September 30,
	2022			2021			2022			2021
PSU compensation expense (benefit)	$	(872	)	$	290		$	(349	)	$	861
Income tax expense (benefit)		198			(61	)		79			(181	)
PSU compensation expense (benefit), net of income taxes	$	(674	)	$	229		$	(270	)	$	680

Document and Entity Information - shares	9 Months Ended
Document and Entity Information - shares	Sep. 30, 2022	Oct. 31, 2022
Cover [Abstract]
Entity Central Index Key	0001681206
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2022
Document Fiscal Period Focus	Q3
Amendment Flag	false
Document Type	10-Q
Document Quarterly Report	true
Document Transition Report	false
Document Period End Date	Sep. 30, 2022
Entity File Number	001-37973
Entity Registrant Name	NI HOLDINGS, INC.
Entity Incorporation, State or Country Code	ND
Entity Tax Identification Number	81-2683619
Entity Address, Address Line One	1101 First Avenue North
Entity Address, City or Town	Fargo
Entity Address, State or Province	ND
Entity Address, Postal Zip Code	58102
City Area Code	701
Local Phone Number	298-4200
Title of 12(b) Security	Common Stock, $0.01 par value per share
Trading Symbol	NODK
Name of Exchange on which Security is Registered	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	true
Entity Ex Transition Period	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		21,122,367

Consolidated Statements of Operations (Unaudited) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Revenues:
Net premiums earned	$ 89,532	$ 82,173	$ 243,615	$ 221,589
Fee and other income	476	501	1,319	1,338
Net investment income	2,035	1,713	5,703	4,959
Net investment gains (losses)	(2,868)	222	(19,532)	10,734
Total revenues	89,175	84,609	231,105	238,620
Expenses:
Losses and loss adjustment expenses	78,917	65,742	227,641	165,549
Amortization of deferred policy acquisition costs	17,589	12,898	49,456	46,371
Other underwriting and general expenses	5,912	12,450	23,695	23,804
Total expenses	102,418	91,090	300,792	235,724
Income (loss) before income taxes	(13,243)	(6,481)	(69,687)	2,896
Income tax expense (benefit)	(3,074)	(1,622)	(14,921)	707
Net income (loss)	(10,169)	(4,859)	(54,766)	2,189
Net income (loss) attributable to non-controlling interest	(184)	(122)	(780)	(99)
Net income (loss) attributable to NI Holdings, Inc.	$ (9,985)	$ (4,737)	$ (53,986)	$ 2,288
Earnings (loss) per common share:
Basic	$ (0.47)	$ (0.22)	$ (2.53)	$ 0.11
Diluted	$ (0.47)	$ (0.22)	$ (2.53)	$ 0.11
Share data:
Weighted average common shares outstanding used in basic per common share calculations	21,328,383	21,411,654	21,360,151	21,446,192
Plus: Dilutive securities				223,784
Weighted average common shares used in diluted per common share calculations	21,328,383	21,411,654	21,360,151	21,669,976

Segment Information (Tables)

9 Months Ended

Sep. 30, 2022

Income Tax Disclosure [Abstract]

Schedule of revenue by insurance product line

	Three Months Ended September 30, 2022
	Private Passenger Auto			Non- Standard Auto			Home and Farm			Crop			Commercial			All Other				Total
Direct premiums earned	$	20,523		$	17,646		$	22,429		$	20,921		$	19,342		$	1,312		$	102,173
Assumed premiums earned		-			-			-			1,768			-			692			2,460
Ceded premiums earned		(710	)		(67	)		(2,678	)		(8,123	)		(3,458	)		(65	)		(15,101	)
Net premiums earned		19,813			17,579			19,751			14,566			15,884			1,939			89,532

Direct losses and loss adjustment expenses		20,969			11,958			34,051			12,040			14,646			782			94,446
Assumed losses and loss adjustment expenses		-			-			-			539			-			329			868
Ceded losses and loss adjustment expenses		(615	)		-			(5,229	)		(5,605	)		(4,834	)		(114	)		(16,397	)
Net losses and loss adjustment expenses		20,354			11,958			28,822			6,974			9,812			997			78,917

Gross margin		(541	)		5,621			(9,071	)		7,592			6,072			942			10,615

Underwriting and general expenses		5,061			6,399			5,396			343			5,840			462			23,501
Underwriting gain (loss)		(5,602	)		(778	)		(14,467	)		7,249			232			480			(12,886	)

Fee and other income					246															476
					(532	)
Net investment income																				2,035
Net investment losses																				(2,868	)
Loss before income taxes																				(13,243	)
Income tax benefit																				(3,074	)
Net loss																				(10,169	)
Net loss attributable to non-controlling interest																				(184	)
Net loss attributable to NI Holdings, Inc.																			$	(9,985	)

Operating Ratios:
Loss and loss adjustment expense ratio		102.7%			68.0%			145.9%			47.9%			61.8%			51.4%			88.1%
Expense ratio		25.6%			36.4%			27.3%			2.3%			36.8%			23.8%			26.3%
Combined ratio		128.3%			104.4%			173.2%			50.2%			98.6%			75.2%			114.4%


Balances at September 30, 2022:
Premiums and agents’ balances receivable	$	21,252		$	17,754		$	9,461		$	42,395		$	11,343		$	765		$	102,970
Deferred policy acquisition costs		5,311			8,992			7,708			436			6,928			444			29,819
Reinsurance recoverables on losses		1,135			-			7,035			8,226			15,763			831			32,990
Goodwill and other intangibles		-			2,773			-			-			14,595			-			17,368
Unpaid losses and loss adjustment expenses		29,821			41,231			31,792			25,244			49,545			8,304			185,937
Unearned premiums		31,331			27,031			44,841			11,071			37,042			3,093			154,409
Payable to Federal Crop Insurance Corporation		-			-			-			4,700			-			-			4,700

	Three Months Ended September 30, 2021
	Private Passenger Auto			Non- Standard Auto			Home and Farm			Crop			Commercial			All Other				Total
Direct premiums earned	$	19,453		$	15,258		$	21,256		$	19,654		$	16,864		$	1,255		$	93,740
Assumed premiums earned		-			-			-			24			-			1,312			1,336
Ceded premiums earned		(962	)		(369	)		(2,481	)		(6,954	)		(2,066	)		(71	)		(12,903	)
Net premiums earned		18,491			14,889			18,775			12,724			14,798			2,496			82,173

Direct losses and loss adjustment expenses		17,646			9,620			19,839			27,237			13,058			53			87,453
Assumed losses and loss adjustment expenses		-			-			-			151			-			2,157			2,308
Ceded losses and loss adjustment expenses		(516	)		-			(3,684	)		(14,906	)		(5,288	)		375			(24,019	)
Net losses and loss adjustment expenses		17,130			9,620			16,155			12,482			7,770			2,585			65,742

Gross margin		1,361			5,269			2,620			242			7,028			(89	)		16,431

Underwriting and general expenses		5,892			6,010			6,627			864			5,257			698			25,348
Underwriting gain (loss)		(4,531	)		(741	)		(4,007	)		(622	)		1,771			(787	)		(8,917	)

Fee and other income					301															501
					(440	)
Net investment income																				1,713
Net investment gains																				222
Loss before income taxes																				(6,481	)
Income tax benefit																				(1,622	)
Net loss																				(4,859	)
Net loss attributable to non-controlling interest																				(122	)
Net loss attributable to NI Holdings, Inc.																			$	(4,737	)

Operating Ratios:
Loss and loss adjustment expense ratio		92.6%			64.6%			86.0%			98.1%			52.5%			103.6%			80.0%
Expense ratio		31.9%			40.4%			35.3%			6.8%			35.5%			27.9%			30.8%
Combined ratio		124.5%			105.0%			121.3%			104.9%			88.0%			131.5%			110.8%


Balances at September 30, 2021:
Premiums and agents’ balances receivable	$	19,531		$	8,789		$	9,246		$	33,376		$	10,737		$	709		$	82,388
Deferred policy acquisition costs		5,234			6,226			7,539			1			6,027			449			25,476
Reinsurance recoverables on losses		1,422			-			2,680			28,824			7,911			1,841			42,678
Receivable from Federal Crop Insurance Corporation		-			-			-			9,362			-			-			9,362
Goodwill and other intangibles		-			2,823			-			-			15,017			-			17,840
Unpaid losses and loss adjustment expenses		26,073			44,114			17,443			50,393			30,547			11,006			179,576
Unearned premiums		29,462			19,489			42,664			9,369			32,930			3,185			137,099

	Nine Months Ended September 30, 2022
	Private Passenger Auto			Non- Standard Auto			Home and Farm			Crop			Commercial			All Other				Total
Direct premiums earned	$	59,648		$	47,665		$	65,312		$	38,612		$	54,733		$	3,853		$	269,823
Assumed premiums earned		-			-			-			2,259			-			3,753			6,012
Ceded premiums earned		(1,830	)		(196	)		(6,393	)		(14,023	)		(9,630	)		(148	)		(32,220	)
Net premiums earned		57,818			47,469			58,919			26,848			45,103			7,458			243,615

Direct losses and loss adjustment expenses		52,360			24,582			103,430			25,173			42,791			2,275			250,611
Assumed losses and loss adjustment expenses		-			-			-			781			-			1,632			2,413
Ceded losses and loss adjustment expenses		(442	)		-			(5,938	)		(8,819	)		(9,970	)		(214	)		(25,383	)
Net losses and loss adjustment expenses		51,918			24,582			97,492			17,135			32,821			3,693			227,641

Gross margin		5,900			22,887			(38,573	)		9,713			12,282			3,765			15,974

Underwriting and general expenses		16,382			19,357			17,425			1,400			16,752			1,835			73,151
Underwriting gain (loss)		(10,482	)		3,530			(55,998	)		8,313			(4,470	)		1,930			(57,177	)

Fee and other income					888															1,319
					4,418
Net investment income																				5,703
Net investment losses																				(19,532	)
Loss before income taxes																				(69,687	)
Income tax benefit																				(14,921	)
Net loss																				(54,766	)
Net loss attributable to non-controlling interest																				(780	)
Net loss attributable to NI Holdings, Inc.																			$	(53,986	)

Operating Ratios:
Loss and loss adjustment expense ratio		89.8%			51.8%			165.5%			63.8%			72.8%			49.5%			93.5%
Expense ratio		28.3%			40.8%			29.6%			5.2%			37.1%			24.6%			30.0%
Combined ratio		118.1%			92.6%			195.1%			69.0%			109.9%			74.1%			123.5%

	Nine Months Ended September 30, 2021
	Private Passenger Auto			Non- Standard Auto			Home and Farm			Crop			Commercial			All Other				Total
Direct premiums earned	$	57,153		$	44,102		$	62,647		$	34,212		$	47,781		$	3,647		$	249,542
Assumed premiums earned		-			-			-			2,108			-			4,192			6,300
Ceded premiums earned		(3,096	)		(1,057	)		(8,045	)		(15,196	)		(6,625	)		(234	)		(34,253	)
Net premiums earned		54,057			43,045			54,602			21,124			41,156			7,605			221,589

Direct losses and loss adjustment expenses		45,299			25,910			47,163			49,612			33,016			630			201,630
Assumed losses and loss adjustment expenses		-			-			-			674			-			4,542			5,216
Ceded losses and loss adjustment expenses		(1,010	)		-			(5,168	)		(27,911	)		(7,583	)		375			(41,297	)
Net losses and loss adjustment expenses		44,289			25,910			41,995			22,375			25,433			5,547			165,549

Gross margin		9,768			17,135			12,607			(1,251	)		15,723			2,058			56,040

Underwriting and general expenses		16,018			16,949			17,311			2,831			15,049			2,017			70,175
Underwriting gain (loss)		(6,250	)		186			(4,704	)		(4,082	)		674			41			(14,135	)

Fee and other income					994															1,338
					1,180
Net investment income																				4,959
Net investment gains																				10,734
Income before income taxes																				2,896
Income tax expense																				707
Net income																				2,189
Net loss attributable to non-controlling interest																				(99	)
Net income attributable to NI Holdings, Inc.																			$	2,288

Operating Ratios:
Loss and loss adjustment expense ratio		81.9%			60.2%			76.9%			105.9%			61.8%			72.9%			74.7%
Expense ratio		29.6%			39.4%			31.7%			13.4%			36.6%			26.5%			31.7%
Combined ratio		111.5%			99.6%			108.6%			119.3%			98.4%			99.4%			106.4%

Investments

9 Months Ended

Sep. 30, 2022

Marketable Securities [Abstract]

Investments

3.Investments

The amortized cost and estimated fair value of fixed income securities as of September 30, 2022, and December 31, 2021, were as follows:

	September 30, 2022
	Cost or Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
Fixed income securities:
U.S. Government and agencies	$	11,176	$	3	$	(1,042	)	$	10,137
Obligations of states and political subdivisions		62,849		2		(7,476	)		55,375
Corporate securities		138,603		40		(17,863	)		120,780
Residential mortgage-backed securities		42,632		-		(6,238	)		36,394
Commercial mortgage-backed securities		32,355		-		(4,688	)		27,667
Asset-backed securities		45,087		1		(5,199	)		39,889
Redeemable preferred stocks		4,746		-		(777	)		3,969
Total fixed income securities	$	337,448	$	46	$	(43,283	)	$	294,211

	December 31, 2021
	Cost or Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
Fixed income securities:
U.S. Government and agencies	$	13,118	$	467	$	(87	)	$	13,498
Obligations of states and political subdivisions		84,668		2,979		(353	)		87,294
Corporate securities		144,476		4,214		(1,069	)		147,621
Residential mortgage-backed securities		26,190		266		(300	)		26,156
Commercial mortgage-backed securities		32,878		815		(161	)		33,532
Asset-backed securities		52,604		131		(313	)		52,422
Redeemable preferred stocks		4,008		136		(16	)		4,128
Total fixed income securities	$	357,942	$	9,008	$	(2,299	)	$	364,651

	September 30, 2022
	Amortized Cost		Fair Value
Due to mature:
One year or less	$	10,662	$	10,534
After one year through five years		83,431		77,755
After five years through ten years		77,360		65,378
After ten years		41,175		32,625
Mortgage / asset-backed securities		120,074		103,950
Redeemable preferred stocks		4,746		3,969
Total fixed income securities	$	337,448	$	294,211

	December 31, 2021
	Amortized Cost		Fair Value
Due to mature:
One year or less	$	14,457	$	14,586
After one year through five years		82,429		84,760
After five years through ten years		82,270		84,173
After ten years		63,106		64,894
Mortgage / asset-backed securities		111,672		112,110
Redeemable preferred stocks		4,008		4,128
Total fixed income securities	$	357,942	$	364,651

Table of Contents

NI Holdings, Inc.

Notes to Consolidated Financial Statements (Unaudited)

(dollar amounts in thousands, except per share amounts)

Fixed income securities with a fair value of $6,650 at September 30, 2022, and $7,977 at December 31, 2021, were deposited with various state regulatory agencies as required by law. The Company has not pledged any assets to secure any obligations.

	September 30, 2022
	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	$	7,546	$	(584	)	$	2,227	$	(458	)	$	9,773	$	(1,042	)
Obligations of states and political subdivisions		47,043		(5,250	)		7,205		(2,226	)		54,248		(7,476	)
Corporate securities		89,929		(11,092	)		28,951		(6,771	)		118,880		(17,863	)
Residential mortgage-backed securities		24,399		(3,460	)		11,995		(2,778	)		36,394		(6,238	)
Commercial mortgage-backed securities		24,091		(3,841	)		3,303		(847	)		27,394		(4,688	)
Asset-backed securities		28,379		(3,231	)		11,487		(1,968	)		39,866		(5,199	)
Redeemable preferred stocks		3,171		(575	)		798		(202	)		3,969		(777	)
Total fixed income securities	$	224,558	$	(28,033	)	$	65,966	$	(15,250	)	$	290,524	$	(43,283	)

	December 31, 2021
	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	$	3,125	$	(87	)	$	-	$	-		$	3,125	$	(87	)
Obligations of states and political subdivisions		19,769		(350	)		222		(3	)		19,991		(353	)
Corporate securities		46,816		(1,015	)		1,895		(54	)		48,711		(1,069	)
Residential mortgage-backed securities		17,407		(261	)		1,434		(39	)		18,841		(300	)
Commercial mortgage-backed securities		11,287		(160	)		216		(1	)		11,503		(161	)
Asset-backed securities		28,797		(308	)		995		(5	)		29,792		(313	)
Redeemable preferred stocks		1,493		(16	)		-		-			1,493		(16	)
Total fixed income securities	$	128,694	$	(2,197	)	$	4,762	$	(102	)	$	133,456	$	(2,299	)

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 credit loss component of the impairment is reflected in net income (loss) as a realized loss on investment if the Company does not intend to sell the security, and the remaining portion of the other-than-temporary loss is recognized in other comprehensive income (loss), net of income taxes. If the Company intends to sell the security, or determines that it is more likely than not that it will be required to sell the security prior to recovering its cost or amortized cost basis less any current-period credit losses, the full amount of the other-than-temporary loss is recognized in net income (loss). The Company did not record any other-than-temporary impairments during the three- or nine-month periods ending September 30, 2022, or the year ended December 31, 2021.

Table of Contents

NI Holdings, Inc.

Notes to Consolidated Financial Statements (Unaudited)

(dollar amounts in thousands, except per share amounts)

Net investment income consisted of the following:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021
Fixed income securities	$	2,303	$	2,104	$	6,870	$	6,227
Equity securities		402		275		1,126		820
Real estate		149		156		390		469
Cash and cash equivalents		18		1		30		3
Total gross investment income		2,872		2,536		8,416		7,519
Investment expenses		837		823		2,713		2,560
Net investment income	$	2,035	$	1,713	$	5,703	$	4,959

Net investment gains (losses) consisted of the following:

	Three Months Ended September 30,						Nine Months Ended September 30,
	2022			2021			2022			2021
Gross realized gains:
Fixed income securities	$	67		$	131		$	118		$	572
Equity securities		1,219			2,674			3,488			9,194
Total gross realized gains		1,286			2,805			3,606			9,766

Gross realized losses, excluding other-than-temporary impairment losses:
Fixed income securities		(106	)		(12	)		(219	)		(26	)
Equity securities		(1,097	)		(60	)		(1,339	)		(230	)
Total gross realized losses, excluding other-than-temporary impairment losses		(1,203	)		(72	)		(1,558	)		(256	)

Net realized gains		83			2,733			2,048			9,510

Change in net unrealized gain on equity securities		(2,951	)		(2,511	)		(21,580	)		1,224
Net investment gains (losses)	$	(2,868	)	$	222		$	(19,532	)	$	10,734

Basis of Presentation and Accounting Policies

9 Months Ended

Sep. 30, 2022

Accounting Policies [Abstract]

Basis of Presentation and Accounting Policies

2.Basis of Presentation and Accounting Policies

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 and are unaudited. 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. All material intercompany transactions and balances have been eliminated. These financial statements should be read in conjunction with the financial statements and notes thereto included in our 2021 Annual Report.

The Consolidated Balance Sheet at December 31, 2021, has been derived from the Audited Consolidated Financial Statements at that date but does not include all of the information and footnotes required by GAAP for complete financial statements.

The preparation of the interim Unaudited Consolidated Financial Statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the interim Unaudited Consolidated Financial Statements and the reported amounts of revenues, claims, and expenses during the reporting period. Actual results could differ from those estimates. Operating results for the interim period ended September 30, 2022, are not necessarily indicative of the results that may be expected for the year ended December 31, 2022.

Our 2021 Annual Report describes the accounting policies and estimates that are critical to the understanding of our results of operations, financial condition, and liquidity. The accounting policies and estimation processes described in the 2021 Annual Report were consistently applied to the Unaudited Consolidated Financial Statements as of and for the nine months ended September 30, 2022 and 2021.

Table of Contents

NI Holdings, Inc.

Notes to Consolidated Financial Statements (Unaudited)

(dollar amounts in thousands, except per share amounts)

Recent Accounting Pronouncements

As an emerging growth company (“EGC”), we have elected to use the extended transition period for complying with any new or revised financial accounting standards from the Financial Accounting Standards Board (“FASB”) pursuant to Section 13(a) of the Exchange Act. We will lose our EGC status December 31, 2022. The following discussion includes effective dates for both public business entities and EGCs, as well as whether specific guidance may be adopted early.

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 lease 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 was effective for annual and interim reporting periods beginning after December 15, 2018, for public business entities. For private companies and EGCs, this guidance is effective for annual reporting periods beginning after December 15, 2021, and interim periods within fiscal years beginning after December 15, 2022. We will adopt this guidance in the fourth quarter of the year ended December 31, 2022, when we lose our EGC status. 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. Upon adoption, the Company will recognize a right of use asset and operating lease liability on its Consolidated Balance Sheet. The cumulative adjustment to retained earnings is not expected to be significant.

In June 2016, the FASB issued a new standard that requires timelier recording of credit losses on loans and other financial instruments held by financial institutions and other organizations. The guidance requires 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. The guidance also requires financial institutions and other organizations to use forward-looking information to better form their credit loss estimates. Many of the loss estimation techniques applied prior to adoption of this standard are still permitted, although the inputs to those techniques have changed to reflect the full amount of expected credit losses. Organizations are to 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 was 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 EGCs that did not relinquish private company relief. For all other entities, this guidance will be effective for annual reporting periods beginning after December 15, 2022, and interim periods within those fiscal years. We will adopt this guidance in the fourth quarter of the year ended December 31, 2022, when we lose our EGC status. Based on our evaluation, adoption of this new standard will not have a significant impact on our financial position, results of operations, and cash flows.

In December 2019, the FASB issued amended guidance to simplify the accounting for income taxes. The amended guidance was effective for fiscal years beginning after December 15, 2020, including interim periods within those fiscal years, for public business entities. For private companies and EGCs, the amended guidance will be effective for fiscal years beginning after December 15, 2021, and interim periods within fiscal years beginning after December 15, 2022. We will adopt this guidance in the fourth quarter of the year ended December 31, 2022, when we lose our EGC status. Based on our evaluation, adoption of this new standard will not have a significant impact on our financial position, results of operations, and cash flows.

On August 16, 2022, the government of the United States of America (“U.S.”) enacted the Inflation Reduction Act (“IRA”) which, among other changes, created a new corporate alternative minimum tax (“AMT”) based on adjusted financial statement income and imposes a 1% excise tax on corporate stock repurchases. The effective date of these provisions is January 1, 2023. The Company is not expected to be subject to the AMT based on its reported GAAP earnings for the past three years. While we periodically repurchase our stock, it is expected that any excise tax incurred on corporate stock repurchases will be recognized as part of the cost basis of the treasury stock acquired and not reported as part of income tax or other expense. Based on our evaluation, the Company does not expect this legislation to have a significant impact on our financial position, results of operations, and cash flows.

Reinsurance (Narrative) (Details) - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
Reinsurance (Narrative) (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Reinsurance Disclosures [Abstract]
Reinsurance Retention Policy, Amount Retained	$ 15,000	$ 10,000
Reinsurance Retention Policy, Excess Retention, Amount Reinsured	125,000	117,000
Retained risk amount	$ 15,000	$ 10,000
Ceded reinsurance commission percentage	100.00%	100.00%

Benefit Plans

9 Months Ended

Sep. 30, 2022

Benefit Plans

11.Benefit Plans

Nodak Insurance sponsors a 401(k) plan with an automatic and matching contribution for eligible employees at Nodak Insurance, Primero, and Direct Auto. Westminster also sponsors a separate 401(k) plan. The Company reported expenses related to the 401(k) plans totaling $167 and $178 during the three months ended September 30, 2022 and 2021, respectively, and $502 and $525 during the nine months ended September 30, 2022 and 2021, respectively.

Nodak Insurance also contributes an additional elective amount of employee compensation as a profit-sharing contribution for eligible employees that is invested in a portfolio of investments directed by the Company. The reported expenses related to this profit-sharing contribution were $216 and $165 during the three months ended September 30, 2022 and 2021, respectively, and $648 and $704 during the nine months ended September 30, 2022 and 2021, respectively.

All fees associated with the plans are deducted from the eligible employee accounts.

The Company also offers a non-qualified deferred compensation plan to 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 $23 and $21 during the three months ended September 30, 2022 and 2021, respectively, and $150 and $588 during the nine months ended September 30, 2022 and 2021, respectively.

In connection with our initial public offering (“IPO”) in March 2017, the Company 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 invests solely in common stock of the Company.

Upon establishment of the plan, Nodak Insurance loaned $2,400 to the ESOP’s related trust (the “ESOP Trust”). The ESOP loan was for a period of ten years, bearing 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 IPO, which resulted 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. Nodak Insurance makes 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 are released from the suspense account and allocated to participant accounts at the end of the calendar year. This release and allocation occurs on an annual basis over the ten-year term of the ESOP loan. Nodak Insurance has 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.

Table of Contents

NI Holdings, Inc.

Notes to Consolidated Financial Statements (Unaudited)

(dollar amounts in thousands, except per share amounts)

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 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 automatically becomes 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 receive annual reports from the Company showing the number of shares of common stock of the Company allocated to the participants’ accounts 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 establishment of the ESOP, the Company created a contra-equity account on the 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 IPO. As shares are released from the ESOP suspense account, the contra-equity account is credited, which reduces the impact of the contra-equity account on the Company’s Consolidated Balance Sheet over time. The Company records compensation expense related to the shares released, 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 $88 and $116 during the three months ended September 30, 2022 and 2021, respectively, related to the ESOP, and $298 and $342 during the nine months ended September 30, 2022 and 2021, respectively.

Through September 30, 2022, and December 31, 2021, the Company had released and allocated 121,575 ESOP shares to participants, with a remainder of 118,425 ESOP shares in suspense at September 30, 2022, and December 31, 2021. Using the Company’s quarter-end market price of $13.36 per share, the fair value of the unearned ESOP shares was $1,582 at September 30, 2022.

Investments (Narrative) (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Investments [Abstract]
Fixed income securities with a fair value	$ 6,650	$ 7,977

Deferred Policy Acquisition Costs

9 Months Ended

Sep. 30, 2022

Deferred Policy Acquisition Costs Disclosures [Abstract]

Deferred Policy Acquisition Costs

6.Deferred Policy Acquisition Costs

Expenses directly related to successfully acquired insurance policies, primarily commissions, premium taxes and underwriting costs, are deferred and amortized over the terms of the policies. We update our acquisition cost assumptions periodically to reflect actual experience, and we evaluate the costs for recoverability. The table below shows the deferred policy acquisition costs and asset reconciliation:

	Three Months Ended September 30,						Nine Months Ended September 30,
	2022			2021			2022			2021
Balance, beginning of period	$	30,917		$	29,657		$	24,947		$	23,968
Deferral of policy acquisition costs		16,491			8,717			54,328			47,879
Amortization of deferred policy acquisition costs		(17,589	)		(12,898	)		(49,456	)		(46,371	)
Balance, end of period	$	29,819		$	25,476		$	29,819		$	25,476

Organization

9 Months Ended

Sep. 30, 2022

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Organization

1.Organization

NI Holdings is a North Dakota business corporation that is the stock holding company of Nodak Insurance 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 were issued to Nodak Mutual Group, which then contributed the shares to NI Holdings in exchange for 55% of the outstanding shares of common stock of NI Holdings. Nodak Insurance 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 and its existing subsidiaries.

These Unaudited Consolidated Financial Statements include the financial position and results of NI Holdings and the following other entities:

Nodak Insurance Company

Nodak Insurance is the largest domestic property and casualty insurance company in North Dakota, offering private passenger auto, homeowners, farmowners, commercial multi-peril, crop hail, and Federal multi-peril crop insurance coverages through its captive agents in the state.

Nodak Agency, Inc

Nodak Agency is an inactive shell corporation.

American West Insurance Company

American West is a property and casualty insurance company licensed in eight states in the Midwest and Western regions of the United States. 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 Insurance Company

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 Mutual Insurance Company

Battle Creek is a property and casualty insurance company writing personal auto, homeowners, and farm coverages solely in the state of Nebraska. Battle Creek became affiliated with Nodak Insurance in 2011, and Nodak Insurance provides underwriting, claims management, policy administration, and other administrative services to Battle Creek. Because we have concluded that we control Battle Creek, 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 Unaudited Consolidated Balance Sheets and its net income or loss is excluded from net income or loss attributed to NI Holdings in our Unaudited Consolidated Statements of Operations.

Direct Auto Insurance Company

Direct Auto is a property and casualty insurance 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 American Insurance Company

Westminster is a property and casualty insurance company licensed in seventeen states and the District of Columbia. Westminster underwrites commercial multi-peril 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.

Table of Contents

NI Holdings, Inc.

Notes to Consolidated Financial Statements (Unaudited)

(dollar amounts in thousands, except per share amounts)

Nodak Insurance markets and distributes its policies through its captive agents, while all other companies utilize the independent agent distribution channel. Additionally, all of the Company’s insurance subsidiary and affiliate companies are rated “A” Excellent by A.M. Best Company, Inc. (“AM Best”).

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.

Consolidated Statements of Changes in Shareholders’ Equity (Unaudited) - USD ($) $ in Thousands	Common Stock	Additional Paid-in Capital	Unearned Employee Stock Ownership Plan Shares	Retained Earnings	Accumulated Other Comprehensive Income (Loss), Net of Income Taxes	Treasury Stock	Non-Controlling Interest	Total
Balance at Dec. 31, 2020	$ 230	$ 97,911	$ (1,427)	$ 258,741	$ 12,840	$ (23,968)	$ 4,545	$ 348,872
Net income (loss)				2,288			(99)	2,189
Other comprehensive income (loss), net of income taxes					(4,912)		(178)	(5,090)
Purchase of treasury stock						(3,211)		(3,211)
Share-based compensation		1,704						1,704
Issuance of vested award shares		(2,370)		50		1,832		(488)
Balance at Sep. 30, 2021	230	97,245	(1,427)	261,079	7,928	(25,347)	4,268	343,976
Balance at Jun. 30, 2021	230	96,729	(1,427)	265,816	9,556	(24,403)	4,438	350,939
Net income (loss)				(4,737)			(122)	(4,859)
Other comprehensive income (loss), net of income taxes					(1,628)		(48)	(1,676)
Purchase of treasury stock						(944)		(944)
Share-based compensation		516						516
Issuance of vested award shares
Balance at Sep. 30, 2021	230	97,245	(1,427)	261,079	7,928	(25,347)	4,268	343,976
Balance at Dec. 31, 2021	230	98,166	(1,184)	267,207	5,237	(26,452)	4,209	347,413
Net income (loss)				(53,986)			(780)	(54,766)
Other comprehensive income (loss), net of income taxes					(37,223)		(1,371)	(38,594)
Purchase of treasury stock						(2,870)		(2,870)
Share-based compensation		406						406
Issuance of vested award shares		(2,592)		10		1,814		(768)
Balance at Sep. 30, 2022	230	95,980	(1,184)	213,231	(31,986)	(27,508)	2,058	250,821
Balance at Jun. 30, 2022	230	96,827	(1,184)	223,217	(22,482)	(26,569)	2,572	272,611
Net income (loss)				(9,985)			(184)	(10,169)
Other comprehensive income (loss), net of income taxes					(9,504)		(330)	(9,834)
Purchase of treasury stock						(939)		(939)
Share-based compensation		(645)						(645)
Issuance of vested award shares		(202)		(1)				(203)
Balance at Sep. 30, 2022	$ 230	$ 95,980	$ (1,184)	$ 213,231	$ (31,986)	$ (27,508)	$ 2,058	$ 250,821

- Definition

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

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(g)(1)(ii))
-URI https://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section 45
-Paragraph 1A
-Subparagraph (a)
-URI https://asc.fasb.org/extlink&oid=126968391&loc=SL7669619-108580

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 810
-SubTopic 10
-Section 50
-Paragraph 1A
-Subparagraph (a)(1)
-URI https://asc.fasb.org/extlink&oid=109239629&loc=SL4573702-111684

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 9
-URI https://asc.fasb.org/extlink&oid=124431687&loc=d3e22663-107794

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 10
-Section S99
-Paragraph 1A
-Subparagraph (SX 210.13-01(a)(4)(i))
-URI https://asc.fasb.org/extlink&oid=126975872&loc=SL124442526-122756

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 10
-Section S99
-Paragraph 1B
-Subparagraph (SX 210.13-02(a)(4)(i))
-URI https://asc.fasb.org/extlink&oid=126975872&loc=SL124442552-122756

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 22
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8736-108599

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (c)
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8933-108599

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 40
-Section 65
-Paragraph 1
-Subparagraph (f)
-URI https://asc.fasb.org/extlink&oid=126732423&loc=SL123482106-238011

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 10
-Section S99
-Paragraph 1A
-Subparagraph (SX 210.13-01(a)(5))
-URI https://asc.fasb.org/extlink&oid=126975872&loc=SL124442526-122756

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 10
-Section S99
-Paragraph 1B
-Subparagraph (SX 210.13-02(a)(4)(iv))
-URI https://asc.fasb.org/extlink&oid=126975872&loc=SL124442552-122756

Reference 12: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section 50
-Paragraph 6
-URI https://asc.fasb.org/extlink&oid=124431353&loc=SL124452729-227067

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 30
-Subparagraph (b)
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8906-108599

Reference 14: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 230
-SubTopic 10
-Section 45
-Paragraph 2
-URI https://asc.fasb.org/extlink&oid=126954810&loc=d3e3000-108585

Reference 15: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 810
-SubTopic 10
-Section 45
-Paragraph 19
-URI https://asc.fasb.org/extlink&oid=126929396&loc=SL4569616-111683

Reference 16: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 323
-SubTopic 10
-Section 50
-Paragraph 3
-Subparagraph (c)
-URI https://asc.fasb.org/extlink&oid=114001798&loc=d3e33918-111571

Reference 17: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (f)
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8933-108599

Reference 18: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 10
-Section S99
-Paragraph 1B
-Subparagraph (SX 210.13-02(a)(4)(iii)(A))
-URI https://asc.fasb.org/extlink&oid=126975872&loc=SL124442552-122756

Reference 19: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
-Section 50
-Paragraph 7
-URI https://asc.fasb.org/extlink&oid=109222650&loc=SL51721683-107760

Reference 20: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 1
-Subparagraph (b)(2)
-URI https://asc.fasb.org/extlink&oid=124431687&loc=d3e22499-107794

Reference 21: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 825
-SubTopic 10
-Section 50
-Paragraph 28
-Subparagraph (f)
-URI https://asc.fasb.org/extlink&oid=123596393&loc=d3e14064-108612

Reference 22: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 235
-Section S99
-Paragraph 1
-Subparagraph (SX 210.9-05(b)(2))
-URI https://asc.fasb.org/extlink&oid=120399901&loc=d3e537907-122884

Reference 23: http://www.xbrl.org/2003/role/exampleRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 31
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8924-108599

Reference 24: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section 45
-Paragraph 1B
-Subparagraph (a)
-URI https://asc.fasb.org/extlink&oid=126968391&loc=SL7669625-108580

Reference 25: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 10
-Section S99
-Paragraph 1A
-Subparagraph (SX 210.13-01(a)(4)(iv))
-URI https://asc.fasb.org/extlink&oid=126975872&loc=SL124442526-122756

Reference 26: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 10
-Section S99
-Paragraph 1A
-Subparagraph (SX 210.13-01(a)(4)(iii)(A))
-URI https://asc.fasb.org/extlink&oid=126975872&loc=SL124442526-122756

Reference 27: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 10
-Section S99
-Paragraph 1B
-Subparagraph (SX 210.13-02(a)(5))
-URI https://asc.fasb.org/extlink&oid=126975872&loc=SL124442552-122756

Reference 28: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 10
-Section S99
-Paragraph 1B
-Subparagraph (SX 210.13-02(a)(4)(iii)(B))
-URI https://asc.fasb.org/extlink&oid=126975872&loc=SL124442552-122756

Reference 29: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 10
-Section S99
-Paragraph 1A
-Subparagraph (SX 210.13-01(a)(4)(ii))
-URI https://asc.fasb.org/extlink&oid=126975872&loc=SL124442526-122756

Reference 30: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 810
-SubTopic 10
-Section 50
-Paragraph 1A
-Subparagraph (c)(1)
-URI https://asc.fasb.org/extlink&oid=109239629&loc=SL4573702-111684

Reference 31: http://www.xbrl.org/2003/role/exampleRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 810
-SubTopic 10
-Section 55
-Paragraph 4J
-URI https://asc.fasb.org/extlink&oid=120409616&loc=SL4591551-111686

Reference 32: http://www.xbrl.org/2003/role/exampleRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 810
-SubTopic 10
-Section 55
-Paragraph 4K
-URI https://asc.fasb.org/extlink&oid=120409616&loc=SL4591552-111686

Reference 33: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 8
-URI https://asc.fasb.org/extlink&oid=124431687&loc=d3e22658-107794

+ Details

- Definition

Amount of stockholders' equity (deficit), net of receivables from officers, directors, owners, and affiliates of the entity, attributable to both the parent and noncontrolling interests. Amount excludes temporary equity. Alternate caption for the concept is permanent equity.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 45
-Paragraph 24
-URI https://asc.fasb.org/extlink&oid=124436220&loc=d3e21930-107793

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.3-04)
-URI https://asc.fasb.org/extlink&oid=120397183&loc=d3e187085-122770

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 45
-Paragraph 23
-Subparagraph (b)
-URI https://asc.fasb.org/extlink&oid=124436220&loc=d3e21914-107793

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 7
-Subparagraph (b)
-URI https://asc.fasb.org/extlink&oid=124431687&loc=d3e22644-107794

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section 50
-Paragraph 5
-URI https://asc.fasb.org/extlink&oid=124431353&loc=SL124442411-227067

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 326
-SubTopic 10
-Section 65
-Paragraph 4
-Subparagraph (d)
-URI https://asc.fasb.org/extlink&oid=122640432&loc=SL121648383-210437

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 105
-SubTopic 10
-Section 65
-Paragraph 6
-Subparagraph (c)
-URI https://asc.fasb.org/extlink&oid=126987489&loc=SL124442142-165695

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 105
-SubTopic 10
-Section 65
-Paragraph 6
-Subparagraph (d)
-URI https://asc.fasb.org/extlink&oid=126987489&loc=SL124442142-165695

Reference 9: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 810
-SubTopic 10
-Section 45
-Paragraph 16
-URI https://asc.fasb.org/extlink&oid=126929396&loc=SL4568740-111683

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 40
-Section 65
-Paragraph 1
-Subparagraph (e)(3)
-URI https://asc.fasb.org/extlink&oid=126732423&loc=SL123482106-238011

Reference 11: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 825
-SubTopic 10
-Section 50
-Paragraph 28
-Subparagraph (f)
-URI https://asc.fasb.org/extlink&oid=123596393&loc=d3e14064-108612

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 45
-Paragraph 5
-Subparagraph (b)
-URI https://asc.fasb.org/extlink&oid=124436220&loc=d3e21711-107793

Reference 13: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 323
-SubTopic 10
-Section 50
-Paragraph 3
-Subparagraph (c)
-URI https://asc.fasb.org/extlink&oid=114001798&loc=d3e33918-111571

Reference 14: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(g)(1)(ii))
-URI https://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690

Reference 15: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 830
-SubTopic 30
-Section 50
-Paragraph 1
-URI https://asc.fasb.org/extlink&oid=6450520&loc=d3e32583-110901

Reference 16: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 65
-Paragraph 8
-Subparagraph (d)(2)
-URI https://asc.fasb.org/extlink&oid=126983759&loc=SL121830611-158277

Reference 17: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 848
-SubTopic 10
-Section 65
-Paragraph 2
-Subparagraph (a)(3)(iii)(03)
-URI https://asc.fasb.org/extlink&oid=125980421&loc=SL125981372-237846

Reference 18: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 830
-SubTopic 30
-Section 45
-Paragraph 17
-URI https://asc.fasb.org/extlink&oid=118261656&loc=d3e32136-110900

Reference 19: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 65
-Paragraph 8
-Subparagraph (d)(3)
-URI https://asc.fasb.org/extlink&oid=126983759&loc=SL121830611-158277

Reference 20: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 944
-SubTopic 40
-Section 65
-Paragraph 2
-Subparagraph (f)(2)
-URI https://asc.fasb.org/extlink&oid=124501264&loc=SL117420844-207641

Reference 21: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 718
-SubTopic 10
-Section 65
-Paragraph 15
-Subparagraph (f)(2)
-URI https://asc.fasb.org/extlink&oid=128097895&loc=SL121327923-165333

Reference 22: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 810
-SubTopic 10
-Section 55
-Paragraph 4I
-URI https://asc.fasb.org/extlink&oid=120409616&loc=SL4590271-111686

Reference 23: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 944
-SubTopic 40
-Section 65
-Paragraph 2
-Subparagraph (f)(1)
-URI https://asc.fasb.org/extlink&oid=124501264&loc=SL117420844-207641

Reference 24: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 830
-SubTopic 30
-Section 45
-Paragraph 20
-Subparagraph (a)
-URI https://asc.fasb.org/extlink&oid=118261656&loc=d3e32211-110900

Reference 25: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 810
-SubTopic 10
-Section 45
-Paragraph 15
-URI https://asc.fasb.org/extlink&oid=126929396&loc=SL4568447-111683

Reference 26: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 718
-SubTopic 10
-Section 65
-Paragraph 15
-Subparagraph (f)(1)
-URI https://asc.fasb.org/extlink&oid=128097895&loc=SL121327923-165333

Reference 27: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 1
-Subparagraph (b)(3)
-URI https://asc.fasb.org/extlink&oid=124431687&loc=d3e22499-107794

Reference 28: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 718
-SubTopic 10
-Section 65
-Paragraph 15
-Subparagraph (e)
-URI https://asc.fasb.org/extlink&oid=128097895&loc=SL121327923-165333

+ Details

Fair Value Measurements

9 Months Ended

Sep. 30, 2022

Investments, All Other Investments [Abstract]

Fair Value Measurements

4.Fair Value Measurements

The Company uses fair value measurements to record fair value adjustments to certain assets and to determine fair value disclosures. Investment securities available for sale are recorded at fair value on a recurring basis. Additionally, from time to time, we may be required to record other assets or liabilities at fair value on a nonrecurring basis. These nonrecurring fair value adjustments typically involve application of lower-of-cost-or-market accounting or write-downs of individual assets. Accounting guidance on fair value measurements and disclosures establishes a fair value hierarchy that prioritizes the inputs to valuation methods used to measure fair value. The three levels of the fair value hierarchy are as follows:

Level I:				Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities.
Level II:				Quoted prices in markets that are not active, or inputs that are observable either directly or indirectly, for substantially the full term of the asset or liability. Level II includes fixed income securities with quoted prices that are traded less frequently than exchange traded instruments. Valuation techniques include matrix pricing which is a mathematical technique used widely in the industry to value fixed income securities without relying exclusively on quoted market prices for the specific securities but rather by relying on the securities’ relationship to other benchmark quoted prices.
Level III:				Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (i.e., supported with little or no market activity).

The Company bases its fair values on the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. It is our policy to maximize the use of observable inputs and minimize the use of unobservable inputs when developing fair value measurements, in accordance with the fair value hierarchy. Fair value measurements for assets where there exists limited or no observable market data and, therefore, are based primarily upon the estimates of the Company or other third-parties, are often calculated based on the characteristics of the asset, the economic and competitive environment, and other such factors. Management uses its best judgment in estimating the fair value of the Company’s financial instruments; however, there are inherent limitations in any estimation technique. Therefore, for substantially all financial instruments, the fair value estimates herein are not necessarily indicative of the amounts which could have been realized in a sale transaction on the dates indicated. The estimated fair value amounts have been measured as of their respective period-end and have not been re-evaluated or updated for purposes of our financial statements subsequent to those respective dates. As such, the estimated fair values of these financial instruments subsequent to the respective reporting dates may be different than the amounts reported at each period-end. Additionally, changes in the underlying assumptions used, including discount rates and estimates of future cash flows, could significantly affect the results of current or future valuations.

The Company uses quoted values and other data provided by an independent pricing service in its process for determining fair values of its investments. The evaluations of such pricing services represent an exit price and a good faith opinion as to what a buyer in the marketplace would pay for a security in a current sale. This independent pricing service provides us with one quote per instrument. For fixed income securities that have quoted prices in active markets, market quotations are provided. For fixed income securities that do not trade on a daily basis, the independent pricing service prepares estimates of fair value using a wide array of observable inputs including relevant market information, benchmark curves, benchmarking of like securities, sector groupings, and matrix pricing. The observable market inputs that the Company’s independent pricing service utilizes may include (listed in order of priority for use) benchmark yields, reported trades, broker-dealer quotes, issuer spreads, two-sided markets, benchmark securities, market bids/offers, and other reference data on markets, industry, and the economy. Additionally, the independent pricing service uses an option-adjusted spread model to develop prepayment and interest rate scenarios. The independent pricing service did not use broker quotes in determining any fair values of the Company’s investments at September 30, 2022, or December 31, 2021.

Should the independent pricing service be unable to provide a fair value estimate, we would attempt to obtain a non-binding fair value estimate from a number of broker-dealers and would review this estimate in conjunction with a fair value estimate reported by an independent business news service or other sources. In instances where only one broker-dealer provides a fair value for a fixed income security, we would use that estimate. In instances where we would be able to obtain fair value estimates from more than one broker-dealer, we would review the range of estimates and select the most appropriate value based on the facts and circumstances. Should neither the independent pricing service nor a broker-dealer provide a fair value estimate, we would develop a fair value estimate based on cash flow analyses and other valuation techniques that utilize certain unobservable inputs. Accordingly, the Company classifies such a security as a Level III investment.

The fair value estimates of the Company’s investments provided by the independent pricing service at each period-end were utilized, among other resources, in reaching a conclusion as to the fair value of its investments.

Table of Contents

NI Holdings, Inc.

Notes to Consolidated Financial Statements (Unaudited)

(dollar amounts in thousands, except per share amounts)

Management reviews the reasonableness of the pricing provided by the independent pricing service by employing various analytical procedures. Management reviews all securities to identify recent downgrades, significant changes in pricing, and pricing anomalies on individual securities relative to other similar securities. This will include looking for relative consistency across securities in common sectors, durations, and credit ratings. This review will also include all fixed income securities rated lower than “A” by Moody’s Investors Service, Inc. or Standard & Poor’s Financial Services LLC. If, after this review, management does not believe the pricing for any security is a reasonable estimate of fair value, then it will seek to resolve the discrepancy through discussions with the pricing service. In its review, management did not identify any such discrepancies and no adjustments were made to the estimates provided by the pricing service for the nine-month period ended September 30, 2022, or the year ended December 31, 2021. The classification within the fair value hierarchy is then confirmed based on the final conclusions from the pricing review.

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 our 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 at Level III at September 30, 2022, or December 31, 2021.

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

	September 30, 2022
	Total		Level I		Level II		Level III
Fixed income securities:
U.S. Government and agencies	$	10,137	$	-	$	10,137	$	-
Obligations of states and political subdivisions		55,375		-		55,375		-
Corporate securities		120,780		-		120,780		-
Residential mortgage-backed securities		36,394		-		36,394		-
Commercial mortgage-backed securities		27,667		-		27,667		-
Asset-backed securities		39,889		-		39,889		-
Redeemable preferred stock		3,969		-		3,969		-
Total fixed income securities		294,211		-		294,211		-

Equity securities:
Common stock		56,569		56,569		-		-
Non-redeemable preferred stock		1,808		1,808		-		-
Total equity securities		58,377		58,377		-		-

Cash equivalents		26,357		26,357		-		-
Total assets at fair value	$	378,945	$	84,734	$	294,211	$	-

Table of Contents

NI Holdings, Inc.

Notes to Consolidated Financial Statements (Unaudited)

(dollar amounts in thousands, except per share amounts)

	December 31, 2021
	Total		Level I		Level II		Level III
Fixed income securities:
U.S. Government and agencies	$	13,498	$	-	$	13,498	$	-
Obligations of states and political subdivisions		87,294		-		87,294		-
Corporate securities		147,621		-		147,621		-
Residential mortgage-backed securities		26,156		-		26,156		-
Commercial mortgage-backed securities		33,532		-		33,532		-
Asset-backed securities		52,422		-		52,422		-
Redeemable preferred stock		4,128		-		4,128		-
Total fixed income securities		364,651		-		364,651		-

Equity securities:
Common Stock		75,143		75,143		-		-
Non-redeemable preferred stock		2,547		2,547		-		-
Total equity securities		77,690		77,690		-		-

Cash equivalents		45,741		45,741		-		-
Total assets at fair value	$	488,082	$	123,431	$	364,651	$	-

There were no liabilities measured at fair value on a recurring basis at September 30, 2022, or December 31, 2021.

Related Party Transactions

9 Months Ended

Sep. 30, 2022

Related Party Transactions

10.Related Party Transactions

Intercompany Reinsurance Pooling Arrangement

Effective January 1, 2020, all of our insurance subsidiary and affiliate companies entered into an intercompany reinsurance pooling agreement. This agreement was finalized, approved, and implemented during the fourth quarter of 2020, retroactive to the January 1 effective date. Nodak Insurance is the lead company of the pool, and assumes the net premiums, net losses, and underwriting expenses from each of the other five companies. Nodak Insurance then retrocedes balances back to each company, while retaining its own share of the pool’s net underwriting results, based on individual pool percentages established in the respective pooling agreement. This arrangement allows each insurance company to rely upon the capacity of the pool’s total statutory capital and surplus. As a result, they are evaluated by AM Best on a group basis and hold a single combined financial strength rating, long-term issuer credit rating, and financial size category.

In connection with the pooling agreement, the quota share agreement between Battle Creek and Nodak Insurance was cancelled. As a result, the Company’s consolidated financial position and results of operations are impacted by the portion of Battle Creek’s underwriting results that are allocated to the policyholders of Battle Creek rather than the shareholders of NI Holdings. For the nine months ended September 30, 2022, and the year ended December 31, 2021, the pooling share percentages by insurance company were:

	Pool Percentage
Nodak Insurance Company		66.0	%
American West Insurance Company		7.0	%
Primero Insurance Company		3.0	%
Battle Creek Mutual Insurance Company		2.0	%
Direct Auto Insurance Company		13.0	%
Westminster American Insurance Company		9.0	%
Total		100.0	%

North Dakota Farm Bureau

We were organized by the North Dakota Farm Bureau (“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 policies. Royalties paid to the NDFB were $397 and $370 during the three months ended September 30, 2022 and 2021, respectively, and $1,141 and $1,102 for the nine months ended September 30, 2022 and 2021, respectively. Royalty amounts payable of $74 and $113 were accrued as a liability to the NDFB at September 30, 2022, and December 31, 2021, respectively.

Dividends

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, 2021, 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 2022 without the prior approval of the North Dakota Insurance Department is $21,493 based upon the surplus of Nodak Insurance at December 31, 2021. Prior to its payment of any dividend, Nodak Insurance will be required to provide notice of the dividend to the North Dakota Insurance Department. This notice must be provided to the North Dakota Insurance Department 30 days prior to the payment of an extraordinary dividend and 10 days prior to the payment of an ordinary dividend. 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 nine months ended September 30, 2022, or the year ended December 31, 2021.

Direct Auto was re-domesticated from Illinois to North Dakota during 2021, and is now subject to the same dividend restrictions as Nodak Insurance. The amount available for payment of dividends from Direct Auto to NI Holdings during 2022 without the prior approval of the North Dakota Insurance Department is $3,796 based upon the surplus of Direct Auto at December 31, 2021. No dividends were declared or paid by Direct Auto during the nine months ended September 30, 2022, or the year ended December 31, 2021.

Table of Contents

NI Holdings, Inc.

Notes to Consolidated Financial Statements (Unaudited)

(dollar amounts in thousands, except per share amounts)

Westminster was re-domesticated from Maryland to North Dakota during 2021, and is now subject to the same dividend restrictions as Nodak Insurance. The amount available for payment of dividends from Westminster to NI Holdings during 2022 without the prior approval of the North Dakota Insurance Department is $2,471 based upon the surplus of Westminster at December 31, 2021. No dividends were declared or paid by Westminster during the nine months ended September 30, 2022, or the year ended December 31, 2021.

Battle Creek Mutual Insurance Company

The following tables illustrates the impact of including Battle Creek in our Unaudited Consolidated Balance Sheets and Statements of Operations prior to intercompany eliminations:

	September 30, 2022		December 31, 2021
Assets:
Cash and cash equivalents	$	9,003	$	4,398
Investments		8,339		10,610
Premiums and agents’ balances receivable		5,696		5,038
Deferred policy acquisition costs		596		499
Reinsurance recoverables on losses (2)		6,094		10,173
Accrued investment income		43		51
Property and equipment		323		325
Pooling receivable (1)		277		-
Deferred income taxes		774		142
Other assets		53		52
Total assets	$	31,198	$	31,288

Liabilities:
Unpaid losses and loss adjustment expenses	$	6,675	$	2,937
Unearned premiums		3,088		2,544
Notes payable (1)		3,000		3,000
Pooling payable (1)		-		5,580
Reinsurance losses payable (2)		11,558		12,754
Accrued expenses and other liabilities		4,819		264
Total liabilities		29,140		27,079

Equity:
Non-controlling interest		2,058		4,209
Total equity		2,058		4,209

Total liabilities and equity	$	31,198	$	31,288

	(1)	Amount fully eliminated in consolidation.
	(2)	Amount partially eliminated in consolidation.

Table of Contents

NI Holdings, Inc.

Notes to Consolidated Financial Statements (Unaudited)

(dollar amounts in thousands, except per share amounts)

	Three Months Ended September 30,						Nine Months Ended September 30,
	2022			2021			2022			2021
Revenues:
Net premiums earned	$	1,790		$	1,499		$	4,872		$	4,594
Fee and other income (expenses)		(1	)		(6	)		(8	)		(8	)
Net investment income (loss)		(8	)		17			32			40
Total revenues		1,781			1,510			4,896			4,626

Expenses:
Losses and loss adjustment expenses		1,579			1,179			4,553			3,448
Amortization of deferred policy acquisition costs		352			258			989			927
Other underwriting and general expenses		89			209			363			356
Total expenses		2,020			1,646			5,905			4,731

Income (loss) before income taxes		(239	)		(136	)		(1,009	)		(105	)
Income tax expense (benefit)		(55	)		(14	)		(229	)		(6	)
Net income (loss)	$	(184	)	$	(122	)	$	(780	)	$	(99	)

Benefit Plans (Details) - USD ($) $ / shares in Units, $ in Thousands	1 Months Ended	3 Months Ended		9 Months Ended
	Mar. 31, 2017	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021	Dec. 31, 2021
Company's Total contribution to the profit sharing plan		$ 216	$ 165	$ 648	$ 704
Company's total contributions to the 401(k) plan		167	178	502	525
Compensation expense		$ 23	21	$ 150	588
ESOP shares were released and allocated		121,575		121,575		118,425
Market price				$ 13.36
Fair value of unearned ESOP shares		$ 1,582		$ 1,582
Deferred compensation plan expenses		$ 88	$ 116	$ 298	$ 342
ESOP Loan [Member]
Debt from ESOP	$ 2,400
Debt term	21 years
Interest rate	2.79%
Percentage of ESOP in authorized shares	1.00%
Per share price	$ 10.00

Stock Based Compensation (Narrative) (Details) - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2022	Dec. 31, 2021
All award [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Share issued	1,000,000
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	$ 150
Restricted Stock [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Shares granted	59,600	58,700
Vesting period	5 years
Total unrecognized compensation cost	$ 1,043
Total unrecognized compensation cost, weighted average period	1 year 11 months 8 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	61,800	64,600
Total unrecognized compensation cost	$ 1,295
Total unrecognized compensation cost, weighted average period	2 years 25 days
Percentage of RSU granted to employees per year	0.00%
Percentage of RSU granted to non-employee directors per year	150.00%

Property and Equipment (Tables)

9 Months Ended

Sep. 30, 2022

Reinsurance Disclosures [Abstract]

Schedule of Property and equipment

Property and equipment consisted of the following:

	September 30, 2022			December 31, 2021			Estimated Useful Life
Cost:
Land	$	1,403		$	1,403		indefinite
Building and improvements		14,160			14,193		10–40 years
Electronic data processing equipment		1,565			1,518		5–7 years
Furniture and fixtures		2,919			2,885		5–7 years
Automobiles		1,310			1,228		2–3 years
Gross cost		21,357			21,227

Accumulated depreciation		(11,433	)		(11,358	)
Total property and equipment, net	$	9,924		$	9,869

Consolidated Statements of Comprehensive Income (Loss) (Unaudited) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Net income (loss)	$ (10,169)	$ (4,859)	$ (54,766)	$ 2,189
Other comprehensive income (loss), before income taxes:
Holding gains (losses) on investments	(12,766)	(2,001)	(50,048)	(5,897)
Reclassification adjustment for net realized losses (gains) included in net income (loss)	39	(120)	101	(546)
Other comprehensive income (loss), before income taxes	(12,727)	(2,121)	(49,947)	(6,443)
Income tax benefit (expense) related to items of other comprehensive income (loss)	2,893	445	11,353	1,353
Other comprehensive income (loss), net of income taxes	(9,834)	(1,676)	(38,594)	(5,090)
Comprehensive income (loss)	(20,003)	(6,535)	(93,360)	(2,901)
Attributable to NI Holdings Inc [Member]
Net income (loss)	(9,985)	(4,737)	(53,986)	2,288
Other comprehensive income (loss), before income taxes:
Holding gains (losses) on investments	(12,319)	(1,943)	(48,254)	(5,674)
Reclassification adjustment for net realized losses (gains) included in net income (loss)	19	(118)	81	(544)
Other comprehensive income (loss), before income taxes	(12,300)	(2,061)	(48,173)	(6,218)
Income tax benefit (expense) related to items of other comprehensive income (loss)	2,796	433	10,950	1,306
Other comprehensive income (loss), net of income taxes	(9,504)	(1,628)	(37,223)	(4,912)
Comprehensive income (loss)	(19,489)	(6,365)	(91,209)	(2,624)
Attributable to Non-Controlling Interest [Member]
Net income (loss)	(184)	(122)	(780)	(99)
Other comprehensive income (loss), before income taxes:
Holding gains (losses) on investments	(447)	(58)	(1,794)	(223)
Reclassification adjustment for net realized losses (gains) included in net income (loss)	20	(2)	20	(2)
Other comprehensive income (loss), before income taxes	(427)	(60)	(1,774)	(225)
Income tax benefit (expense) related to items of other comprehensive income (loss)	97	12	403	47
Other comprehensive income (loss), net of income taxes	(330)	(48)	(1,371)	(178)
Comprehensive income (loss)	$ (514)	$ (170)	$ (2,151)	$ (277)

Stock Based Compensation (Schedule of PSU Activity) (Details) - Performance Stock Units [Member] - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
PSU compensation expense	$ (872)	$ 290	$ (349)	$ 861
Income tax benefit	198	(61)	79	(181)
PSU compensation expense, net of income taxes	$ (674)	$ 229	$ (270)	$ 680

Operating Leases (Tables)

9 Months Ended

Sep. 30, 2022

Surplus Notes [Member]

Schedule of Minimum Future Commitments Under Non-Cancellable Leases

As of September 30, 2022, we have minimum future commitments under non-cancellable leases for the next five years and thereafter as follows:

Year ending December 31,	Estimated Future Minimum Commitments
2022 (three months remaining)	$	96
2023		358
2024		320
2025		286
2026		291
Thereafter		775
Total minimum future commitments	$	2,126