UNITED
STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 FORM 10-K

 ANNUAL
REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
 For the fiscal year ended December 31, 2024
or

 TRANSITION
REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from ____ to _____

 Commission file
number 001-37973

 NI HOLDINGS, INC.

 (Exact name of registrant as specified in its charter)

 North Dakota
 81-2683619

 (State or other jurisdiction of
 incorporation or organization)

 (I.R.S. Employer
 Identification No.)

 1101 First Avenue North
 Fargo, North Dakota
 58102

 (Address of principal executive offices)
 (Zip Code)

 (701) 298-4200

Registrant's telephone number, including area code

 Securities registered pursuant to Section
12(b) of the Act:

 Title of each class
 Trading Symbol(s)
 Name of each exchange on which registered

 Common Stock, $0.01 par value per share
 NODK
 Nasdaq Capital Market

 Securities registered pursuant to Section
12(g) of the Act: NONE

 Indicate by check mark if the registrant is a well-known seasoned
issuer, as defined in Rule 405 of the Securities Act. Yes No

 Indicate by check mark if the registrant is not required to file
reports pursuant to Section 13 or Section 15(d) of the Act. Yes
 No

 Indicate by check mark whether the registrant (1) has filed
all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or
for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements
for the past 90 days. Yes No

 Indicate by check mark whether the registrant has submitted electronically
every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the
preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes No

 Indicate by check mark whether the registrant is a large accelerated
filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions
of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging
growth company" in Rule 12b-2 of the Exchange Act.

 Large accelerated filer

 Accelerated filer

 Non-accelerated filer

 Smaller reporting company

 Emerging growth company

 If an emerging growth company, indicate by check mark if the registrant
has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant
to Section 13(a) of the Exchange Act.

 Indicate by check mark whether the registrant has filed a report
on and attestation to its management's assessment of the effectiveness of its internal control over financial reporting under Section
404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the registered public accounting firm that prepared or issued its audit report.

 If securities are registered pursuant to Section 12(b) of the Act,
indicate by check mark whether the financial statements of the registrant included in the filing reflect the correction of an error to
previously issued financial statements.

 Indicate by check mark whether any of those error corrections are
restatements that required a recovery analysis of incentive-based compensation received by any of the registrant's executive officers
during the relevant recovery period pursuant to § 240.10D-1(b).

 Indicate by check mark whether the registrant is a shell company
(as defined in Rule 12b-2 of the Exchange Act). Yes No

 Based on the closing sales price of the common stock on the Nasdaq
on June 30, 2024, the last business day of the Registrant's second fiscal quarter, the aggregate market value of the voting stock
held by non-affiliates of the Registrant was approximately $ 119 million. All executive officers and directors of the Registrant, and all
shareholders holding more than 10% of the Registrant's outstanding voting stock (other than institutional investors, such as registered
investment companies, eligible to file beneficial ownership reports on Schedule 13G), have been deemed, solely for the purpose of the
foregoing calculation, to be "affiliates" of the Registrant.

 The number of the Registrant's common shares outstanding on
February 28, 2025 was 20,681,546. No preferred shares are issued or outstanding.

 Documents incorporated by
Reference

 Portions of the definitive proxy statement relating to the annual meeting of shareholders to be held May 20, 2025 are incorporated
by reference into Part III of this report.

 Page

 FORWARD-LOOKING STATEMENTS

 Item 1.

 Business

 Item 1A.

 Risk Factors

 Item 1B.

 Unresolved Staff Comments

 Item 1C.

 Cybersecurity

 Item 2.

 Properties

 Item 3.

 Legal Proceedings

 Item 4.

 Mine Safety Disclosures

 Item 5.

 Market for Registrant's Common Equity, Related Shareholder Matters, and Issuer Purchases of Equity Securities

 Item 6.

 [Reserved]

 Item 7.

 Management's Discussion and Analysis of Financial Condition and Results of Operations

 Item 7A.

 Quantitative and Qualitative Disclosures About Market Risk

 Item 8.

 Financial Statements and Supplementary Data

 Item 9.

 Changes in and Disagreements with Accountants on Accounting and Financial Disclosure

 Item 9A.

 Controls and Procedures

 Item 9B.

 Other Information

 Item 9C.

 Disclosure Regarding Foreign Jurisdictions that Prevent Inspections

 Item 10.

 Directors, Executive Officers and Corporate Governance

 Item 11.

 Executive Compensation

 Item 12.

 Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

 Item 13.

 Certain Relationships and Related Transactions, and Director Independence

 Item 14.

 Principal Accountant Fees and Services

 Item 15.

 Exhibits and Financial Statement Schedules

 Item 16.

 Form 10-K Summary

 Schedule I – Condensed financial information of registrant – NI Holdings, Inc.

 i

 FORWARD-LOOKING STATEMENTS

 This report contains, and management may make, certain "forward-looking
statements" within the meaning of the Private Securities Litigation Reform Act of 1995. All statements, other than statements of
historical facts, may be forward-looking statements. Words such as "may," "will," "should," "likely,"
"anticipates," "expects," "intends," "plans," "projects," "believes,"
"views," "estimates," and similar expressions are used to identify these forward-looking statements. These statements
include, among other things, statements made by NI Holdings, Inc. ("NI Holdings," "the Company," "we,"
"us," and "our") about:

 our anticipated operating and financial performance, business plans, and prospects;

 strategic reviews, capital allocation objectives, dividends, and share repurchases;

 plans for and prospects of acquisitions, dispositions, and other business development activities, and our ability to successfully
capitalize on these opportunities;

 the impact of a future pandemic and related economic conditions, including the potential impact on the Company's investments;

 our ability to enter new markets successfully and capitalize on growth opportunities either through acquisitions or the expansion
of our distribution network;

 cyclical changes in the insurance industry, competition, and innovation and emerging technologies;

 expectations for impact of, or changes to, existing or new government regulations or laws;

 our ability to anticipate and respond to macroeconomic, geopolitical, health and industry trends, pandemics, acts of war, and other
large-scale crises;

 developments in general economic conditions, domestic and global financial markets, interest rates, unemployment, or inflation, that
could affect the performance of our insurance operations and/or investment portfolio; and

 our ability to effectively manage future growth, including additional necessary capital, systems, and personnel.

 Given their nature, we cannot assure that any outcome expressed
in these or other forward-looking statements will be realized in whole or in part. Actual outcomes may vary materially from past results
and those anticipated, estimated, implied, or projected. These forward-looking statements may be affected by underlying assumptions that
may prove inaccurate or incomplete, or by known or unknown risks and uncertainties, including those described in this section and in the
Part I, Item 1A, "Risk Factors" section in this Annual Report on Form 10-K for the year ended December 31, 2024 ("2024
Annual Report"). The occurrence of any of the risks identified in the Part I, Item 1A, "Risk Factors" section in this
2024 Annual Report, or other risks currently unknown, could have a material adverse effect on our business, financial condition or results
of operations, or we may be required to increase our accruals for contingencies. It is not possible to predict or identify all such factors.
Consequently, you should not consider such discussion to be a complete discussion of all potential risks or uncertainties.

 Therefore, you are cautioned not to unduly rely
on forward-looking statements, which speak only as of the date of this 2024 Annual Report. We undertake no obligation to update forward-looking
statements, whether as a result of new information, future events or otherwise, except as required by applicable securities law. You are
advised, however, to consult any further disclosures we make on related subjects.

 Item 1.
 Business

 All dollar amounts,
except per share amounts, are in thousands.

 Overview

 NI Holdings is a North Dakota business corporation
that is the stock holding company of Nodak Insurance Company and became such in connection with the conversion of Nodak Mutual Insurance
Company ("Nodak Mutual") from a mutual to stock form of organization and the creation of a mutual holding company. The conversion
was completed on March 13, 2017. Immediately following the conversion, all of the outstanding shares of common stock of Nodak Insurance
Company ("Nodak Insurance," the successor to Nodak Mutual Insurance Company) were issued to Nodak Mutual Group, Inc. ("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. Concurrent with the conversion, on March 13, 2017, the Company completed an initial public offering
("IPO") of 10,350,000 shares of common stock at a price of $10.00 per share. The Company received net proceeds of $93,145
from the offering, after deducting the underwriting discounts and offering expenses. The newly issued shares of NI Holdings were available
for public trading on March 16, 2017.

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

 Nodak Insurance – a wholly-owned subsidiary of NI Holdings;

 Nodak Agency, Inc. ("Nodak Agency") – a wholly-owned subsidiary of Nodak Insurance;

 American West Insurance Company ("American West") – a wholly-owned subsidiary of Nodak Insurance;

 Primero Insurance Company ("Primero") – an indirect wholly-owned subsidiary of Nodak Insurance;

 Battle Creek Insurance Company ("Battle Creek") – a wholly-owned subsidiary of Nodak Insurance, formerly Battle
Creek Mutual Insurance Company. Battle Creek Mutual Insurance Company became affiliated with Nodak Insurance in 2011 and, prior to January
2, 2024, was controlled by Nodak Insurance via a surplus note. The terms of the surplus note allowed Nodak Insurance to appoint two-thirds
of the Battle Creek Mutual Insurance Company Board of Directors. As of January 2, 2024, the North Dakota Secretary of State approved the
conversion of Battle Creek Mutual Insurance Company from a mutual insurance company to a stock insurance company. In accordance with the
approved plan of conversion, the name of Battle Creek Mutual Insurance Company became Battle Creek Insurance Company, the surplus note
was considered paid in full as of the conversion date, and Battle Creek became a wholly-owned subsidiary of Nodak Insurance;

 Direct Auto Insurance Company ("Direct Auto") – a wholly-owned subsidiary of NI Holdings; and

 Westminster American Insurance Company ("Westminster") – a wholly-owned subsidiary of NI Holdings until it was sold
to Scott Insurance Holdings, LLC ("Scott Insurance Holdings") on June 30, 2024.

 A chart of the corporate structure as of December 31, 2024, and a
more complete description of each of the NI Holdings subsidiaries, is included below.

 NI HOLDINGS, INC.

ORGANIZATIONAL CHART

 Nodak Mutual Group, Inc.

 60%

 100%

 100%

 Direct Auto Insurance Company

 Nodak Insurance Company

 100%

 100%

 100%

 100%

 Nodak Agency, Inc.

 American West Insurance Company

 Battle Creek Insurance Company

 Tri-State, Ltd

 100%

 Primero Insurance Company

 The executive offices of NI Holdings and Nodak
Insurance are located at 1101 First Avenue North, Fargo, North Dakota 58102, and the main office phone number is 701-298-4200. NI Holdings'
website address is www.niholdingsinc.com. The Company makes available on its website, free of charge, its Annual Reports on Form
10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K, and amendments to those reports filed or furnished pursuant to Section
13(a) or 15(d) of the Securities Exchange Act of 1934 (the "Exchange Act") as soon as reasonably practicable after it electronically
files such material with, or furnish it to, the United States Securities and Exchange Commission ("SEC"). Information contained
on such website is not incorporated by reference into this 2024 Annual Report, and such information should not be considered to be part
of this 2024 Annual Report.

 Subsidiary and Affiliate Companies

 Intercompany
Reinsurance Pooling Arrangement

 Effective January 1, 2020, all of our insurance subsidiary and
affiliate companies entered into an intercompany reinsurance pooling agreement. Nodak Insurance is the lead company of the pool, and assumes
the net premiums, net losses, and underwriting expenses from each of the other four 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 A.M. Best Company, Inc. ("AM Best") on a group basis
and hold a single combined financial strength rating, long-term issuer credit rating, and financial size category. Subsequent to the June
30, 2024, date of sale, Westminster is no longer a member of the pool, and the pooling percentages for the remaining insurance subsidiaries
were updated based on their respective surplus as a percentage of the pool as of December 31, 2023.

 Nodak Insurance Company

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

 Nodak Insurance was formed in 1946 to offer property
and casualty insurance to members of the North Dakota Farm Bureau ("NDFB"), and benefits from a strong marketing affiliation
with that organization. Nodak Insurance's bylaws provide that a person must be a member and remain a member of the NDFB in order
to become and remain a policyholder of Nodak Insurance. Nodak Insurance's bylaws also require that four members of the Board of
Directors of Nodak Insurance must be members of the NDFB. Similarly, one-third of the members of the Board of Directors of Nodak Mutual
Group must be persons designated by the NDFB.

 The NDFB has granted Nodak Insurance a nonexclusive,
nontransferable license to use the name "Farm Bureau" and the "FB" logo and associated trademarks to market Nodak
Insurance products. Nodak Insurance has held this license since the insurance company's inception in 1946, and the current version
of the license agreement has been in place since 2002. The current license agreement between the NDFB and Nodak Insurance renewed on October
1, 2024, with an expiration date of September 30, 2025. The agreement has historically been renewed annually by a vote of the Nodak Insurance
Board of Directors. Under the current license agreement, Nodak Insurance is required to pay to the NDFB an annual royalty payment equal
to 1.3% of Nodak Insurance's written premiums (excluding multi-peril crop insurance premiums), subject to a minimum annual payment
of $900 and a maximum annual payment of $1,672. The maximum royalty payment is adjusted annually based upon the June index month for the
Consumer Price Index.

 As of December 31, 2024, Nodak Insurance distributed
its insurance products through 63 exclusive agents appointed by Nodak Insurance.

 Nodak Agency, Inc.

 Nodak Agency is an inactive shell corporation.

 Tri-State, Ltd.

 Tri-State, Ltd. is an inactive shell corporation.

 American West Insurance Company

 American West is a property and casualty insurance
company licensed in eight states in the Midwest and Western regions of the United States ("U.S."). American West began writing
policies in 2002 and primarily writes private passenger auto, homeowners, and farm coverages in South Dakota. American West also writes
private passenger auto coverage in North Dakota, as well as crop hail and Federal multi-peril crop insurance coverages in Minnesota and
South Dakota. As of December 31, 2024, American West distributed its products through independent agents in 63 contracted agencies.

 Primero Insurance Company

 Primero is a wholly-owned subsidiary of Tri-State,
Ltd. Tri-State, Ltd. is an inactive shell corporation 100% owned by Nodak Insurance. Primero is a property and casualty insurance company
writing non-standard automobile coverage in the states of Nevada, Arizona, North Dakota, and South Dakota during 2024. Primero was acquired
by Nodak Insurance in 2014. As of December 31, 2024, Primero no longer writes coverage in the state of Nevada. Primero distributed its
policies through independent agents in 216 contracted agencies in the three remaining states.

 Battle Creek Insurance Company

 Battle Creek is a property and casualty insurance
company writing private passenger auto, homeowners, and farm coverages solely in the state of Nebraska. As of December 31, 2024, Battle
Creek distributed its policies through independent agents in 113 contracted agencies. Battle Creek became affiliated with Nodak Insurance
in 2011, and Nodak Insurance provides underwriting, claims management, policy administration, and other administrative services to Battle
Creek.

 On January 2, 2024, Battle Creek issued 300,000
shares of its common stock to Nodak Insurance at a $10.00 per share par value and became a wholly-owned subsidiary of Nodak Insurance.
Because we concluded that we controlled Battle Creek prior to January 2, 2024, we consolidated the financial statements of Battle Creek,
and Battle Creek's policyholders' interest in Battle Creek was reflected as a non-controlling interest in shareholders'
equity in our Consolidated Balance Sheets for NI Holdings ("Consolidated Balance Sheets") and its net income or loss was excluded
from net income or loss attributed to NI Holdings in our Consolidated Statements of Operations for NI Holdings ("Consolidated Statements
of Operations"). Subsequent to January 2, 2024, Battle Creek is fully consolidated in our Consolidated Balance Sheets and Consolidated
Statements of Operations and, as such, no longer reflected as a non-controlling interest.

 Direct Auto Insurance Company

 Direct Auto is a property and casualty insurance
company licensed in Illinois. Direct Auto began writing non-standard automobile coverage in 2007, and was acquired by NI Holdings on August
31, 2018, via a stock purchase agreement. As of December 31, 2024, Direct Auto distributed its policies through independent agents in
156 contracted agencies, concentrated primarily in the Chicago area.

 Westminster American Insurance Company

 Westminster is a property and casualty insurance
company licensed in 18 states and the District of Columbia. Westminster is headquartered in Owings Mills, Maryland and underwrites commercial
multi-peril insurance in the states of Delaware, Georgia, Kentucky, Maryland, New Jersey, North Carolina, Pennsylvania, South Carolina,
Tennessee, Virginia, and the District of Columbia. Westminster was sold to Scott Insurance Holdings on June 30, 2024. Subsequent to the
date of sale, Westminster is reflected as discontinued operations within our Consolidated Balance Sheets and Consolidated Statements of
Operations. For additional information see Part II, Item 8, Note 20 "Discontinued Operations" of this 2024 Annual Report.

 General Information

 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 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 and Direct Auto personnel
manage the day-to-day operations of their respective companies. Westminster personnel managed the day-to-day operations of their company
prior to the date of sale.

 The consolidated financial statements of NI Holdings
presented herein include the financial position and results of operations of NI Holdings, Direct Auto, Westminster (as discontinued operations),
and Nodak Insurance, including Nodak Insurance's subsidiaries of American West, Primero and Battle Creek. Each of the insurance
companies is subject to examination and comprehensive regulation by the insurance department of its state of domicile, North Dakota.

 Market Overview for Continuing Operations

 We market our personal lines products in the upper
Midwest states of North Dakota, Nebraska, South Dakota, and Minnesota. We offer non-standard auto insurance in the states of Illinois,
Arizona, Nevada, South Dakota, and North Dakota. We offer commercial multi-peril insurance in the states of North Dakota and South Dakota.
The following chart shows our direct premiums written during the last two years and our relative market share within each of our states
during the year ended December 31, 2023:

 Year Ended December 31, 2023

 Direct Premiums

 Direct Premiums

 Market Size

 Rank in
 State

 North Dakota

 $
 167,713

 $
 163,505

 $
 3,827,000

 th

 Illinois

 78,523

 86,348

 35,939,000

 th

 Nebraska

 53,244

 50,698

 7,573,000

 nd

 South Dakota

 32,421

 29,660

 3,970,000

 th

 Arizona

 5,180

 4,077

 17,959,000

 rd

 Minnesota

 3,786

 4,008

 17,081,000

 th

 Nevada

 1,434

 2,938

 8,562,000

 th

 Total direct premiums written

 $
 342,301

 $
 341,234

 Market size information is not yet available for the year ended December 31, 2024.

 Growth Strategy

 We believe we have many opportunities to grow
our business. Strategies we employ to achieve this growth include:

 continued emphasis on our relationship with the NDFB, a key advocacy group for agricultural and rural interests which enjoys a high
profile and favorable reputation throughout North Dakota;

 expansion and enhancement of independent agency relationships, including the use of technology such as mobile apps, online quoting,
and policy issuance initiatives to make it easy for agents and insureds to do business with us;

 capitalizing on our excellent claims service for all insureds;

 selective expansion of our insurance products in states where we currently operate, as well as those states where we hold insurance
licenses; and

 consideration of strategic acquisitions and investment opportunities in businesses that align with our growth objectives.

 Corporate Capital Strategy

 Our philosophy is to deploy capital in a manner
that provides long-term protection for our policyholders and creates long-term value for our shareholders. This philosophy is supported
by a number of underlying strategies implemented across the organization that are focused on preservation of capital, including:

 prioritizing the use of data and modeling tools to help estimate the frequency and severity of risks within our insurance portfolio;

 maintaining a conservatively managed investment portfolio that supports our insurance operations under a wide range of operating and
market conditions;

 ensuring our reinsurance program is designed to provide sufficient protection against material insurance exposures including, but
not limited to, catastrophes caused by weather-related events; and

 relying upon our Enterprise Risk Management framework to identify, quantify, and manage a broad range of risks across the organization.

 We view our capital position to consist of three
layers, each of which has a specific size and purpose:

 The first layer of capital, which we refer to as "regulatory capital," is the amount of capital needed to satisfy state
insurance regulatory requirements while supporting our growth objectives. This capital is held by each of our insurance company subsidiaries.

 The second layer of capital is considered "contingency capital." While our regulatory capital is, by definition, a cushion
for absorbing financial consequences of adverse events, such as loss reserve development, litigation, weather catastrophes, and investment
market corrections, we view that as a base and hold additional capital for even more extreme operating conditions. This capital is generally
also held by each of our insurance company subsidiaries.

 The third layer of capital is classified as "excess capital" and represents the excess of the sum of the first two layers.
This capital is available for deployment by NI Holdings in conjunction with our excess capital deployment priorities.

 Our excess capital deployment priorities are to
(1) invest in existing businesses where we see opportunities for profitable growth, (2) make strategic investments and acquisitions that
enhance our businesses and achieve appropriate risk-adjusted returns over time, and (3) return capital to shareholders through share repurchases
or shareholder dividends.

 Insurance Products by Segment

 Our consolidated financial results from continuing
operations include our Private Passenger Auto, Non-Standard Auto, Home and Farm, Crop, and All Other reporting segments. Information regarding
products and services offered in each segment is included below. Additionally, revenues, underwriting results, and identifiable assets
and liabilities for each segment are shown in Part II, Item 8, Note 21 "Segment Information." The financial performance of
each segment is discussed in Part II, Item 7, "Management's Discussion and Analysis of Financial Condition and Results of
Operations."

 Private Passenger Auto

 Nodak Insurance, Battle Creek, and American West
each write private passenger auto insurance to provide protection against liability for bodily injury and property damage arising from
automobile accidents as well as protection against loss from damage to automobiles owned by the insured. Private passenger auto accounted
for $97,209 (28.4%) of direct premiums written by the Company on a consolidated basis during 2024.

 Non-Standard Auto

 Primero and Direct Auto write non-standard auto
insurance with a focus on minimum-limit auto liability coverage. Non-standard auto insurance accounted for $87,467 (25.6%) of direct premiums
written by the Company on a consolidated basis during 2024.

 Home and Farm

 Nodak Insurance, Battle Creek, and American West
each write homeowners and farmowners policies to provide coverage for damage to buildings, equipment, and contents for a variety of perils,
including fire, lightning, wind, hail, and theft. These policies also cover liability arising from injury to other persons or their property
while on the insured's premises. Home and farm accounted for $107,203 (31.3%) of direct premiums written by the Company on a consolidated
basis during 2024.

 Crop

 Nodak Insurance, American West, and Battle Creek
offer crop hail and multi-peril crop insurance policies. Multi-peril crop insurance is a federal program that protects against crop yield
losses from all types of natural causes and loss of revenue due to declines in the prices of agricultural products. Crop hail insurance
is a private insurance product designed to provide protection against losses to farmers' crops due primarily to hail damage. Collectively,
crop insurance accounted for $36,421 (10.6%) of direct premiums written by the Company on a consolidated basis during 2024.

 All Other

 In addition to the products described above, Nodak
Insurance, American West, and Battle Creek write commercial and excess liability coverages. Collectively, these other coverages accounted
for $14,002 (4.1%) of the direct premiums written by the Company on a consolidated basis during 2024. This segment also includes an assumed
reinsurance book of business, with $820 of assumed premiums written on a consolidated basis during 2024. The majority of these assumed
premiums written are related to a domestic and international reinsurance pool for which the Company made the decision to non-renew its
participation as of January 1, 2022, and the associated assumed premiums represent run-off of this business.

 Crop Insurance

 Crop insurance is purchased by agricultural producers,
including farmers, ranchers, and others to protect themselves against either the loss of their crops (yield) due to natural disasters
such as hail, freezing, plant disease, drought, and floods, or the loss of revenue due to declines in the prices of agricultural products.
The two general categories of crop insurance are referred to as "crop-yield insurance" and "crop-revenue insurance."
Crop-yield insurance protects against a reduction in the yield per acre from the historical average yield in a specified area, such as
a county or National Oceanic and Atmospheric Administration weather grid, while crop-revenue insurance provides protection against declines
in the price of the particular crop. Most of the multi-peril crop insurance policies written today combine both yield and revenue protection,
with the revenue component providing the policyholder with the option to calculate price-based losses on the higher of the prevailing
price when the crop is planted or the price at harvest.

 Beginning in 1980, the U.S. Congress expanded
the federal crop insurance program to cover more crops and regions of the country. More importantly, Congress permitted private sector
insurers to market and administer federal insurance policies in exchange for an opportunity to earn a profit while bearing a portion of
the insurance risk. Congress also authorized a premium subsidy for the farmers and ranchers. As a result, there was a rapid increase in
the acres insured from approximately 26 million acres in 1980 to 100 million acres in 1990. The Federal Crop Insurance Reform Act of 1994
made participation in the crop insurance program mandatory for farmers to be eligible to participate in other government support programs
and provided a minimum level of free catastrophic risk coverage for insured and noninsured crops.

 American Farm Bureau Insurance Services ("AFBIS")
underwrites all of our, as well as several other state Farm Bureau affiliated insurers, multi-peril crop and crop hail insurance policies.
AFBIS also processes and administers all claims made by policyholders under such policies. We reimburse AFBIS for its actual loss adjustment
expense with respect to the policies issued by us and pay AFBIS a percentage of the premiums we receive with respect to such policies.

 Marketing and Distribution

 Our marketing philosophy is to sell profitable
business using a focused, cost-effective distribution system. Nodak Insurance distributes its insurance products through exclusive agents
in North Dakota, while American West, Battle Creek, Primero, and Direct Auto rely on independent agents.

 We review our agents with respect to both premium
volume and profitability. Our captive agents for Nodak Insurance are hired and trained by our sales staff in North Dakota, while the independent
agents for our other companies are appointed by the underwriting or marketing staff for each respective company. We hold regular training
sessions when we introduce new products or product changes, and we identify specific topics that may help our agents more effectively
market our products.

 For the year ended December 31, 2024, no individual
agent was responsible for more than 5% of the Company's direct premiums written.

 Agents are compensated through a fixed base commission
structure. Agents receive commission as a percentage of premiums as their primary compensation from us. The Risk Management Agency of
the U.S. Department of Agriculture ("RMA") establishes the maximum commission that can be paid to agents with respect to crop
insurance policies. Nodak Insurance, Battle Creek, American West, and Direct Auto pay annual profit-sharing commissions with respect to
all property and casualty (non-crop) business based on company-specific production metrics related to premiums and profitability.

 Our marketing efforts are further supported by
our claims philosophy, which is designed to provide prompt and efficient service and claims processing, resulting in a positive experience
for agents and policyholders. We believe that these positive experiences contribute to achieving higher policyholder retention and new
business growth over time. While we rely on our captive and independent agents for distribution and customer support, underwriting and
claim handling responsibilities are retained by us. Many of our agents have had direct relationships with us for a number of years.

 Underwriting, Risk Assessment, and Pricing

 We strive to be disciplined in our pricing by
pursuing rate increases to maintain or improve our underwriting profitability while still being able to attract and retain customers.
We utilize pricing reviews that we believe will help us price risks more accurately, maintain appropriate policyholder retention, and
support the production of profitable new business. These pricing reviews involve

 evaluating our claims experience and loss trends on a
periodic basis to identify changes in the frequency and severity of our claims. We then consider whether our premium rates are adequate
relative to the level of underwriting risk as well as the sufficiency of our underwriting guidelines.

 The nature of our business requires that we remain
sensitive to the marketplace and the pricing strategies of our competitors. Using the market information as a reference point, we typically
set our prices based on our estimated future costs. From time to time, we may reduce our discounts or apply a premium surcharge to achieve
an appropriate return. Pricing flexibility allows us to provide a fair rate commensurate with the assumed risk. If our pricing strategy
cannot yield sufficient premium to cover our costs on a particular type of risk, we may choose not to underwrite that risk. It is our
philosophy not to sacrifice profitability for premium growth.

 Enterprise Risk Management

 Our Company is subject to significant risks, including
the normal risks of a property and casualty insurance company. These risks are discussed in more detail in Part I, Item 1A, "Risk
Factors."

 We consider an enterprise-wide risk management
program to be an integral part of managing our business and a key element in our approach to corporate governance. Our Enterprise Risk
Management Committee (the "ERMC") is responsible for the alignment of operational risk management strategies as the coordination
point for enterprise-level direction setting with regard to risk management issues. The multi-disciplinary ERMC regularly monitors risk
reports and metrics regarding a variety of continuing and emerging risks that may adversely affect the Company, its shareholders, its
policyholders, or other stakeholders. The Audit Committee of the Board of Directors oversees risk management and regularly receives reports
from the ERMC.

 Reinsurance

 We cede and assume certain premiums and losses to and from various
companies and associations under a variety of reinsurance agreements. We seek 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 us from our obligation to policyholders.
Additionally, failure of reinsurers to honor their obligations could result in significant losses to us. There can be no assurance that
reinsurance will continue to be available to us to the same extent, and at the same cost, as it has in the past. We may choose in the
future to reevaluate the use of reinsurance to increase or decrease the amounts of risk ceded to reinsurers.

 For additional information, see Part II, Item 8, Note 6 "Reinsurance."

 Unpaid Losses and Loss Adjustment Expenses

 We maintain reserves for unpaid losses and loss adjustment expenses.
Our liability for unpaid losses and loss adjustment expenses consists of (1) case reserves, which are reserves for claims that have been
reported to us, and (2) reserves for claims that have been incurred but not yet been reported and for the future development of case reserves
("IBNR"). We determine a provision for the ultimate cost of those claims without regard to how long it takes to settle them
or the time value of money. The determination of reserves involves actuarial and statistical projections of what we expect to be the cost
of the ultimate settlement and administration of such claims. The liability for unpaid losses and loss adjustment expenses is set based
on facts and circumstances then known, estimates of future trends in claims severity, and other variable factors such as inflation and
changing judicial theories of liability. Our liability for unpaid losses and loss adjustment expenses is not discounted.

 For additional information, see Part II, Item 7, "Critical
Accounting Policies" and Part II, Item 8, Note 8 "Unpaid Losses and Loss Adjustment Expenses."

 Investments

 The majority of funds available for investments are deployed in
a widely diversified portfolio of high quality, liquid taxable U.S. government, tax-exempt and taxable U.S. municipal, taxable corporate,
and U.S. agency mortgage-backed bonds. We regularly monitor the effective duration of our fixed income investments, and our investment
purchases and sales are executed with the objective of having adequate funds available to satisfy our insurance and other obligations.
Generally, the expected principal and

 interest payments produced by our fixed income portfolio adequately fund the estimated runoff of
the Company's insurance reserves. The substantial amount by which the fair value of the fixed income portfolio exceeds the value
of the net insurance liabilities, as well as the positive cash flow from newly sold policies and the large amount of high-quality liquid
bonds, contribute to the Company's ability to fund claim payments without having to sell illiquid assets or access its credit facilities.

 We also invest a much smaller percentage of the portfolio in private
placement debt offerings and equity securities, which have the potential for higher returns but also involve varying degrees of risk,
including higher volatility and/or less liquidity.

 The Investment Committee of NI Holdings' Board of Directors
reviews and approves the Company's investment policy periodically. The investment portfolio is managed by Conning, Inc.

 For additional information, see Part II, Item 7, "Critical
Accounting Policies" and Part II, Item 8, Note 4 "Investments."

 Financial Strength

 Ratings are an important factor in assessing the
Company's competitive position in the insurance industry. The Company is reviewed regularly by the independent rating agency AM
Best, who assigns a financial strength rating to the Company, which reflects its assessment of an insurer's ability to meet its
financial obligations to policyholders. An insurer's financial strength rating is one of the primary factors evaluated by those
in the market to purchase insurance. A poor rating indicates that there is an increased likelihood that the insurer could become insolvent
and therefore not able to fulfill its obligations under the insurance policies it issues. This rating can also affect an insurer's
level of written premiums, the lines of business it can write, and, for insurers like us that are also public registrants, the market
value of its securities.

 All of the Company's insurance subsidiaries
and affiliate companies are rated "A" Excellent by AM Best, which is the third highest out of 15 possible ratings, under a
group rating due to the intercompany pooling reinsurance agreement. Effective May 10, 2024, AM Best affirmed a stable financial strength
outlook to the group.

 Competition

 The property casualty and crop insurance markets
are competitive. We compete with stock insurance companies, mutual insurance companies, and other underwriting organizations. Our largest
competitors in North Dakota for private passenger auto and homeowners include Progressive, State Farm, American Family, National General,
Farmers Union, and Auto-Owners insurance companies. In South Dakota and Nebraska, we have small market shares and our competitors are
the large national and regional companies as well as Farmers Mutual of Nebraska. In our non-standard auto markets, which are primarily
Illinois and Arizona, our primary competitors are regional carriers.

 Based on 2023 data, Nodak Insurance is the second
largest writer of farmowners insurance in North Dakota. Our largest competitors include Farmers Union, North Star Mutual, American Family,
and Liberty Mutual insurance companies. In Nebraska and South Dakota, we have a small farmowners market share, which is dominated by the
large national and regional carriers.

 The principal competitors in our markets for multi-peril
crop insurance include Chubb, QBE Insurance Group, Zurich, AgriSompo, and Great American Insurance Group. The premium rates for multi-peril
crop insurance are established by the RMA and, accordingly, we compete with other insurance companies on factors such as agency relationships,
claim service, and market reputation in the crop insurance market. We believe that our relationship with the NDFB and our leading market
share are significant factors in maintaining our market share of the crop insurance business in North Dakota. The Company's multi-peril
crop insurance premiums for North Dakota were $30,641, $39,073, and $45,465 for the years ended December 31, 2024, 2023, and 2022, respectively.
Total North Dakota multi-peril crop premiums for the industry were $1,231,110, $1,491,650, and $1,537,758 for the years ended December
31, 2024, 2023, and 2022, respectively.

 With respect to writing property and casualty
insurance, competitive factors include pricing, agency relationships, policy support, claim service, and market reputation. Like other
writers of property and casualty insurance, our policy terms vary from state to state based on state regulations, competition, pricing,
and other factors including the prescribed minimum liability limits in each state. We believe our Company differentiates itself from many
larger companies competing for this business by focusing on ease of doing business and providing excellent claims service with local,
knowledgeable employees.

 To compete successfully in the property and casualty
insurance market, we utilize data-driven insights and a disciplined underwriting approach to assess and price risks, practice prudent
claims management, reserve appropriately for unpaid claims, and provide quality service and competitive commissions to our independent
and captive agents.

 Regulation

 General

 We are subject to extensive regulation, particularly
at the state level. This regulation varies by state, but generally has its source in statutes and regulations that establish standards
and requirements for conducting the business of insurance and that delegate regulatory authority to state insurance regulatory agencies.
In general, such regulation is intended for the protection of those who purchase or use insurance products, not the companies that write
the policies. These laws and regulations have a significant impact on our business and relate to a wide variety of matters including accounting
methods, agent and company licensure, claims procedures, corporate governance, examinations, investing practices, policy forms, pricing,
trade practices, reserve adequacy, and underwriting standards.

 State insurance laws and regulations require our
insurance company subsidiaries to file financial statements with state insurance departments everywhere they do business, and they are
subject to examination by the departments they are domiciled in at any time. Our insurance company subsidiaries prepare statutory-basis
financial statements in accordance with accounting practices and procedures prescribed or permitted by the state in which they are domiciled.
Our domiciliary states generally conform to National Association of Insurance Commissioners ("NAIC") accounting practices
and procedures, so our examination reports and other filings generally are accepted by other states. As of December 31, 2024, all of our
insurance subsidiaries are domiciled in North Dakota.

 The NAIC provides guidance to the states with
respect to standardized laws and regulations (including the accounting practices and procedures discussed above), which represent an effort
to standardize insurance industry practices across state lines, oftentimes referred to as "Model Regulations." It should be
noted that these "model" laws are regulations that have no authority until the individual states pass them as part of the
state legislative process, which may, or may not, be done as suggested, or with modifications.

 Premium rate regulation varies greatly among jurisdictions
and lines of insurance. In the states in which our insurance company subsidiaries write insurance, premium rates for the various lines
of insurance are subject to either prior approval or limited review upon implementation. The premium rates for multi-peril crop insurance
are established by the RMA. For additional information, see Part I, Item 1, "Crop Insurance."

 Many jurisdictions have laws and regulations that
limit an insurer's ability to withdraw from a particular market. For example, states may limit an insurer's ability to cancel
or non-renew policies. Laws and regulations that limit cancellation and non-renewal may restrict our ability to exit unprofitable marketplaces
in a timely manner.

 Crop Insurance

 The multi-peril crop insurance business is overseen
by the federal government through the RMA. The RMA outlines policy language, establishes premium rates, and develops loss adjustment procedures
for insurance programs under the federal crop insurance program. In addition, through the Federal Crop Insurance Corporation ("FCIC"),
the RMA provides premium subsidies to farmers and sets the commission percentages that can be paid to agents. All participating insurance
carriers are subject to the same Standard Reinsurance Agreement ("SRA"), which outlines items such as reporting requirements
and claims handling procedures, proportional and non-proportional reinsurance terms, and the level of administrative and operating reimbursement
paid to insurers. The RMA also provides oversight to the approved insurance providers ("AIPs"). The AIPs are required to use
the policies, premium rates, and loss adjustment procedures set by the RMA without modification and are required to issue a policy to
any eligible applicant regardless of risk or profitability. The RMA conducts audits of AIPs with respect to claims and loss adjustment
procedures.

 American Agricultural Insurance Company is the
AIP through which we issue multi-peril crop insurance policies and is the holder of the SRA with the FCIC.

 NAIC Risk-Based Capital Requirements

 North Dakota and most other states have adopted
the NAIC system of risk-based capital requirements that require insurance companies to calculate and report information under a risk-based
formula. These risk-based capital requirements attempt to measure statutory capital and surplus needs based on the risks in a company's
mix of products and investment portfolio. Under the formula, a company first determines its "authorized control level" risk-based
capital. This authorized control level takes into account (i) the risk with respect to the insurer's assets; (ii) the risk of adverse
insurance experience with respect to the insurer's liabilities and obligations; (iii) the interest rate risk with respect to the
insurer's business; and (iv) all other business risks and such other relevant risks as are set forth in the risk-based capital instructions.
A company's "total adjusted capital" is the sum of statutory capital and surplus and such other items as the risk-based
capital instructions may provide. The formula is designed to allow state insurance regulators to identify insufficiently capitalized companies.

 The requirements provide for four different levels
of regulatory attention. The "company action level" is triggered if a company's total adjusted capital is less than
2.0 times its authorized control level but greater than or equal to 1.5 times its authorized control level. At the company action level,
the company must submit a comprehensive plan to the regulatory authority that discusses proposed corrective actions to improve the capital
position. The "regulatory action level" is triggered if a company's total adjusted capital is less than 1.5 times but
greater than or equal to 1.0 times its authorized control level. At the regulatory action level, the regulatory authority will perform
a special examination of the company and issue an order specifying corrective actions that must be followed. The "authorized control
level" is triggered if a company's total adjusted capital is less than 1.0 times but greater than or equal to 0.7 times its
authorized control level. At this level, the regulatory authority may take action it deems necessary, including placing the company under
regulatory control. The "mandatory control level" is triggered if a company's total adjusted capital is less than 0.7
times its authorized control level. At this level, the regulatory authority is mandated to place the company under its control. The capital
levels of our insurance subsidiary and affiliate companies all exceed the authorized control level and have never triggered any of these
regulatory capital levels. We cannot guarantee, however, that the capital requirements applicable to such companies will not increase
in the future, or that the underlying ratios will not erode.

 NAIC Ratios

 The NAIC has also developed a set of 13 financial
ratios referred to as the Insurance Regulatory Information System ("IRIS"). Based on statutory-basis financial statements
filed with state insurance regulators, the NAIC annually calculates these IRIS ratios to assist state insurance regulators in monitoring
the financial condition of insurance companies. The NAIC has established an acceptable range for each of the IRIS financial ratios. If
four or more of its IRIS ratios fall outside the range deemed acceptable by the NAIC, an insurance company may receive inquiries from
individual state insurance departments. However, a ratio falling outside the usual range may not necessarily be considered adverse. In
some years, it may not be unusual for financially sound companies to have several ratios with results outside the usual ranges. During
the years ended December 31, 2024 and 2023, none of our insurance company subsidiaries produced results outside the acceptable range for
more than three of the IRIS tests. During the year ended December 31, 2022, our insurance company subsidiaries produced results outside
the acceptable range for as many as six of the IRIS tests, primarily driven by our significant net loss for the year that negatively impacted
IRIS ratios related to the operating ratio and certain ratios based on policyholders' surplus.

 Enterprise Risk Assessment

 In 2012, the NAIC adopted various changes to its
Model Regulations (the "NAIC Amendments"). The NAIC Amendments, when adopted by the various states, are designed to respond
to perceived gaps in the regulation of insurance holding company systems in the U.S. The NAIC Amendments include a requirement that an
insurance holding company system's ultimate controlling person submit annually to its lead state insurance regulator an "enterprise
risk report." This enterprise risk report identifies the activities, circumstances, or events involving one or more affiliates of
an insurer that, if not remedied properly, are likely to have a material adverse effect upon the financial condition or liquidity of the
insurer or its insurance holding company system as a whole. The Company files a Form F Enterprise Report annually with each domiciliary
state in support of this requirement. The NAIC Amendments also include provisions requiring a controlling person to submit prior notice
to its domiciliary insurance regulator of its divestiture of control, having detailed minimum requirements for cost sharing and management
agreements between an insurer and its affiliates, and expanding of the agreements between an insurer and its affiliates to be filed with
its domiciliary insurance regulator.

 In 2012, the NAIC also adopted the Own Risk Solvency
Assessment ("ORSA") Model Act. The ORSA Model Act, when adopted by the various states, will require an insurance holding company
system's chief risk officer to submit at least annually to its lead state insurance regulator a confidential report detailing its
own internal solvency assessment. Such an assessment is to be tailored to the nature, scale, and complexity of an insurer. This assessment
will include the material and relevant risks identified by the insurer associated with an insurer's current business plan and the
sufficiency of capital resources to support those risks. Although our insurance company subsidiaries are exempt from ORSA because of their
size, we intend to incorporate those elements of ORSA that we believe constitute "best practices" into our internal enterprise
risk assessment.

 Market Conduct Regulation

 State insurance laws and regulations include numerous
provisions governing trade practices and the marketplace activities of insurers, including provisions governing the form and content of
disclosure to consumers, illustrations, advertising, sales practices, and complaint handling. State regulatory authorities generally enforce
these provisions through periodic market conduct examinations.

 Guaranty Fund Laws

 All states have guaranty fund laws under which
insurers doing business in the state can be assessed to fund policyholder liabilities of insolvent insurance companies. Under these laws,
an insurer is subject to assessment depending upon its market share in the state of a given line of business. For the years ended December
31, 2024, 2023, and 2022, we paid only minimal assessments pursuant to state insurance guaranty association laws. We establish reserves
relating to insurance companies that are subject to insolvency proceedings

 when it becomes probable that we will be subject to an assessment
and the amount of such assessment can be estimated. We cannot predict the amount and timing of any future assessments under these laws.

 Federal Regulation

 The U.S. federal government generally does not
directly regulate the insurance industry except for certain areas of the market, such as insurance for crops, flood, nuclear, and terrorism
risks. However, the federal government has undertaken initiatives or considered legislation in several areas that may affect the insurance
industry, including tort reform, corporate governance, and the taxation of reinsurance companies. The Dodd-Frank Act established the Federal
Insurance Office, which is authorized to study, monitor, and report to Congress on the insurance industry and to recommend that the Financial
Stability Oversight Council designate an insurer as an entity posing risks to the U.S. financial stability in the event of the insurer's
material financial distress or failure. In December 2013, the Federal Insurance Office issued a report on alternatives to modernize and
improve the system of insurance regulation in the U.S., including by increasing national uniformity through either a federal charter or
effective action by the states. Changes to federal legislation and administrative policies in several areas, including changes in federal
taxation, can also significantly affect the insurance industry and us.

 We are also subject to the Fair and Accurate Credit
Transactions Act of 2003 and the Health Insurance Portability and Accountability Act of 1996, both of which require us to protect the
privacy of our customers' information, including health and credit information.

 Privacy

 We are subject to numerous U.S. federal and state
laws governing the collection, disclosure, and protection of personal and confidential information of our clients or employees. These
laws and regulations are increasing in complexity and number, change frequently, and may conflict. Congress, state legislatures, and regulatory
authorities are expected to consider additional regulation relating to privacy and other aspects of customer information.

 As mandated by the Gramm-Leach-Bliley Act ("GLBA"),
states have promulgated laws and regulations that require financial institutions, including insurance companies, to take steps to protect
the privacy of certain consumer and customer information. The NAIC has adopted several provisions to facilitate the implementation of
the GLBA, including the Privacy of Consumer Financial and Health Information Model Regulation and the Standards for Safeguarding Customer
Information Model Regulation. Several states adopted similar provisions regarding the safeguarding of customer information. We have implemented
procedures to comply with the GLBA's related privacy requirements.

 In October 2017, the NAIC adopted the Insurance
Data Security Model Law ("IDSML"), which requires insurers, insurance agents, and other entities required to be licensed under
state insurance laws to develop and maintain a written information security program, conduct risk assessments, oversee the data security
practices of third-party service providers, and other related requirements. Several states in which we operate, including North Dakota,
have adopted the IDSML. Such enactments and regulations could raise compliance costs and subject us to the risk of regulatory enforcement
actions, penalties, and reputational harm. Any such events could potentially have an adverse impact on our business, financial condition,
or results of operations.

 Office of Foreign Asset Control

 The Treasury Department's Office of Foreign
Asset Control ("OFAC") maintains a list of "Specifically Designated Nationals and Blocked Persons" (the "SDN
List"). The SDN List identifies persons and entities that the government believes are associated with terrorists, rogue nations,
or drug traffickers. OFAC's regulations prohibit insurers, among others, from doing business with persons or entities on the SDN
List. If the insurer finds and confirms a match, the insurer must take steps to block or reject the transaction, notify the affected person,
and file a report with OFAC.

 Jumpstart Our Business Startups Act
of 2012

 Until December 31, 2022, we were an emerging growth
company ("EGC"), as defined in the Jumpstart Our Business Startups Act of 2012 (the "JOBS Act"). We previously
took advantage of certain exemptions from various reporting requirements that are applicable to other public companies that are not EGCs,
such as reduced public company reporting, accounting, and corporate governance requirements. However, beginning on December 31, 2022,
we are no longer an EGC and no longer have the ability to delay adoption of these new or revised accounting standards or to take advantage
of reduced corporate governance disclosures.

 Dividends

 As an insurance holding company with no independent
operations or source of revenue, our capacity to pay dividends to our shareholders is based on the ability of our insurance company subsidiaries
to pay dividends to us. The ability of our subsidiaries to pay dividends to us is regulated by the laws of their state of domicile. Under
these laws, insurance companies must provide advance

 informational notice to the domicile state insurance regulatory authority prior to
payment of any dividend or distribution to its shareholders. Prior approval from the state insurance regulatory authority must be obtained
before payment of an "extraordinary dividend" as defined under the state's insurance code. For additional information,
see Part II, Item 7, "Management's Discussion and Analysis of Financial Condition and Results of Operations - Liquidity and
Capital Resources," and Part II, Item 8, Note 22 "Statutory Net Income (Loss), Capital and Surplus, and Dividend Restrictions."

 Holding Company Laws

 Most states, including North Dakota, have enacted
legislation that regulates insurance holding company systems. Each insurance company in a holding company system is required to register
with the insurance supervisory agency of its state of domicile and furnish certain information, including information concerning the operations
of companies within the holding company group that may materially affect the operations, management, or financial condition of the insurers
within the group. Pursuant to these laws, the North Dakota Insurance Department requires prior disclosure of material transactions involving
an insurance company and its affiliates. Under these laws, the North Dakota Insurance Department will have the right to examine us at
any time.

 All transactions within our consolidated group
affecting our insurance company subsidiaries must be fair and equitable. Notice of certain material transactions between NI Holdings and
any person or entity in our holding company system will be required to be given to the Department of Insurance of the applicable domiciliary
state. Certain transactions cannot be completed without the prior approval of the various Departments of Insurance.

 Approval of the state insurance commissioner is
required prior to any transaction affecting the control of an insurer domiciled in that state. In North Dakota, the acquisition of 10%
or more of the outstanding voting securities of an insurer or its holding company is presumed to be a change in control. North Dakota
law also prohibits any person or entity from (i) making a tender offer for, or a request or invitation for tenders of, or seeking to acquire
or acquiring any voting security of a North Dakota insurer if, after the acquisition, the person or entity would be in control of the
insurer, or (ii) effecting or attempting to effect an acquisition of control of or merger with a North Dakota insurer, unless the offer,
request, invitation, acquisition, effectuation, or attempt has received the prior approval of the North Dakota Insurance Department.

 Human Capital

 Our key human capital management objectives are
to attract, retain, and develop talent to deliver on the Company's strategy. To support these objectives, our human resources programs
are designed to recruit and retain talented individuals; provide training and development within the Company and the insurance industry;
reward and support employees through competitive pay and benefit programs; keep employees safe and healthy; and provide opportunities
for community involvement.

 We offer comprehensive compensation and benefits
packages to our employees including a 401(k) Plan, Employee Stock Ownership Plan ("ESOP"), healthcare and insurance benefits,
health savings and flexible spending accounts, paid time off, and flexible work arrangements. We also offer stock-based compensation to
certain management personnel as a way to attract and retain key talent. For additional information, see Part II, Item 8, Note 12 "Benefit
Plans" and Note 18 "Share-Based Compensation" for further discussion of our benefit plans and stock-based compensation.

 As of December 31, 2024, NI Holdings and its subsidiaries
had 216 total employees, of which 202 were full-time employees. Employee turnover averaged 29.0% during 2024, compared to 22.7% during
2023, and 25.2% during 2022. A significant portion of this turnover is related to Direct Auto, which generally experiences higher turnover.

 Item 1A.
 Risk Factors

 An investment in the Company's common
shares involves certain risks. The following is a discussion of material risks and uncertainties that may affect the Company's business,
financial condition, and future results.

 Insurance Risks

 Catastrophic or other significant natural
or man-made losses may negatively affect our financial condition and operating results.

 As a property and casualty insurer, we are subject
to claims from catastrophes or other natural perils that may have a significant negative impact on our operating and financial results.
We have experienced catastrophe losses and can be expected to experience catastrophe losses in the future. Catastrophe losses can be caused
by various events, including snow storms, ice storms, freezing temperatures, tropical storms and hurricanes, earthquakes, tornadoes, wind,
hail, fires, and other natural or man-made disasters. In addition, longer-term natural catastrophe trends may be changing, and new types
of catastrophe losses may be developing due to climate change, a phenomenon that has been associated with extreme weather events linked
to rising temperatures, and includes effects on global weather patterns, greenhouse gases, sea, land and air temperatures, sea levels,
rain, hail and snow. Climate change may also impact insurability by impairing our ability to identify and quantify potential hazards that
will result in losses and offer our customers products at an affordable price. The frequency, number, and severity of these losses are
unpredictable. The extent of losses from a catastrophe is a function of both the total amount of insured exposure in the area affected
by the event and the severity of the event. Our ability to effectively manage catastrophe risk is dependent, in part, on the reliance
of various catastrophe models, which may produce unreliable output as a result of inaccurate or incomplete data, along with the inherent
uncertainty of future frequency and severity of losses. The impact of changing climate conditions on the overall insurance industry may
also materially affect the availability and cost of reinsurance to us. Our investment portfolio is also subject to the effects of climate
change as economic shifts alter the return dynamic of long-term investments and reduce valuations.

 We write a significant amount of business in North
Dakota. As a result, adverse developments from severe weather events in North Dakota would have a greater effect on our financial condition
and results of operations than if our business was less geographically concentrated. The incidence and severity of such events are inherently
unpredictable.

 We attempt to reduce our exposure to catastrophe
losses through a disciplined underwriting and risk management approach that emphasizes long-term profitability over short-term gains in
premiums or market share, geographical diversification of our operations, and the use of reinsurance. However, there can be no guarantee
that our underwriting and risk management efforts will be successful in mitigating our exposure to catastrophe losses or the impact of
such losses when they occur. In addition, while we maintain reinsurance coverage with a catastrophe excess of loss program, such coverage
may be insufficient to cover our losses. Our reinsurance coverage includes a catastrophe excess of loss program, which in 2024 limited
our catastrophe exposure to $20 million retention per event, with $133 million of reinsurance coverage placed in excess of this retention.
For 2025, we expect our catastrophe excess of loss program will limit our catastrophe exposure to $20 million retention per event, with
$117 million of reinsurance coverage placed in excess of this retention. If we are not able to effectively mitigate our exposure to catastrophe
losses, whether through our underwriting process or reinsurance coverage, in the event of such losses our business and results of operations
could be adversely affected.

 For additional information, see Part II, Item
8, Note 3 "Summary of Significant Accounting Policies and Basis of Presentation" and Note 6 "Reinsurance."

 If actual losses exceed our loss and loss
adjustment expense reserves or if changes in the estimated level of loss and loss adjustment expense reserves are necessary as a result
of changes in the legal, regulatory, and economic environments in which we operate, our financial results could be materially and adversely
affected.

 We maintain reserves to cover estimated unpaid losses and expenses necessary
to settle claims. The reserves for losses and loss adjustment expenses that we have established are estimates of amounts needed to pay
reported and unreported claims and related expenses, based on facts and circumstances known to us at the time we established the reserves.
Reserves are actuarially projected based on historical claims information, industry statistics, anticipated trends, and other factors.
The process of estimating loss reserves involves a high degree of judgment and is subject to a number of variables. While we believe that
our reserves for unpaid losses and loss adjustment expenses are appropriate, to the extent that such reserves prove to be inadequate or
excessive in the future, we would adjust them and recognize the change in earnings in the period the reserves are adjusted. There can
be no assurance that the estimates of such liabilities will not change in the future and any such adjustment could have a material impact
on our financial condition and results of operations. For additional information, see Part II, Item 7, "Management's Discussion
and Analysis of Financial Condition and Results of Operations," "Losses and Loss Adjustment Expenses," and Part II,
Item 8, Note 8 "Unpaid Losses and Loss Adjustment Expenses."

 It is possible that, among other things, past or future steps taken by
the federal government and the Federal Reserve to manage the U.S. economy, including fiscal and monetary policy measures, could lead to
higher than anticipated levels of inflation, which generally leads to increased loss costs and other operating expenses. However, our
relatively high concentration in short tail lines of business limits the potential impact of this exposure long-term and allows us to
price for those increases in future policy periods.

 Any downgrade in our financial strength rating
could affect our ability to write new business or renew our existing business, which would lead to a decrease in revenue and net income.

 Third-party rating agencies, such as AM Best,
periodically assess and rate the claims-paying ability of insurers based on criteria established by the rating agencies. Ratings assigned
by AM Best are an important factor influencing the competitive position of insurance companies. AM Best ratings, which are reviewed at
least annually, represent independent opinions of financial strength and ability to meet obligations to policyholders and are not directed
toward the protection of investors. Therefore, our AM Best rating should not be relied upon as a basis for an investment decision to purchase
our common stock.

 All of the Company's insurance subsidiaries
hold a financial strength rating of "A" (Excellent) by AM Best, the third highest rating out of 15 rating classifications.
Our most recent rating by AM Best was affirmed on May 10, 2024. Financial strength ratings are used by agents, customers, lenders, and
other insurance carriers as a means of assessing the financial strength and quality of insurance companies. If our financial position
deteriorates, we may not maintain our favorable financial strength rating from AM Best. A downgrade of our rating could severely limit
or prevent us from writing desirable business or from renewing our existing business. In addition, a downgrade could negatively affect
our ability to implement our strategy because it could cause our current or potential agents to choose other more highly rated competitors
or reduce our ability to obtain reinsurance. For additional information, see Part I, Item 1, "Business" and "Financial
Strength."

 Our results may fluctuate as a result of
many factors, including cyclical changes in the insurance industry, competition, and innovation and emerging technologies.

 The property and casualty insurance industry has
historically been characterized by soft markets (periods of relatively high levels of price competition, less restrictive underwriting
practices, and generally low premium rates) followed by hard markets (periods of capital shortages resulting in a lack of insurance availability,
relatively low levels of price competition, more selective underwriting of risks, and relatively high premium rates). During soft markets,
we may lose business to other carriers offering competitive insurance at lower rates. We may also choose to reduce our premiums or limit
premium increases leading to a reduction in profit margins and revenues. Our industry is also influenced by general economic conditions,
which could reduce overall premium volume for us and our competitors. Additionally, the industry could be impacted by changes in customer
preferences, including customer demand for direct, point-of-sale, or other non-traditional distribution channels. Consolidation within
the industry could also influence future growth and profit potential.

 Innovation and emerging technologies continue
to greatly impact the insurance industry. If we are unable to keep pace with the technological changes that our competitors implement,
we may not be able to attract and retain customers, adequately price risks, or operate as efficiently as our competitors. In addition,
emerging technologies in the automotive industry such as autonomous vehicles, driver-assistance and accident-avoidance features, sensor
technology, and other forms of automation may reduce the future need for, or decrease the future pricing of, our auto insurance products.

 Our success depends primarily on our ability
to underwrite risks effectively and price our insurance products appropriately.

 The nature of the insurance business is such that
pricing must be determined before the underlying costs are fully known. This requires significant reliance on estimates and assumptions
used in pricing our policies. If we fail to appropriately price the risks we insure or if our claims experience is more frequent or severe
than our underlying risk assumptions, our profitability may be negatively affected. If we overestimate the risks we are exposed to, we
may overprice our products, and new business growth and retention of existing business may be adversely affected. The ability to effectively
underwrite risks and price products appropriately is subject to a number of uncertainties, including:

 availability of sufficient reliable data and our ability to properly analyze available data;

 market and competitive conditions;

 regulatory or legislative changes;

 selection and application of appropriate pricing techniques; and

 adverse changes in claims experience, such as distracted driving or a more aggressive tort environment.

 Under the federal crop insurance program, each
insurer is required to accept every application for multi-peril crop insurance that they receive, and the premiums and the policy terms
are set by the RMA, which is the federal government agency administering the federal crop insurance program. Accordingly, no policy underwriting
is necessary in connection with our multi-peril crop insurance line of business. Unlike the multi-peril crop business, we have the ability
to underwrite and price crop hail insurance. We rely on AFBIS to underwrite our crop hail insurance line of business. If we believe the
policy will expose us to too much risk in a particular geographic area or if we are unwilling to insure the crop, we have the ability
to decline to issue the policy.

 Volatility in crop prices and yields, as
a result of weather conditions, trade policies, or other events, could adversely impact our financial condition and operating results.

 Unpredictable weather conditions and other events
such as excessive rain, flooding, droughts, hail, pests, and plant diseases can significantly impact crop prices and yields, creating
volatility in our crop insurance business. Additionally, international trade policies, including the imposition of tariffs between major
trading partners such as the United States and China, can create significant fluctuations in crop prices. We are unable to predict the
ultimate result and duration of any tariff actions by the U.S. government, or countermeasures that may be taken by other nations. These
trade tensions and retaliatory tariffs may affect agricultural commodity prices and create additional market uncertainty in our crop insurance
business. In addition, the amount of multi-peril crop insurance business we retain is subject to the terms of the SRA and is dependent
on the actual direct loss ratio experience. A significant decrease in crop prices and variability in the loss experience, whether caused
by weather events, trade policies, or other events, could have a material negative effect on our business and results of operations.

 Our ability to manage our exposure to underwriting
risks depends on the availability and cost of reinsurance coverage.

 We use reinsurance arrangements to manage the
amount of risk we retain, stabilize underwriting results, and increase underwriting capacity. The availability and cost of reinsurance
are subject to current market conditions and may vary significantly over time. Any decrease in the amount of reinsurance maintained will
increase our risk of loss. We may be unable to maintain our desired reinsurance coverage or to obtain other reinsurance coverage in adequate
amounts and/or at favorable rates. If we are unable to maintain appropriate reinsurance coverage, it may be difficult for us to manage
our underwriting risks and operate our business profitably. For additional information, see Part II, Item 8, Note 6 "Reinsurance."

 If we cannot collect loss recoveries from
our reinsurers in accordance with our reinsurance agreements, we may incur additional losses.

 Although reinsurance creates a contractual liability
for reinsurers to the extent the risk is transferred, it does not eliminate our liability to policyholders because we remain liable as
the primary insurer on all reinsured risks. Our reinsurance program strategically spreads exposure among a group of highly-rated, geographically
diverse, and well-capitalized reinsurers. All of our significant reinsurance partners are rated "A-" (Excellent) or better
by AM Best. However, we remain subject to credit risk relating to our ability to collect these recoverables. Our reinsurance recoveries
are also subject to the underlying losses meeting the qualifying conditions and specified limits within the respective contracts. Additionally,
we are subject to the risk that reinsurers may dispute their obligations to pay our claims. Our inability to collect a material recovery
from a reinsurer on a timely basis, or at all, could have a material adverse effect on our liquidity, operating results, and financial
condition. For additional information, see Part II, Item 8, Note 6 "Reinsurance."

 Business and Operational Risks

 The impact of a future pandemic, and related economic conditions, could
materially affect our results of operations, financial position, and/or liquidity.

 We face risks associated with pandemics, including the impact
of reduced economic activity and unemployment, government actions, and capital markets disruption. These risks are unpredictable and difficult
to quantify, and could vary significantly depending on the extent and duration of the pandemic and related economic conditions, along
with potentially impacting each of our business segments and geographic markets differently.

 Any future federal, state, and local government actions to address
the impact of a pandemic may adversely affect us. Regulatory restrictions or requirements could impact pricing, risk selection, and our
rights and obligations with respect to our policies and insureds, including our ability to cancel policies or our right to collect premiums.
It is also possible that changes in economic conditions and steps taken by federal, state, and local governments could require an increase
in taxes at the federal, state, and local levels, which would adversely impact our results of operations. Additionally, potential capital
markets disruption could lead to our fixed income portfolio being adversely impacted by ratings downgrades, increased bankruptcies, declines
in real estate valuations, and/or declines in fixed income yields, along with increased volatility in our equity portfolio.

 We may not be able to grow our business if
we cannot retain and expand our captive and independent agent relationships, we cannot provide competitive products for these agents to
sell, and/or consumers seek other distribution methods offered by our competitors.

 Our ability to retain existing agents, and to
attract new agents, is essential to the continued growth of our business. Nodak Insurance utilizes captive agents who only sell our Company's
products. Outside of North Dakota, we write business through the independent agent distribution model. If we are not able to offer competitive
products and a competitive compensation structure to our captive agents and/or if our independent agents find it easier to do business
with our competitors, we may be unable to retain existing business or generate sufficient new business.

 While our products are sold through either independent
or captive agents, our competitors may sell insurance through other distribution models, including the internet, direct marketing, or
other emerging forms of distribution. To the extent that current and potential policyholders change their insurance shopping preferences,
this may have an adverse effect on our ability to grow, financial position, and results of operations.

 Acquisitions could disrupt our business and
harm our financial condition or results of operations.

 As part of our growth strategy, we will continue
to evaluate acquisition opportunities. Any acquisitions involve a number of risks that could materially adversely affect our business
and operating results, including:

 problems integrating the acquired operations into our existing business;

 operating and underwriting results of the acquired operations not meeting our expectations;

 diversion of management's time and attention from our existing business;

 higher than anticipated capital requirements;

 difficulties in retaining business relationships with agents and policyholders of the acquired company;

 risks associated with entering markets in which we lack extensive prior experience;

 tax issues associated with acquisitions;

 acquisition-related disputes, including disputes over contingent consideration and escrows;

 loss of key employees of the acquired company;

 impairment of related goodwill and intangible assets; and

 changes in strategy resulting in the sale of an acquired business which may result in a capital loss.

 Our access to capital may be limited or may not be available on favorable
terms.

 Our future capital requirements depend on many factors, including rating
agency and regulatory requirements, the performance of our investment portfolio, strategic initiatives, acquisition opportunities, and
the ability to write business successfully at rate levels sufficient to cover losses. We may need to raise additional capital in the future
through debt or equity financings. However, we can provide no assurance that we will be successful in raising funds pursuant to additional
equity or debt financings or that such funds will be raised at prices that do not create substantial dilution for our existing stockholders.
Any debt financing obtained by us in the future would cause us to incur debt service expenses and could include restrictive covenants
relating to our capital raising activities and other financial and operational matters, which may make it more difficult for us to obtain
additional capital and pursue business opportunities. Macroeconomic challenges and volatility in capital markets could limit our ability
to raise capital when needed on terms favorable to us, or at all. If we cannot obtain adequate capital or sources of credit on favorable
terms, or at all, our business, financial condition, results of operations, and strategic initiatives could be adversely affected.

 We may be unable to attract, retain or effectively
manage the succession of key personnel.

 The success of our business is dependent, to a
large extent, on our ability to attract and retain key employees, in particular our senior officers and key management of our insurance
subsidiaries. Our business may be adversely affected if labor market conditions make it difficult for us to retain or, if needed, replace
our current key officers with individuals having equivalent qualifications and experience at compensation levels competitive for our industry.
While we believe we offer competitive compensation and benefit arrangements, there can be no guarantee that we will be able to retain
our key employees. There is significant competition from within the property and casualty insurance industry and from businesses outside
the industry for those in key management positions, as well as others possessing highly specialized knowledge in areas such as actuarial,
accounting, information technology, and data and analytics. In addition, our employment and other agreements with our key officers do
not include non-compete covenants or non-solicitation provisions because they are unenforceable under North Dakota law. If we are not
able to successfully attract, retain, and motivate our employees, our business, financial results, and reputation could be materially
and adversely affected.

 A failure in our operational systems or infrastructure,
or those of our third-party service providers, including operational errors, could disrupt business, damage our reputation, and cause
losses.

 Our operations rely on the secure processing,
storage, and transmission of confidential information, including in our computer systems and networks and those of third-party service
providers. We rely heavily on our operating systems in connection with issuing policies, paying claims, and providing the information
we need to conduct our business. We also rely on the operating systems of AFBIS in connection with various processes with respect to our
crop lines of business. Our business depends on effective information security and systems, and we place significant reliance on the integrity
and timeliness of the data our information systems process to support our business. A breakdown or disruption of any of these systems
could materially adversely affect our ability to conduct our business and our results of operations.

 We are exposed to many other types of operational
risk, including the risk of fraud by employees and outsiders, clerical and recordkeeping errors, and computer or telecommunications systems
malfunctions. Our business depends on our ability to process a large number of increasingly complex transactions. If any of our operational,
accounting, or other data processing systems fail or have other significant shortcomings, we could be materially adversely affected. Similarly,
we depend on our employees. We could be materially adversely affected if one or more of our employees cause a significant operational
breakdown or failure, either as a result of human error or intentional sabotage or fraudulent manipulation of our operations or systems.

 Cyberattacks, security breaches, or similar
events affecting the technologies and systems we rely on to operate our business and to maintain and protect sensitive Company and customer
data could disrupt our operations, harm our reputation, and result in material losses.

 We have implemented administrative and technical
controls, have taken actions to reduce the risk of cyber incidents and to protect our information technology and assets, and will continue
to modify such procedures as circumstances warrant and negotiate appropriate terms in our agreements with third-party providers to protect
our assets. However, such measures may be insufficient to prevent unauthorized access, computer viruses, malware or other malicious code
or cyberattack, business compromise attacks, catastrophic events, system failures and disruptions, employee errors or malfeasance, third-party
(including outsourced service providers) errors or malfeasance, loss of assets, and other events that could have security consequences.
Such an event may result in data loss or loss of assets which could result in significant losses, reputational damage, or other adverse
effects on our operations.

 In addition, our technologies, systems, and networks
may become the target of cyberattacks or information security breaches that could result in the unauthorized release, gathering, monitoring,
misuse, loss or destruction of our or our insureds' confidential, proprietary and other information, or otherwise disrupt our or
our insureds' or other third-parties' business operations, which in turn may result in legal claims, regulatory scrutiny and
liability, reputational damage, the incurrence of costs to eliminate or mitigate further exposure, and the loss of customers. Although
to date we are not aware of any information security breaches or losses relating to cyberattacks, there can be no assurance that we will
not suffer such losses in the future. Our risk and exposure to these matters remains heightened because of, among other things, the evolving
nature and increasing frequency and sophistication of these threats and the outsourcing of some of our business operations. As a result,
cybersecurity and the continued development and enhancement of our controls, processes, and practices designed to protect our systems,
computers, software, data, and networks from attack, damage, or unauthorized access remain a priority. As cyber threats continue to evolve,
we may be required to expend significant additional resources to continue to modify or enhance our protective measures or to investigate
and remediate any information security vulnerabilities.

 The compromise of personal, confidential, or proprietary
information could also subject us to legal liability or regulatory action, including fines, penalties, or intervention, under evolving
cybersecurity, data protection, and privacy laws and regulations enacted by the U.S. federal and state governments. Such laws and regulations
have become increasingly widespread and demanding in recent

 years and may result in increased compliance costs and risk of regulatory
actions or penalties. If incurred, such regulatory actions or penalties could harm our reputation. Any such events could have an adverse
impact on our business, financial condition or results of operations.

 Regulatory Risks

 A portion of our written premiums and net
profits are generated from multi-peril crop insurance business, and the loss of such business as a result of a termination of or substantial
changes to the federal crop insurance program could have an adverse effect on our revenues and net income.

 In 2024, 2023, and 2022, our direct premiums written
generated from the multi-peril crop insurance line of business were 9.8%, 10.2%, and 12.8%, respectively, of total written premiums. Through
the FCIC, the U.S. government subsidizes insurance companies by assuming an increasingly higher portion of losses incurred by farmers
as a result of weather-related and other perils as well as commodity price fluctuations. The U.S. government also subsidizes the premium
cost to farmers for multi-peril crop yield and revenue insurance. Without this risk assumption, losses incurred by insurance companies
would be higher. Without the premium subsidy, the number of farmers purchasing multi-peril crop insurance would decline significantly.
Periodically, members of the U.S. Congress propose to significantly reduce the government's involvement in the federal crop insurance
program in an effort to reduce government spending. If legislation is adopted to reduce the amount of risk the government assumes, the
amount of insurance premium subsidy provided to farmers or otherwise reduce the coverage provided under multi-peril crop insurance policies,
losses would increase and purchases of multi-peril crop insurance could experience a significant decline nationwide and in our market
area. Such changes could have an adverse effect on our revenues and income.

 Our businesses are heavily regulated by the
jurisdictions in which we conduct business and changes in regulation, including required participation in pools, premium surcharges, and
higher tax rates, may reduce our profitability and limit our growth.

 Most states require insurance companies authorized
to do business in their state to participate in guaranty funds, which require the insurance companies to bear a portion of the unfunded
obligations of impaired, insolvent, or failed insurance companies. These obligations are funded by assessments, which are expected to
continue in the future. State guaranty associations levy assessments, up to prescribed limits, on all insurance companies doing business
in the state based on their proportionate share of premiums written in the lines of business in which the impaired, insolvent, or failed
insurance companies are engaged. Accordingly, the assessments levied on us may increase as we increase our written premiums. For additional
information, see Part I, Item 1, "Business" and "Regulation."

 In addition, as a condition to conducting business
in some states, insurance companies are required to participate in residual market programs to provide insurance to those who cannot procure
coverage from an insurance carrier on a negotiated basis. Insurance companies generally can fulfill their residual market obligations
by, among other things, participating in a reinsurance pool where the results of all policies provided through the pool are shared by
the participating insurance companies. Although we price our insurance to account for our potential obligations under these pooling arrangements,
we may not be able to accurately estimate our liability for these obligations. Accordingly, mandatory pooling arrangements may cause a
decrease in our profits. As we write policies in new states that have mandatory pooling arrangements, we will be required to participate
in additional pooling arrangements. Further, the impairment, insolvency, or failure of other insurance companies in these pooling arrangements
would likely increase the liability for other members in the pool.

 The effect of assessments and premium surcharges
or increases in such assessments or surcharges could reduce our profitability in any given period or limit our ability to grow our business.
In addition, state tax laws that specifically impact the insurance industry, such as premium taxes, or more general tax laws, such as
U.S. federal corporate income taxes, could be enacted or changed and could have a material adverse impact on us.

 We are subject to insurance industry laws
and regulations, as well as claims and legal proceedings, which if determined unfavorably, could have a material adverse effect on our
profitability.

 We are subject to extensive supervision and regulation
by the states in which we operate. The failure to comply with these regulations could subject the Company to sanctions and fines, including
the cancellation or suspension of our licenses, which could significantly impact our financial condition and results of operations. State
insurance departments also conduct periodic examinations of the affairs of insurance companies and require the filing of annual and other
reports relating to financial condition, holding company issues, and other matters.

 Additionally, changes in the level of regulation
of the insurance industry or changes in laws or regulations themselves or interpretations by regulatory authorities could adversely affect
our ability to operate our business. Federal laws and regulations, and

 the influence of international laws and regulations, may have adverse
effects on our business, potentially including a change from a state-based system of regulation to a system of federal regulation, the
repeal of the McCarran Ferguson Act, and/or measures under the Dodd-Frank Act that establish the Federal Insurance Office and provide
for a determination that a non-bank financial company presents systemic risk and therefore should be subject to heightened supervision
by the Federal Reserve Board. It is not known how this federal office will coordinate and interact with the NAIC and state insurance regulators.
Adoption or implementation of any of these measures may restrict our ability to conduct our insurance business, govern our corporate affairs,
or effectively manage our cost of doing business.

 We also face a risk of litigation in the ordinary
course of operating our businesses including the risk of class action lawsuits. We may become subject to class actions and individual
suits alleging breach of fiduciary or other duties, including our obligations to indemnify directors and officers in connection with certain
legal matters. We are also subject to litigation arising out of our general business activities such as contractual and employment relationships
and claims regarding the infringement of the intellectual property of others. Plaintiffs in class action and other lawsuits against us
may seek large or indeterminate amounts of damages, including punitive and treble damages, which may remain unknown for substantial periods
of time.

 New or changes to existing accounting rules and standards could adversely
impact our reported results of operations.

 Our consolidated financial statements are prepared in accordance with accounting
principles generally accepted in the United States of America ("GAAP"), as promulgated by the Financial Accounting Standards
Board ("FASB"), subject to the accounting-related rules and interpretations of the SEC. New accounting rules or changes in
accounting standards or how they apply to our business may impact our reported financial condition or results of operations, and could
cause increased volatility in reported earnings, which could affect the trading price of our common stock or our credit ratings.

 Risks Related to Our Common Stock

 Nodak Mutual Group's majority control
of our common stock will enable it to exercise voting control over most matters put to a vote of shareholders.

 Nodak Mutual Group owns a majority of our outstanding
common stock and, through its Board of Directors, is able to exercise voting control over most matters put to a vote of shareholders.
The votes cast by Nodak Mutual Group may not be in the best interests of all shareholders. For example, Nodak Mutual Group may exercise
its voting control to defeat a shareholder nominee for election to the Board of Directors of NI Holdings.

 In addition, certain provisions of our Articles
of Incorporation, such as the prohibition of cumulative voting for the election of directors and the prohibition on any person or group
acquiring and having the right to vote in excess of 10% of our outstanding stock without the prior approval of the Board of Directors
will make removal of the Company's management difficult.

 Our status as an insurance holding company
with no direct operations could adversely affect our ability to fund operations, execute future share repurchases, or meet potential future
shareholder dividend and/or debt obligations.

 NI Holdings is an insurance holding company that
transacts substantially all of its business through its subsidiaries. A significant source of funds available to us for the payment of
operating expenses, share repurchases, and potential future dividends to shareholders and/or debt servicing are management fees, dividends
from our subsidiaries, or other sources of capital. The payment of dividends by our subsidiaries are restricted by North Dakota's
insurance law. If we are unable to obtain dividends from our subsidiaries as needed to fund our operations, our business and financial
results could be adversely affected.

 Statutory provisions and provisions of our
Articles of Incorporation and Bylaws may discourage takeover attempts of NI Holdings that shareholders may believe are in their best interests.

 We are subject to provisions of North Dakota corporate
and insurance law that hinder a change of control. North Dakota law requires the North Dakota Insurance Department's prior approval
of a change of control of an insurance holding company. Under North Dakota law, the acquisition of 10% or more of the outstanding voting
stock of an insurer or its holding company is presumed to be a change in control. Approval by the North Dakota Insurance Department may
be withheld even if the transaction would be in the shareholders' best interest if the North Dakota Insurance Department determines
that the transaction would be detrimental to policyholders.

 Our Articles of Incorporation and Bylaws also
contain provisions that may discourage a change in control. These provisions may serve to entrench management and may discourage a takeover
attempt that shareholders may consider to be in their best interest or in which they would receive a substantial premium over the current
market price. These provisions may make it extremely difficult for any one person, entity, or group of affiliated persons or entities
to acquire voting control of NI Holdings, with the result that it may be

 extremely difficult to bring about a change in the Board of
Directors or management. Some of these provisions also may perpetuate present management because of the additional time required to cause
a change in the control of the Board of Directors. Other provisions make it difficult for shareholders owning less than a majority of
the voting stock to be able to elect even a single director.

 General Risks

 Our investment portfolio is subject to credit
and interest rate risk, and therefore our revenues and financial results may fluctuate with interest rates, investment results, equity
market fluctuations, and developments in the capital markets.

 Investment income is an important component of
our net income and overall profitability. We invest premiums received from policyholders and other available cash to generate investment
income and capital appreciation, while also maintaining sufficient liquidity to pay claims and operating expenses. Changes in interest
rates and credit quality may result in fluctuations in the income derived from, the valuation of, and in the case of declines in credit
quality, payment defaults on our fixed income securities. Such conditions could give rise to significant realized and unrealized investment
losses or the impairment of securities. Potential higher interest rates could reduce the carrying value of our fixed income and short-term
investments, negatively impacting the Company's carrying value in the short-term. Over the long-term, however, higher interest rates
would provide an incremental benefit to our net investment income as excess cash and the proceeds of maturing bonds are reinvested at
higher rates. We manage our exposure to interest rate increases by monitoring the duration within our investment portfolio and maintaining
maturities that minimize any forced sales within the portfolio. However, even with such monitoring efforts, we may be forced to sell securities
at a loss, which would adversely affect our results of operations.

 We also invest a portion of our assets in equity
securities, which are subject to greater volatility in their investment returns than fixed income investments. Unlike fixed income securities,
the changes in the fair value of our equity securities are recognized in net income. General economic conditions, stock market volatility,
changes in tax laws, and many other factors beyond our control can adversely affect the value of these securities and potentially reduce
our net investment income and/or lead to net investment losses.

 Any significant or long-running negative changes
in the fixed income or equity markets could have a material adverse effect on our financial condition, results of operations, or cash
flows. Our investment portfolio is also subject to credit and cash flow risk, including risks associated with our investments in asset-backed
and mortgage-backed securities. Because our investment portfolio is the largest component of our assets and a multiple of our shareholders'
equity, adverse changes in economic conditions could result in impairments that are material to our financial condition and operating
results. Such economic changes could arise from overall changes in the financial markets or specific changes to industries, companies,
or municipalities in which we maintain investment holdings. See Part II, Item 7A, "Quantitative and Qualitative Disclosures About
Market Risk."

 We may not be able to manage our growth effectively.

 We intend to continue to grow our business in
the future, which could require additional capital, systems development, and skilled personnel. However, there are inherent risks associated
with this strategy, including the risks of unsuccessfully identifying profitable business opportunities, managing capital requirements,
expanding systems and internal controls, maintaining innovative products and technologies, allocating human capital resources, identifying
qualified employees and/or agents, and integrating future acquisitions. The failure to manage our growth effectively could have a material
adverse effect on our business, financial condition, and results of operations.

 We could be adversely affected by a future
unexpected business interruption involving our office buildings, operational systems and infrastructure, key external vendors, and/or
workforce.

 Our business operations could be substantially
interrupted by flooding, snow, ice, wind, and other weather-related incidents, or from fire, pandemics, power loss, telecommunications
failures, terrorism, or other such events. Our business continuity plans may not sufficiently remediate all risks associated with future
significant business interruptions. Any damage caused by such a failure or loss may cause interruptions in our business operations that
may adversely affect our service levels and business.

 Item 1B.
 Unresolved Staff Comments

 None.

 Item 1C.
 Cybersecurity

 Cybersecurity risk is an important and evolving
focus for the Company. The increased sophistication and activities of unauthorized parties attempting to access our systems is an ever-present
risk. Cybersecurity risks may also arise from human error, fraud, or malice on the part of employees or third parties who have authorized
access to our systems or information.

 Our information security program is directly managed by a dedicated Director
of Information Systems, whose team is responsible for enterprise-wide cybersecurity strategy, policy, standards, architecture, and processes.
Company employees are periodically required to affirm their understanding of several policies and standards, including those related to
cybersecurity. Our cybersecurity strategy is primarily focused on network security, data security, vulnerability management, incident
management, and disaster recovery. We utilize internal resources as well as third-party consultants and vendors to periodically conduct
cybersecurity vulnerability testing, facilitate employee training, perform system assessments, and provide recommendations based on industry
best practices.

 The Director of Information Systems provides periodic reports to our ERMC
related to cybersecurity risks and threats, the status of projects to strengthen our information security systems and controls, assessments
of the information security program and related third-party service providers, and the emerging threat landscape. The ERMC provides oversight
and support related to our cybersecurity program and consists of our Chief Executive Officer, Chief Financial Officer, Director of Information
Systems, and other appropriate members of senior management who possess the relevant expertise to assess and manage cybersecurity risks
as part of the broader enterprise risk management process. Periodic reports are also provided to appropriate members of senior management
that include information regarding prevention, detection, mitigation, and remediation efforts related to cybersecurity incidents.

 Our Chief Executive Officer and Director of Information Systems also provide
periodic reports to the Audit Committee of the Board of Directors regarding ERMC activities and assessments, including those related to
cybersecurity and cybersecurity incidents. The Audit Committee of the board oversees our risk management program, which focuses on the
most significant risks we face in the short-, intermediate-, and long-term timeframes. Audit Committee meetings include discussions of
specific risk areas throughout the year, including, among others, those relating to cybersecurity threats, and reports from management
on our enterprise risk profile on an annual basis.

 As of the date of this 2024 Annual Report, we are not aware of any risks
from cybersecurity threats that have materially affected or are reasonably likely to materially affect the Company, including our business
strategy, results of operations, or financial condition. Refer to the risk factor captioned "Cyberattacks, security breaches, or
similar events affecting the technologies and systems we rely on to operate our business and to maintain and protect sensitive Company
and customer data could disrupt our operations, harm our reputation, and result in material losses" in Part I, Item 1A, "Risk
Factors" for additional details regarding cybersecurity risks and potential impacts on our business.

 Item 2.
 Properties

 Our headquarters is located at 1101 First Avenue
North, Fargo, North Dakota, which is also the headquarters of Nodak Insurance. Nodak Insurance owns this building and leases a portion
of the building to the NDFB and to AFBIS.

 Battle Creek owns the building in which its offices
are located at 603 South Preece Street, Battle Creek, Nebraska.

 Tri-State Ltd. leases the building at 506 5 th
Street, Spearfish, South Dakota.

 Direct Auto leases office space at 8700 West Bryn
Mawr Avenue, Chicago, Illinois under a lease that expires on August 31, 2029.

 We believe that the offices currently occupied
by each of our subsidiaries are sufficient for their needs and any expected internal growth in the near future.

 Item 3.
 Legal Proceedings

 We are party to litigation in the normal course
of business. Based upon information presently available to us, we do not consider any litigation to be material. However, given the inherent
uncertainties of litigation, we cannot assure you that our results of operations and financial condition will not be materially adversely
affected by any litigation.

 Item 4.
 Mine Safety Disclosures

 Not applicable.

 Item 5.
 Market for Registrant's Common Equity, Related Shareholder Matters, and Issuer Purchases of Equity Securities

 Market Information

 The Company's common shares trade on the
Nasdaq Capital Market ("Nasdaq") under the symbol "NODK." As of February 28, 2025, there were approximately 502
shareholders of record for the Company's common stock.

 Stock Performance Graph

 The following graph
shows the cumulative total shareholder return (stock price increase plus dividends) on our common stock from December 31, 2019 through
December 31, 2024, along with the corresponding returns for the Russell 2000 Index (as the broad stock market index) and the Standard
& Poor's (S&P) 1500 US P&C Insurance Index (as the published industry index). The graph assumes that the value of the
investment in the common stock and each index was $100 on December 31, 2019, and that all dividends were reinvested.

 Dividend Policy

 Our Board of Directors continues to evaluate a
potential policy of paying regular cash dividends but has not decided on the amounts that may be paid, the frequency of any payment, or
when any payments may begin. Therefore, the timing and the amount of cash dividends that may be paid to shareholders in the future is
uncertain. In addition, the Board of Directors may declare and pay periodic special cash dividends in addition to, or in lieu of, regular
cash dividends. In determining whether to declare or pay any dividends, whether regular or special, the Board of Directors will take into
account our financial condition and results of operations, income tax considerations, capital requirements, industry standards, and economic
conditions. We cannot guarantee that we will pay dividends or that, if paid, we will not reduce or eliminate dividends in the future.

 If we pay dividends to our shareholders, we also
will be required to pay dividends to Nodak Mutual Group, unless Nodak Mutual Group elects to waive the receipt of dividends. Because Nodak
Mutual Group has no current plans to utilize any cash dividends that it may receive from us, we anticipate that it will waive its right
to receive substantially all of the dividends that are paid to it by us or immediately return substantially all of such funds to us as
an equity contribution. However, because the Board of Directors of Nodak Mutual Group includes persons who are not members of our Board
of Directors, we cannot provide any assurance that they will take such action with respect to any cash dividend that we may declare. If
we are unable to obtain a commitment from the Board of Directors of Nodak Mutual Group that it will waive its right to receive any cash
dividend that we intend to declare or that it will return the funds from such dividend to the Company as an equity contribution, our Board
of Directors may decide not to declare a cash dividend.

 We are not currently subject to regulatory restrictions
on the payment of dividends to our shareholders. However, any future dividends may be restricted to those received from our insurance
subsidiaries. North Dakota law limits the amount of dividends and other distributions that Nodak Insurance and Direct Auto may pay to
us. For information regarding the regulatory restrictions on dividends our insurance subsidiaries can pay, refer to Part II, Item 7, "Management's
Discussion and Analysis of Financial Condition and Results of Operations," "Liquidity and Capital Resources," and Part
II, Item 8, Note 22 "Statutory Net Income (Loss), Capital and Surplus, and Dividend Restrictions."

 Even if we receive dividends from Nodak Insurance
or Direct Auto, we may not declare any dividends to our shareholders due to working capital requirements. We are not subject to regulatory
restrictions on the payment of dividends to shareholders, but we are subject to the requirements of the North Dakota Business Corporation
Act. This law generally permits dividends or distributions to be paid, to the extent we still have the ability to pay our debts in the
ordinary course of business after making the dividend or distribution payments. This law requires our total assets to exceed our total
liabilities plus the amount that would be needed to satisfy the preferential rights upon dissolution of holders of stock with senior liquidation
rights if we were to be dissolved at the time the dividend or distribution is paid.

 Unregistered Securities

 The Company has not sold any unregistered securities
within the past three years.

 Issuer Stock Purchases

 The Company had no common shares outstanding prior
to March 13, 2017.

 On August 11, 2021, our Board of Directors approved
an authorization for the repurchase of up to approximately $5,000 of the Company's outstanding common stock. During the year ended
December 31, 2021, we completed the repurchase of 81,095 shares of our common stock for $1,554 under this new authorization. During the
year ended December 31, 2022, we completed the repurchase of 214,937 shares of our common stock for $3,446 to close out this authorization.

 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. During the year ended
December 31, 2022, we completed the repurchase of 54,223 shares of our common stock for $734 under this authorization. During the year
ended December 31, 2023, we repurchased an additional 548,549 shares of our common stock for $7,278, including the effect from applicable
excise taxes. During the year ended December 31, 2024, we did not repurchase any shares of our common stock. At December 31, 2024, $2,052
remains available under this authorization.

 Share repurchase activity during the three months ended December
31, 2024, is presented below:

 Period in 2024

 Total Number of

Shares

 Purchased

 Average Price

 Paid

Per Share (3)

 Total Number of

Shares Purchased

as Part of Publicly

Announced Plans

or Programs (1)

 Maximum Approximate

Dollar Value of Shares

That May Yet Be

Purchased Under the

Plans or Programs (2)(3)

(in thousands)

 October 1 – 31, 2024

 —

 $
 —

 —

 $
 2,052

 November 1 – 30, 2024

 —

 —

 —

 2,052

 December 1 – 31, 2024

 —

 —

 —

 2,052

 Total

 —

 $
 —

 —

 $
 2,052

 (1)
 Shares purchased pursuant to the May 9, 2022 publicly announced share repurchase authorization of up to approximately $10,000 of the
Company's outstanding common stock.

 (2)
 Maximum dollar value of shares that may yet be purchased consist of up to approximately $2,052 under the May 9, 2022, publicly announced
share repurchase authorization.

 (3)
 The Inflation Reduction Act of 2022 imposed a 1% excise tax on the net value of certain share repurchases made after December 31,
2022. All dollar amounts presented exclude such excise taxes, as applicable.

 Item 6.
 [Reserved]

 Item 7.
 Management's Discussion and Analysis of Financial Condition and Results of Operations

 The following discussion is intended to provide
a more comprehensive review of our operating results and financial condition than can be obtained from reading the consolidated financial
statements alone. Unless otherwise noted, the information in the following discussion is being presented for our continuing operations.
The discussion should be read in conjunction with the consolidated financial statements and the notes thereto included in Part II, Item
8, "Financial Statements and Supplementary Data." Some of the information contained in this discussion and analysis or set
forth elsewhere in this 2024 Annual Report constitutes forward-looking information that involves risks and uncertainties. Please see "Forward-Looking
Statements" and Part I, Item 1A, "Risk Factors" for a discussion of important factors that could cause actual results
to differ materially from the results described, or implied by, the forward-looking statements contained herein.

 Our Management's Discussion and Analysis
of Financial Condition and Results of Operations included in this document discusses 2024 and 2023 items and year-over-year comparisons
between 2024 and 2023 as well as discussions of 2022 items and year-over-year comparisons between 2023 and 2022, which were included due
to the impacts of discontinued operations for those prior periods.

 All dollar amounts, except per share amounts,
are in thousands.

 Financial Highlights

 2024 Consolidated Results of Continuing Operations

 Net income of $6,600, or $0.31 per share basic and diluted

 Net premiums earned of $310,110

 Net investment income of $10,943

 Net unfavorable prior year reserve development of $13,517

 Underwriting loss of $2,321

 Combined ratio of 100.7%

 Operating cash flows of $15,082

 2024 Consolidated Financial Condition

 Total cash and investments of $385,094

 Total assets of $526,545

 Unpaid losses and loss adjustment expenses of $137,288

 Total liabilities of $281,914

 Shareholders' equity of $244,631

 Results of Continuing Operations

 Our consolidated financial statements are prepared in accordance
with GAAP. Management evaluates our operations by monitoring key measures of growth and profitability, which may include the disclosure
of certain non-GAAP financial measures. Our results of operations are influenced by numerous factors affecting the U.S. property and casualty
insurance industry including competition, weather, catastrophic events, innovation and emerging technologies, changes in regulations,
inflation, general economic conditions, judicial trends, fluctuations in interest rates, and other changes in the financial markets.

 Our premium levels and underwriting results have been, and will
continue to be, influenced by market conditions. The property and casualty insurance industry has historically been characterized by soft
markets (periods of relatively high levels of price competition, less restrictive underwriting practices, and generally low premium rates)
followed by hard markets (periods of capital shortages resulting in a lack of insurance availability, relatively low levels of price competition,
more selective underwriting of risks, and relatively high premium rates). During soft markets, we may lose business to other carriers
offering competitive insurance at lower rates. We may also choose to reduce our premiums or limit premium increases leading to a reduction
in profit margins and revenues. Our industry is also influenced by general economic conditions, which could reduce overall premium volume
for us and our competitors. Additionally, the industry is impacted by changes in customer preferences, including customer demand for direct,
point-of-sale, or other non-traditional distribution channels. We regularly monitor our performance and competitive position by line of
business and geographic market to determine appropriate rate actions.

 Premiums in the multi-peril crop insurance business are primarily
influenced by the types of crops planted, number of acres insured, and commodity prices because the rates are established by the RMA rather
than individual insurance carriers. The expected experience of this business for the calendar year may also significantly affect the reported
net earned premiums and losses due to the risk-sharing arrangement with the federal government. Multi-peril crop insurance premiums are
generally written in the second quarter, and earned ratably over the period of risk, which generally extends into the fourth quarter.
Premiums in the crop hail insurance business are also generally written in the second quarter and earned ratably until the end of the
third quarter.

 Premiums in our other lines of business are written and earned throughout
the year based on their coverage periods. Losses on this business are also incurred throughout the year but are usually more frequent
and/or severe during periods of elevated weather-related activity.

 Property Claims Service ("PCS"), a division of the Insurance
Services Office, maintains industry loss data related to catastrophe loss events. PCS defines a catastrophe as an event that causes damage
of $25 million or more in insured property losses and affects a significant number of insureds. When reporting on our losses from catastrophe
events, we may include losses from those events that were defined as a catastrophe by PCS or those events which may include losses that
we believe are, or will be, material to our operations, either in amount or in number of claims made. The frequency and severity of catastrophic
losses we experience in any year may significantly affect our results of operations and financial position. In analyzing the underwriting
performance of our property and casualty insurance business, we evaluate performance both including and excluding catastrophe losses.
Portions of our catastrophe losses may be recoverable under our catastrophe reinsurance agreements.

 For more information on the Company's results of operations
by segment, see Part II, Item 8, Note 21 "Segment Information."

 Years ended December 31, 2024, 2023, and 2022

 The consolidated net income from continuing operations for the Company
was $6,600 for the year ended December 31, 2024, compared to net income of $19,831 for the year ended December 31, 2023, and a net loss
of $38,685 for the year ended December 31, 2022.

 The major components of our revenues and net income (loss) for the
three periods are shown below:

 2024

 2023

 2022

 Revenues:

 $

 $

 $

 1,938

 1,940

 1,381

 8,034

 6,636

 2,213

 1,929

 (11,975
)

 Total revenues

 $
 325,204

 $
 304,020

 $
 267,782

 Components of net income (loss):

 $

 $

 $

 Losses and loss adjustment expenses

 Amortization of deferred policy acquisition costs and other underwriting and general expenses

 104,966

 96,957

 78,908

 Underwriting gain (loss)

 (2,321
)

 8,644

 (48,918
)

 1,938

 1,940

 1,381

 8,034

 6,636

 2,213

 1,929

 (11,975
)

 (2,628
)

 —

 —

 Income (loss) from continuing operations before income taxes

 10,145

 20,547

 (52,876
)

 3,545

 (14,191
)

 Net income (loss) from continuing operations

 $
 6,600

 $
 19,831

 $
 (38,685
)

 Net Premiums Earned

 2024

 2023

 2022

 Net premiums earned:

 Direct premium

 $
 341,885

 $
 325,590

 $
 299,607

 Assumed premium

 2,984

 3,570

 6,550

 Ceded premium

 (34,759
)

 (37,043
)

 (34,417
)

 Total net premiums earned

 $

 $

 $

 Net premiums earned for the year ended December 31, 2024 increased
$17,993, or 6.2%, to $310,110, compared to $292,117 for the year ended December 31, 2023.

 Net premiums earned for the year ended December 31, 2023 increased
$20,377, or 7.5%, to $292,117, compared to $271,740 for the year ended December 31, 2022.

 2024

 2023

 2022

 Net premiums earned:

 $
 90,314

 $
 83,360

 $
 77,605

 95,225

 87,760

 66,911

 90,761

 83,389

 78,381

 Crop

 21,142

 25,817

 34,721

 12,668

 11,791

 14,122

 Total net premiums earned

 $

 $

 $

 Below are comments regarding significant changes in net premiums
earned by business segment:

 Private passenger auto – Net premiums earned
for 2024 increased $6,954, or 8.3%, from 2023. Results were driven by new business growth in North Dakota as well as significant rate
increases in North Dakota, South Dakota, and Nebraska, partially offset by lower new business and retention levels in South Dakota and
Nebraska as a result of underwriting actions taken to improve profitability. Net premiums earned for 2023 increased $5,755, or 7.4%, from
2022. This increase was driven by significant rate increases in North Dakota, South Dakota, and Nebraska, partially offset by lower new
business production as a result of underwriting actions taken to improve profitability.

 Non-Standard auto – Net premiums earned for
2024 increased $7,465, or 8.5%, from 2023. Results were driven by prior period new business growth in Illinois and Arizona as well as
significant rate increases in the Chicago market where our non-standard auto business is concentrated, partially offset by lower retention
compared to the prior year and the decision to exit Nevada. Net premiums earned for 2023 increased $20,849, or 31.2%, from 2022. This
increase was driven by new business growth, improved retention, and significant rate increases in the Chicago market.

 Home and farm – Net premiums earned for 2024
increased $7,372, or 8.8%, from 2023. Results were driven by new business growth in North Dakota, rate increases, and increased insured
property values, which were primarily the result of higher inflationary factors. These increases were partially offset by lower retention
rates and new business levels in Nebraska and South Dakota as a result of underwriting actions taken to improve profitability. Net premiums
earned for 2023 increased $5,008, or 6.4%, from 2022. This increase was driven by rate increases along with increased insured property
values, which were primarily the result of higher inflationary factors. These premium increases were partially offset by lower levels
of new business production as a result of underwriting actions taken to improve profitability

 Crop – Net premiums earned for 2024 decreased
$4,675, or 18.1%, from 2023. This decrease was driven by a reduction in acres insured and lower commodity prices, which are a key determinant
of premiums on a Federal multi-peril crop insurance policy, in the current year. Net premiums earned for 2023 decreased $8,904, or 25.6%,
from 2022. This decrease was driven by lower commodity prices and lower muti-peril crop insurance rates in 2023, combined with fewer acres
insured compared to the prior year. In addition, the strong multi-peril crop results for 2023 resulted in higher ceded premiums as required
by the SRA.

 All other – Net premiums earned for 2024 increased
$877, or 7.4%, from 2023. Results were driven by rate and insured value increases for the commercial and excess lines of business, partially
offset by the continued run-off of our participation in an assumed domestic and international reinsurance pool of business. Net premiums
earned for 2023 decreased $2,331, or 16.5%, from 2022. This

 decrease was driven by the decision to non-renew our participation in an assumed
domestic and international reinsurance pool of business as of January 1, 2022.

 Losses and Loss Adjustment Expenses

 2024

 2023

 2022

 Net losses and loss adjustment expenses:

 $
 220,991

 $
 195,138

 $
 255,187

 1,140

 2,369

 (14,310
)

 (9,762
)

 (15,806
)

 Total net losses and loss adjustment expenses

 $

 $

 $

 The Company's net losses and loss adjustment expenses for
the year ended December 31, 2024 increased $20,949, or 11.2%, to $207,465, compared to $186,516 for the year ended December 31, 2023.

 The Company's net losses and loss adjustment expenses for
the year ended December 31, 2023 decreased $55,234, or 22.8%, to $186,516, compared to $241,750 for the year ended December 31, 2022.

 2024

 2023

 2022

 Net losses and loss adjustment expenses:

 $
 51,869

 $
 60,204

 $
 65,420

 76,130

 63,041

 39,400

 64,561

 50,935

 107,823

 Crop

 9,071

 10,793

 19,418

 5,834

 1,543

 9,689

 Total net losses and loss adjustment expenses

 $

 $

 $

 2024

 2023

 2022

 Loss and loss adjustment expenses ratio:

 57.4%

 72.2%

 84.3%

 79.9%

 71.8%

 58.9%

 71.1%

 61.1%

 137.6%

 Crop

 42.9%

 41.8%

 55.9%

 46.1%

 13.1%

 68.6%

 Total loss and loss adjustment expenses ratio

 66.9%

 63.8%

 89.0%

 Below are comments regarding significant changes in net losses and
loss adjustment expenses, and the net loss and loss adjustment expenses ratios by business segment:

 Private passenger auto – The net loss and loss
adjustment expenses ratio decreased 14.8 percentage points in 2024 compared to 2023. This decrease was driven by lower levels of weather-related
losses in the current year due to the mild winter in the Midwest compared to elevated winter weather-related losses in the prior year
as well as favorable prior year loss reserve development. Both periods were positively affected by earned premium growth. The net loss
and loss adjustment expenses ratio decreased 12.1 percentage points in 2023 compared to 2022. This decrease was the result of recent significant
rate increases, lower loss frequency compared to the prior year, and favorable prior year loss reserve development, partially offset by
elevated loss costs due to high levels of inflation.

 Non-Standard auto – The net loss and loss adjustment
expenses ratio increased 8.1 percentage points in 2024 compared to 2023. This increase was driven by unfavorable prior year loss reserve
development related to elevated bodily injury losses, partially offset by earned premium growth resulting from new business growth and
significant rate increases. We continue to take significant underwriting actions as a result of these elevated losses and challenging
market conditions. The net loss and loss adjustment expenses ratio increased 12.9 percentage points in 2023 compared to 2022. This increase
was driven by elevated loss severity as a result of inflationary factors as well as unfavorable prior year loss reserve development, partially
offset by significant rate increases.

 Home and farm – The net loss and loss adjustment
expenses ratio increased 10.0 percentage points in 2024 compared to 2023. This increase was driven by higher loss severity and higher
non-catastrophe weather-related losses in North Dakota and Nebraska during 2024 compared to the prior year, partially offset by earned
premium growth in the current year. The net loss and loss adjustment expenses ratio decreased 76.5 percentage points in 2023 compared
to 2022. This decrease was driven by the much-improved loss experience as a result of having no catastrophe losses during 2023 compared
to 2022, combined with improved non-catastrophe weather losses and the significant rate increases and underwriting actions we implemented
to address the profitability on these lines of business. Catastrophe losses, net of reinsurance, for the Home and Farm segment accounted
for 72.1 percentage points of the net loss and loss adjustment expense ratio for the year ended December 31, 2022.

 Crop – The net loss and loss adjustment expenses
ratio increased 1.1 percentage points in 2024 compared to 2023. The strong results for 2024 were the result of favorable crop growing
conditions, similar to the prior year. The net loss and loss adjustment expenses ratio decreased 14.1 percentage points in 2023 compared
to 2022. This decrease was due to improved crop growing conditions in 2023 in comparison to 2022.

 All other – The net loss and loss adjustment
expenses ratio increased 33.0 percentage points in 2024 compared to 2023. This increase was driven by elevated large loss experience compared
to the prior year and an inter-segment reclassification of a large loss during 2023. The net loss and loss adjustment expenses ratio decreased
55.5 percentage points in 2023 compared to 2022. This decrease was driven by improved loss experience related to the commercial and excess
liability lines of business.

 Underwriting and General Expenses and Expense Ratio

 2024

 2023

 2022

 Underwriting and general expenses:

 $
 71,257

 $
 67,631

 $
 53,605

 Other underwriting and general expenses

 33,709

 29,326

 25,303

 Total underwriting and general expenses

 $
 104,966

 $
 96,957

 $
 78,908

 Expense ratio

 33.8%

 33.2%

 29.0%

 The expense ratio is calculated by dividing other underwriting and
general expenses and amortization of deferred policy acquisition costs by net premiums earned. The expense ratio measures a company's
operational efficiency in producing, underwriting, and administering its insurance business. The overall expense ratio increased 0.6 percentage
points in the year ended December 31, 2024, compared to the same period in 2023. The increase in the amortization of deferred policy acquisition
costs is due to higher deferrable costs resulting from significant earned premium growth compared to the prior year, including significant
growth in the Non-Standard Auto segment which generally pays higher agent commissions than our other segments. The increase in the other
underwriting and general expenses is due to the costs incurred in the current year associated with the execution of separation agreements
with our former Chief Executive Officer and former Senior Vice President of Operations. The overall expense ratio increased 4.2 percentage
points in the year ended December 31, 2023, compared to the same period in 2022. The increase in amortization of deferred policy acquisition
costs was driven by higher deferrable costs resulting from overall premium growth compared to the prior year, including significant growth
in the non-standard auto segment which generally pays higher agent commissions than our other segments. The increase in other underwriting
and general expenses was due to the impact of continued high levels of inflation and 2022 expenses being favorably impacted by multi-peril
crop insurance final settlements.

 Underwriting Gain (Loss) and Combined Ratio

 2024

 2023

 2022

 Underwriting gain (loss):

 $
 10,407

 $
 (1,536
)

 $
 (9,548
)

 (17,637
)

 (12,860
)

 (2,373
)

 7,557

 (52,644
)

 Crop

 7,189

 8,702

 12,236

 6,781

 Total underwriting gain (loss)

 $
 (2,321
)

 $
 8,644

 $
 (48,918
)

 2024

 2023

 2022

 Combined ratio:

 88.4%

 101.8%

 112.3%

 118.5%

 114.6%

 99.3%

 102.6%

 91.0%

 167.2%

 Crop

 66.0%

 66.3%

 64.7%

 99.3%

 42.5%

 96.2%

 Total combined ratio

 100.7%

 97.0%

 118.0%

 Underwriting gain (loss) measures the pre-tax profitability of our
insurance operations. It is derived by subtracting losses and loss adjustment expenses, amortization of deferred policy acquisition costs,
and other underwriting and general expenses from net premiums earned. The combined ratio represents the sum of these losses and expenses
as a percentage of net premiums earned and measures our overall underwriting profit.

 The total underwriting gain (loss) decreased $10,965, or 126.9%,
for the year ended December 31, 2024, compared to the same period in 2023. The total underwriting gain (loss) increased $57,562, or 117.7%,
for the year ended December 31, 2023, compared to the same period in 2022. These results were driven by the factors discussed in the Losses
and Loss Adjustment Expenses and the Underwriting and General Expenses and Expense Ratio sections above.

 The overall combined ratio increased 3.7 percentage points in the
year ended December 31, 2024, compared to the same period in 2023. The overall combined ratio decreased 21.0 percentage points in the
year ended December 31, 2023, compared to the same period in 2022. These results were driven by the factors discussed in the Losses and
Loss Adjustment Expenses and the Underwriting and General Expenses and Expense Ratio sections above.

 Fee and Other Income

 We had fee and other income of $1,938 for the year ended December
31, 2024, compared to $1,940 for the year ended December 31, 2023, and $1,381 for the year ended December 31, 2022. Fee income is largely
attributable to the Non-Standard Auto segment and is a key component in measuring its profitability. Fee and other income on this business
decreased to $1,219 for the year ended December 31, 2024, from $1,293 for the year ended December 31, 2023, due to elevated other income
in the prior year. Fee and other income for non-standard auto increased to $1,293 for the year ended December 31, 2023, from $831 for
the year ended December 31, 2022, due to an increase in policies that generate fee income.

 Goodwill Impairment Charge

 We had a goodwill impairment charge of $2,628 for the year ended
December 31, 2024, compared to $6,756 for the years ended December 31, 2023, and $0 for the year ended December 31, 2022. See Part II,
Item 8, Note 10 "Goodwill and Other Intangibles" for additional information.

 Net Investment Income

 The following table shows our average cash and invested assets,
net investment income, and return on average cash and invested assets for the reported periods for continuing operations:

 2024

 2023

 2022

 Average cash and invested assets

 $
 371,110

 $
 335,821

 $
 391,584

 $

 $
 8,034

 $
 6,636

 Gross return on average cash and invested assets

 3.9%

 3.5%

 2.5%

 Net return on average cash and invested assets

 3.0%

 2.6%

 1.7%

 Net investment income increased $2,909 for the year ended December
31, 2024, compared to the year ended December 31, 2023. This increase was primarily driven by the higher interest rate environment which
resulted in higher reinvestment rates in our fixed income portfolio as well as higher yields on our cash and cash equivalents, partially
offset by higher investment expenses. Net investment income increased $1,398 for the year ended December 31, 2023, compared to the year
ended December 31, 2022. This increase was primarily driven by higher reinvestment rates as well as a strategic increased allocation to
fixed income securities in our investment portfolio.

 Gross and net return on average cash and invested assets increased
year-over-year from 2023 to 2024, primarily driven by the favorable interest rate environment that resulted in significantly higher net
investment income on an increased average balance of fixed income securities as well as cash and cash equivalents (measured at fair value).
In addition, the increase in investments in high dividend yield equities resulted in relatively consistent year-over-year dividend income
despite a reduction in the average equities balance (measured at fair value). The increase in average cash and invested assets was driven
by additional investments in fixed income securities as a result of positive operating cash flows during 2024.

 Gross and net return on average cash and invested assets increased
year-over-year from 2022 to 2023, driven by the higher net investment income and a higher proportion of the equity portfolio being invested
in high dividend yield equities in 2023, along with a decrease in average cash and invested assets (measured at fair value). This decrease
in average cash and invested assets was driven by challenging equity market conditions, particularly during the middle and later stages
of 2022, combined with investment sales as a result of an unusually high number of weather-related losses in 2022.

 Net Investment Gains (Losses)

 Net investment gains (losses) consisted of the following:

 2024

 2023

 2022

 Gross realized gains

 $
 1,341

 $
 13,841

 $
 7,083

 Gross realized losses, excluding credit impairment losses

 (790
)

 (1,745
)

 (5,099
)

 Net realized gains

 12,096

 1,984

 Change in net unrealized gain on equity securities

 1,662

 (10,167
)

 (13,959
)

 $
 2,213

 $
 1,929

 $
 (11,975
)

 We had net realized gains of $551 for the year ended December 31,
2024, compared to $12,096 for the year ended December 31, 2023, and $1,984 for the year ended December 31, 2022. The elevated net realized
gains for the year ended December 31, 2023, were the result of a strategic liquidation of a portfolio of equity securities. The gross
realized gains from the sale of these securities were largely offset by the elimination of the unrealized gain position of these securities.
No credit impairment losses were reported during any of the periods presented.

 We experienced an increase in net unrealized gains on equity securities
of $1,662 during the year ended December 31, 2024, attributable to overall favorable equity markets during the current year. The change
in net unrealized gains on equity securities for 2023 was driven by the equity portfolio liquidation noted above and the impact of changes
in fair value attributable to equity market volatility. The 2022 decreases were driven by the impact of changes in fair value attributable
to unfavorable equity markets. We had net realized gains on the sale of equity securities of $750, $12,619, and $2,051 during the years
ended December 31, 2024, 2023, and 2022, respectively.

 Our fixed income securities are classified as available for sale
because we will, from time to time, execute sales of securities that are not impaired, consistent with our investment goals and policies.
The fixed income portion of the portfolio experienced net unrealized losses of $191 during the year ended December 31, 2024, compared
to net unrealized gains of $9,168 during the year ended December 31, 2023. The changes were primarily the result of changes in U.S. interest
rates. The change in the fair value of fixed income securities is not reflected in net income; rather it is reflected as a separate component
(net of income taxes) of other comprehensive income. The fixed income portfolio experienced net unrealized losses of $39,971 during the
year ended December 31, 2022.

 Income (Loss) before Income Taxes

 We had pre-tax income of $10,145 for the year ended December 31,
2024, a pre-tax income of $20,547 for the year ended December 31, 2023, and pre-tax loss of $52,876 for the year ended December 31, 2022.
The year-over-year decrease in 2024 compared to 2023 was largely attributable to higher loss severity and non-catastrophe weather-related
losses for Home and Farm in the states of North Dakota and Nebraska, unfavorable prior year loss reserve development for Non-Standard
Auto, a goodwill impairment charge for Non-Standard Auto, and expenses incurred related to the separation agreements with our former Chief
Executive Officer and former Senior Vice President of Operations, partially offset by net earned premium growth, improved loss experience
for Private Passenger Auto, and higher net investment income. The year-over-year improvement in 2023 compared to 2022 was largely attributable
to the significant catastrophe losses and significantly higher investment losses during 2022.

 Income Tax Expense (Benefit)

 We recorded income tax expense of $3,545 for the year ended December
31, 2024, income tax expense of $716 for the year ended December 31, 2023, and an income tax benefit of $14,191 for the year ended December
31, 2022. Including the impacts of discontinued operations and the loss on sale of discontinued operations, we recorded an income tax
benefit of $3,192 for the year ended December 31, 2024, income tax expense of $963 for the year ended December 31, 2023, and an income
tax benefit of $15,254 for the year ended December 31, 2022. Including the impacts of discontinued operations and the loss on sale of
discontinued operations, our effective tax rate for 2024 was 35.2% compared to an effective tax rate of (22.6)% and 22.1% for 2023 and
2022, respectively. Our 2024 effective tax rate was impacted by several factors, but the loss on sale of discontinued operations, non-taxable
compensation-related expenses, and non-taxable goodwill impairment charge were the most significant drivers of the variance from the statutory
rate. Our 2023 effective tax rate was impacted by several factors, but the 2023 non-taxable goodwill impairment charge was the most significant
driver of the variance from the statutory rate. Our 2022 effective tax rate was impacted by several factors, but the change in valuation
allowance and non-taxable executive compensation were the most significant drivers of the variance from the statutory rate. The valuation
allowance against certain deferred income tax assets was $2,506 as of December 31, 2024, $505 as of December 31, 2023, and $694 as of December
31, 2022.

 Net Income (Loss)

 We had net income before non-controlling interest of $6,600 for
the year ended December 31, 2024, net income of $19,831 for the year ended December 31, 2023, and a net loss of $38,685 for the year ended
December 31, 2022. The year-over-year decrease in 2024 compared to 2023 was largely attributable to higher loss severity and non-catastrophe
weather-related losses for Home and Farm in the states of North Dakota and Nebraska, unfavorable prior year loss reserve development for
Non-Standard Auto, a goodwill impairment charge for Non-Standard Auto, and expenses incurred related to the separation agreements with
our former Chief Executive Officer and former Senior Vice President of Operations, partially offset by net earned premium growth, improved
loss experience for Private Passenger Auto, and higher net investment income. The year-over-year improvement in 2023 compared to 2022
was largely attributable to the significant catastrophe losses and significantly higher investment losses during 2022.

 Return on Average Equity

 For the year ended December 31, 2024, we had annualized return on
average equity, after non-controlling interest, of 2.8%, compared to annualized return on average equity, after non-controlling interest,
of 7.9% and (13.6)% for the years ended December 31, 2023 and 2022, respectively.

 Average equity is calculated as the average between beginning and
ending equity, excluding non-controlling interest, for the period.

 Principal Revenue Items

 Revenue is primarily derived from net premiums earned, net investment
income, and net investment gains (losses).

 Gross and Net Premiums Written

 Gross premiums written is equal to direct premiums
written and assumed premiums before the effect of ceded reinsurance. Gross premiums written are recognized upon sale of new insurance
contracts or renewal of existing contracts. Net premiums written is equal to gross premiums written less premiums ceded to reinsurers.

 Premiums Earned

 Premiums earned is the earned portion of net premiums written. Insurance
premiums on property and casualty policies are recognized in proportion to the underlying risk insured and are earned ratably over the
duration of the policies or, in the case of crop insurance, over the period of risk to the Company. At the end of each accounting period,
the portion of the premiums that is not yet earned is included in unearned premiums and is realized as revenue in subsequent periods over
the remaining term of the policy or period of risk. Our property and casualty policies, other than some of our auto lines and the non-standard
auto policies, typically have a term of twelve months.

 Due to the nature of the crop planting and harvesting cycle and
the deadlines for filing and processing claims under the federal crop insurance program, insurance premiums for multi-peril crop insurance
are recognized and earned during the period of risk, which usually begins in spring and ends with harvest in the fall. Under the federal
crop insurance program, farmers must purchase crop insurance with respect to spring planted crops by March 15. By July 15, the farmer
must report the number of acres planted in each crop. On September 1, the insurer bills the farmer for the insurance premium, which is
due and payable by the farmer by October 1. If the farmer does not pay the premium by such date, the insurer will charge interest at a
rate of 15% because the insurer is required to pay the farmer's portion of the premium to the FCIC by November 15, regardless of
whether the farmer pays the premium to the insurer. Except for claims occurring in the spring (primarily for prevented planting and required
replanting claims), claims are required to be filed with the FCIC by December 15. A different cycle exists for crops planted in the fall,
such as winter wheat, but the vast majority of crop insurance we write covers crops planted in the spring.

 Net Investment Income and Net Investment
Gains (Losses)

 We invest our excess cash in fixed income and equity securities.
Investment income includes interest and dividends earned on invested assets and is reported net of investment-related expenses. Net investment
gains (losses) are reported separately from net investment income. We recognize realized gains when investments are sold for an amount
greater than their cost or amortized cost (in the case of fixed income securities) and realized losses when investments are sold for an
amount less than their cost or amortized cost or when credit impairments are recorded, as applicable. We recognize changes in unrealized
gains and losses of equity securities in net income as part of net investment gains (losses). These gains and losses may be significant
given the fair market value of the equity portfolio and the inherent volatility in equity markets. The changes in unrealized gains and
losses on fixed income securities are recorded in other comprehensive income (loss), net of income taxes. Therefore, these changes have
no impact on net income but do impact shareholders' equity.

 The portfolio of investments for NI Holdings and its insurance subsidiaries
is managed by Conning, Inc., which has discretion to buy and sell securities in accordance with the investment policy approved by our
Board of Directors.

 Principal Expense Items

 Our expenses consist primarily of losses and loss adjustment expenses,
amortization of deferred policy acquisition costs, other underwriting and general expenses, and income taxes.

 Losses and Loss Adjustment Expenses

 Losses and loss adjustment expenses represent the largest expense
item and include (1) claim payments made, (2) estimates for future claim payments and changes in those estimates from prior periods, and
(3) costs associated with investigating, defending, and adjusting claims, including legal fees.

 Amortization of Deferred Policy Acquisition Costs and Other
Underwriting and General Expenses

 Expenses incurred to underwrite risks are referred to as policy
acquisition costs. Policy acquisition costs consist of commission expenses, state premium taxes, and certain other underwriting expenses
that vary with and are primarily related to the writing and

 acquisition of new and renewal business. These policy acquisition costs are
deferred and amortized over the effective period of the related insurance policies. Other underwriting and general expenses consist of
salaries, professional fees, office supplies, depreciation, and all other operating expenses not otherwise classified separately.

 Income Taxes

 Current income taxes represent amounts paid or
owed to the federal government and certain states whose payment is based upon net income (subject to regulatory adjustments) generated
by the Company. The generation of net losses may result in income tax benefits. As noted above, it does not include state premium taxes
that are based purely on the collection of policyholder premiums.

 We use the asset and liability method of accounting
for deferred income taxes. Deferred income taxes arise from the recognition of temporary differences between financial statement carrying
amounts and the income tax bases of its assets and liabilities. A valuation allowance is provided when it is more likely than not that
some portion of the deferred income tax asset will not be realized. The effect of a change in tax rates is recognized in the period of
the enactment date. Total income taxes reflect both current income taxes and the change in the net deferred income tax asset or liability,
excluding amounts attributed to accumulated other comprehensive income.

 Critical Accounting Policies

 General

 The preparation of financial statements in accordance
with GAAP requires both the use of estimates and judgment relative to the application of appropriate accounting policies. We are required
to make estimates and assumptions in certain circumstances that affect amounts reported in our consolidated financial statements and related
footnotes. We evaluate these estimates and assumptions on an ongoing basis based on historical developments, market conditions, industry
trends, and other information that we believe to be reasonable under the circumstances. There can be no assurance that actual results
will conform to these estimates and assumptions and that reported results of operations would not be materially adversely affected by
the need to make accounting adjustments to reflect changes in these estimates and assumptions from time to time. We believe the following
policies are the most sensitive to estimates and judgments.

 Unpaid Losses and Loss Adjustment Expenses

 How reserves are established

 With respect to our traditional property and casualty insurance
products, we maintain reserves for the payment of claims (indemnity losses) and expenses related to adjusting those claims (loss adjustment
expenses). Our liability for unpaid losses and loss adjustment expenses consists of (1) case reserves, which are reserves for claims that
have been reported to us, and (2) IBNR, which represents reserves for claims that have been incurred but have not yet been reported and
for the future development of reported claims. As some claims may not be reported for several years, the liability for unpaid losses and
loss adjustment expenses may include significant estimates for IBNR based on the time necessary to settle the claim.

 Loss adjustment expenses consist of two components – allocated
loss adjustment expenses and unallocated loss adjustment expenses. Allocated loss adjustment expenses are the expenses for defense and
cost containment, including legal fees, court costs, and investigation fees, which are linked to the settlement of specific individual
claims or losses. Unallocated loss adjustment expenses are expenses that generally cannot be associated with a specific claim, including
internal costs such as salaries and other overhead costs. Estimates of future costs to administer reported and unreported claims for both
allocated and unallocated expenses are included in IBNR.

 When a claim is reported to one of the insurance companies, its
claims personnel establish a case reserve for the estimated amount of the ultimate payment to the extent it can be determined or estimated,
in many cases a default reserve is utilized until the claims personnel can determine a more claim specific amount. The amount of the loss
reserve for the reported claim is based primarily upon an evaluation of coverage, liability, damages suffered, and any other information
considered pertinent to estimating the exposure presented by the claim. Each claim is contested or settled individually based upon its
merits, and some property and casualty claims may take years to resolve, especially in situations where legal action may be involved.
Case reserves are reviewed on a regular basis and are updated as new information becomes available.

 When a catastrophe occurs, which in our case usually involves the
weather perils of wind and hail, we utilize mapping technology, through geographic coding of our property risks, to overlay the path of
the storm. This enables us to establish estimated damage amounts based on the wind speed and size of the hail for case or per claim loss
amounts. This process allows us to determine within a

 reasonable time (5-7 days) an estimated number of claims and estimated losses from
the storm. We have also begun reviewing the results of the predicted cost of the claim generated by the catastrophe models as a reasonability
check on the anticipated cost of the storm. If we estimate the damages to be in excess of half of the retained catastrophe amount, reinsurers
are notified immediately of a potential loss so that we can quickly recover reinsurance payments once the retention is exceeded.

 We estimate multi-peril crop insurance losses on a quarterly basis
based upon historical loss patterns, current crop conditions, current weather patterns, and input from crop loss adjusters. These estimates
have proven to be reasonably accurate indicators of our anticipated losses for this line of business.

 Our actuaries assist with the estimation of the liability for unpaid
losses and loss adjustment expenses. The actuaries prepare estimates by first deriving an actuarially based estimate of the ultimate cost
of total losses and loss adjustment expenses incurred as of the financial statement date based on established actuarial methods as described
below. We then reduce the estimated ultimate loss and loss adjustment expenses by loss and loss adjustment expenses payments and case
reserves carried as of the financial statement date. The actuarially determined estimate is based upon indications from various actuarial
methodologies including paid chain-ladder, incurred chain-ladder, Bornhuetter-Ferguson, weighted averages of the methods, and judgment.
The specific method used to estimate the ultimate losses varies depending on the judgment of the actuaries as to what is the most appropriate
for the line of business. Management reviews these estimates and supplements the actuarial analysis with information not fully incorporated
into the actuarially based estimate, such as changes in the external business environment and internal company processes. Management may
adjust the actuarial estimates based on this supplemental information in order to arrive at the amount recorded in the consolidated financial

 A further discussion of the actuarial methodologies used follows:

 Bornhuetter-Ferguson Method - The Bornhuetter-Ferguson
Method is a blended method that explicitly considers both actual loss development to date and expected future loss emergence. This method
is applied on both a paid loss basis and an incurred loss basis. This method uses selected loss development patterns to calculate the
expected percentage of losses unpaid (or unreported). The expected future loss component of the method is calculated by multiplying earned
premium for the given exposure period by a selected a priori (i.e. deductive) loss ratio. The resulting dollars are then multiplied by
the expected percentage of unpaid (or unreported) losses described above. This provides an estimate of future paid (or reported) losses
that is then added to actual paid (or incurred) loss data to produce the estimated ultimate loss.

 Paid and Case Incurred Loss Development (Chain-Ladder) Method
- The Paid and Case Incurred Loss Development Method utilizes ratios of cumulative paid losses, case incurred losses, or paid loss adjustment
expenses at each age of development as a percent of the preceding development age. Selected ratios are then multiplied together to produce
a set of loss development factors which when applied to the most current data value, by accident period, develop the estimated ultimate
losses or loss adjustment expenses. Ultimate losses or loss adjustment expenses are then selected for each accident year from the various
methods employed.

 Ratio of Paid Allocated Loss Adjustment Expenses to Paid Loss
Method - The Ratio of Paid Allocated Loss Adjustment Expenses to Paid Loss Method utilizes the ratio of paid allocated loss adjustment
expenses to paid losses and is similar to the Paid and Case Incurred Loss Development (Chain-Ladder) Method described above, except that
the data projected are the ratios of paid allocated loss adjustment expenses to paid losses. The projected ultimate ratio is then multiplied
by the selected ultimate losses, by accident year, to yield the ultimate allocated loss adjustment expenses. Allocated loss adjustment
expenses reserves are calculated by subtracting paid losses from ultimate allocated loss adjustment expenses.

 The process of estimating loss reserves involves a high degree of
judgment and is subject to a number of variables. These variables can be affected by both internal and external events, such as changes
in claims handling procedures/staffing, inflation, weather, legal trends, and regulatory and legislative changes. The impact of many of
these items on ultimate costs for losses and loss adjustment expenses is difficult to estimate. Loss reserve estimation is also affected
by the volume of claims, the potential severity of individual claims, the determination of occurrence date for a claim, and reporting
lags (the time between the occurrence of the policyholder event and when it is actually reported to the insurer). Informed judgment is
applied throughout the process, including the application of various individual experiences and expertise to multiple sets of data and
analyses. We continually refine our estimates of unpaid losses and loss adjustment expenses in a regular ongoing process as historical
loss experience develops and additional claims are reported and settled. We consider all significant facts and circumstances known at
the time the liabilities for unpaid losses and loss adjustment expenses are established.

 There is an inherent amount of uncertainty in the establishment
of liabilities for unpaid losses and loss adjustment expenses. This uncertainty is greatest in the current and most recent accident years
due to the more recent nature of the claims being reported and relatively small percentage of these claims that have been reported, investigated,
and adjusted by our claims staff. Therefore, the reserves carried in these more recent accident years are generally more conservative
than those carried for older accident years. As we have the opportunity to investigate and adjust the reported claims, both the case and
IBNR reserves are adjusted to more closely reflect the ultimate expected loss.

 Other factors that may have an impact on our case and IBNR reserves
include, but are not limited to, those described below.

 Changes in liability law and public attitudes regarding damage
awards

 Laws governing liability claims and judicial interpretations thereof
can change over time, which can expand the scope of coverage anticipated by insurers when initially establishing reserves for claims.
In addition, public attitudes regarding damage awards can result in judges and juries granting higher recoveries for damages than expected
by claims personnel when reserves are established. In addition, these changes can result in both increased claim frequency and severity
as both plaintiffs and their legal counsel perceive the opportunity for higher damage awards. Reserves established for claims that occurred
in prior years would not have anticipated these legal changes and, therefore, could prove to be inadequate for the ultimate losses paid
by the Company, causing us to experience adverse development and higher loss payments in future years.

 Change in claims handling and/or setting case reserves

 Changes in Company personnel and/or the approach to how claims are
reported, adjusted, and reserved may affect the reserves we establish. As discussed above, the setting of IBNR reserves is not an exact
science and involves the expert judgment of an actuary. One actuary's reserve opinion may differ slightly from another actuary's
opinion. This is the primary reason why the IBNR reserve estimate is customarily reported as a range by a company's actuary, which
provides a company with an acceptable range to use in establishing its best estimate for IBNR reserves.

 Economic inflation

 A sudden and extreme increase in the economic inflation rate could
have a significant impact on our case and IBNR reserves. When establishing case reserves, claims personnel generally establish an amount
that in their opinion will provide a conservative amount to settle the loss. If the time to settle the claim extends over a period of
years, which is possible but unlikely as we usually settle claims in less than a year on average, the initial reserve may not anticipate
an economic inflation rate that is significantly higher than the current inflation rate. This can also apply to IBNR reserves. Should
the economic inflation rate increase significantly, we may not anticipate the need to adjust the IBNR reserves accordingly, which could
lead to deficient IBNR reserves.

 Increases or decreases in claim severity for reasons other than
inflation

 Factors exist that can drive the cost to settle claims for reasons
other than standard inflation. For example, demand surge caused by a significant catastrophe, such as a derecho, has an impact on not
only the availability and cost of building materials such as roofing and other materials, but also the availability and cost of labor.
Numerous other factors could also cause claim severity to increase beyond what our historic reserves would reflect. In addition, unexpected
increases in labor, healthcare, or building material costs and other factors may cause fluctuations in the ultimate development of the
case reserves.

 Actual settlement experience different from historical data trends

 When establishing IBNR reserves, our actuaries consider many of
the factors discussed above. One of the more important factors that is considered when setting reserves is the past or historical claim
settlement experience. Our actuaries consider factors such as the number of files entering litigation, payment patterns, length of time
it takes our claims personnel to settle the claims, and average payment amounts when estimating reserve amounts. Should future settlement
patterns change due to the legal environment, our claims handling philosophy, or personnel, it may have an impact on the future claims
payments, which could cause existing reserves to either be redundant (excessive) or deficient (below) compared to the actual loss amount.

 Change in Reporting Lag

 As discussed above, we utilize historical patterns to provide an
accurate estimate of what will take place in the future. Should we experience an unexpected delay in reporting time (claims are slower
to be reported than in the past), we may underestimate the anticipated number of future claims, which could cause the ultimate loss we
may experience to be underestimated. A lag in reporting may be caused by changes in how claims are reported, the types or lines of business
we write, our distribution system, and the geographic area where we choose to insure risk.

 Due to the inherent uncertainty underlying loss reserve estimates,
final resolution of the estimated liability for unpaid losses and loss adjustment expenses may be higher or lower than the related loss
reserves at the reporting date. Therefore, actual paid losses, as claims are settled in the future, may be materially higher or lower
in amount than current loss reserves. We reflect adjustments to the liability for unpaid losses and loss adjustment expenses in the results
of operations during the period in which the estimates are changed.

 Investments

 Our fixed income securities and equity securities are classified
as available-for-sale and carried at estimated fair value as determined by management based upon quoted market prices or a recognized
independent pricing service at the reporting date for those or similar investments. Changes in unrealized investment gains or losses on
the fixed income securities, net of applicable income taxes, are reflected directly in shareholders' equity as a component of other
comprehensive income (loss) and, accordingly, have no effect on net income (loss). Changes in unrealized investment gains or losses on
equity securities are reported in net income (loss). Investment income from fixed income securities is recognized when earned, and realized
investment gains (losses) are recognized when investments are sold, the fair value of equity securities change, or credit impairments
are recognized.

 For additional information on our investments,
see Part II, Item 8, Note 4 "Investments" and Note 5 "Fair Value Measurements."

 Deferred Policy Acquisition Costs

 Certain direct policy acquisition costs consisting of commissions,
state premium taxes, and other direct underwriting expenses that vary with and are primarily related to the production of business are
deferred and amortized over the effective period of the related insurance policies as the underlying policy premiums are earned.

 At December 31, 2024 and 2023, deferred policy
acquisition costs ("DAC") and the related liability for unearned premiums were as follows:

 December 31,

 2024

 2023

 $

 $

 Liability for unearned premiums

 126,498

 126,100

 The method followed in computing DAC limits the
amount of deferred costs to their estimated realizable value, which gives effect to the premium to be earned, related investment income,
losses and loss adjustment expenses, and certain other costs expected to be incurred as the premium is earned. Future changes in estimates,
the most significant of which is expected losses and loss adjustment expenses, may require adjustments to DAC. If the estimation of net
realizable value indicates that DAC are not recoverable, they would be written off or a premium deficiency reserve would be established.

 Income Taxes

 Current income taxes represent amounts paid or
owed to the federal government and certain states whose payment is based upon net income (subject to regulatory adjustments) generated
by the Company. The generation of net losses may result in income tax benefits, a portion of which may be in the form of refunds of prior
income taxes paid to taxing authorities. We use the asset and liability method of accounting for deferred income taxes. Deferred income
taxes arise from the recognition of temporary differences between financial statement carrying amounts and the income tax bases of our
assets and liabilities. A valuation allowance is established when it is more likely than not that some portion of the deferred income
tax asset will not be realized. Total income taxes reflect both current income taxes and the change in the net deferred income tax asset
or liability, excluding amounts attributed to accumulated other comprehensive income.

 We had gross deferred income tax assets of $15,946
at December 31, 2024, and $18,172 at December 31, 2023, arising primarily from unearned premiums, loss reserve discounting, net unrealized
investment losses, and net operating loss carryforwards. A valuation allowance is required to be established for any portion of the deferred
income tax asset for which we believe it is more likely than not that it will not be realized. A valuation allowance of $2,506 and $505 was
maintained at December 31, 2024, and December 31, 2023, respectively.

 We had gross deferred income tax liabilities of $6,116 at December
31, 2024, and $9,254 at December 31, 2023, arising primarily from deferred policy acquisition costs and other intangible assets.

 We exercise significant judgment in evaluating
the amount and timing of recognition of the resulting income tax liabilities and assets. These judgments require us to make projections
of future taxable income. The judgments and estimates we make in determining our deferred income tax assets, which are inherently subjective,
are reviewed on a continual basis as regulatory and business factors change. Any reduction in estimated future taxable income may require
us to record a valuation allowance against our deferred income tax assets.

 As of December 31, 2024, we had no material unrecognized
income tax benefits or accrued interest and penalties. Federal income tax returns for the years 2020 through 2023 remain subject to examination.

 Changing Climate Conditions

 Longer-term natural catastrophe trends may be changing, and new
types of catastrophe losses may be developing due to climate change, a phenomenon that has been associated with extreme weather events
linked to rising temperatures, and includes effects on global weather patterns, greenhouse gases, sea, land and air temperatures, sea
levels, rain, hail, and snow. The frequency, number, and severity of these losses are unpredictable. The extent of losses from a catastrophe
is a function of both the total amount of insured exposure in the area affected by the event and the severity of the event. Our ability
to effectively manage catastrophe risk is dependent, in part, on our reliance on various catastrophe models, which may produce unreliable
output as a result of inaccurate or incomplete data, along with the inherent uncertainty of future frequency and severity of losses. The
impact of changing climate conditions on the overall insurance industry may also materially affect the availability and cost of reinsurance
to us. In addition, these changes could impact the creditworthiness of issuers of securities in which we invest, subjecting our investment
portfolio to increased credit and interest rate risk, with the potential for reduced investment returns and/or material realized or unrealized
losses.

 Liquidity and Capital Resources

 We expect to generate sufficient funds from our operations and maintain
a high degree of liquidity in our investment portfolio to meet the demands of claim settlements and operating expenses for the foreseeable
future. Our primary sources of funds are premium collections, investment earnings, and fixed income maturities.

 We also have a $3,000 line of credit with Wells
Fargo Bank, N.A. The terms of the line of credit include a floating interest rate of 2.50% above the daily simple secured overnight financing
rate. There were no outstanding amounts during the years ended December 31, 2024, 2023, or 2022. This line of credit is scheduled to expire
on December 13, 2025.

 The changes in cash and cash equivalents for continuing
and discontinued operations for the years ended December 31, 2024, 2023, and 2022 were as follows:

 2024

 2023

 2022

 Net cash flows from operating activities

 $
 38,506

 $
 51,028

 $
 (15,294
)

 Net cash flows from investing activities

 (4,541
)

 (8,813
)

 25,048

 Net cash flows from financing activities

 (3,643
)

 (7,466
)

 (18,281
)

 Net increase (decrease) in cash and cash equivalents

 $
 30,322

 $
 34,749

 $
 (8,527
)

 For the year ended December 31, 2024, net cash provided by operating
activities totaled $38,506 compared to $51,028 net cash provided by operating activities a year ago. This change was primarily driven
by the severance payments to our former Chief Executive Officer and former Senior Vice President of Operations in the current year as
well as the receipt of a significant income tax refund during 2023.

 For the year ended December 31, 2024, net cash used by investing
activities totaled $4,541 compared to $8,813 net cash used by investing activities a year ago. This change was primarily attributable
to the proceeds from the sale of Westminster as well as a decrease in the net cash outflows for fixed income securities in the current
year, partially offset by a decrease in the cash inflows from equity securities in the current year.

 For the year ended December 31, 2024, net cash used by financing
activities totaled $3,643 compared to $7,466 a year ago. This decrease in cash used was attributable to a reduction in share repurchases
in the current year partially offset by the final pooling settlement between Nodak Insurance and Westminster.

 For the year ended December 31, 2023, net cash provided by operating
activities totaled $51,028 compared to $15,294 net cash used by operating activities during 2022. This change was primarily driven by
lower claim payments and the receipt of a significant income tax refund during 2023.

 For the year ended December 31, 2023, net cash used by investing
activities totaled $8,813 compared to $25,048 net cash provided by investing activities during 2022. This change was primarily attributable
to a decrease in maturities and sales of fixed income securities and an increase in purchases of fixed income securities during 2023 compared
to 2022, partially offset by an increase in sales of equity securities and a decrease in purchases of equity securities.

 For the year ended December 31, 2023, net cash used by financing
activities totaled $7,466 compared to $18,281 during 2022. This decrease in cash used was attributable to installment payments on the
Westminster consideration payable during 2022, partially offset by an increase in share repurchases during 2023 compared to 2022.

 As a holding company, a principal source of long-term liquidity
will be dividend payments from our directly-owned subsidiaries.

 Nodak Insurance is restricted by the insurance laws of North Dakota
as to the amount of dividends or other distributions it may pay to NI Holdings. North Dakota law sets the maximum amount of dividends
that may be paid by Nodak Insurance during any twelve-month period after notice to, but without prior approval of, the North Dakota Insurance
Department. This amount cannot exceed the lesser of (i) 10% of the Company's surplus as regards policyholders as of the preceding
December 31, or (ii) the Company's statutory net income for the preceding calendar year (excluding realized investment gains), less
any prior dividends paid during such twelve-month period. In addition, any insurance company other than a life insurance company may carry
forward net income from the preceding two calendar years, not including realized investment gains, less any dividends actually paid during
those two calendar years. Dividends in excess of this amount are considered "extraordinary" and are subject to the approval
of the North Dakota Insurance Department.

 The amount available for payment of dividends from Nodak Insurance
to NI Holdings during 2025 without the prior approval of the North Dakota Insurance Department is approximately $8,273 as of December
31, 2024. No dividends were declared or paid by Nodak Insurance during the years ended December 31, 2024 and 2023. The Nodak Insurance
Board of Directors declared and paid dividends of $3,000 to NI Holdings during the year ended December 31, 2022.

 The amount available for payment of dividends from Direct Auto to
NI Holdings during 2025 without the prior approval of the North Dakota Insurance Department is approximately $3,146 as of December 31,
2024. No dividends were declared or paid by Direct Auto during the years ended December 31, 2024, 2023, or 2022.

 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 an insurance company is in violation of any law or
regulation. These restrictions or any subsequently imposed restrictions may affect our future liquidity.

 Westminster was sold on June 30, 2024, and therefore no dividends
are available to be paid to NI Holdings subsequent to that date. No dividends were declared or paid by Westminster during the years ended
December 31, 2024, 2023 or 2022. See Part II, Item 8, Note 20 "Discontinued Operations" for additional information.

 Contractual Obligations

 The primary contractual obligations of the Company
include gross loss and loss adjustment expenses payments as well as operating and finance lease obligations.

 The Company's unpaid losses and loss adjustment
expenses were $137,288 as of December 31, 2024. Historical payment experience indicates that approximately 46% of this amount will be
paid during 2025 and another 37% will be paid over the subsequent two years. The actual timing and amounts of these payments in the future
may vary.

 Recent Accounting Pronouncements

 For a discussion of recent accounting pronouncements,
see Part II, Item 8, Note 2 "Recent Accounting Pronouncements."

 Item 7A.
 Quantitative and Qualitative Disclosures About Market Risk

 Market
Risk

 Market risk is the risk that a company will incur
losses due to adverse changes in the fair value of financial instruments. We have exposure to three principal types of market risk through
our investment activities: interest rate risk, credit risk, and equity risk. Our primary market risk exposure is to changes in interest
rates. We have not entered, and do not plan to enter, into any derivative financial instruments for hedging, trading, or speculative purposes.

 Interest Rate Risk

 Interest rate risk is the risk that a company
will incur economic losses due to adverse changes in interest rates. Our exposure to interest rate changes primarily results from our
significant holdings of fixed income securities. Fluctuations in interest rates have a direct impact on the fair value of these securities.

 We develop our investment strategies based on
a number of factors, including estimated duration of reserve liabilities, short and long-term liquidity needs, general economic conditions,
expected rates of inflation and regulatory requirements. The portfolio duration of the fixed income securities in our investment portfolio
at December 31, 2024 was 4.77 years. These fixed income securities include U.S. government bonds, securities issued by government agencies,
obligations of state and local governments and governmental authorities, and corporate bonds, most of which are exposed to changes in
prevailing interest rates. These fixed income securities may experience significant fluctuations in fair value resulting from changes
in interest rates and are carried as available for sale. We manage the exposure to risks associated with interest rate fluctuations through
active management and consultation with our outside fixed income portfolio manager.

 Higher interest rates, oftentimes correlated to
inflation, reduce the carrying value of our fixed income and short-term investments, negatively impacting the Company's book value
in the short-term. Over the long-term, however, higher interest rates provide an incremental benefit to our net investment income over
time as excess cash and proceeds of maturing bonds are reinvested at higher rates. We manage our exposure to interest rate increases by
monitoring the duration within our investment portfolio and maintaining maturities that minimize forced sales within the portfolio.

 Additionally, we hold certain fixed income securities
that have call features. In a potential declining interest rate environment, these securities may be called by their issuer and replaced
with securities bearing lower interest rates.

 If we are required to sell fixed income securities
in a rising interest rate environment, we may recognize investment losses.

 The table below shows the interest rate sensitivity
of our fixed income securities (including both continuing and discontinued operations) measured in terms of fair value (which is equal
to the carrying value for all of our investment securities that are subject to interest rate changes) at December 31, 2024 and 2023:

 As of December 31, 2024

 As of December 31, 2023

 Hypothetical Change in Interest Rate

 Estimated Change

in Fair Value

 Estimated Change

in Fair Value

 200 basis point increase

 $
 (28,085
)

 $
 279,627

 $
 (31,125
)

 $
 316,606

 100 basis point increase

 (14,687
)

 293,025

 (15,826
)

 331,905

 No change

 —

 —

 100 basis point decrease

 13,509

 321,221

 16,199

 363,930

 200 basis point decrease

 27,977

 335,689

 32,572

 380,303

 The interest
rate exposure of our portfolio was proportionately consistent in the current year compared to the prior year, which is expected given
the generally consistent composition and duration of the fixed income portfolio over this time.

 Credit Risk

 Credit risk is the potential economic loss principally
arising from adverse changes in the financial condition of a specific debt issuer. We address this risk by investing primarily in fixed
income securities that are rated investment grade by Moody's Investors Services, Inc. or an equivalent rating quality. We also work
in conjunction with our outside fixed income portfolio manager to monitor the financial condition of all of the issuers of fixed income
securities in the portfolio. Additionally, our investment policy includes diversification rules that limit the credit exposure to any
single issuer or asset class.

 Equity Risk

 Equity price risk is the risk that we will incur
economic losses due to adverse changes in equity prices. Our equity portfolio is subject to a variety of risk factors, including general
economic conditions which influence the performance of the underlying industries and companies within those industries. Industry and company-specific
risks also have the potential to substantially affect the value of our portfolio. Our investment policy helps mitigate these risks by
diversifying the portfolio and establishing parameters to help manage exposures.

 Item 8.
 Financial Statements and Supplementary Data

 REPORT
OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

 To the Shareholders and Board of Directors

 Opinions on the Consolidated Financial Statements and Internal
Control over Financial Reporting

 We have audited the accompanying consolidated
balance sheet of NI Holdings, Inc. and Subsidiaries (the "Company") as of December 31, 2024, and the consolidated statements
of operations, comprehensive income (loss), changes in shareholders' equity, and cash flows for the year ended December 31, 2024,
and the schedule listed in Item 15(a)(2) (collectively referred to as the "consolidated financial statements"). We also have
audited the Company's internal control over financial reporting as of December 31, 2024, based on criteria established in Internal
Control – Integrated Framework: (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).

 In our opinion, the consolidated financial
statements referred to above present fairly, in all material respects, the financial position of the Company as of December 31, 2024,
and the results of its operations and its cash flows for the year ended, in conformity with accounting principles generally accepted in
the United States of America. Also in our opinion, the Company maintained, in all material respects, effective internal control over financial
reporting as of December 31, 2024, based on criteria established in Internal Control – Integrated Framework: (2013) issued
by COSO.

 We also have audited the adjustments to the Company's
2023 and 2022 consolidated financial statements to retrospectively apply the change in accounting for (a) discontinued operations described
in Note 3 and Note 20, and (b) the adoption of ASU 2023-07, Segment Reporting (Topic 280) – Improvements to Reportable Segment Disclosures
described in Note 21. In our opinion, such adjustments are appropriate and have been properly applied. We were not engaged to audit, review,
or apply any procedures to the 2023 or 2022 consolidated financial statements of the Company other than with respect to the adjustments,
and, accordingly, we do not express an opinion or any other form of assurance on the 2023 or 2022 consolidated financial statements taken
as a whole.

 Basis for Opinion

 The Company's management is responsible
for these consolidated financial statements, for maintaining effective internal control over financial reporting, and for its assessment
of the effectiveness of internal control over financial reporting, included in the accompanying Management's Annual Report on Internal
Control over Financial Reporting. Our responsibility is to express an opinion on the Company's
consolidated financial statements and an opinion on the Company's internal control over financial reporting based on our audit.

 We are a public accounting firm registered
with the Public Company Accounting Oversight Board (United States) ("PCAOB") and are required to be independent with respect
to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange
Commission and the PCAOB.

 We conducted our audit in accordance with the
standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the consolidated
financial statements are free of material misstatement, whether due to error or fraud, and whether effective internal control over financial
reporting was maintained in all material respects.

 Our audit of the consolidated financial statements
included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud,
and performing procedures that respond to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts
and disclosures in the consolidated financial statements. Our audit also included evaluating the accounting principles used and significant
estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. Our audit of internal
control over financial reporting included obtaining an understanding of internal control over financial reporting, assessing the risk
that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed
risk. Our audit also included performing such other procedures as we considered necessary in the circumstances. We believe that our audit
provides a reasonable basis for our opinions.

 Definitions and Limitations of Internal
Control over Financial Reporting

 A company's internal control over financial reporting is a process
designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of reliable consolidated
financial statements for external purposes in accordance with generally

 accepted accounting principles. A company's
internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that,
in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable
assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted
accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management
and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition,
use, or disposition of the company's assets that could have a material effect on the consolidated financial statements.

 Because of its inherent limitations, internal
control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future
periods are subject to the risk that controls may become inadequate because of changes in conditions or that the degree of compliance
with the policies or procedures may deteriorate.

 Critical Audit Matters

 The critical audit matters communicated below
are matters arising from the current-period audit of the consolidated financial statements that were communicated or required to be communicated
to the audit committee and that: (1) relate to accounts or disclosures that are material to the consolidated financial statements
and (2) involved our especially challenging, subjective, or complex judgments. The communication of critical audit matters does not
alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical
audit matters below, providing separate opinions on the critical audit matters or on the accounts or disclosures to which they relate.

 Evaluation of Losses and Loss Adjustment
Expenses Reserves

 Critical Audit Matter Description

 On December 31, 2024, the Company's liability
for unpaid losses and loss adjustment expenses was approximately $137 million. As described in Note 3 and 8, the Company's property
and casualty insurance loss and loss expenses reserves (referred to as "losses and loss expenses reserves"), are determined
by the Company using actuarial methods, models, assumptions, and judgment to estimate the reserves required to pay for and settle all
outstanding insured claims as of the consolidated financial statement date. There is significant uncertainty inherent in determining management's
best estimate of the losses and loss expenses reserves, requiring the use of informed actuarially based estimates and management's
judgment. The actuarial estimate of losses and loss expenses reserves is subject to review and adjustment by Company management.

 Losses and loss expenses are inherently uncertain
as to timing and amount and the recorded losses and loss expense reserves may vary materially from the actual ultimate cost of claims.
Given the subjectivity in estimating ultimate losses and loss expenses, due to uncertainties concerning the future emergence of losses
and loss expenses, inflation trends, and the judicial environment, among other factors, auditing losses and loss expenses reserves involved
an especially high degree of auditor judgment, including the need to involve an actuarial specialist.

 How the Critical Matter Was Addressed in the
Audit

 We obtained an understanding, evaluated the design,
and tested the operating effectiveness of certain internal controls over the Company's reserving process for losses and loss adjustment
expenses reserves.

 To test the Company's estimate of losses
and loss adjustment expenses reserves, our audit procedures included among others:

 With the assistance of the actuarial specialist,
we used the Company's claims data and other inputs, to develop a range of independent estimates for the losses and loss expenses
reserves. We used these independent estimates to assess the reasonableness of the Company's reserves by comparing our estimates
to the Company's recorded losses and loss expenses reserves.

 We tested the underlying data that served as
the basis for the actuarial analysis, including historical claims data, to test the reasonableness of key inputs to the actuarial estimate.

 /s/ Forvis Mazars, LLP

 PCAOB ID 686

 We have served as the Company's auditor since 2024.

 New York, New York

 REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING
FIRM

 To the Board of Directors
and

Shareholders of NI Holdings, Inc.

 Opinion on the Consolidated Financial Statements

 We have audited,
before the effects of the adjustments to retrospectively apply the change in accounting for (a) discontinued operations described in Note
3 and Note 20, and (b) the adoption of ASU 2023-07, Segment Reporting (Topic 280) – Improvements to Reportable Segment Disclosures
described in Note 21, the accompanying consolidated balance sheet of NI Holdings, Inc. and Subsidiaries (collectively, the "Company")
as of December 31, 2023, and the related consolidated statements of operations, comprehensive income (loss), changes in shareholders'
equity, and cash flows for each of the years in the two-year period ended December 31, 2023, and the related notes and the schedule listed
in Item 15(a)(2) (collectively referred to as the "consolidated financial statements"). The consolidated financial statements,
before the effects of the adjustments to retrospectively apply the change in accounting for (a) discontinued operations described in Note
3 and Note 20, and (b) the adoption of ASU 2023-07, Segment Reporting (Topic 280) – Improvements to Reportable Segment Disclosures
described in Note 21, are not presented herein.

 In our opinion,
the consolidated financial statements referred to above, before the effects of the adjustments to retrospectively apply the change in
accounting for (a) discontinued operations described in Note 3 and Note 20, and (b) the adoption of ASU 2023-07, Segment Reporting (Topic
280) – Improvements to Reportable Segment Disclosures described in Note 21, present fairly, in all material respects, the financial
position of the Company as of December 31, 2023, and the results of its operations and its cash flows for each of the years in the two-year
period ended December 31, 2023, in conformity with accounting principles generally accepted in the United States of America.

 We were not
engaged to audit, review, or apply any procedures to the adjustments to retrospectively apply the change in accounting for (a) discontinued
operations described in Note 3 and Note 20, and (b) the adoption of ASU 2023-07, Segment Reporting (Topic 280) – Improvements to
Reportable Segment Disclosures described in Note 21, and, accordingly, we do not express an opinion or any other form of assurance about
whether such adjustments are appropriate and have been properly applied. Those adjustments were audited by Forvis Mazars, LLP.

 Basis for Opinion

 These consolidated financial statements are the
responsibility of the Company's management. Our responsibility is to express an opinion on the Company's consolidated financial
statements based on our audits. We are a public accounting firm registered with the PCAOB and are required to be independent with respect
to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange
Commission and the PCAOB.

 We conducted our audits in accordance with the
standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the consolidated
financial statements are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess
the risks of material misstatement of the consolidated financial statements, whether due to error or fraud, and performing procedures
that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the
consolidated financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by
management, as well as evaluating the overall presentation of the consolidated financial statements. We believe that our audits provide
a reasonable basis for our opinion.

 /s/ Mazars USA
LLP

 PCAOB ID 339

 We have served as the
Company's auditor from 2016 to 2024.

 Fort Washington, Pennsylvania

 March 15, 2024

 Consolidated Balance Sheets

 December 31, 2024 and 2023

 (dollar amounts in thousands, except par value)

 2024

 2023

 Assets:

 $
 50,930

 $
 41,037

 Fixed income securities, at fair value (net of allowance for expected credit losses of $ 0 at December 31, 2024 and 2023)

 289,399

 Equity securities, at fair value

 21,983

 Other investments

 1,812

 2,006

 Total cash and investments

 385,094

 354,425

 Premiums and agents' balances receivable (net of allowance for expected credit losses of $ 337 at December 31, 2024 and $ 394 at December 31, 2023)

 52,907

 56,154

 Reinsurance premiums receivable (payable)

 ( 1,403
)

 Reinsurance recoverables on losses (net of allowance for expected credit losses of $ 0 at December 31, 2024 and 2023)

 6,460

 Income tax recoverable

 7,017

 —

 2,629

 2,325

 Property and equipment, net

 7,547

 7,452

 Deferred income taxes

 7,324

 9,228

 Receivable from Federal Crop Insurance Corporation

 13,223

 17,404

 2,728

 Other assets

 11,097

 10,866

 Assets of discontinued operations

 —

 162,457

 Total assets

 $
 526,545

 $
 654,886

 Liabilities:

 $

 $
 119,185

 126,498

 126,100

 Income tax payable

 —

 18,128

 17,758

 Liabilities of discontinued operations

 —

 141,297

 Total liabilities

 281,914

 404,487

 Shareholders' equity:

 Common stock, $ 0.01 par value, authorized 25,000,000 shares,
issued: 23,000,000 shares; and
outstanding: 2024 – 20,673,268 shares, 2023 – 20,599,908 shares

 Additional paid-in capital

 95,796

 96,294

 Unearned employee stock ownership plan shares

 ( 455
)

 ( 698
)

 Retained earnings

 201,584

 208,376

 Accumulated other comprehensive loss, net of income taxes

 ( 18,231
)

 ( 21,384
)

 Treasury stock, at cost, 2024 – 2,281,252 shares, 2023 – 2,330,297 shares

 ( 34,293
)

 ( 35,177
)

 Non-controlling interest

 —

 2,758

 Total shareholders' equity

 244,631

 250,399

 Total liabilities and shareholders' equity

 $
 526,545

 $
 654,886

 The accompanying notes are an integral part of these consolidated financial

 Consolidated Statements of Operations

 Years Ended December 31, 2024, 2023, and 2022

 (dollar amounts in thousands, except per share data)

 2024

 2023

 2022

 Revenues:

 $

 $

 $

 1,938

 1,940

 1,381

 8,034

 6,636

 2,213

 1,929

 ( 11,975
)

 Total revenues

 325,204

 304,020

 267,782

 Expenses:

 Losses and loss adjustment expenses

 71,257

 67,631

 53,605

 Other underwriting and general expenses

 33,709

 29,326

 25,303

 2,628

 —

 —

 Total expenses

 315,059

 283,473

 320,658

 Income (loss) from continuing operations before income taxes

 10,145

 20,547

 ( 52,876
)

 3,545

 ( 14,191
)

 Net income (loss) from continuing operations

 6,600

 19,831

 ( 38,685
)

 Net income (loss) attributable to non-controlling interest

 —

 ( 679
)

 Net income (loss) from continuing operations attributable to NI Holdings, Inc.

 6,600

 19,581

 ( 38,006
)

 Loss from discontinued operations, net of income taxes

 ( 1,512
)

 ( 25,057
)

 ( 15,090
)

 Loss on sale of discontinued operations, net of income taxes

 ( 11,148
)

 —

 —

 $
)

 $
 ( 5,476
)

 $
 ( 53,096
)

 Earnings (loss) per common share from continuing operations:

 Basic

 $
 0.31

 $
 0.93

 $
 ( 1.78
)

 Diluted

 $
 0.31

 $
 0.92

 $
 ( 1.78
)

 Earnings (loss) per common share:

 Basic

 $
 ( 0.29
)

 $
 ( 0.26
)

 $
 ( 2.49
)

 Diluted

 $
 ( 0.29
)

 $
 ( 0.26
)

 $
 ( 2.49
)

 Share data:

 Weighted average common share outstanding used in basic per common share calculations

 20,968,545

 21,159,073

 21,333,389

 Dilutive securities

 120,626

 76,532

 —

 Weighted average common shares used in diluted per common share calculations

 21,089,171

 21,235,605

 21,333,389

 The accompanying notes are an integral part of these consolidated financial

 Consolidated Statements of Comprehensive Income
(Loss)

 Years Ended December 31, 2024, 2023, and 2022

 (dollar amounts in thousands)

 2024

 Non-Controlling

 Interest

 Total

 $
)

 $
 —

 $
)

 Other comprehensive income (loss), before income taxes:

 Holding gains (losses) on investments

 ( 482
)

 —

 ( 482
)

 Reclassification adjustment for net realized losses (gains) included in net income (loss)

 —

 Other comprehensive income (loss), before income taxes

 ( 249
)

 —

 ( 249
)

 Income tax benefit (expense) related to items of other comprehensive income (loss)

 —

 ( 153
)

 —

 ( 153
)

 Comprehensive income (loss)

 $
 ( 6,213
)

 $
 —

 $
 ( 6,213
)

 2023

 Non-Controlling

Interest

 Total

 $
 ( 5,476
)

 $

 $
 ( 5,226
)

 Other comprehensive income (loss), before income taxes:

 Holding gains (losses) on investments

 9,709

 10,072

 Reclassification adjustment for net realized losses (gains) included in net income (loss)

 —

 Other comprehensive income (loss), before income taxes

 10,291

 10,654

 Income tax benefit (expense) related to items of other comprehensive income (loss)

 ( 2,389
)

 ( 85
)

 ( 2,474
)

 7,902

 8,180

 Comprehensive income (loss)

 $
 2,426

 $

 $
 2,954

 2022

 Non-Controlling

 Interest

 Total

 $
 ( 53,096
)

 $
 ( 679
)

 $
 ( 53,775
)

 Other comprehensive income (loss), before income taxes:

 Holding gains (losses) on investments

 ( 44,810
)

 ( 1,703
)

 ( 46,513
)

 Reclassification adjustment for net realized losses (gains) included in net income (loss)

 Other comprehensive income (loss), before income taxes

 ( 44,679
)

 ( 1,683
)

 ( 46,362
)

 Income tax benefit (expense) related to items of other comprehensive income (loss)

 10,156

 10,539

 ( 34,523
)

 ( 1,300
)

 ( 35,823
)

 Comprehensive income (loss)

 $
 ( 87,619
)

 $
 ( 1,979
)

 $
 ( 89,598
)

 The accompanying notes are an integral part of these consolidated financial

 Consolidated Statements of Changes in Shareholders'
Equity

 Years Ended December 31, 2024, 2023, and 2022

 (dollar amounts in thousands)

 Common

 Stock

 Additional

 Paid-in
 Capital

 Unearned

 Employee
 Stock
 Ownership
 Plan Shares

 Retained

 Earnings

 Other
 Comprehensive
 Income (Loss),
 Net of Income
 Taxes

 Treasury

 Stock

 Non-

 Controlling
 Interest

 Total

 Shareholders'
 Equity

 Balance,
January 1, 2022

 $

 $
 98,166

 $
 ( 1,184
)

 $
 267,207

 $
 5,237

 ( 26,452
)

 $
 4,209

 $
 347,413

 Battle Creek demutualization

 —

 —

 —

 —

 —

 —

 —

 —

 —

 —

 —

 ( 53,096
)

 —

 —

 ( 679
)

 ( 53,775
)

 Impact of Westminster unrealized investment gains/losses

 —

 —

 —

 —

 —

 —

 —

 —

 —

 —

 —

 —

 ( 34,523
)

 —

 ( 1,300
)

 ( 35,823
)

 Purchase of treasury stock

 —

 —

 —

 —

 —

 ( 4,180
)

 —

 ( 4,180
)

 Share-based compensation

 —

 ( 40
)

 —

 —

 —

 —

 —

 ( 40
)

 —

 ( 2,592
)

 —

 —

 1,814

 —

 ( 768
)

 Distribution of employee stock ownership plan shares

 —

 —

 —

 —

 —

 Balance,
December 31, 2022

 95,671

 ( 941
)

 214,121

 ( 29,286
)

 ( 28,818
)

 2,230

 253,207

 Battle Creek demutualization

 —

 —

 —

 —

 —

 —

 —

 —

 —

 —

 —

 ( 5,476
)

 —

 —

 ( 5,226
)

 Impact of Westminster unrealized investment gains/losses

 —

 —

 —

 —

 —

 —

 —

 —

 —

 —

 —

 —

 7,902

 —

 8,180

 Purchase of treasury stock

 —

 —

 —

 —

 —

 ( 7,278
)

 —

 ( 7,278
)

 Share-based compensation

 —

 1,366

 —

 —

 —

 —

 —

 1,366

 —

 ( 822
)

 —

 ( 269
)

 —

 —

 ( 172
)

 Distribution of employee stock ownership plan shares

 —

 —

 —

 —

 —

 Balance,

 96,294

 ( 698
)

 208,376

 ( 21,384
)

 ( 35,177
)

 2,758

 250,399

 Battle Creek demutualization

 —

 —

 —

 3,832

 ( 1,074
)

 —

 ( 2,758
)

 —

 —

 —

 —

)

 —

 —

 —

)

 Impact of Westminster unrealized investment gains/losses

 —

 —

 —

 ( 4,380
)

 4,380

 —

 —

 —

 —

 —

 —

 —

 ( 153
)

 —

 —

 ( 153
)

 Purchase of treasury stock

 —

 —

 —

 —

 —

 —

 —

 Share-based compensation

 —

 —

 —

 —

 —

 —

 —

 ( 858
)

 —

 ( 184
)

 —

 —

 ( 158
)

 Distribution of employee stock ownership plan shares

 —

 —

 —

 —

 —

 Balance,

 $

 $
 95,796

 $
 ( 455
)

 $
 201,584

 ( 18,231
)

 ( 34,293
)

 —

 $
 244,631

 The accompanying notes are an integral part of these consolidated financial

 Consolidated Statements of Cash Flows

 Years Ended December 31, 2024, 2023, and 2022

 (dollar amounts in thousands)

 2024

 2023

 2022

 Cash flows from operating activities:

 $
)

 $
 ( 5,226
)

 $
 ( 53,775
)

 Less net loss from discontinued operations, net of income taxes

 ( 1,512
)

 ( 25,057
)

 ( 15,090
)

 Adjustments to reconcile net loss to net cash flows from operating activities:

 Net investment gains

 ( 2,213
)

 ( 1,929
)

 11,975

 Deferred income tax expense (benefit)

 1,901

 ( 1,876
)

 ( 3,825
)

 Depreciation of property and equipment

 Amortization of intangibles

 —

 2,628

 —

 —

 Distribution of employee stock ownership plan shares

 Share-based compensation

 1,366

 ( 40
)

 71,257

 67,631

 53,605

 Deferral of policy acquisition costs

 ( 70,767
)

 ( 71,746
)

 ( 57,233
)

 Net amortization of premiums and discounts on investments

 1,435

 Gain on sale of property and equipment

 ( 64
)

 ( 52
)

 ( 164
)

 Changes in operating assets and liabilities:

 3,247

 ( 8,808
)

 ( 9,453
)

 Reinsurance premiums receivable / payable

 ( 2,149
)

 ( 424
)

 ( 6,101
)

 2,126

 3,892

 ( 304
)

 ( 179
)

 Federal Crop Insurance Corporation receivable / payable

 4,181

 ( 1,942
)

 ( 20,424
)

 Other assets

 ( 231
)

 ( 1,506
)

 18,103

 4,889

 6,296

 15,174

 15,237

 Income tax recoverable / payable

 ( 7,164
)

 14,105

 ( 13,275
)

 ( 215
)

 7,336

 Net cash flows from operating activities – continuing operations

 15,082

 18,589

 ( 1,621
)

 Net cash flows from operating activities – discontinued operations

 10,493

 12,608

 25,012

 Net cash flows from operating activities – loss on sale of discontinued operations

 17,479

 —

 —

 Total adjustments

 43,054

 31,197

 23,391

 Net cash flows from operating activities

 38,506

 51,028

 ( 15,294
)

 Cash flows from investing activities:

 Proceeds from maturities and sales of fixed income securities

 43,633

 33,888

 75,031

 Proceeds from sales of equity securities

 7,587

 39,020

 25,260

 Purchases of fixed income securities

 ( 62,561
)

 ( 56,318
)

 ( 47,620
)

 Purchases of equity securities

 ( 7,833
)

 ( 11,741
)

 ( 12,979
)

 Purchases of property and equipment

 ( 991
)

 ( 661
)

 ( 878
)

 Proceeds from sales of property and equipment

 Proceeds from disposition of Westminster

 12,272

 —

 —

 Other

 —

 —

 Net cash flows from investing activities – continuing operations

 ( 7,419
)

 4,335

 39,460

 Net cash flows from investing activities – discontinued operations

 2,878

 ( 13,148
)

 ( 14,412
)

 Net cash flows from investing activities

 ( 4,541
)

 ( 8,813
)

 25,048

 Cash flows from financing activities:

 Purchases of treasury stock

 —

 ( 7,278
)

 ( 4,180
)

 Pooling (payments) receipts

 ( 10,444
)

 ( 28,114
)

 4,085

 Installment payment on Westminster consideration payable

 —

 —

 ( 13,333
)

 Principal repayments of finance leases

 ( 99
)

 ( 16
)

 —

 ( 158
)

 ( 172
)

 ( 768
)

 Net cash flows from financing activities – continuing operations

 ( 10,701
)

 ( 35,580
)

 ( 14,196
)

 Net cash flows from financing activities – discontinued operations

 7,058

 28,114

 ( 4,085
)

 Net cash flows from financing activities

 ( 3,643
)

 ( 7,466
)

 ( 18,281
)

 Net change in cash and cash equivalents

 30,322

 34,749

 ( 8,527
)

 (Increase) decrease in cash and cash equivalents – discontinued operations

 ( 20,429
)

 ( 27,574
)

 ( 6,515
)

 Net increase (decrease) in cash and cash equivalents – continuing operations

 9,893

 7,175

 ( 15,042
)

 Cash and cash equivalents at beginning of period – continuing operations

 41,037

 33,862

 48,904

 Cash and cash equivalents at end of period – continuing operations

 $
 50,930

 $
 41,037

 $
 33,862

 Federal and state income taxes paid (net of refunds received)

 $
 2,853

 $
 ( 11,102
)

 $
 2,175

 The accompanying notes are an integral part of
these consolidated financial statements.

Notes to Consolidated Financial Statements

December 31, 2024, 2023, and 2022

(dollar amounts in thousands)

 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 Nodak conversion, whereby Nodak Mutual converted
from a mutual to stock form of organization and the creation of a mutual holding company. The Nodak conversion was consummated on March
13, 2017. Immediately following the Nodak 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 Nodak conversion,
NI Holdings conducted no business and had no assets or liabilities. As a result of the Nodak conversion, NI Holdings became the holding
company for Nodak Insurance and its existing subsidiaries.

 These consolidated financial statements include the financial
position and results of operations 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 U.S. American West began writing policies in 2002 and primarily writes
private passenger auto, homeowners, and farm coverages in South Dakota. American West also writes private passenger auto coverage in North
Dakota, as well as crop hail and Federal multi-peril crop insurance coverages in Minnesota and South Dakota.

 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 auto coverage in the states of Nevada, Arizona, North Dakota, and South Dakota during 2024. As of December 31, 2024,
Primero no longer writes coverage in the state of Nevada. Primero was acquired by Nodak Insurance in 2014.

 Battle Creek Insurance Company

 Battle Creek is a property and casualty insurance company
writing private passenger auto, homeowners, and farm coverages solely in the state of Nebraska. Battle Creek became affiliated with Nodak
Insurance in 2011 and, prior to January 2, 2024, was controlled by Nodak Insurance via a surplus note. On January 2, 2024, Battle Creek
issued 300,000 shares of its common stock to Nodak Insurance at a $ 10.00 per share par value and became a wholly-owned subsidiary of Nodak
Insurance. Because we concluded that we controlled Battle Creek prior to January 2, 2024, we consolidated the financial statements of
Battle Creek, and Battle Creek's policyholders' interest in Battle Creek was reflected as a non-controlling interest in shareholders'
equity in our Consolidated Balance Sheets and its net income or loss was excluded from net income or loss attributed to NI Holdings in
our Consolidated Statements of Operations. Subsequent to January 2, 2024, Battle Creek is fully consolidated in our Consolidated Balance
Sheets and Consolidated Statements of Operations and, as such, no longer reflected as a non-controlling interest.

 Direct Auto Insurance Company

 Direct Auto is a property and casualty insurance company
licensed in Illinois. Direct Auto began writing non-standard auto 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 18 states and the District of Columbia. Westminster is headquartered in Owings Mills, Maryland and underwrites commercial
multi-peril insurance in the states of Delaware, Georgia, Kentucky, Maryland, New Jersey, North Carolina, Pennsylvania, South Carolina,
Tennessee, Virginia, West Virginia, and the District of Columbia. Westminster was sold to Scott Insurance Holdings on June 30, 2024. Subsequent
to the date of sale, Westminster is reflected as discontinued operations within our Consolidated Balance Sheets and Consolidated Statements
of Operations. For additional information see Part II, Item 8, Note 20 "Discontinued Operations" of this 2024 Annual Report.

 Organizational Structure and Credit Ratings

 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 as of December 31, 2024, are rated "A" Excellent by AM Best.

 The same executive management team provides oversight
and strategic direction for the entire organization. Nodak Insurance personnel provide common product oversight, pricing practices, and
underwriting standards, as well as underwriting and claims administration, to Nodak Insurance, American West, and Battle Creek. Primero
and Direct Auto personnel manage the day-to-day operations of their respective companies. Westminster personnel managed the day-to-day
operations of their company prior to the date of sale.

 2. Recent
Accounting Pronouncements

 Adopted

 Improvements to Reportable Segment Disclosures

 In the fourth quarter of 2024, the Company adopted the annual
and interim disclosure requirements of ASU 2023-07, "Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures"
issued by the FASB in November 2023. The amendments expand a public business entity's segment disclosures by requiring disclosure of significant
segment expenses that are regularly provided to the chief operating decision maker ("CODM"), clarifying when an entity may
report one or more additional measures to assess segment performance, requiring enhanced interim disclosures, providing new disclosure
requirements for entities with a single reportable segment, and requiring other new disclosures. See Item II, Part 8, Note 21 "Segment
Information" section of this Annual Report for applicable disclosures required by this guidance.

 Measurement of Credit Losses on Financial Instruments

 In December 2022, the Company adopted amended guidance from
the FASB that applies a new credit loss model (current expected credit losses or "CECL") for determining credit-related impairments
for financial instruments measured at amortized cost and requires an entity to estimate the credit losses expected over the life of an
exposure or pool of exposures. The expected credit losses, and subsequent adjustments to such losses, are recorded through an allowance
account that is deducted from the amortized cost basis of the financial asset, with the net carrying value of the financial asset presented
on the Consolidated Balance Sheet at the amount expected to be collected. The updated guidance also amended the previous other-than-temporary
impairment model for available-for-sale fixed income securities by requiring the recognition of impairments relating to credit losses
through an allowance account and limiting the amount of credit loss to the difference between a security's amortized cost basis
and its fair value. In addition, the length of time a security has been in an unrealized loss position no longer impacts the determination
of whether a credit loss exists.

 The Company adopted the updated guidance for the year ended
December 31, 2022. The adoption of this guidance resulted in an allowance for expected credit losses of $ 425 for premiums and agents'
balances receivable in the Consolidated Balance Sheet as of December 31, 2022. Based on the results of the receivable analyses and management's
review of our available-for-sale fixed income securities, it was determined that no allowance was required for reinsurance recoverables
or available-for-sale fixed income

 securities in the Consolidated Balance Sheet as of December 31, 2022. See Item II, Part 8, Note 4 "Investments"
section of this Annual Report for applicable disclosures required by this guidance.

 Leases

 Effective for the year ended December 31, 2022, the Company
adopted the updated guidance for leases and elected to utilize a cumulative-effect adjustment to the opening balance of retained earnings
for the year of adoption, if necessary. Accordingly, the Company's reporting for the comparative periods prior to adoption continue
to be presented in the consolidated financial statements in accordance with previous lease accounting guidance. The Company also elected
to apply all practical expedients applicable to the Company in the updated guidance for transition for leases in effect at adoption, including
using hindsight to determine the lease term of existing leases, the option to not reassess whether an existing contract is a lease or
contains a lease, and whether the lease is an operating or finance lease. The adoption of the updated guidance resulted in the Company
recognizing a right-of-use asset of $ 1,637 as part of other assets, a lease liability of $ 1,837 as part of accrued expenses and other
liabilities, and an elimination of the $ 200 deferred rent liability in the Consolidated Balance Sheet as of December 31, 2022. The cumulative
effect adjustment to the opening balance of retained earnings was zero. The adoption of the updated guidance did not affect the Company's
results of operations or cash flows. See Item II, Part 8, Note 15 "Leases" section of this Annual Report for applicable disclosures
required by this guidance.

 Income Taxes – Simplifying the Accounting for Income
Taxes

 In December 2022, the Company adopted amended guidance
from the FASB relating to accounting for income taxes. The modifications primarily remove or amend several exceptions contained in existing
guidance to simplify income tax matters. The adoption of this guidance did not materially impact the Company's financial position,
results of operations, or cash flows.

 Not Yet Adopted

 Improvements to Income Tax Disclosures

 In December 2023, the FASB issued ASU 2023-09, "Income
Taxes (Topic 740): Improvements to Income Tax Disclosures." This guidance requires that an entity, on an annual basis, disclose
additional income tax information, primarily related to the rate reconciliation and income taxes paid. The guidance is intended to enhance
the transparency and decision usefulness of income tax disclosures. The amendments in this update are effective for annual periods beginning
after December 15, 2024. We are currently evaluating the impact of the new standard on our consolidated financial statements, which is
expected to result in enhanced disclosures.

 Disaggregation of Income Statement Expenses

 In November 2024, the FASB issued ASU 2024-03, "Income Statement
- Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses."
This guidance is intended to improve disclosures about a public business entity's expenses and address requests from investors for more
detailed information about the types of expenses in commonly presented expense captions. Such information should allow investors to better
understand an entity's performance, assess future cash flows, and compare performance over time and with other entities. The amendments
will require public business entities to disclose in the notes to the financial statements, at each interim and annual reporting period,
specific information about certain costs and expenses, including purchases of inventory, employee compensation, depreciation, and intangible
asset amortization included in each expense caption presented on the face of the statement of operations, and the total amount of an entity's
selling expenses. The amendments are effective for annual reporting periods beginning after December 15, 2026, and interim reporting periods
beginning after December 15, 2027, and may be applied either prospectively or retrospectively. Early adoption is permitted. The Company
is currently evaluating the impact of adopting this guidance on the consolidated financial statements.

 3. Summary
of Significant Accounting Policies and Basis of Presentation

 Basis of Consolidation
 Our consolidated financial statements, which we
have prepared in accordance with GAAP, include our accounts and those of our wholly-owned subsidiaries, including Battle Creek, which
was consolidated as a variable interest entity ("VIE") with an associated non-controlling interest prior to January 2, 2024.
We have eliminated all significant intercompany accounts and transactions in consolidation.

 Use of Estimates
 In preparing our consolidated financial statements,
management makes estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the balance sheet,
and revenues and expenses for the periods then ended. Actual results could differ significantly from those estimates.
 We make estimates and assumptions that can have
a significant effect on amounts and disclosures we report in our consolidated financial statements. The most significant estimates relate
to our reserves for unpaid losses and loss adjustment expenses, earned premiums for crop insurance, valuation of investments, determination
of credit impairments, valuation allowances for deferred income tax assets, deferred policy acquisition costs, as well as valuation and
impairments of goodwill and other intangible assets. While we believe our estimates are appropriate, the ultimate amounts may differ from
the estimates provided. We regularly review our methods for making these estimates as well as the continued appropriateness of the estimated
amounts, and we reflect any adjustment we consider necessary in our current results of operations.
 Variable-Interest Entities
 Any company deemed to be a VIE is required to
be consolidated by the primary beneficiary of the VIE.
 We assess our investments in other entities at
inception to determine if any meet the qualifications of a VIE. We consider an investment in another company to be a VIE if: (a) the total
equity investment at risk is not sufficient to permit the entity to finance its activities without additional subordinated financial support,
(b) the characteristics of a controlling financial interest are missing (either the ability to make decisions through voting or other
rights, the obligation to absorb expected losses of the entity, or the right to receive the expected residual returns of the entity),
or (c) the voting rights of the equity holders are not proportional to their obligations to absorb the expected losses of the entity and/or
the rights to receive the expected residual returns of the entity, and substantially all of the entity's activities either involve
or are conducted on behalf of an investor that has disproportionately few voting rights. Upon the occurrence of certain events, we would
reassess our initial determination of whether the investment is a VIE.
 We evaluate whether we are the primary beneficiary
of each VIE and we consolidate the VIE if we have both (1) the power to direct the economically significant activities of the entity and
(2) the obligation to absorb losses of, or the right to receive benefits from, the entity. We consider the contractual agreements that
define the ownership structure, distribution of profits and losses, risks, responsibilities, indebtedness, voting rights, and board representation
of the respective parties in determining whether we qualify as the primary beneficiary. Our assessment of whether we are the primary beneficiary
of a VIE is performed at least annually.
 Cash and Cash Equivalents
 Cash and cash equivalents include cash, money
market accounts, and certain investments in highly liquid debt instruments. Cost approximates fair value for these short-term investments.
 Investments
 The Company's fixed income securities and equity securities
are classified as available-for-sale and carried at estimated fair value as determined by management based upon quoted market prices or
a recognized independent pricing service at the reporting date for those or similar investments. Changes in unrealized investment gains
or losses on the fixed income securities, net of applicable income taxes, are reflected directly in shareholders' equity as a component
of other comprehensive income (loss) and, accordingly, have no effect on net income (loss). Changes in unrealized investment gains or
losses on equity securities are reported in net income (loss). Investment income from fixed income securities is recognized when earned,
and realized investment gains (losses) are recognized when investments are sold, the fair value of equity securities change, or credit
impairments are recognized.
 Fair values are based on quoted market prices or independent pricing
services, if available. If a quoted market price is not available, fair value is estimated using quoted market prices for similar securities.
Amortization of premium and accretion of discount are computed using the effective interest method. Net investment income includes interest
and dividend income together with amortization of purchase premiums and discounts and is net of investment management and custody fees.
Realized gains and losses on investments are determined using the specific identification method and are included in net investment gains
(losses), along with the change in unrealized gains and losses on equity securities. Other invested assets that do not have observable
inputs and little or no market activity are carried on a cost basis, which approximates fair value. The carrying value of these other
invested assets was $ 1,812 at December 31, 2024 and $ 2,006 at December 31, 2023.
 Beginning on December 31, 2022, credit losses are recognized through
an allowance account. See Part II, Item 8, Note 2 "Recent Accounting Pronouncements" for additional information. We, along
with our investment advisors, frequently review our investment portfolio for declines in fair value that could be indicative of credit
losses. The available-for-sale impairment model requires an

 estimate of expected credit losses only when the fair value of the available-for-sale
fixed income security is below its amortized cost basis. The Company considers a number of factors when determining if an allowance for
credit losses is necessary including payment and default history, credit spreads, credit ratings and rating actions, and probability of
default. The Company determines the credit loss component of fixed income securities by utilizing discounted cash flow modeling to determine
the present value of the security and comparing the present value with the amortized cost of the security. If the amortized cost is greater
than the present value of the expected cash flows, the difference is considered a credit loss and recognized as an impairment loss in
net realized investment gains (losses). Credit impairments are recognized as an allowance on the Consolidated Balance Sheet with a corresponding
adjustment to earnings.
 For fixed income securities that the Company does not intend to
sell or for which it is more likely than not that the Company would not be required to sell before an anticipated recovery in value, the
Company separates the credit loss component of the impairment from the amount related to all other factors and reports the credit loss
component in net realized investment gains (losses). The impairment related to all other factors (non-credit factors) is reported in other
comprehensive income. The allowance is adjusted for any additional credit losses and subsequent recoveries. Upon recognizing a credit
loss, the cost basis is not adjusted.
 For fixed income securities that the Company intends to sell or
for which it is more likely than not that the Company will be required to sell before an anticipated recovery in value, the full amount
of the impairment is included in net investment gains (losses). The new cost basis of the investment is the previous amortized cost basis
less the impairment recognized in net investment gains (losses). The new cost basis is not adjusted for any subsequent recoveries in fair
value.
 The Company reports investment income accrued separately from fixed
income investments, available for sale, and has elected not to measure an allowance for credit losses for investment income accrued. Investment
income accrued is written off through net realized investment gains (losses) at the time the issuer of the bond defaults or is expected
to default on payments.
 For more information on investment valuation measurements, see Part
II, Item 8, Note 5 "Fair Value Measurements."
 Revenue Recognition
 We record premiums written at policy inception and recognize them
as revenue on a pro rata basis over the policy term or, in the case of crop insurance, over the period of risk. The portion of premiums
that could be earned in the future is deferred and reported as unearned premiums. When policies lapse, the Company reverses the unearned
portion of the written premium and removes the applicable unearned premium. Policy-related fee income is recognized when collected.
 The period of risk for our crop insurance program, which is comprised
of primarily spring-planted crops, typically runs from April 1 (the approximate time when farmers can begin to work their fields) through
December 15 (last date claims can be made for the most recent planting season).
 Premiums and Agents' Balances
Receivable
 Premiums and agents' balances receivable include both direct
and agent billed premiums as well as crop notes receivable related to the multi-peril crop and crop hail insurance.
 Accounts billed directly to the policyholder are provided grace
payment and cancellation notice periods per state insurance regulations.
 Direct Auto also provides for agency billing for a portion of their
agents. Accounts billed to agents are due within 60 days of the statement date. The agent is responsible for all past due balances. As
part of its agent appointment, Direct Auto requires a personal guarantee for all balances due to Direct Auto from the principal of the
contracted agency.
 Beginning on December 31, 2022, the premium and agents' receivable
balances are reported net of an allowance for expected credit losses. See Part II, Item 8, Note 2 "Recent Accounting Pronouncements"
for additional information. We recognized $ 425 of credit losses for these receivables at the time of adoption of CECL. Therefore, there
was no beginning balance of credit losses as of January 1, 2022, and all 2022 activity was the result of adoption. As a result of the
transition from the previous accounting treatment, we did not record a cumulative effect adjustment to retained earnings at the time of
adoption. Given the nature of these receivables, the Company has elected to use a loss-rate method to determine the expected credit losses.
The allowance is based upon the Company's ongoing review of amounts outstanding and write-offs. Management may also evaluate current
economic conditions and reasonable/supportable forecasts to adjust this calculation as deemed necessary.

 Policy Acquisition Costs
 We defer our policy acquisition costs, consisting
primarily of commissions, premium taxes, and certain other underwriting costs, reduced by ceding commissions, which vary with and relate
directly to the production of business. We amortize these deferred policy acquisition costs over the period in which we earn the premiums.
The method we follow in computing deferred policy acquisition costs limits the amount of such deferred costs to their estimated realizable
value, which gives effect to the premium to be earned, related investment income, losses and loss adjustment expenses, and certain other
costs we expect to incur as we earn the premium.
 Property and Equipment
 We report property and equipment at cost less
accumulated depreciation. Depreciation is typically computed using the straight-line method based upon estimated useful lives of the assets.
 Losses and Loss Adjustment Expenses
 Liabilities for unpaid losses and loss adjustment expenses are estimates
at a given point in time of the amounts we expect to pay with respect to policyholder claims based on facts and circumstances then known.
At the time of establishing our estimates, we recognize that our ultimate liability for losses and loss adjustment expenses may differ
from these estimates. We base our estimates of liabilities for unpaid losses and loss adjustment expenses on assumptions as to future
loss trends, expected claims severity, judicial theories of liability, and other factors. During the loss adjustment period, we may learn
additional facts regarding certain claims, and, consequently, it often becomes necessary for us to refine and adjust our estimates of
the liability. We reflect any adjustments to our liabilities for unpaid losses and loss adjustment expenses in our operating results in
the period in which we determine the need for a change in the estimates.
 We maintain liabilities for unpaid losses and loss adjustment expenses
with respect to both reported and unreported claims. We establish these liabilities for the purpose of covering the ultimate costs of
settling all losses incurred through the reporting date, including investigation and litigation costs. We base the amount of our liability
for reported losses primarily upon a case-by-case evaluation of the type of risk involved, knowledge of the circumstances surrounding
each claim, and the insurance policy provisions relating to the type of loss our policyholder incurred. We determine the amount of our
liability for unreported losses and loss adjustment expenses on the basis of historical information by line of insurance. Inflation is
not explicitly selected in the loss reserve analysis. However, historical inflation is embedded in the estimated loss development factors.
We closely monitor our liabilities and update them periodically using new information on reported claims and a variety of statistical
techniques. We do not discount our liabilities for unpaid losses and loss adjustment expenses.
 Reserve estimates can change over time because of unexpected changes
in assumptions related to our external environment and, to a lesser extent, assumptions as to our internal operations. Assumptions related
to our external environment include the potential impact of significant changes in tort law and the legal environment which may impact
liability exposure, the trends in judicial interpretations of insurance coverage and policy provisions, and the rate of loss cost inflation.
Internal assumptions include consistency in the recording of premium and loss data, consistency in the recording of claims, payment and
case reserving methodologies, accurate measurement of the impact of rate changes and changes in policy provisions, consistency in the
quality and characteristics of business written within a given line of business, and consistency in reinsurance coverage and collectability
of reinsured losses, among other items. To the extent we determine that underlying factors impacting our assumptions have changed, we
attempt to make appropriate adjustments for such changes in our reserves. Accordingly, our ultimate liability for unpaid losses and loss
adjustment expenses will likely differ from the amount recorded.
 Income Taxes
 Insurance companies typically pay state premium taxes rather than
state income taxes. However, Direct Auto is subject to state income taxes in the state of Illinois, in addition to state premium taxes.
Additionally, NI Holdings, on a stand-alone basis, pays state income taxes to the state of North Dakota for income or losses generated
as a separate financial entity. State premium taxes are included as a part of amortization of deferred policy acquisition costs. State
income taxes are reported along with federal income taxes as income tax expense (benefit).
 The Company did not have any material uncertain tax positions as
of December 31, 2024 and 2023. The Company's policy is to recognize tax-related interest and penalties accrued related to unrecognized
benefits as a component of income tax expense. The Company did not recognize any tax-related interest and penalties, nor did it have any
tax-related interest or penalties accrued as of December 31, 2024 and 2023.
 We account for deferred income taxes using the asset and liability
method. The objective of the asset and liability method is to establish deferred income tax assets and liabilities for the temporary differences
between the financial reporting basis and the income

 tax basis of our assets and liabilities at enacted tax rates expected to be in effect
when we realize or settle such amounts.
 We re-measure existing deferred income tax assets (including loss
carryforwards) and liabilities when a change in tax rate occurs and record an offset for the net amount of the change as a component of
income tax expense from continuing operations in the period of enactment. We also record any change to a previously recorded valuation
allowance as a result of re-measuring existing temporary differences and loss carryforwards as a component of income tax expense from
continuing operations.
 The Company has elected to reclassify any tax effects stranded in
accumulated other comprehensive income as a result of a change in income tax rates to retained earnings.
 Earnings Per Share
 Earnings per share are computed by dividing net income available
to common shareholders for the period by the weighted average number of common shares outstanding for the same period. Unearned shares
related to the Company's ESOP are not considered outstanding until they are released and allocated to plan participants. Unearned
shares related to the Company's Restricted Stock Units ("RSUs") and Performance Share Units ("PSUs") are
not considered outstanding until they are earned by award participants. See Part II, Item 8, Note 12 "Benefit Plans" and Note
18 "Share-Based Compensation."
 Credit Risk
 Our primary investment objective is to earn competitive
returns by investing in a diversified portfolio of securities. Our portfolio of fixed income securities and, to a lesser extent, short-term
investments, is subject to credit risk. We define this risk as the potential loss in fair value resulting from adverse changes in the
borrower's ability to repay the debt. We manage this risk by performing an analysis of prospective investments and through regular
reviews of our portfolio by our management team and investment advisors. We also limit the amount of our total investment portfolio that
we invest in any one security.
 Property and liability insurance coverages are
marketed through captive agents in North Dakota and through independent insurance agencies located throughout all other operating areas.
All business, except for the majority of Direct Auto's business, is billed directly to the policyholders.
 We maintain cash balances primarily at one bank,
which are insured by the Federal Deposit Insurance Corporation ("FDIC") up to $ 250. During the normal course of business,
balances are maintained above the FDIC insurance limit. The Company maintains short-term investment balances in investment grade money
market accounts that are insured by the Securities Investor Protection Corporation ("SIPC") up to $ 500. During the normal
course of business, balances for these accounts are often maintained in excess of the SIPC insurance limit.
 Reinsurance
 The Company limits the maximum net loss that can
arise from large risks or risks in concentrated areas of exposure by reinsuring (ceding) certain levels of risks to reinsurers, either
on an automatic basis under general reinsurance contracts known as treaties or through facultative contracts placed on substantial individual
risks. Ceded reinsurance is treated as the risk and liability of the assuming companies.
 The ceding of insurance does not legally discharge
us from primary liability under our policies, and we must pay the loss if the reinsurer fails to meet its obligation.
 Amounts recoverable from reinsurers are estimated
in a manner consistent with the associated claim liability. Beginning on December 31, 2022, credit losses are recognized through an allowance
account developed using the CECL model. See Part II, Item 8, Note 2 "Recent Accounting Pronouncements" for additional information.
The allowance is based upon the Company's ongoing review of amounts outstanding, length of collection periods, changes in reinsurer
credit standing, disputes, applicable coverage defenses and other relevant factors. Management has concluded that it is not necessary
to record an allowance for expected credit losses related to reinsurance recoverables. All of our significant reinsurance partners are
rated "A-" (Excellent) or better by AM Best, and there is no history of write-offs.
 Goodwill and Other Intangibles
 Goodwill assets arise from business combinations and consist of
the excess of the fair value of consideration paid over the tangible and intangible assets acquired and liabilities assumed. We evaluate
goodwill and other intangible assets for impairment on an annual basis or more frequently if events or changes in circumstances indicate
that it is more likely than not that the carrying amount of goodwill and other intangible assets may exceed their fair value.

 When performing our goodwill impairment analyses, we typically first
assess qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying
amount. In making our assessment, we evaluate a number of factors including operating results, key changes in the reporting unit, business
plans, macroeconomic conditions, and industry considerations. Inherent uncertainties exist with respect to these factors and to our judgment
in applying them when we make our assessment, and impairment of goodwill and other intangibles could result from changes in economic and
operating conditions in future periods. We may also choose to bypass the qualitative assessment in any period for any reporting unit and
proceed directly to performing the quantitative assessment.
 If our qualitative assessment indicates it is more likely than not that
the fair value of a reporting unit is less than its carrying amount or we choose to bypass the qualitative assessment, we will perform
a quantitative assessment that compares the reporting unit's carrying value with its estimated fair value. The determination of
the fair value of our reporting units is based a market approach that considers benchmark company market multiples, an income approach
that utilizes discounted cash flows, or another generally accepted method. The cash flows used to determine fair value are dependent on
a number of significant management assumptions such as our expectations of future performance and the expected future economic environment,
which are partly based upon our historical experience. Our estimates are subject to change given the inherent uncertainty in predicting
future results. While we believe such assumptions and estimates are reasonable, the actual results may differ materially from the projected
amounts. Should the carrying value exceed the estimated fair value, a goodwill impairment charge will be recognized in the amount by which
the reporting unit's carrying amount exceeds its fair value, not to exceed the total goodwill assigned to the reporting unit.
 For the goodwill arising from the acquisition of Primero in 2014,
we determined that it was appropriate to perform a quantitative assessment during the fourth quarter of 2024. Based on our quantitative
assessment as described above, we concluded that the goodwill related to Primero was fully impaired as of December 31, 2024, primarily
due to Primero's expected future performance being well below initial projections and expectations as a result of strategic initiatives.
We did not record any impairments of goodwill for this reporting unit during the years ended December 31, 2023 or 2022.
 For the goodwill arising from the acquisition of Westminster in
2020, we determined that it was appropriate to perform a quantitative assessment during the fourth quarter of 2023. Based on our quantitative
assessment as described above, we concluded that the goodwill related to Westminster was fully impaired as of December 31, 2023, primarily
due to Westminster's actual and expected future performance being well below initial projections and expectations. We did not record
any impairments of goodwill for this reporting unit during the year ended December 31, 2022.
 Intangible assets arising from the acquisition of Direct Auto in
2018 represent the estimated fair values of certain intangible assets, including a favorable lease contract, a state insurance license,
the value of the Direct Auto trade name, and the value of business acquired ("VOBA"). The state insurance license asset has
an indefinite life, while the Direct Auto trade name was amortized over five years from the August 31, 2018 acquisition/valuation date.
The favorable lease contract and VOBA assets have been fully amortized. We did not record any impairments of the intangible assets for
this reporting unit during the years ended December 31, 2024, 2023 or 2022.
 Other intangible assets arising from the acquisition of Westminster
represented the estimated fair values of certain intangible assets, including state insurance licenses, the value of Westminster's
distribution network, the value of the Westminster trade name, and the VOBA. The state insurance license asset had an indefinite life,
while the distribution networks asset and Westminster trade name were being amortized over twenty years and ten years, respectively, from
the January 1, 2020 acquisition/valuation date until the date of sale on June 30, 2024. The VOBA asset had been fully amortized at the
date of the sale of Westminster. We did not record any impairments of the other intangible assets for this reporting unit during the years
ended December 31, 2023 or 2022.
 Discontinued Operations
 On May 7, 2024, NI Holdings entered into a Stock
Purchase Agreement ("Purchase Agreement") to sell its subsidiary, Westminster, to Scott Insurance Holdings, a privately owned
Maryland limited liability company. Scott Insurance Holdings is affiliated with John Scott, Sr., the father of the president of Westminster,
John Scott, Jr. The sale closed on June 30, 2024. The Purchase Agreement included a cash purchase price of $ 10,500, subject to certain
post-closing adjustments, including a post-closing payment to NI Holdings for the amount by which the ending statutory surplus balance
for Westminster exceeded $ 20,000. The post-closing payment received from Scott Insurance Holdings during the third quarter of 2024 was
$ 1,772 and has been included as an adjustment to the purchase price for the calculation of the loss on the sale of Westminster. The sale
of Westminster, which represented the majority of our Commercial segment in prior periods, was a strategic shift that has had a major
effect on our operations and financial results. Therefore, Westminster has been reported as discontinued operations in the Consolidated
Balance Sheets, Consolidated Statements of Operations, and Consolidated Statements of Cash Flows for all periods presented in this 2024
Annual Report. All current and prior periods reflected in this 2024 Annual Report have been presented as continuing and discontinued operations,
unless otherwise noted. For additional information see Part II, Item 8, Note 20 "Discontinued Operations" of this 2024 Annual
Report.

 Restatement
 NI Holdings filed Amendment No. 1 to our Quarterly Report on Form
10-Q/A to amend certain information included in the Company's Quarterly Report on Form 10-Q for the three- and six-month periods ended
June 30, 2024, which was filed with the SEC on August 8, 2024, due to errors resulting from the incorrect accounting for, and presentation
of, the previously announced sale of Westminster. Specifically, the Company failed to record certain receivables on Westminster's
closing balance sheet as well as the corresponding payable for Nodak Insurance for amounts owed to Westminster related to the final settlement
of the intercompany reinsurance pooling agreement after the date of sale. Failure to include this receivable in Westminster's closing
net assets and liabilities also caused an understatement of the loss on sale of discontinued operations, which also understated the Company's
total net loss. The impact of the corrections related to this error on the consolidated financial statements as of and for the three-
and six-month periods ended June 30, 2024, are as follows:
 Consolidated Balance Sheets (Unaudited)

 As of June 30, 2024

 As Restated

 $
 24,368

 $
 3,386

 $
 27,754

 Total liabilities

 $
 331,537

 $
 3,386

 $
 334,923

 Retained earnings

 $
 197,827

 $
)

 $
 194,441

 Total shareholders' equity

 $
 239,450

 $
)

 $
 236,064

 Consolidated Statements of Operations (Unaudited)

 Three Months Ended June 30, 2024

 Six Months Ended June 30, 2024

 As

 As

 Loss on sale of discontinued operations, net of taxes

 $
 ( 7,762
)

 $
)

 $
 ( 11,148
)

 $
 ( 7,762
)

 $
)

 $
 ( 11,148
)

 $
 ( 16,236
)

 $
)

 $
 ( 19,622
)

 $
 ( 9,817
)

 $
)

 $
 ( 13,203
)

 Loss per common share:

 Basic

 $
 ( 0.77
)

 $
 ( 0.17
)

 $
 ( 0.94
)

 $
 ( 0.47
)

 $
 ( 0.16
)

 $
 ( 0.63
)

 Diluted

 $
 ( 0.77
)

 $
 ( 0.17
)

 $
 ( 0.94
)

 $
 ( 0.47
)

 $
 ( 0.16
)

 $
 ( 0.63
)

 Consolidated Statements of Comprehensive Income (Loss) (Unaudited)

 Three Months Ended June 30, 2024

 Six Months Ended June 30, 2024

 As

 As

 $
 ( 16,236
)

 $
)

 $
 ( 19,622
)

 $
 ( 9,817
)

 $
)

 $
 ( 13,203
)

 Comprehensive loss

 $
 ( 16,950
)

 $
)

 $
 ( 20,336
)

 $
 ( 11,931
)

 $
)

 $
 ( 15,317
)

 Consolidated Statements of Changes in Shareholders' Equity
(Unaudited)

 As of and for the Three Months Ended
 June 30, 2024

 As of and for the Six Months

Ended June 30, 2024

 As

 As

 $
 ( 16,236
)

 $
)

 $
 ( 19,622
)

 $
 ( 9,817
)

 $
)

 $
 ( 13,203
)

 Retained earnings

 $
 197,827

 $
)

 $
 194,441

 $
 197,827

 $
)

 $
 194,441

 Total shareholders' equity

 $
 239,450

 $
)

 $
 236,064

 $
 239,450

 $
)

 $
 236,064

 Consolidated Statements of Cash Flows (Unaudited)

 Six Months Ended June 30, 2024

 As Restated

 $
 ( 9,817
)

 $
)

 $
 ( 13,203
)

 Net cash flows from operating activities – loss on sale of discontinued operations

 $
 15,865

 $
 3,386

 $
 19,251

 Total adjustments

 $
 43,065

 $
 3,386

 $
 46,451

 The notes to the consolidated financial statements as well as Management's
Discussion and Analysis of Financial Condition and Results of Operations were also amended as necessary as a result of the restatements
outlined above.

 4. Investments

 The amortized cost and estimated fair value of fixed income
securities, presented on a consolidated basis, including both continuing and discontinued operations, as of December 31, 2024, and December
31, 2023, were as follows:

 Cost or

 Amortized

Cost

 Expected

Credit Losses

 Gross

Gains

 Gross

 $
 12,601

 $
 —

 $

 $
 ( 335
)

 $
 12,274

 48,559

 —

 ( 4,920
)

 43,823

 123,585

 —

 ( 7,517
)

 116,274

 53,714

 —

 ( 4,981
)

 48,777

 30,062

 —

 ( 2,943
)

 27,184

 59,046

 —

 ( 3,301
)

 56,131

 3,737

 —

 —

 ( 488
)

 3,249

 $
 331,304

 $
 —

 $

 $
)

 $

 Cost or

Amortized

 Cost

 Expected

Credit Losses

 Gross

Gains

 Gross

 $
 10,998

 $
 —

 $
 —

 $
 ( 736
)

 $
 10,262

 55,769

 —

 ( 4,716
)

 51,461

 152,630

 —

 ( 10,856
)

 142,216

 66,362

 —

 ( 5,379
)

 61,163

 33,532

 —

 ( 4,241
)

 29,439

 52,692

 —

 ( 3,805
)

 49,029

 4,747

 —

 —

 ( 586
)

 4,161

 $
 376,730

 $
 —

 $
 1,320

 $
 ( 30,319
)

 $

 The reconciliation of the amortized cost and estimated fair value
of fixed income securities for continuing and discontinued operations as of December 31, 2024, and December 31, 2023, were as follows:

 Cost or

 Amortized

Cost

Expected

 Credit Losses

 Gross

Gains

 Gross

 $
 331,304

 $
 —

 $

 $
)

 $

 —

 —

 —

 —

 —

 $
 331,304

 $
 —

 $

 $
)

 $

 Cost or

Amortized

 Cost

 Expected

Credit Losses

 Gross

Gains

 Gross

 $
 313,182

 $
 —

 $
 1,116

 $
 ( 24,899
)

 $
 289,399

 63,548

 —

 ( 5,420
)

 58,332

 $
 376,730

 $
 —

 $
 1,320

 $
 ( 30,319
)

 $

 The amortized cost and estimated fair value of fixed income
securities by contractual maturity, presented on a consolidated basis, including both continuing and discontinued operations, are shown
below. Actual maturities could differ from contractual maturities because issuers may have the right to call or prepay these securities.

 Amortized Cost

 Due to mature:

 One year or less

 $
 5,750

 $
 5,696

 After one year through five years

 57,986

 55,882

 After five years through ten years

 79,544

 74,070

 After ten years

 41,465

 36,723

 Mortgage / asset-backed securities

 142,822

 132,092

 3,737

 3,249

 $
 331,304

 $

 Amortized Cost

 Due to mature:

 One year or less

 $
 9,612

 $
 9,436

 After one year through five years

 75,794

 72,602

 After five years through ten years

 86,185

 79,281

 After ten years

 47,806

 42,620

 Mortgage / asset-backed securities

 152,586

 139,631

 4,747

 4,161

 $
 376,730

 $

 Fixed income securities with a fair value of $ 5,634 at December 31,
2024, and $ 6,403 at December 31, 2023, were deposited with various state regulatory agencies as required by law. The Company has not pledged
any assets to secure any obligations.

 The investment category and duration of the Company's
gross unrealized losses on fixed income securities, presented on a consolidated basis, including both continuing and discontinued operations,
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.

 Less than 12 Months

 Greater than 12 months

 Total

 Fair
 Value

 Fair
 Value

 Fair
 Value

 $
 5,443

 $
 ( 109
)

 $
 4,177

 $
 ( 226
)

 $
 9,620

 $
 ( 335
)

 8,465

 ( 143
)

 29,428

 ( 4,777
)

 37,893

 ( 4,920
)

 25,790

 ( 481
)

 76,364

 ( 7,036
)

 102,154

 ( 7,517
)

 20,827

 ( 451
)

 23,159

 ( 4,530
)

 43,986

 ( 4,981
)

 1,409

 ( 50
)

 19,442

 ( 2,893
)

 20,851

 ( 2,943
)

 10,926

 ( 122
)

 20,579

 ( 3,179
)

 31,505

 ( 3,301
)

 —

 —

 3,249

 ( 488
)

 3,249

 ( 488
)

 $
 72,860

 $
 ( 1,356
)

 $
 176,398

 $
 ( 23,129
)

 $
 249,258

 $
)

 Less than 12 Months

 Greater than 12 months

 Total

 Fair
 Value

 Fair
 Value

 Fair
 Value

 $
 —

 $
 —

 $
 9,018

 $
 ( 736
)

 $
 9,018

 $
 ( 736
)

 5,239

 ( 359
)

 36,194

 ( 4,357
)

 41,433

 ( 4,716
)

 8,018

 ( 93
)

 110,117

 ( 10,763
)

 118,135

 ( 10,856
)

 12,054

 ( 104
)

 33,341

 ( 5,275
)

 45,395

 ( 5,379
)

 2,678

 ( 5
)

 23,713

 ( 4,236
)

 26,391

 ( 4,241
)

 4,463

 ( 18
)

 30,200

 ( 3,787
)

 34,663

 ( 3,805
)

 —

 —

 4,161

 ( 586
)

 4,161

 ( 586
)

 $
 32,452

 $
 ( 579
)

 $
 246,744

 $
 ( 29,740
)

 $
 279,196

 $
 ( 30,319
)

 The reconciliation for continuing and discontinued operations
by duration of the Company's gross unrealized losses on fixed income securities are shown below.

 Less than 12 Months

 Greater than 12 months

 Total

 Fair
 Value

 Fair
 Value

 Fair
 Value

 $
 72,860

 $
 ( 1,356
)

 $
 176,398

 $
 ( 23,129
)

 $
 249,258

 $
)

 —

 —

 —

 —

 —

 —

 $
 72,860

 $
 ( 1,356
)

 $
 176,398

 $
 ( 23,129
)

 $
 249,258

 $
)

 Less than 12 Months

 Greater than 12 months

 Total

 Fair
 Value

 Fair
 Value

 Fair
 Value

 $
 24,049

 $
 ( 509
)

 $
 211,367

 $
 ( 24,390
)

 $
 235,416

 $
 ( 24,899
)

 8,403

 ( 70
)

 35,377

 ( 5,350
)

 43,780

 ( 5,420
)

 $
 32,452

 $
 ( 579
)

 $
 246,744

 $
 ( 29,740
)

 $
 279,196

 $
 ( 30,319
)

 We, along with our investment advisor, frequently
review our investment portfolio for declines in fair value that could be indicative of credit losses. Beginning on December 31, 2022,
credit losses are recognized through an allowance account. We consider a number of factors when determining if an allowance for credit
losses is necessary, including payment and default history, credit spreads, credit ratings and rating actions, and probability of default.
We determine the credit loss component of fixed income investments by utilizing discounted cash flow modeling to determine the present
value of the security and comparing the present value with the amortized cost of the security. We did not recognize any credit losses
for fixed income securities at the time of adoption of the new credit loss accounting standard and have not recognized any credit losses
for fixed income securities since adoption of the credit loss standard. Therefore, there were no beginning or ending balances of credit
losses during the years ended December 31, 2024 or 2023. See Item II, Part 8, Note 3 "Summary of Significant Accounting Policies
and Basis of Presentation" section for additional information.

 Net investment income for continuing and discontinued operations
consisted of the following:

 2024

 2023

 2022

 Continuing operations:

 Fixed income securities

 $
 11,401

 $
 9,418

 $
 8,216

 Equity securities

 1,260

 Real estate

 1,699

 Total gross investment income

 14,359

 11,139

 9,883

 Investment expenses

 3,416

 3,105

 3,247

 Net investment income – continuing operations

 8,034

 6,636

 Net investment income – discontinued operations

 1,419

 2,422

 1,184

 $
 12,362

 $
 10,456

 $
 7,820

 Net investment gains (losses) for continuing and discontinued operations
consisted of the following:

 2024

 2023

 2022

 Continuing Operations:

 Gross realized gains:

 Fixed income securities

 $

 $

 $

 Equity securities

 1,329

 13,840

 6,967

 Total gross realized gains

 1,341

 13,841

 7,083

 Gross realized losses, excluding credit impairment losses:

 Fixed income securities

 ( 211
)

 ( 524
)

 ( 183
)

 Equity securities

 ( 579
)

 ( 1,221
)

 ( 4,916
)

 Total gross realized losses, excluding credit impairment losses

 ( 790
)

 ( 1,745
)

 ( 5,099
)

 Net realized gains

 12,096

 1,984

 Change in net unrealized gains on equity securities

 1,662

 ( 10,167
)

 ( 13,959
)

 Net investment gains (losses) – continuing operations

 2,213

 1,929

 ( 11,975
)

 Net investment gains (losses) – discontinued operations

 ( 1,151
)

 $
 2,329

 $
 2,124

 $
 ( 13,126
)

 5. Fair
Value Measurements

 The Company uses fair value measurements to record fair value
adjustments to certain assets 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 1:

 Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities.

 Level 2:

 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 2 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 3:

 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 consolidated 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 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
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.

 Should the independent pricing service be unable to provide
a fair value estimate, we would first attempt to obtain a fair value estimate from our third-party investment advisor who utilizes different
independent pricing services. If unsuccessful, 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 the Company 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 3 investment.

 The fair value estimates of our 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.

 Management reviews the reasonableness of the pricing provided
by the independent pricing service by employing various analytical procedures. We also use information from our third-party investment
advisor who utilizes different independent pricing services to further validate the reasonableness of the valuation of our fixed income
portfolio. 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 independent pricing service. In its review, management did not identify
any such discrepancies and no adjustments were made to the estimates provided by the independent pricing service for the years ended December
31, 2024, 2023, or 2022. The classification within the fair value hierarchy is then confirmed based on the final conclusions from the
pricing review.

 The valuation of money market accounts and equity securities
are generally based on Level 1 inputs, which use the market-approach valuation technique. The valuation of certain cash equivalents and
our fixed income securities generally incorporates significant Level 2 inputs using the market and income approach techniques. We may
assign a lower level to inputs typically considered to be Level 2 based on our assessment of liquidity and relative level of uncertainty
surrounding inputs. There were no assets or liabilities classified at Level 3 at December 31, 2024, or 2023.

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

 Total

 Level 1

 Level 2

 Level 3

 $
 12,274

 $
 —

 $
 12,274

 $
 —

 43,823

 —

 43,823

 —

 116,274

 —

 116,274

 —

 48,777

 —

 48,777

 —

 27,184

 —

 27,184

 —

 56,131

 —

 56,131

 —

 Redeemable preferred stock

 3,249

 —

 3,249

 —

 —

 —

 Equity securities:

 Common stock

 —

 —

 Non-redeemable preferred stock

 —

 —

 —

 —

 Total equity securities

 —

 —

 Money market accounts and cash equivalents

 —

 —

 Total assets at fair value

 $
 343,302

 $
 35,590

 $

 $
 —

 Total

 Level 1

 Level 2

 Level 3

 $
 10,262

 $
 —

 $
 10,262

 $
 —

 51,461

 —

 51,461

 —

 142,216

 —

 142,216

 —

 61,163

 —

 61,163

 —

 29,439

 —

 29,439

 —

 49,029

 —

 49,029

 —

 4,161

 —

 4,161

 —

 —

 —

 Equity securities:

 Common stock

 25,890

 25,890

 —

 —

 Non-redeemable preferred stocks

 1,877

 1,877

 —

 —

 Total equity securities

 27,767

 27,767

 —

 —

 Money market accounts and cash equivalents

 25,596

 19,412

 6,184

 —

 Total assets at fair value

 $
 401,094

 $
 47,179

 $
 353,915

 $
 —

 The following tables are a reconciliation for both continuing
and discontinued operations of the presentation of our assets which are measured on a recurring basis by the level within the fair value
hierarchy in which fair value measurements fall:

 Total

 Level 1

 Level 2

 Level 3

 $

 $
 —

 $

 $
 —

 —

 —

 —

 —

 —

 —

 Equity securities:

 —

 —

 —

 —

 —

 —

 Total equity securities

 —

 —

 Money market accounts and cash equivalents

 —

 —

 —

 —

 —

 —

 Total money market accounts and cash equivalents

 —

 —

 Total assets at fair value

 $
 343,302

 $
 35,590

 $

 $
 —

 Total

 Level 1

 Level 2

 Level 3

 $
 289,399

 $
 —

 $
 289,399

 $
 —

 58,332

 —

 58,332

 —

 —

 —

 Equity securities:

 21,983

 21,983

 —

 —

 5,784

 5,784

 —

 —

 Total equity securities

 27,767

 27,767

 —

 —

 Money market accounts and cash equivalents

 16,239

 16,239

 —

 —

 9,357

 3,173

 6,184

 —

 Total money market accounts and cash equivalents

 25,596

 19,412

 6,184

 —

 Total assets at fair value

 $
 401,094

 $
 47,179

 $
 353,915

 $
 —

 There were no liabilities measured
at fair value on a recurring basis at December 31, 2024 or 2023.

 6. Reinsurance

 External Reinsurance

 The Company's consolidated financial statements reflect
the effects of assumed and ceded reinsurance transactions. Assumed reinsurance refers to the acceptance of certain insurance risks that
other insurance companies have underwritten. Ceded reinsurance involves transferring certain insurance risks (along with the related written
and earned premiums) the Company has underwritten to other insurance companies who agree to share these risks. The Company reinsures a
portion of the risks it underwrites, through these ceded reinsurance agreements, in order to control its exposure to losses. Our ceded
reinsurance is placed either on an automatic basis under general reinsurance contracts known as treaties or through facultative contracts
placed on substantial individual risks. These contracts do not relieve the Company from its obligations to policyholders. Treaty reinsurance
contracts are typically effective from January 1 through December 31 each year.

 During the year ended December 31, 2024, the Company
maintained property catastrophe reinsurance protection covering $ 133,000 in excess of a $ 20,000 retention. With the exception of Westminster,
a per risk excess of loss treaty provides coverage of $ 4,000 in excess of $ 1,000 for property risks and $ 11,000 in excess of $ 1,000 for
casualty risks. For Westminster, a per risk excess of loss treaty provided coverage of $ 3,000 in excess of $ 2,000 for property risks and
$ 10,000 in excess of $ 2,000 for casualty risks until July 1, 2024. Additionally, a property per-risk facultative contract is in place
to provide coverage up to $ 20,000 in excess of $ 5,000 per property. Aggregate stop loss reinsurance agreements are also in place for both
crop hail and multi-peril crop coverage. The crop hail aggregate attaches at a 100 % net loss ratio providing 50 points of cover. The multi-peril
crop aggregate attaches at a 105 % net loss ratio providing 45 points of cover. In addition to the aggregate covers, underlying multi-peril
crop reinsurance is provided through the FCIC.

 Effective July 1, 2024, the Company's reinsurance contracts
were modified to exclude any Westminster losses occurring on or after that date, while maintaining all other existing limits, retentions,
and attachment points.

 For the year ended December 31, 2023, the Company's
catastrophe retention and retention limit were consistent with those for the year ended December 31, 2024. In addition, limits, retentions,
and attachment points in our other reinsurance contracts were also consistent with those for the year ended December 31, 2024 (with the
exception of Westminster for which per risk excess of loss treaties provided coverage of $ 4,000 in excess of $ 1,000 for property risks
and $ 11,000 in excess of $ 1,000 for casualty risks).

 During the year ended December 31, 2022, the Company
maintained property catastrophe reinsurance protection covering $ 125,000 in excess of a $ 15,000 retention. Additionally, per risk excess
of loss treaties provided coverage of $ 4,000 in excess of $ 1,000 for property risks and $ 11,000 in excess of $ 1,000 for casualty risks,
with facultative contracts in place to provide coverage up to $ 20,000 in excess of $ 5,000 per property. Aggregate stop loss reinsurance
agreements were placed for both crop hail and multi-peril crop coverage. The crop hail aggregate attached at a 100 % net loss ratio providing
50 points of cover. The multi-peril crop aggregate attached at a 105 % net loss ratio providing 45 points of cover. In addition to the
aggregate covers, underlying multi-peril crop reinsurance was provided through the FCIC.

 The Company experienced multiple catastrophe events
during 2022 which resulted in reinsurance recoveries of $ 5,648 through December 31, 2024.

 For 2025, the Company's catastrophe retention
will remain consistent with 2024 at $ 20,000 and the reinsurance protection will cover $ 117,000. The lower limit for 2025 was primarily
due to the sale of Westminster, which drove the top end of the catastrophe modeling results. There were no changes made to limits, retentions,
or attachment points in our other reinsurance contracts.

 The Company actively monitors and evaluates the financial
condition of the reinsurers and develops estimates of the uncollectible amounts due from reinsurers. Beginning on December 31, 2022, credit
losses are recognized through an allowance account developed using a new CECL model. See the Part II, Item 8, Note 2 "Recent Accounting
Pronouncements" for additional information. Credit loss estimates are made based on periodic evaluation of balances due from reinsurers,
changes in reinsurer credit standing, 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 by entering into reinsurance arrangements only with reinsurers that have strong credit ratings and statutory surplus
above certain levels. At December 31, 2024 and 2023, management has concluded that it is not necessary to record an allowance for expected
credit losses related to reinsurance recoverables. All of our significant reinsurance partners are rated "A-" (Excellent)
or better by AM Best, and there is no history of write-offs.

 A reconciliation of direct to net premiums on both a written
and an earned basis, presented on a consolidated basis, including both continuing and discontinued operations, is as follows:

 2024

 2023

 2022

 Direct premium

 $
 383,933

 $
 380,968

 $
 418,399

 $
 401,945

 $
 389,706

 $
 368,886

 Assumed premium

 2,967

 2,984

 3,098

 3,570

 6,299

 6,550

 Ceded premium

 ( 43,503
)

 ( 42,786
)

 ( 54,848
)

 ( 54,378
)

 ( 46,993
)

 ( 47,146
)

 Net premiums

 $
 343,397

 $
 341,166

 $
 366,649

 $
 351,137

 $
 349,012

 $
 328,290

 The reconciliations of the Company's direct to net
premiums on both a written and an earned basis for the current year-to-date and comparable prior year-to-date amounts, segregated between
continuing and discontinued operations, are shown below.

 2024

 2023

 2022

 Continuing operations:

 Direct premium

 $
 342,301

 $
 341,885

 $
 341,234

 $
 325,590

 $
 315,095

 $
 299,607

 Assumed premium

 2,967

 2,984

 3,098

 3,570

 6,299

 6,550

 Ceded premium

 ( 34,760
)

 ( 34,759
)

 ( 37,043
)

 ( 37,043
)

 ( 34,417
)

 ( 34,417
)

 Net premiums

 $
 310,508

 $

 $
 307,289

 $

 $
 286,977

 $

 2024

 2023

 2022

 Discontinued operations:

 Direct premium

 $
 41,632

 $
 39,083

 $
 77,165

 $
 76,355

 $
 74,611

 $
 69,279

 Assumed premium

 —

 —

 —

 —

 —

 —

 Ceded premium

 ( 8,743
)

 ( 8,027
)

 ( 17,805
)

 ( 17,335
)

 ( 12,576
)

 ( 12,729
)

 Net premiums

 $
 32,889

 $
 31,056

 $
 59,360

 $
 59,020

 $
 62,035

 $
 56,550

 A reconciliation of direct to net losses and loss adjustment
expenses, presented on a consolidated basis, including both continuing and discontinued operations, is as follows:

 2024

 2023

 2022

 $
 249,344

 $
 293,978

 $
 333,397

 1,140

 2,369

 ( 19,157
)

 ( 50,706
)

 ( 41,334
)

 $
 230,971

 $
 244,412

 $
 294,432

 The reconciliations for current and prior year continuing and discontinued
operations of direct to net losses and loss adjustment expenses is as follows:

 2024

 2023

 2022

 Continuing Operations:

 $
 220,991

 $
 195,138

 $
 255,187

 1,140

 2,369

 ( 14,310
)

 ( 9,762
)

 ( 15,806
)

 $

 $

 $

 2024

 2023

 2022

 Discontinued Operations:

 $
 28,353

 $
 98,840

 $
 78,210

 —

 —

 —

 ( 4,847
)

 ( 40,944
)

 ( 25,528
)

 $
 23,506

 $
 57,896

 $
 52,682

 Intercompany Reinsurance Pooling Arrangement

 Effective January 1, 2020, all of our insurance subsidiary and affiliate
companies entered into an intercompany reinsurance pooling agreement. 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. Subsequent to the June 30, 2024, date of sale, Westminster is no
longer a member of the pool, and the pooling percentages for the remaining insurance subsidiaries were updated based on their respective
surplus as a percentage of the pool as of December 31, 2023.

 7. 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,
presented on a consolidated basis, including both continuing and discontinued operations, shows the deferred policy acquisition costs
and asset reconciliation:

 2024

 2023

 2022

 Balance, beginning of year

 $
 34,120

 $
 29,768

 $
 24,947

 Deferral of policy acquisition costs

 79,363

 87,343

 71,624

 ( 79,185
)

 ( 82,991
)

 ( 66,803
)

 Westminster balance disposed in sale

 ( 7,998
)

 —

 —

 Balance, end of year

 $

 $
 34,120

 $
 29,768

 The tables for current and prior year continuing and discontinued
operations showing the deferred policy acquisition costs and assets reconciliation are shown below:

 2024

 2023

 2022

 Continuing operations:

 Balance, beginning of year

 $

 $
 22,675

 $
 19,047

 Deferral of policy acquisition costs

 70,767

 71,746

 57,233

 ( 71,257
)

 ( 67,631
)

 ( 53,605
)

 Balance, end of year

 $

 $

 $
 22,675

 2024

 2023

 2022

 Discontinued operations:

 $
 7,330

 7,093

 5,900

 Deferral of policy acquisition costs

 8,596

 15,597

 14,391

 ( 7,928
)

 ( 15,360
)

 ( 13,198
)

 Westminster balance disposed in sale

 ( 7,998
)

 —

 —

 Balance, end of year

 $
 —

 $
 7,330

 $
 7,093

 8. Unpaid
Losses and Loss Adjustment Expenses

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

 2024

 2023

 2022

 Balance, beginning of year:

 $
 217,119

 $
 190,459

 $
 139,662

 48,969

 37,575

 21,200

 Net balance, beginning of year

 168,150

 152,884

 118,462

 Incurred related to:

 218,063

 223,960

 293,283

 12,908

 20,452

 1,149

 Total incurred

 230,971

 244,412

 294,432

 Paid related to:

 131,570

 138,600

 197,250

 80,636

 90,548

 62,760

 Total paid

 212,206

 229,148

 260,010

 Westminster balances disposed in sale:

 107,508

 —

 —

 45,320

 —

 —

 Net balance, date of sale

 62,188

 —

 —

 Balance, end of year:

 217,119

 190,459

 48,969

 37,575

 Net balance, end of year

 $
 124,727

 $
 168,150

 $
 152,884

 During the year ended December 31, 2024, the Company's
incurred reported losses and loss adjustment expense included $ 12,908 of net unfavorable development on prior accident years. This was
primarily attributable to unfavorable development for the Direct Auto non-standard auto business, partially offset by favorable development
in Battle Creek, American West, Primero, and Nodak Insurance. During the year ended December 31, 2023, the Company's incurred reported
losses and loss adjustment expenses included $ 20,452 of net unfavorable development on prior accident years, primarily attributable to
unfavorable development for the Westminster commercial and Direct Auto non-standard auto businesses partially offset by favorable development
for Battle Creek, American West, and Nodak Insurance. During the year ended December 31, 2022, the Company's incurred reported losses
and loss adjustment expenses included $ 1,149 of net unfavorable development on prior accident years, primarily attributable to unfavorable
development for the Westminster commercial business partially offset by favorable development for Battle Creek and Nodak Insurance. During
2024, Westminster was sold and all associated liabilities were included in the sale.

 Changes in unpaid losses and loss adjustment expense
reserves are generally the result of ongoing analysis of recent loss development trends. As additional information becomes known regarding
individual claims, original estimates are increased or decreased accordingly.

 The tables for current and prior year continuing and discontinued
operations showing the liability for unpaid losses and loss adjustment expense are shown below:

 2024

 2023

 2022

 Continuing operations:

 Balance, beginning of year:

 $
 119,185

 $
 114,296

 $
 108,000

 6,460

 8,586

 12,478

 Net balance, beginning of year

 112,725

 105,710

 95,522

 Incurred related to:

 193,948

 184,210

 247,635

 13,517

 2,306

 ( 5,885
)

 Total incurred

 Paid related to:

 126,006

 121,466

 181,434

 69,457

 58,036

 50,128

 Total paid

 195,463

 179,502

 231,562

 Balance, end of year:

 119,185

 114,296

 6,460

 8,586

 Net balance, end of year

 $
 124,727

 $
 112,725

 $
 105,710

 2024

 2023

 2022

 Discontinued operations:

 Balance, beginning of year:

 $
 97,934

 $
 76,163

 $
 31,662

 42,509

 28,989

 8,722

 Net balance, beginning of year

 55,425

 47,174

 22,940

 Incurred related to:

 24,115

 39,750

 45,648

 ( 609
)

 18,146

 7,034

 Total incurred

 23,506

 57,896

 52,682

 Paid related to:

 5,564

 17,132

 15,816

 11,179

 32,512

 12,632

 Total paid

 16,743

 49,644

 28,448

 Westminster balances disposed in sale:

 107,508

 —

 —

 45,320

 —

 —

 Net balance, date of sale

 62,188

 —

 —

 Balance, end of year:

 —

 97,934

 76,163

 —

 42,509

 28,989

 Net balance, end of year

 $
 —

 $
 55,425

 $
 47,174

 The tables on the following pages present information,
organized by our primary operating segments, about incurred and paid claims development as of December 31, 2024, net of reinsurance, as
well as cumulative claim frequency and the total of IBNR reserves plus expected development on reported claims. The cumulative number
of reported claims represents open claims, claims closed with payment, and claims closed without payment. It does not include an estimated
amount for unreported claims. The number of claims is measured by claim event (such as a car accident or storm damage) and an individual
claim event may result in more than one reported claim (such as a car accident with both property and liability damages). The Company
considers a claim that does not result in a liability as a claim closed without payment. The segment information presented in the tables
is prior to the effects of the intercompany reinsurance pooling arrangement.

 The tables include unaudited information about
incurred and paid claims development for the year ended December 31, 2015 for the Private Passenger Auto, Home and Farm, and Crop segments
and from the year ended December 31, 2015 through 2017 for the Non-Standard Auto information, which we present as supplementary information.

Passenger

Auto

 Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance

 At December 31, 2024

 Year

 2016

 2017

 2018

 2019

 2020

 2021

 2022

 2023

 2024

 Total IBNR

 Plus Expected

 Development

on Reported

 Cumulative

 Number of

Reported

 (in thousands, except claim counts)

 2015

 $
 32,438

 $
 31,532

 $
 30,461

 $
 30,503

 $
 30,679

 $
 30,455

 $
 30,379

 $
 30,370

 $
 30,351

 $
 30,362

 $
 ( 1
)

 11,688

 2016

 —

 40,227

 39,260

 39,057

 39,314

 38,535

 38,416

 38,601

 38,566

 38,536

 ( 3
)

 14,325

 2017

 —

 —

 40,779

 40,199

 40,120

 40,427

 40,488

 40,520

 40,471

 40,449

 —

 13,753

 2018

 —

 —

 —

 44,925

 43,428

 43,641

 43,575

 43,807

 43,733

 43,896

 14,675

 2019

 —

 —

 —

 —

 53,769

 53,328

 53,364

 52,802

 52,749

 52,535

 16,540

 2020

 —

 —

 —

 —

 —

 46,247

 48,519

 47,403

 47,174

 46,713

 13,541

 2021

 —

 —

 —

 —

 —

 —

 57,316

 57,176

 57,431

 57,215

 15,321

 2022

 —

 —

 —

 —

 —

 —

 —

 66,711

 65,132

 64,180

 16,146

 2023

 —

 —

 —

 —

 —

 —

 —

 —

 62,357

 61,917

 13,888

 2024

 —

 —

 —

 —

 —

 —

 —

 —

 —

 54,082

 1,935

 10,593

 Total

 $
 489,885

Passenger

Auto

 Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance

 Year

 2016

 2017

 2018

 2019

 2020

 2021

 2022

 2023

 2024

 2015

 $
 23,401

 $
 27,171

 $
 28,933

 $
 29,598

 $
 29,795

 $
 30,120

 $
 30,355

 $
 30,355

 $
 30,355

 $
 30,363

 2016

 —

 29,009

 35,845

 37,307

 38,108

 37,833

 38,173

 38,303

 38,539

 38,539

 2017

 —

 —

 31,033

 37,050

 38,331

 39,738

 40,111

 40,294

 40,315

 40,398

 2018

 —

 —

 —

 34,358

 40,213

 41,479

 42,820

 43,074

 43,225

 43,337

 2019

 —

 —

 —

 —

 42,414

 48,414

 50,370

 51,556

 52,060

 52,437

 2020

 —

 —

 —

 —

 —

 35,495

 42,585

 45,670

 46,211

 46,204

 2021

 —

 —

 —

 —

 —

 —

 42,326

 52,256

 54,243

 56,030

 2022

 —

 —

 —

 —

 —

 —

 —

 49,911

 59,556

 61,679

 2023

 —

 —

 —

 —

 —

 —

 —

 —

 45,452

 55,548

 2024

 —

 —

 —

 —

 —

 —

 —

 —

 —

 39,617

 Total

 $
 464,152

 All outstanding liabilities prior to 2015, net of reinsurance

 Liabilities for Unpaid Losses and Loss Adjustment Expenses, net of reinsurance

 25,745

 Non-

 Standard

Auto

 Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance

 At December 31, 2024

 Year

 2016 (1)

 2017 (1)

 2018

 2019

 2020

 2021

 2022

 2023

 2024

 Total IBNR

 Plus Expected

 Development

on Reported

 Cumulative

 Number of

Reported

 (in thousands, except claim counts)

 2015

 $
 27,644

 $
 24,304

 $
 22,698

 $
 20,229

 $
 20,345

 $
 20,567

 $
 20,199

 $
 20,039

 $
 20,341

 $
 20,357

 $

 10,852

 2016

 —

 30,514

 24,708

 23,606

 23,989

 22,884

 22,267

 21,947

 22,095

 22,168

 12,878

 2017

 —

 —

 32,098

 27,275

 24,414

 23,189

 22,221

 21,903

 22,224

 22,327

 13,190

 2018

 —

 —

 —

 36,236

 34,466

 33,743

 32,307

 32,038

 32,741

 33,020

 16,718

 2019

 —

 —

 —

 —

 37,196

 36,864

 35,810

 36,100

 36,659

 36,646

 12,424

 2020

 —

 —

 —

 —

 —

 33,054

 31,743

 32,507

 34,657

 34,475

 14,356

 2021

 —

 —

 —

 —

 —

 —

 40,652

 40,612

 45,337

 46,412

 1,752

 15,895

 2022

 —

 —

 —

 —

 —

 —

 —

 39,514

 43,372

 51,912

 2,676

 14,061

 2023

 —

 —

 —

 —

 —

 —

 —

 —

 50,415

 57,445

 6,821

 14,784

 2024

 —

 —

 —

 —

 —

 —

 —

 —

 —

 59,465

 21,260

 10,850

 Total

 $
 384,227

 Non-Standard

Auto

 Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance

 Year

 2016 (1)

 2017 (1)

 2018

 2019

 2020

 2021

 2022

 2023

 2024

 2015

 $ 8,302

 $ 13,887

 $ 16,536

 $ 17,884

 $ 19,180

 $ 19,679

 $ 19,799

 $ 19,988

 $ 20,292

 $ 20,300

 2016

 —

 8,935

 15,154

 18,349

 20,515

 21,032

 21,495

 21,794

 21,984

 22,044

 2017

 —

 —

 8,733

 14,641

 18,238

 19,826

 20,604

 21,528

 22,063

 22,173

 2018

 —

 —

 —

 11,526

 22,821

 26,820

 28,489

 30,489

 32,202

 32,663

 2019

 —

 —

 —

 —

 16,503

 26,221

 29,953

 32,370

 34,915

 35,916

 2020

 —

 —

 —

 —

 —

 14,077

 23,046

 27,160

 30,419

 32,688

 2021

 —

 —

 —

 —

 —

 —

 18,611

 30,155

 36,890

 41,590

 2022

 —

 —

 —

 —

 —

 —

 —

 14,966

 29,533

 42,122

 2023

 —

 —

 —

 —

 —

 —

 —

 —

 18,300

 38,279

 2024

 —

 —

 —

 —

 —

 —

 —

 —

 —

 18,873

 Total

 $
 306,648

 All outstanding liabilities prior to 2015, net of reinsurance

 Liabilities for Unpaid Losses and Loss Adjustment Expenses, net of reinsurance

 $
 77,580

 Farm

 Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance

 At December 31, 2024

 Year

 2016

 2017

 2018

 2019

 2020

 2021

 2022

 2023

 2024

 Total IBNR

 Plus Expected

 Development

 on Reported

 Cumulative

 Number of

 Reported

 (in thousands, except claim counts)

 2015

 $
 32,740

 $
 31,804

 $
 31,300

 $
 31,577

 $
 31,446

 $
 31,612

 $
 31,600

 $
 31,601

 $
 31,599

 $
 31,944

 $
 —

 3,924

 2016

 —

 45,713

 44,513

 44,945

 44,597

 44,728

 44,745

 44,809

 44,788

 44,787

 —

 6,354

 2017

 —

 —

 42,112

 41,593

 41,882

 41,779

 41,804

 41,640

 41,590

 41,646

 4,955

 2018

 —

 —

 —

 42,486

 43,840

 43,747

 43,682

 43,712

 43,731

 43,681

 —

 4,596

 2019

 —

 —

 —

 —

 45,334

 45,828

 45,471

 45,352

 45,106

 45,050

 5,523

 2020

 —

 —

 —

 —

 —

 36,264

 35,668

 34,656

 34,761

 34,813

 4,118

 2021

 —

 —

 —

 —

 —

 —

 53,079

 50,322

 50,759

 50,592

 5,381

 2022

 —

 —

 —

 —

 —

 —

 —

 112,049

 105,409

 105,328

 8,401

 2023

 —

 —

 —

 —

 —

 —

 —

 —

 57,205

 56,985

 1,010

 4,302

 2024

 —

 —

 —

 —

 —

 —

 —

 —

 —

 65,092

 1,572

 3,967

 Total

 $
 519,918

 Farm

 Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance

 Year

 2016

 2017

 2018

 2019

 2020

 2021

 2022

 2023

 2024

 2015

 $
 27,204

 $
 30,165

 $
 30,350

 $
 30,573

 $
 31,383

 $
 31,597

 $
 31,597

 $
 31,599

 $
 31,599

 $
 31,944

 2016

 —

 37,655

 44,942

 44,270

 44,529

 44,583

 44,650

 44,690

 44,736

 44,787

 2017

 —

 —

 34,657

 38,928

 40,441

 40,941

 41,414

 41,504

 41,506

 41,516

 2018

 —

 —

 —

 37,880

 42,814

 43,178

 43,549

 43,634

 43,688

 43,681

 2019

 —

 —

 —

 —

 38,718

 43,253

 44,119

 44,847

 45,053

 45,046

 2020

 —

 —

 —

 —

 —

 29,273

 33,988

 34,243

 34,688

 34,784

 2021

 —

 —

 —

 —

 —

 —

 41,096

 48,890

 50,117

 50,403

 2022

 —

 —

 —

 —

 —

 —

 —

 92,482

 101,957

 104,321

 2023

 —

 —

 —

 —

 —

 —

 —

 —

 46,607

 54,304

 2024

 —

 —

 —

 —

 —

 —

 —

 —

 —

 54,904

 Total

 $
 505,690

 All outstanding liabilities prior to 2015, net of reinsurance

 —

 Liabilities for Unpaid Losses and Loss Adjustment Expenses, net of reinsurance

 $
 14,228

 Crop

 Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance

 At December 31, 2024

 Year

 2016

 2017

 2018

 2019

 2020

 2021

 2022

 2023

 2024

 Total IBNR

 Plus Expected

 Development

on Reported

 Cumulative

 Number of

 Reported

 (in thousands, except claim counts)

 2015

 $
 13,813

 $

 $

 $

 $

 $

 $

 $

 $

 $

 $
 —

 2,427

 2016

 —

 20,209

 19,582

 —

 2,806

 2017

 —

 —

 33,734

 —

 2,968

 2018

 —

 —

 —

 12,506

 —

 2,147

 2019

 —

 —

 —

 —

 33,913

 37,630

 —

 3,101

 2020

 —

 —

 —

 —

 —

 28,688

 28,760

 —

 2,442

 2021

 —

 —

 —

 —

 —

 —

 28,574

 28,144

 28,146

 28,143

 —

 2,726

 2022

 —

 —

 —

 —

 —

 —

 —

 21,834

 20,745

 20,740

 2,021

 2023

 —

 —

 —

 —

 —

 —

 —

 —

 12,728

 11,399

 1,640

 2024

 —

 —

 —

 —

 —

 —

 —

 —

 —

 12,463

 1,289

 Total

 $
 218,380

 Crop

 Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance

 Year

 2016

 2017

 2018

 2019

 2020

 2021

 2022

 2023

 2024

 2015

 $
 12,866

 $

 $

 $

 $

 $

 $

 $

 $

 $

 2016

 —

 16,444

 2017

 —

 —

 32,768

 2018

 —

 —

 —

 10,737

 2019

 —

 —

 —

 —

 26,208

 2020

 —

 —

 —

 —

 —

 27,952

 2021

 —

 —

 —

 —

 —

 —

 29,424

 28,143

 28,143

 28,143

 2022

 —

 —

 —

 —

 —

 —

 —

 20,279

 20,735

 20,735

 2023

 —

 —

 —

 —

 —

 —

 —

 —

 10,202

 11,387

 2024

 —

 —

 —

 —

 —

 —

 —

 —

 —

 11,169

 Total

 $
 217,069

 All outstanding liabilities prior to 2015, net of reinsurance

 —

 Liabilities for Unpaid Losses and Loss Adjustment Expenses, net of reinsurance

 $
 1,311

 The following table presents a reconciliation
of the net incurred and paid claims development tables to the liability for unpaid losses and loss adjustment expenses in our Consolidated
Balance Sheet:

 Liabilities for unpaid losses and loss adjustment expenses:

 $
 28,103

 77,580

 16,162

 Crop

 1,789

 13,654

 Total liabilities for unpaid losses and loss adjustment expenses

 Reinsurance recoverables on losses:

 2,358

 —

 1,934

 Crop

 7,791

 Total reinsurance recoverables on losses

 Net liability for unpaid losses and loss adjustment expenses

 $
 124,727

 The following table presents required supplementary information
about average historical claims duration as of December 31, 2024:

 Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance

 Years

 Private Passenger Auto

 50.5 %

 20.5 %

 11.1 %

 6.5 %

 4.5 %

 3.4 %

 3.1 %

 0.3 %

 0.1 %

 —

 Non-Standard Auto

 45.1 %

 23.1 %

 13.9 %

 8.2 %

 4.5 %

 2.1 %

 1.4 %

 1.0 %

 0.6 %

 0.1 %

 Home and Farm

 67.2 %

 15.0 %

 8.9 %

 4.3 %

 1.3 %

 0.7 %

 0.7 %

 0.7 %

 1.2 %

 —

 Crop

 100.0 %

 —

 —

 —

 —

 —

 —

 —

 —

 —

 9. Property
and Equipment

 Property and equipment, presented on a consolidated
basis, including both continuing and discontinued operations, consisted of the following:

 December 31,

 2024

 2023

 Estimated Useful

Life

 Cost:

 Land

 $
 1,249

 $
 1,403

 indefinite

 Building and improvements

 12,497

 14,538

 10 – 43 years

 Electronic data processing equipment

 1,444

 1,441

 5 – 7 years

 Furniture and fixtures

 2,762

 2,953

 5 – 7 years

 Automobiles

 1,280

 1,319

 2 – 3 years

 Gross cost

 19,232

 21,654

 Accumulated depreciation

 ( 11,685
)

 ( 11,757
)

 Total property and equipment, net

 $
 7,547

 $
 9,897

 Depreciation expense was $ 770, $ 826, and $ 708
during the years ended December 31, 2024, 2023, and 2022, respectively. Depreciation expense for continuing operations was $ 681, $ 692,
and $ 604 during the years ended December 31, 2024, 2023, and 2022, respectively.

 Property and equipment for current and prior year continuing
and discontinued operations consisted of the following:

 Cost:

 $
 19,232

 —

 Total cost

 19,232

 Accumulated depreciation

 ( 11,685
)

 —

 Total accumulated depreciation

 ( 11,685
)

 Total property and equipment, net

 $
 7,547

 Cost:

 $
 18,756

 2,898

 Total cost

 21,654

 Accumulated depreciation

 ( 11,304
)

 ( 453
)

 Total accumulated depreciation

 ( 11,757
)

 Total property and equipment, net

 $
 9,897

 10. Goodwill
and Other Intangibles

 Goodwill

 The following table presents, on a consolidated basis, including
both continuing and discontinued operations, the carrying amount of the Company's goodwill and related impairment by segment:

 2024

 2023

 2022

 Non-

Standard

Auto

 Com-

mercial

 Total

 Non-

Standard

Auto

 Com-

mercial

 Total

 Non-

Standard

Auto

 Com-

mercial

 Total

 Goodwill, beginning of year

 $
 2,628

 $
 —

 $
 2,628

 $
 2,628

 $
 6,756

 $
 9,384

 $
 2,628

 $
 6,756

 $
 9,384

 Impairment recognized during the period

 ( 2,628
)

 —

 ( 2,628
)

 —

 ( 6,756
)

 ( 6,756
)

 —

 —

 —

 Goodwill, end of year

 $
 —

 $
 —

 $
 —

 $
 2,628

 $
 —

 $
 2,628

 $
 2,628

 $
 6,756

 $
 9,384

 We performed a quantitative assessment
of the goodwill related to the Primero acquisition during the fourth quarter of 2024, which is allocated to our Non-Standard Auto segment,
and concluded that the goodwill was fully impaired as of December 31, 2024, resulting in a non-cash impairment charge of $ 2,628 in the
current year. The determination of the fair value of the reporting unit was based on an income approach that utilized discounted cash
flows. Under the income approach, we determined fair value based on the present value of the most recent cash flow projections for the
reporting unit as of the date of the analysis and calculated a terminal value utilizing a terminal growth rate. The significant assumptions
under this approach include, among others: income projections, operating expenses, the discount rate, and the terminal growth rate. The
cash flows used to determine fair value are dependent on a number of significant management assumptions such as our expectations of future
performance and the expected future economic environment, which are partly based upon our historical experience. Our estimates are subject
to change given the inherent uncertainty in predicting future results. Additionally, the discount rate and the terminal growth rate are
based on our judgment of the rates that would be utilized by a hypothetical market participant.

 We performed a quantitative assessment
of the goodwill related to the Westminster acquisition during the fourth quarter of 2023, which was allocated to our former Commercial
segment, and concluded that the goodwill was fully impaired as of December 31, 2023, resulting in a non-cash impairment charge of $ 6,756
in 2023. The determination of the fair value of the reporting unit was based on a combination of a market approach that considered benchmark
company market multiples, and an income approach that utilized discounted cash flows. Under the income approach, we determined fair value
based on the present value of the most recent cash flow projections for the reporting unit as of the date of the analysis and calculated
a terminal value utilizing a terminal growth rate. The significant assumptions under this approach included, among others: income projections,
new product introductions, customer behavior, competitor pricing, operating expenses, the discount rate, and the terminal growth rate.
The cash flows used to determine fair value were dependent on a number of significant management assumptions such as our expectations
of future performance and the expected future economic environment, which were partly based upon our historical experience. Additionally,
the discount rate and the terminal growth rate were based on our judgment of the rates that would be utilized by a hypothetical market
participant.

 Other Intangible Assets

 The following table presents on a consolidated basis, including
both continuing and discontinued operations, the carrying amount of the Company's other intangible assets:

 Gross Carrying

 Amount

 Amortization

 Net

 Subject to amortization:

 Trade names

 $
 —

 $
 —

 $
 —

 Distribution network

 —

 —

 —

 Total subject to amortization

 —

 —

 —

 Not subject to amortization:

 State insurance licenses

 —

 Total

 $

 $
 —

 $

 Gross Carrying

 Amount

 Amortization

 Net

 Subject to amortization:

 Trade names

 $

 $

 $

 Distribution network

 6,700

 1,489

 5,211

 Total subject to amortization

 7,448

 1,937

 5,511

 Not subject to amortization

 State insurance licenses

 1,900

 —

 1,900

 Total

 $
 9,348

 $
 1,937

 $
 7,411

 The following table presents the current and
prior year continuing and discontinued carrying amounts of the Company's other intangible assets:

 Gross Carrying

 Amount

 Amortization

 Net

 Subject to amortization:

 $
 —

 $
 —

 $
 —

 —

 —

 —

 Total subject to amortization

 —

 —

 —

 Not subject to amortization

 —

 —

 —

 —

 Total not subject to amortization

 $

 $
 —

 $

 Gross Carrying

 Amount

 Amortization

 Net

 Subject to amortization:

 $

 $

 $
 —

 7,200

 1,689

 5,511

 Total subject to amortization

 7,448

 1,937

 5,511

 Not subject to amortization

 —

 1,800

 —

 1,800

 Total not subject to amortization

 $
 9,348

 $
 1,937

 $
 7,411

 We determined during our reviews that there
were no impairments of other indefinite-lived intangible assets or finite-lived intangible assets during the years ended December 31,
2024, 2023, and 2022.

 Amortization expense was $ 211, $ 455, and $ 472
during the years ended December 31, 2024, 2023, and 2022, respectively. Amortization expense for continuing operations was $ 0, $ 33, and
$ 50 during the years ended December 31, 2024, 2023, and 2022, respectively.

 11. Royalties,
Dividends, and Affiliations

 North Dakota Farm Bureau

 Nodak Insurance was organized by the NDFB
to provide insurance protection for its members. We have a royalty agreement with the NDFB that recognizes the use of their trademark
and provides royalties to the NDFB based on the premiums written on Nodak Insurance's policies. Royalties paid to the NDFB were
$ 1,647, $ 1,603, and $ 1,453 during the years ended December 31, 2024, 2023, and 2022, respectively. Royalty amounts payable of $ 146 and
$ 131 were accrued as a liability to the NDFB at December 31, 2024 and 2023, 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 requirements that may further affect their ability to pay
dividends. Our insurance subsidiaries statutory capital and surplus at December 31, 2024, exceeded
the amount of statutory capital and surplus necessary to satisfy risk-based capital requirements by a significant margin.

 The amount available for payment of dividends from Nodak Insurance
to NI Holdings during 2025 without the prior approval of the North Dakota Insurance Department is approximately $ 8,273 as of December
31, 2024. No dividends were declared or paid by Nodak Insurance during the years ended December 31, 2024 and 2023. The Nodak Insurance
Board of Directors declared and paid dividends of $ 3,000 to NI Holdings during the year ended December 31, 2022.

 The amount available for payment of dividends from Direct Auto to
NI Holdings during 2025 without the prior approval of the North Dakota Insurance Department is approximately $ 3,146 as of December 31,
2024. No dividends were declared or paid by Direct Auto during the years ended December 31, 2024, 2023, or 2022.

 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 an insurance company is in violation of any law or
regulation. These restrictions or any subsequently imposed restrictions may affect our future liquidity.

 Westminster was sold on June 30, 2024, and
therefore no dividends are available to be paid to NI Holdings subsequent to that date. No dividends were declared or paid by Westminster
during the years ended December 31, 2024, 2023 or 2022. See Part II, Item 8, Note 20 "Discontinued Operations" for additional
information.

 Battle Creek

 Prior to January 2, 2024, we consolidated the financial statements
of Battle Creek, and Battle Creek's policyholders' interest in Battle Creek was reflected as a non-controlling interest in
shareholders' equity in our Consolidated Balance Sheets. Subsequent to January 2, 2024, Battle Creek is fully consolidated in our
Consolidated Balance Sheets. The following table discloses the standalone balance sheet of Battle Creek, prior to intercompany eliminations,
to illustrate the impact of including Battle Creek in our December 31, 2023, Consolidated Balance Sheet prior to demutualization:

 Assets:

 $
 2,621

 Investments

 15,394

 5,953

 Reinsurance recoverables on losses (2)

 6,918

 Income tax recoverable

 Deferred income taxes

 Property and equipment

 Other assets

 Total assets

 $
 32,987

 Liabilities:

 $
 4,276

 3,269

 Notes payable (1)

 3,000

 Pooling payable (1)

 5,932

 Reinsurance losses payable (2)

 13,275

 Total liabilities

 30,229

 Equity:

 Non-controlling interest

 2,758

 Total equity

 2,758

 Total liabilities and equity

 $
 32,987

 (1)
 Amount fully eliminated in consolidation.

 (2)
 Amount partly eliminated in consolidation.

 12. 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. Nodak Insurance also contributes
an additional elective amount of employee compensation as a profit-sharing contribution for eligible employees. Westminster also sponsored
a separate 401(k) plan until the company was sold on June 30, 2024. American West and Battle Creek have no employees. The Company reported
expenses related to these plans totaling $ 782, $ 806, and $ 693 during the years ended December 31, 2024, 2023, and 2022, 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 over the
key executives' allowable 401(k) contribution. The plan also allows employee-directed deferral of key executives' compensation
or incentive payments. The Company reported expenses related to this plan totaling $ 360, $ 368, and $ 325 during the years ended December
31, 2024, 2023, and 2022, respectively.

 In connection with our IPO in March 2017, the Company established
its ESOP within the meaning of Internal Revenue Code Section 4975(e)(7) and invests solely in common stock of the Company.

 Upon establishment of the ESOP, 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.

 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.

 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 Sheets 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
related to the ESOP of $ 365, $ 322, and $ 380 during the years ended December 31, 2024, 2023, and 2022, respectively.

 Through December 31, 2024, the Company had
released and allocated 194,520 ESOP shares to participants, with a remainder of 45,480 ESOP shares in suspense at December 31, 2024. Using
the Company's year-end market price of $ 15.70 per share, the fair value of the unearned ESOP shares was $ 714 at December 31, 2024.

 13. Line
of Credit

 NI Holdings has a $ 3,000 line of credit with Wells
Fargo Bank, N.A. The terms of the line of credit include a floating interest rate of 2.50 % above the daily simple secured overnight financing
rate. There were no outstanding amounts during the years ended December 31, 2024, 2023, or 2022. This line of credit is scheduled to expire
on December 13, 2025.

 14. Income
Taxes

 The components of our provision for income tax
expense (benefit) were as follows:

 2024

 2023

 2022

 Current income tax expense (benefit)

 Federal

 $
 ( 4,682
)

 $
 2,567

 $
 ( 11,280
)

 State

 ( 2
)

 Total current

 ( 4,467
)

 2,845

 ( 11,282
)

 Deferred income tax expense (benefit)

 1,275

 ( 1,882
)

 ( 3,972
)

 Total income tax expense (benefit)

 $
 ( 3,192
)

 $

 $
 ( 15,254
)

 The provision for income tax expense (benefit)
differs from the amount that would be computed by applying the statutory federal rate to income (loss) before income taxes as a result
of the following, including both continuing and discontinued operations:

 2024

 2023

 2022

 Loss before income taxes

 $
 ( 9,056
)

 $
 ( 4,263
)

 $
 ( 69,029
)

 Expected provision for federal income taxes at 21%

 $
 ( 1,902
)

 $
 ( 895
)

 $
 ( 14,496
)

 State income taxes, net of federal impact

 ( 2
)

 Tax-exempt interest

 ( 130
)

 ( 204
)

 ( 187
)

 Dividends received deduction

 ( 104
)

 ( 118
)

 ( 147
)

 Section 832(b)(5)(B) proration amount

 Compensation-related expenses

 Westminster sale/goodwill impairment

 ( 2,661
)

 1,419

 —

 Demutualization of Battle Creek

 —

 —

 Research and development credit

 —

 ( 59
)

 ( 70
)

 Change in valuation allowance

 2,035

 ( 189
)

 ( 314
)

 State carryovers

 ( 2,412
)

 —

 —

 Other

 ( 6
)

 ( 329
)

 Total income tax expense (benefit)

 $
 ( 3,192
)

 $

 $
 ( 15,254
)

 Reconciliation of consolidated federal income tax expense (benefit) from:

 $
 3,545

 $

 $
 ( 14,191
)

 ( 405
)

 ( 1,063
)

 Loss on sale of discontinued operations

 ( 6,332
)

 —

 —

 Consolidated federal income tax expense (benefit)

 $
 ( 3,192
)

 $

 $
 ( 15,254
)

 We re-measure existing deferred income tax assets
(including loss carryforwards) and liabilities when a change in tax rate occurs and record an offset for the net amount of the change
as a component of income tax expense (benefit) from continuing operations in the period of enactment. We record any change to a previously
recorded valuation allowance as a result of re-measuring existing temporary differences and loss carryforwards as a component of income
tax expense (benefit) from continuing operations. The valuation allowance against certain deferred income tax assets was $ 2,506, $ 505, and
$ 694 at December 31, 2024, 2023, and 2022, respectively.

 The income tax effects of temporary differences
that give rise to significant portions of our deferred income tax assets and deferred income tax liabilities at December 31, 2024 and
2023, including both continuing and discontinued operations, were as follows:

 December 31,

 2024

 2023

 Deferred income tax assets:

 Unearned premium

 $
 5,749

 $
 7,371

 1,286

 1,681

 Net unrealized losses on investments

 4,762

 6,421

 Loss carryovers

 2,506

 Deferred compensation

 Other

 1,040

 1,269

 Total deferred income tax assets

 15,946

 18,172

 Deferred income tax liabilities:

 5,976

 7,693

 Intangibles

 —

 1,243

 Other

 Total deferred income tax liabilities

 6,116

 9,254

 Net deferred income tax asset

 9,830

 8,918

 Valuation allowance

 ( 2,506
)

 ( 505
)

 Deferred income tax asset, net

 $
 7,324

 $
 8,413

 At December 31, 2024 and 2023, 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 years ended December 31, 2024, 2023, or 2022.

 At December 31, 2024 and 2023, the Company had no
income tax related carryforwards for alternative minimum tax credits or capital losses.

 At December 31, 2024, the Company had $ 2.5 million
in state net operating loss deferred tax assets, all of which are offset by a valuation allowance due to the Company's judgment
that it is more likely than not that it will be unable to realize the benefits.

 Battle Creek, which was required to file its federal
income tax returns on a stand-alone basis until the demutualization on January 2, 2024, had net operating loss carryforwards of $ 3,756
and $ 3,963 at December 31, 2023 and 2022, respectively. Subsequent to the demutualization, Battle Creek will be included in the NI Holdings
consolidated tax return. As a result of the demutualization, the Battle Creek net operating loss carryforwards were written off in 2024
as they will not be available to offset income within the NI Holdings consolidated tax return, and the $ 505 associated valuation allowance
was no longer necessary.

 Westminster, which became part of the Company's
consolidated federal income tax return beginning in 2020, had $ 1,270 of net operating loss carryforward at December 31, 2022. This net
operating loss carryforward expired in 2023.

 15. Leases

 Primero leases a facility in Spearfish, South Dakota under
a non-cancellable operating lease expiring in 2028. 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 2029.
In addition, Nodak Insurance leases server equipment under a non-cancellable finance lease expiring in 2026.

 Effective for the year ended December 31, 2022,
the Company adopted the updated guidance for leases. See Part II, Item 8, Note 2 "Recent Accounting Pronouncements" for additional
information. We determine whether a contract is or contains a lease at the inception of the contract. A contract will be deemed to be
or contain a lease if the contract conveys the right to control and directs the use of identified property or equipment for a period of
time in exchange for consideration. We generally must also have the right to obtain substantially all of the economic benefits from the
use of the property and equipment. Lease assets and liabilities are recognized at the lease commencement date based on the present value
of lease payments over the lease term. To determine the present value of lease payments not yet paid, we estimate incremental borrowing
rates based on the floating interest rate on our Line of Credit with Wells Fargo Bank, N.A. at the lease commencement date, as rates are
not implicitly stated in most leases. Lease liabilities are included in accrued expenses and other liabilities and right-of-use assets
are included in other assets in our Consolidated Balance Sheets.

 There were expenses of $ 484, $ 407, and $ 391 related
to these leases during the years ended December 31, 2024, 2023, and 2022, respectively.

 Additional information regarding the Company's
leases are as follows:

 As of and For the Year Ended December 31,

 2024

 2023

 2022

 Operating lease cost

 $

 $

 $

 Finance lease cost:

 Amortization of right-of-use assets

 —

 Interest on lease liabilities

 —

 Finance lease cost

 —

 Total lease cost

 $

 $

 $

 Other information on leases:

 Cash payments included in operating cash flows from operating leases

 $

 $

 $

 Cash payments included in operating cash flows from finance leases

 —

 Cash payments included in financing cash flows from finance leases

 —

 Right-of-use assets obtained in exchange for new operating lease liabilities

 —

 Right-of-use assets obtained in exchange for new finance lease liabilities

 —

 —

 Weighted average discount rate – operating leases

 4.48 %

 3.94 %

 3.25 %

 Weighted average discount rate – finance leases

 8.50 %

 8.50 %

 —

 Weighted average remaining lease term in years – operating leases

 4.5 years

 5.3 years

 6.3 years

 Weighted average remaining lease term in years – finance leases

 1.8 years

 2.8 years

 —

 The following table presents the contractual maturities of the Company's
 lease liabilities for each of the five years in the period ending December 31, 2029, and thereafter, reconciled to our lease liability
at December 31, 2024:

 Year ending December 31,

 Operating Leases

 Finance Leases

 Total

 2025

 $

 $

 $

 2026

 2027

 —

 2028

 —

 2029

 —

 Thereafter

 —

 —

 —

 Total undiscounted lease payments

 1,778

 1,998

 Less: present value adjustment

 Lease liability at December 31, 2024

 $
 1,618

 $

 $
 1,823

 16. Contingencies

 We are, from time to time, party to routine litigation incidental
to the normal course of our business. Based upon information presently available to us, we do not consider any litigation to be material.
However, given the uncertainties attendant to litigation, we cannot assure you that our results of operations and financial condition
will not be materially adversely affected by any litigation. Contingent liabilities arising from litigation, income taxes, and other matters
are not considered to be material to our financial position.

 17. Common
and Preferred Stock

 Common Stock

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

 2024

 2023

 2022

 Shares outstanding, beginning of period

 20,599,908

 21,076,255

 21,219,808

 Treasury shares repurchased through stock repurchase authorization

 —

 ( 548,549
)

 ( 269,160
)

 Issuance of treasury shares for vesting of restricted stock units

 49,045

 47,887

 101,292

 Issuance of shares related to employee stock ownership plan

 24,315

 24,315

 24,315

 Shares outstanding, end of period

 20,673,268

 20,599,908

 21,076,255

 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. The net loss per diluted common share for the year ended December 31, 2024, excluded the weighted
average effects of 120,626 shares of stock awards since the impacts of these potential shares of common stock were anti-dilutive. The
net loss per diluted common share for the year ended December 31, 2023, excluded the weighted average effects of 76,532 shares of stock
awards since the impacts of these potential shares of common stock were anti-dilutive. The net loss per diluted common share for the year
ended December 31, 2022, excluded the weighted average effects of 155,463 shares of stock awards since the impacts of these potential
shares of common stock were anti-dilutive.

 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 year
ended December 31, 2022, we completed the repurchase of 214,937 shares of our common stock for $ 3,446 to close out this authorization.

 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. During the year ended
December 31, 2023, we completed the repurchase of 54,223 shares of our common stock for $ 734 under this authorization. During the year
ended December 31, 2023, we completed the repurchase of 548,549 shares of our common stock for $ 7,278, including the applicable excise
tax discussed below. During the year ended

 December 31, 2024, we did not repurchase any shares of our common stock. At December 31, 2024,
$ 2,052 remains available under this authorization.

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

 On August 16, 2022, the U.S. government 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, subject to certain adjustments.
The effective date of these provisions was January 1, 2023. The Company is not currently subject to the AMT based on our reported GAAP
earnings for the past three years. For periods subsequent to the effective date of the IRA, the cost of treasury stock acquired will include
any 1 % excise tax imposed by the IRA. The Company does not expect the IRA to have a material impact on the Company's financial position
and results of operations.

 Preferred Stock

 The Company's Articles of Incorporation
provide authority to issue up to five million shares of preferred stock. No preferred shares are issued or outstanding.

 18. Share-Based
Compensation

 The NI Holdings, Inc. 2020 Stock and Incentive
Plan (the "Plan") is designed 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 are based on salary. RSUs granted prior to 2024 vest equally over a five-year period. Effective
for executive grants in 2024, the RSUs vest equally over a three-year period. The 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
Per Share

 Units outstanding and unearned at January 1, 2022

 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 December 31, 2022

 115,360

 17.00

 RSUs granted during 2023

 85,000

 13.76

 RSUs earned during 2023

 ( 53,780
)

 16.32

 Units outstanding and unearned at December 31, 2023

 146,580

 15.37

 RSUs granted during 2024

 119,398

 14.67

 RSUs earned during 2024

 ( 69,420
)

 14.82

 Forfeitures (1)

 ( 92,160
)

 15.18

 Units outstanding and unearned at December 31, 2024

 104,398

 $
 15.11

 (1) Represents RSU forfeitures primarily related to the execution of the separation agreements with the former Chief Executive Officer and former Senior Vice President of Operations.

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

 2024

 2023

 2022

 RSU compensation expense

 $

 $
 1,095

 $

 Income tax benefit

 ( 113
)

 ( 249
)

 ( 216
)

 RSU compensation expense, net of income taxes

 $

 $

 $

 Total grant-date fair value of vested RSUs at end of period

 $
 1,028

 $

 $

 At December 31, 2024, there was $ 741 of unrecognized
compensation cost related to outstanding RSUs. That cost is expected to be recognized over a weighted-average period of 1.83 years.

 Performance Share 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 are based on salary and, prior to 2024, include a three-year adjusted book value
cumulative growth target with threshold and stretch goals. Effective for grants made in 2024, the performance metric is calculated based
on an adjusted return on equity over a three-year period, with annual resets. 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
Per Share

 Units outstanding at January 1, 2022

 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 December 31, 2022

 190,000

 17.00

 PSUs granted during 2023 (at target)

 87,400

 13.85

 PSUs earned during 2023

 —

 —

 Performance adjustment (1)

 ( 63,600
)

 14.26

 Forfeitures

 —

 —

 Units outstanding at December 31, 2023

 213,800

 16.53

 PSUs granted during 2024 (at target)

 79,800

 14.19

 PSUs earned during 2024

 —

 —

 Performance adjustment (1)

 ( 147,173
)

 16.14

 Forfeitures (2)

 ( 120,100
)

 15.23

 Units outstanding at December 31, 2024

 26,327

 $
 17.50

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

 (2) Represents
PSU forfeitures primarily related to the execution of the separation agreements with the former Chief Executive Officer and former Senior
Vice President of Operations.

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

 2024

 2023

 2022

 PSU compensation expense (benefit)

 $
 ( 264
)

 $

 $
 ( 1,022
)

 Income tax benefit (expense)

 ( 47
)

 PSU compensation expense (benefit), net of income taxes

 $
 ( 204
)

 $

 $
 ( 790
)

 Total grant-date fair value of vested PSUs at end of period

 $
 —

 $
 —

 $
 1,319

 The cost estimates for PSU grants represent initial
target awards until we can reasonably forecast the financial performance of each PSU award grant. At the end of the performance period,
we will reflect a performance adjustment, which may be either an increase or decrease from the initial target awards. The actual number
of shares to be issued at the end of the performance period will range from 0 % to 200 % of the initial target awards. During the year ended
December 31, 2024, the previously recognized compensation expense related to the PSU awards granted during 2024 was reduced as a result
of a performance adjustment, and the compensation expense related to the PSU awards granted during 2023 was eliminated due to the Company's
expectation that the threshold performance goal will not be met. During the year ended December 31, 2023, the previously recognized compensation
expense related to the PSU awards granted during 2022 was eliminated due to the Company's expectation that the threshold performance goal
will not be met. During the year ended December 31, 2022, the previously recognized compensation expense related to the PSU awards granted
during 2020 and 2021 was eliminated due to the Company's expectation that the threshold performance goal will not be met, and the
compensation expense related to the PSU awards granted during 2022 was decreased to the threshold level due to Company's expectations
that the target goal will likely not be achieved.

 At December 31, 2024, there was $ 255 of unrecognized
compensation cost related to outstanding PSUs. That cost is expected to be recognized over a weighted-average period of 2.16 years.

 19. Allowance for Expected Credit Losses

 Premiums Receivable

 Beginning on December 31, 2022, credit losses
are recognized through an allowance account developed using the CECL model. The adoption of this guidance resulted in an allowance for
expected credit losses of $ 425 for premiums and agents' balances receivable as of December 31, 2022. See Part II, Item 8, Note 2 "Recent
Accounting Pronouncements" for additional information. The following table presents the balances of premiums and agents' receivable
balances, net of the allowance for expected credit losses as of December 31, 2024, and the changes in the allowance for expected credit
losses for the year ended December 31, 2024.

 Premiums and

Agents' Balances

 Receivable, Net of

 $
 56,154

 $

 Current period charge for expected credit losses

 Write-offs of uncollectible premiums receivable

 ( 267
)

 Balance, end of period

 $
 52,907

 $

 Premiums and

Agents' Balances

 Receivable, Net of

 $
 17,904

 $

 Current period charge for expected credit losses

 Write-offs of uncollectible premiums receivable

 ( 4
)

 Westminster balances disposed in sale

 $
 16,030

 $
 ( 8
)

 Balance, end of period

 $
 —

 $
 —

 The following table presents the balances of premiums
and agents' receivable balances, net of the allowance for expected credit losses as of December 31, 2023, and the changes in the
allowance for expected credit losses for the year ended December 31, 2023.

 Premiums and

Agents' Balances

Receivable, Net of

 $
 47,346

 $

 Current period charge for expected credit losses

 Write-offs of uncollectible premiums receivable

 ( 350
)

 Balance, end of period

 $
 56,154

 $

 Premiums and

Agents' Balances

 Receivable, Net of

 $
 14,827

 $

 Current period charge for expected credit losses

 Write-offs of uncollectible premiums receivable

 ( 8
)

 Balance, end of period

 $
 17,904

 $

 20. Discontinued Operations

 On May 7, 2024, we entered into a definitive agreement
to sell our subsidiary, Westminster, to Scott Insurance Holdings, for a cash purchase price of $ 10,500, as well as a $ 1,772 post-closing
adjustment pursuant to the purchase agreement, for a net amount of $ 12,272. The sale closed on June 30, 2024, and we reported an after-tax
loss on the sale of discontinued operations of $ 11,148. For additional information see Part II, Item 8, Note 3 "Summary of Significant
Accounting Policies and Basis of Presentation."

 The assets and liabilities associated with discontinued
operations prior to the closing of the sale have been presented separately in our Consolidated Balance Sheets. The Company's Consolidated
Statements of Cash Flows presents operating, investing, and financing cash flows of the discontinued operations separately. The major
assets and liability categories were as follows as of the dates indicated:

 Assets:

 $
 —

 $
 15,656

 Fixed income securities, at fair value

 —

 58,332

 Equity securities, at fair value

 —

 5,784

 Total cash and investments

 —

 79,772

 —

 17,904

 —

 7,330

 Reinsurance premiums receivable

 —

 5,464

 —

 42,509

 —

 Property and equipment, net

 —

 2,445

 Deferred income taxes

 —

 ( 815
)

 —

 7,311

 Other assets

 —

 Total assets of discontinued operations

 $
 —

 $
 162,457

 Liabilities:

 $
 —

 $
 97,934

 —

 38,000

 Income tax payable (receivable)

 —

 ( 59
)

 —

 5,422

 Total liabilities of discontinued operations

 $
 —

 $
 141,297

 Summary operating results of discontinued operations
were as follows for the periods indicated:

 2024

 2023

 2022

 Revenues:

 $
 31,056

 $
 59,020

 $
 56,552

 1,419

 2,422

 1,181

 ( 1,152
)

 Total revenues

 32,605

 61,676

 56,653

 Expenses

 Losses and loss adjustment expenses

 23,506

 57,896

 52,682

 7,928

 15,360

 13,199

 Other underwriting and general expenses

 3,088

 6,474

 6,925

 —

 6,756

 —

 Total expenses

 34,522

 86,486

 72,806

 Loss before income taxes

 ( 1,917
)

 ( 24,810
)

 ( 16,153
)

 Income tax benefit

 ( 405
)

 ( 1,063
)

 $
 ( 1,512
)

 $
 ( 25,057
)

 $
 ( 15,090
)

 Loss per common share from discontinued operations:

 Basic

 $
 ( 0.07
)

 $
 ( 1.18
)

 $
 ( 0.71
)

 Diluted

 $
 ( 0.07
)

 $
 ( 1.18
)

 $
 ( 0.71
)

 21. Segment
Information

 We have five reportable operating segments of
our continuing operations, which consist of Private Passenger Auto, Non-Standard Auto, Home and Farm, Crop, and All Other (which primarily
consists of commercial, assumed reinsurance, and our excess liability business). Prior to the sale of Westminster on June 30, 2024, we
also reported a Commercial segment that consisted primarily of Westminster's balances and results. Subsequent to the sale, Westminster
is reported as part of discontinued operations, which is not included in our segment information. The commercial business that remains
a part of our continuing operations has been included in the All Other segment for the current and prior periods presented. 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 years ended December 31, 2024, 2023, and 2022.

 Our CODM is currently our President and Chief
Executive Officer (CEO). The primary profitability measurement used by the CEO to review segment operating results is underwriting gain
(loss). The CEO uses segment underwriting gain (loss) to allocate resources (including employees, financial and capital resources) for
each segment predominantly in the annual planning process. Segment underwriting gain (loss) is used to monitor segment results compared
to prior period, forecasted results, and the annual plan. For purposes of evaluating profitability of the Non-Standard Auto segment, we
combine the policy fees paid by the insured with the underwriting gain or loss as its primary profitability 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 Consolidated Statement of Operations or Consolidated Balance Sheets to our operating segments. Those line items include net investment
income, net investment gains (losses), fee and other income excluding Non-Standard Auto, and income tax expense (benefit) within the Unaudited
Consolidated Statement of Operations. For the Consolidated Balance Sheets, those items include cash and investments, property and equipment,
other assets, accrued expenses and other liabilities, income taxes recoverable or payable, and shareholders' equity.

 Year Ended December 31, 2024

Passenger Auto

 Non-Standard

 Auto

 Farm

 Crop

 All Other

 Total

 Direct premiums earned

 $
 94,865

 $
 95,502

 $
 102,073

 $
 36,421

 $
 13,024

 $
 341,885

 Assumed premiums earned

 —

 —

 —

 2,147

 2,984

 Ceded premiums earned

 ( 4,551
)

 ( 277
)

 ( 11,312
)

 ( 17,426
)

 ( 1,193
)

 ( 34,759
)

 90,314

 95,225

 90,761

 21,142

 12,668

 54,340

 76,130

 66,968

 12,310

 11,243

 220,991

 —

 —

 —

 ( 2,471
)

 —

 ( 2,407
)

 ( 3,776
)

 ( 5,656
)

 ( 14,310
)

 51,869

 76,130

 64,561

 9,071

 5,834

 Gross margin

 38,445

 19,095

 26,200

 12,071

 6,834

 102,645

 17,177

 30,395

 17,970

 3,465

 2,250

 71,257

 Other underwriting and general expenses (1)

 10,861

 6,337

 10,603

 1,417

 4,491

 33,709

 Underwriting and general expenses

 28,038

 36,732

 28,573

 4,882

 6,741

 104,966

 Underwriting gain (loss)

 10,407

 ( 17,637
)

 ( 2,373
)

 7,189

 ( 2,321
)

 1,219

 1,938

 ( 16,418
)

 ( 2,628
)

 ( 2,628
)

 2,213

 Income (loss) before income taxes

 10,145

 3,545

 6,600

 Net income (loss) attributable to non-controlling interest

 —

 Net income (loss) attributable to NI Holdings, Inc.

 $
 6,600

 Operating Ratios:

 Loss and loss adjustment expense ratio

 57.4 %

 79.9 %

 71.1 %

 42.9 %

 46.1 %

 66.9 %

 Expense ratio

 31.0 %

 38.6 %

 31.5 %

 23.1 %

 53.2 %

 33.8 %

 Combined ratio

 88.4 %

 118.5 %

 102.6 %

 66.0 %

 99.3 %

 100.7 %

 Balances at December 31, 2024:

 $
 25,843

 $
 13,757

 $
 10,560

 $

 $
 2,644

 $
 52,907

 6,535

 9,135

 9,437

 —

 1,193

 Reinsurance recoverables on
losses

 2,358

 —

 1,934

 7,791

 Receivable from Federal Crop Insurance Corporation

 —

 —

 —

 13,223

 —

 13,223

 —

 —

 —

 —

 28,103

 77,580

 16,162

 1,789

 13,654

 37,711

 28,391

 53,319

 —

 7,077

 126,498

 (1) Other underwriting and general
expenses for each segment include expenses related to compensation, vendor services, and other administrative items.

 Year Ended December 31, 2023

Passenger Auto

 Non-Standard

 Auto

 Farm

 Crop

 All Other

 Total

 Direct premiums earned

 $
 87,431

 $
 88,170

 $
 93,130

 $
 45,273

 $
 11,586

 $
 325,590

 Assumed premiums earned

 —

 —

 —

 2,262

 1,308

 3,570

 Ceded premiums earned

 ( 4,071
)

 ( 410
)

 ( 9,741
)

 ( 21,718
)

 ( 1,103
)

 ( 37,043
)

 83,360

 87,760

 83,389

 25,817

 11,791

 59,385

 63,041

 52,455

 17,669

 2,588

 195,138

 —

 —

 —

 1,140

 —

 ( 1,520
)

 ( 7,663
)

 ( 1,398
)

 ( 9,762
)

 60,204

 63,041

 50,935

 10,793

 1,543

 Gross margin

 23,156

 24,719

 32,454

 15,024

 10,248

 105,601

 15,797

 29,585

 16,446

 3,828

 1,975

 67,631

 Other underwriting and general expenses (1)

 8,895

 7,994

 8,451

 2,494

 1,492

 29,326

 Underwriting and general expenses

 24,692

 37,579

 24,897

 6,322

 3,467

 96,957

 Underwriting gain (loss)

 ( 1,536
)

 ( 12,860
)

 7,557

 8,702

 6,781

 8,644

 1,293

 1,940

 ( 11,567
)

 —

 8,034

 1,929

 Income (loss) before income taxes

 20,547

 19,831

 Net income (loss) attributable to non-controlling interest

 Net income (loss) attributable to NI Holdings, Inc.

 $
 19,581

 Operating Ratios:

 Loss and loss adjustment expense ratio

 72.2 %

 71.8 %

 61.1 %

 41.8 %

 13.1 %

 63.8 %

 Expense ratio

 29.6 %

 42.8 %

 29.9 %

 24.5 %

 29.4 %

 33.2 %

 Combined ratio

 101.8 %

 114.6 %

 91.0 %

 66.3 %

 42.5 %

 97.0 %

 Balances at December 31, 2023:

 $
 24,152

 $
 19,853

 $
 9,755

 $

 $
 2,305

 $
 56,154

 5,834

 11,966

 8,005

 —

 Reinsurance recoverables on
losses

 —

 2,949

 1,343

 2,153

 6,460

 Receivable from Federal Crop Insurance Corporation

 —

 —

 —

 17,404

 —

 17,404

 —

 2,728

 —

 —

 —

 2,728

 28,037

 61,272

 18,205

 3,884

 7,787

 119,185

 35,367

 36,426

 48,210

 —

 6,097

 126,100

 (1) Other underwriting and general expenses for each segment include
expenses related to compensation, vendor services, and other administrative items.

 Year Ended December 31, 2022

Passenger Auto

 Non-Standard

Auto

Farm

 Crop

 All Other

 Total

 Direct premiums earned

 $
 80,410

 $
 67,178

 $
 88,143

 $
 53,215

 $
 10,661

 $
 299,607

 Assumed premiums earned

 —

 —

 —

 2,254

 4,296

 6,550

 Ceded premiums earned

 ( 2,805
)

 ( 267
)

 ( 9,762
)

 ( 20,748
)

 ( 835
)

 ( 34,417
)

 77,605

 66,911

 78,381

 34,721

 14,122

 66,250

 39,400

 114,195

 27,146

 8,196

 255,187

 —

 —

 —

 1,735

 2,369

 ( 830
)

 —

 ( 6,372
)

 ( 8,362
)

 ( 242
)

 ( 15,806
)

 65,420

 39,400

 107,823

 19,418

 9,689

 Gross margin

 12,185

 27,511

 ( 29,442
)

 15,303

 4,433

 29,990

 13,584

 20,831

 14,764

 2,667

 1,759

 53,605

 Other underwriting and general expenses (1)

 8,149

 6,172

 8,438

 2,144

 25,303

 Underwriting and general expenses

 21,733

 27,003

 23,202

 3,067

 3,903

 78,908

 Underwriting gain (loss)

 ( 9,548
)

 ( 52,644
)

 12,236

 ( 48,918
)

 1,381

 1,339

 —

 6,636

 ( 11,975
)

 Income (loss) before income taxes

 ( 52,876
)

 ( 14,191
)

 ( 38,685
)

 Net income (loss) attributable to non-controlling interest

 ( 679
)

 Net income (loss) attributable to NI Holdings, Inc.

 $
 ( 38,006
)

 Operating Ratios:

 Loss and loss adjustment expense ratio

 84.3 %

 58.9 %

 137.6 %

 55.9 %

 68.6 %

 89.0 %

 Expense ratio

 28.0 %

 40.4 %

 29.6 %

 8.8 %

 27.6 %

 29.0 %

 Combined ratio

 112.3 %

 99.3 %

 167.2 %

 64.7 %

 96.2 %

 118.0 %

 Balances at December 31, 2022:

 $
 20,669

 $
 14,884

 $
 9,388

 $

 $
 2,024

 $
 47,346

 5,040

 9,378

 7,376

 —

 22,675

 1,440

 —

 5,732

 8,586

 Receivable from Federal Crop Insurance Corporation

 —

 —

 —

 15,462

 —

 15,462

 —

 2,761

 —

 —

 —

 2,761

 27,439

 46,231

 27,989

 2,145

 10,492

 114,296

 30,721

 29,301

 44,957

 —

 5,947

 110,926

 (1) Other underwriting and general expenses for each segment include
expenses related to compensation, vendor services, and other administrative items.

 22. Statutory
Net Income (Loss), Capital and Surplus, and Dividend Restrictions

 The following table presents selected information,
as filed with insurance regulatory authorities, for our insurance subsidiaries as determined in accordance with accounting practices prescribed
or permitted by such insurance regulatory authorities as of and for the years ended December 31, 2024, 2023, and 2022:

 2024

 2023

 2022

 Nodak Insurance:

 $
 189,694

 $
 176,783

 $
 175,673

 184,694

 171,783

 170,673

 8,492

 7,839

 ( 29,978
)

 American West:

 16,315

 15,423

 14,957

 10,314

 9,422

 8,956

 1,001

 ( 38
)

 ( 3,228
)

 Primero:

 9,056

 8,585

 8,677

 ( 203
)

 ( 675
)

 ( 582
)

 ( 136
)

 ( 1,211
)

 Battle Creek:

 6,132

 6,047

 5,660

 3,132

 3,047

 2,660

 ( 1,189
)

 Direct Auto:

 36,875

 32,843

 32,054

 33,875

 29,843

 29,054

 3,325

 ( 6,074
)

 Westminster:

 —

 21,328

 20,090

 —

 16,328

 15,090

 —

 1,200

 ( 3,861
)

 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 requirements that may further affect their ability to pay dividends.
 Our insurance subsidiaries statutory capital and surplus at December 31, 2024 and 2023 exceeded
the amount of statutory capital and surplus necessary to satisfy risk-based capital requirements by a significant margin.

 Amounts available for distribution in 2025 to
Nodak Insurance as dividends from its insurance subsidiaries without prior approval of the North Dakota Insurance Department are $ 1,001
from American West, $ 324 from Primero, and $ 158 from Battle Creek. No dividends were paid to Nodak Insurance from any of these entities
during the years ended December 31, 2024, 2023, or 2022.

 The amount available for payment of dividends from Nodak Insurance
to NI Holdings during 2025 without the prior approval of the North Dakota Insurance Department is approximately $ 8,273 as of December
31, 2024. No dividends were declared or paid by Nodak Insurance during the years ended December 31, 2024 and 2023. The Nodak Insurance
Board of Directors declared and paid dividends of $ 3,000 to NI Holdings during the year ended December 31, 2022.

 The amount available for payment of dividends from Direct Auto to
NI Holdings during 2025 without the prior approval of the North Dakota Insurance Department is approximately $ 3,146 as of December 31,
2024. No dividends were declared or paid by Direct Auto during the years ended December 31, 2024, 2023, or 2022.

 Prior to its payment of any dividend, each insurance company 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 an insurance company is in violation of
any law or regulation. These restrictions or any subsequently imposed restrictions may affect our future liquidity.

 Westminster was sold on June 30, 2024, and therefore no dividends
are available to be paid to NI Holdings subsequent to that date. No dividends were declared or paid by Westminster during the years ended
December 31, 2024, 2023 or 2022. See Part II, Item 8, Note 20 "Discontinued Operations" for additional information.

 Item 9.

 Changes in and Disagreements with Accountants on Accounting and Financial Disclosure

 There have been no changes or disagreements with
accountants on accounting and financial disclosure.

 Item 9A.
 Controls and Procedures

 Evaluation of Disclosure Controls and Procedures

 The Company's Chief Executive Officer and
Chief Financial Officer have reviewed and evaluated the effectiveness of the Company's disclosure controls and procedures ("DCPs"),
as required by Rules 13a-15(b) and 15d-15(b) under the Exchange Act, as of December 31, 2024. Based on that evaluation, the Chief Executive
Officer and Chief Financial Officer have concluded that the Company's disclosure controls and procedures, as of the end of the period
covered by this report, were designed and functioning effectively to provide reasonable assurance that the information required to be
disclosed in our periodic reports filed under the Exchange Act is recorded, processed, summarized, and reported within the time periods
specified in the SEC's rules and forms, and that such material information is accumulated and communicated to the Chief Executive
Officer and Chief Financial Officer to allow timely decisions regarding required disclosures. We believe that a control system, no matter
how well designed and operated, cannot provide absolute assurance that the objectives of the control system are met, and no evaluation
of controls can provide absolute assurance that all control issues and instances of fraud, if any, within a company have been detected.

 Management's Report on Internal Control over Financial
Reporting

 Our management is responsible for establishing
and maintaining adequate internal control over financial reporting. Under the supervision and with the participation of our Chief Executive
Officer and our Chief Financial Officer, our management has reviewed and evaluated the effectiveness of our internal control over financial
reporting based on the framework and criteria established in Internal Control – Integrated Framework (2013) issued by the Committee
of Sponsoring Organizations of the Treadway Commission (the "COSO Framework"). Because of its inherent limitations, internal
control over financial reporting may not prevent or detect misstatements.

 Based on our evaluation under the COSO Framework,
the Chief Executive Officer and Chief Financial Officer have concluded that the Company's current internal control over financial
reporting is effective at December 31, 2024, and that our consolidated financial statements we include in this 2024 Annual Report present
fairly, in all material respects, our financial position, results of operations, and cash flows in accordance with accounting principles
generally accepted in the United States of America.

 Forvis Mazars, LLP, our independent registered
public accounting firm, has issued an audit report on the effectiveness of our internal control over financial reporting as of December
31, 2024. This audit report appears in Part II, Item 8 "Financial Statements and Supplementary Data" of this 2024 Annual Report.

 Material Weakness in Internal Control Over Financial Reporting

 A material weakness is a deficiency, or a combination of deficiencies,
in internal control over financial reporting ("ICFR"), such that there is a reasonable possibility that a material misstatement
of the Company's annual or interim financial statements will not be prevented or detected on a timely basis.

 As previously disclosed in our Quarterly Report on Form 10-Q/A for
the quarter ended June 30, 2024, the Company did not design and maintain effective controls over its accounting for intercompany reinsurance
pooling activity. Specifically, it lacked an effectively designed internal control related to the evaluation of pooling payable/receivable
balances, including when a pool member is sold. This material weakness resulted in a material error and the restatement of the Company's
consolidated financial statements for the three- and six-month periods ended June 30, 2024. Additionally, this material weakness could
result in misstatements of the aforementioned accounts or disclosures that would result in a material misstatement to the annual or interim
consolidated financial statements that would not be prevented or detected.

 Remediation Plan for Material Weakness

 Upon identification of the material weakness, management developed
a remediation plan, which included designing and implementing a new quarterly intercompany pooling reconciliation and review process to
fully evaluate pooling payable/receivable balances in support of financial reporting for GAAP purposes. The material weakness is considered
remediated as of the end of the period covered by this report as the remediation plan has been implemented and there has been sufficient
time for the Company to conclude through testing that the controls are operating effectively. As the Company's management, under the oversight
of the Audit Committee, continues to evaluate and improve the Company's ICFR, management may decide to take additional measures to address

 control deficiencies or determine to modify, or in appropriate circumstances not to complete, certain of the remediation measures identified.
We can offer no assurance that these initiatives will ultimately have the intended effects.

 Changes in Internal Control over Financial Reporting

 In the ordinary course of business, we periodically
review our system of internal control over financial reporting to identify opportunities to improve our controls and increase efficiency,
while ensuring that we maintain an effective internal control environment. Except for the identified material weakness above, there have
not been any changes in the Company's internal control over financial reporting (as such term is defined in Rules 13a-15(f) and
15d-15(f) under the Exchange Act) during the annual period covered by this report that have materially affected, or are reasonably likely
to materially affect, the Company's internal control over financial reporting.

 Item 9B.
 Other Information

 10b5-1 Trading Plans

 During the fourth quarter of
2024, none of our directors or executive officers (as defined in Rule 16a-1(f) under the Exchange Act) adopted or terminated any
"Rule 10b5-1 trading arrangement" or "non-Rule 10b5-1 trading arrangement" (as each term is defined in Item 408(a)
of Regulation S-K).

 Item 9C.
 Disclosure Regarding Foreign Jurisdictions that Prevent Inspections

 Not applicable.

 Item 10.

 Directors, Executive Officers and Corporate Governance

 We incorporate the response to this Item 10 by
reference to our proxy statement we will file with the SEC on or about April 9, 2025 relating to our Annual Meeting of Shareholders that
we will hold on May 20, 2025 (our "Proxy Statement").

 We have posted a copy of our Code of Ethics and
Business Conduct on the Governance Highlights page of the Corporate Governance section of our website, www.niholdingsinc.com, which you
can access free of charge. Information contained on the website is not incorporated by reference in, or considered part of, this 2024
Annual Report. We intend to disclose on our website any amendments to, or waivers from, our Code of Ethics and Business Conduct that are
required to be disclosed by SEC rules or Nasdaq Listing Rules.

 Item 11.

 Executive Compensation

 We incorporate the response to this Item 11 by
reference to our Proxy Statement.

 Item 12.

 Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

 We incorporate the response to this Item 12 by
reference to our Proxy Statement.

 Item 13.

 Certain Relationships and Related Transactions, and Director Independence

 We incorporate the response to this Item 13 by
reference to our Proxy Statement.

 Item 14.

 Principal Accountant Fees and Services

 We incorporate the response to this Item 14 by
reference to our Proxy Statement.

 Item 15.

 Exhibits and Financial Statement Schedules

 List of Financial Statements and Financial Statement Schedules

 (a)

 The following documents are filed as a part of this report:

 (1)

 Financial Statements and

 (2)

 Financial Statement schedules required to be filed by Item 8 of this report.

 Schedule I Condensed financial information
of registrant – NI Holdings, Inc.

 All other financial schedules are not required under the related
instructions, as they are inapplicable or the information has been included in the consolidated financial statements, and therefore have
been omitted.

 (3)

 The following exhibits are required by Item 601 of Regulation S-K and are included as part of this Form 10-K:

 EXHIBIT NO.

 DESCRIPTION OF EXHIBIT

 2.1

 Plan of Mutual Property and Casualty Insurance Company Conversion and Minority Offering of Nodak Mutual Insurance Company, dated as of January 21, 2016 (filed as an exhibit to the Company's Registration Statement on Form S-1 (File No. 333-214057) filed with the SEC on October 11, 2016, and incorporated herein by reference).

 2.2

 Stock Purchase Agreement, dated May 7, 2024 (filed as an exhibit to the Company's Form 8-K filed with the SEC on May 8, 2024, and incorporated herein by reference).

 3.1

 Articles of Incorporation of NI Holdings, Inc. (filed as an exhibit to the Company's Registration Statement on Form S-1 (File No. 333-214057) filed with the SEC on October 11, 2016, and incorporated herein by reference).

 3.2

 Articles of Amendment to the Articles of Incorporation, dated May 24, 2023. (filed as an exhibit to the Company's Form 8-K filed with the SEC on May 25, 2023, and incorporated herein by reference).

 3.3

 Amended and Restated Bylaws of NI Holdings, Inc., dated May 24, 2023. (filed as an exhibit to the Company's Form 8-K filed with the SEC on May 25, 2023, and incorporated herein by reference).

 4.1

 Form of certificate evidencing shares of common stock of NI Holdings, Inc. (filed as an exhibit to the Company's Registration Statement on Form S-1 (File No. 333-214057) filed with the SEC on October 11, 2016, and incorporated herein by reference).

 4.2

 Description of Securities Registered Under Section 12 of the Exchange Act (filed as an exhibit to the Company's Form 10-K filed with the SEC on March 10, 2021, and incorporated herein by reference).

 10.1

 2017 NI Holdings, Inc. Equity Incentive Plan (filed as Exhibit 10.1 to the Company's Form 8-K filed with the SEC on September 18, 2017, and incorporated herein by reference).

 10.2

 Nodak Mutual Insurance Company Nonqualified Deferred Compensation Plan (filed as an exhibit to the Company's Registration Statement on Form S-1 (File No. 333-214057) filed with the SEC on October 11, 2016, and incorporated herein by reference).

 10.3#

 Employment Agreement dated as of April 28, 2016, between Michael J. Alexander and Nodak Mutual Insurance Company and NI Holdings, Inc. (filed as an exhibit to the Company's Registration Statement on Form S-1 (File No. 333-214057) filed with the SEC on October 11, 2016, and incorporated herein by reference).

 10.4#*

 Amended and Restated Employment Agreement dated as of December 1, 2024, between Seth C. Daggett and Nodak Insurance Company and NI Holdings, Inc.

 10.5#

 Employment Agreement dated as of April 28, 2016, between Patrick W. Duncan and Nodak Mutual Insurance Company and NI Holdings, Inc. (filed as an exhibit to the Company's Registration Statement on Form S-1 (File No. 333-214057) filed with the SEC on October 11, 2016, and incorporated herein by reference).

 10.6

 Trademark License Agreement dated as of October 1, 2016 between North Dakota Farm Bureau and Nodak Mutual Insurance Company (filed as an exhibit to the Company's Registration Statement on Form S-1 (File No. 333-214057) filed with the SEC on October 11, 2016, and incorporated herein by reference).

 10.7

 Multiple Peril Crop/Livestock Insurance Full Service Agency Agreement among American Farm Bureau Insurance Services, Inc. and Nodak Mutual Insurance Company, American West Insurance Company and Battle Creek Mutual Insurance Company for Crop Year 2016 (filed as an exhibit to the Company's Registration Statement on Form S-1 (File No. 333-214057) filed with the SEC on October 11, 2016, and incorporated herein by reference).

 10.8

 Crop Hail Insurance Full Service Agency Agreement among American Farm Bureau Insurance Services, Inc. and Nodak Mutual Insurance Company, American West Insurance Company and Battle Creek Mutual Insurance Company for Crop Year 2016 (filed as an exhibit to the Company's Registration Statement on Form S-1 (File No. 333-214057) filed with the SEC on October 11, 2016, and incorporated herein by reference).

 10.9#

 Nodak Mutual Insurance Company Cash Incentive Bonus Plan (filed as an exhibit to Amendment No. 4 to the Company's Registration Statement on Form S-1 (File No. 333-214057) filed with the SEC on January 12, 2017, and incorporated herein by reference).

 10.10#

 NI Holdings, Inc. Employee Stock Ownership Plan (filed as an exhibit to the Company's Registration Statement on Form S-1 (File No. 333-214057) filed with the SEC on October 11, 2016, and incorporated herein by reference).

 10.11

 Affiliation Agreement dated as of December 30, 2010 between Nodak Mutual Insurance Company and Battle Creek Mutual Insurance Company (filed as an exhibit to Amendment No. 1 to the Company's Registration Statement on Form S-1 (File No. 333-214057) filed with the SEC on November 14, 2016, and incorporated herein by reference).

 10.12

 Form of Time-Based Restricted Stock Unit Agreement for Non-Employee Directors (filed as an exhibit to the Company's Form 8-K filed with the SEC on May 29, 2020, and incorporated herein by reference).

 10.13

 NI Holdings, Inc. 2020 Stock and Incentive Plan (filed as an exhibit to the Company's Form 8-K filed with the SEC on May 29, 2020, and incorporated herein by reference).

 10.14#

 Form of Time-Based Restricted Stock Unit Agreement for Executives (filed as an exhibit to the Company's Form 10-K filed with the SEC on March 9, 2022, and incorporated herein by reference).

 10.15#

 Form of NI Holdings, Inc. Growth in Book Value Per Share Performance Share Unit Agreement (filed as an exhibit to the Company's Form 10-K filed with the SEC on March 9, 2022, and incorporated herein by reference).

 10.16#

 2022 NI Holdings, Inc. Short-Term Incentive Bonus (filed as an exhibit to the Company's Form 10-Q filed with the SEC on May 6, 2022, and incorporated herein by reference).

 10.17#

 Form of NI Holdings, Inc. Adjusted Return on Equity Performance Share Unit Agreement (filed as an exhibit to the Company's Form 10-K filed with the SEC on March 15, 2024, and incorporated herein by reference).

 10.18#

 2024 NI Holdings, Inc. Short-Term Incentive Bonus (filed as an exhibit to the Company's Form 10-K filed with the SEC on March 15, 2024, and incorporated herein by reference).

 10.19#

 Employment Agreement dated August 26, 2024, between the Company and Cindy L. Launer (filed as an exhibit to the Company's Current Report on Form 8-K/A filed August 26, 2024).

 10.20#

 Separation Agreement, dated September 16, 2024, between NI Holdings, Inc. and Michael J. Alexander (filed as an exhibit to the Company's Current Report on Form 8-K filed September 19, 2024).

 10.21#

 Separation Agreement, dated November 27, 2024, between NI Holdings, Inc. and Patrick W. Duncan (filed as an exhibit to the Company's Current Report on Form 8-K filed December 3, 2024).

 19*

 NI Holdings, Inc. Policy on Insider Trading, adopted August 20, 2024.

 21.1*

 Subsidiaries of NI Holdings, Inc.

 23.1*

 Consent of Forvis Mazars, LLP, New York, NY, PCAOB ID 686

 23.2*

 Consent of Mazars USA LLP, Fort Washington, PA, PCAOB ID 339

 31.1*

 Certification of Principal Executive Officer Pursuant to Rules 13a-14(a) and 15d-14(a) under the Securities Exchange Act of 1934, as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

 31.2*

 Certification of Principal Financial Officer Pursuant to Rules 13a-14(a) and 15d-14(a) under the Securities Exchange Act of 1934, as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

 32**

 Certification of Principal Executive Officer and Principal Financial Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

 NI Holdings, Inc. Incentive Compensation Recovery Policy, adopted December 1, 2023 ( Filed as an exhibit to the Company's Form 10-K filed with the SEC on March 15, 2024, and incorporated herein by reference.)

 101.INS***

 101.SCH**

 101.CAL**

 101.DEF**

 101.LAB**

 101.PRE**

 * Filed herewith.

 ** Furnished herewith.

Business Reporting Language) information is furnished and not filed or a part of a registration statement or prospectus for purposes of
Sections 11 or 12 of the Securities Act of 1933, as amended, is deemed not filed for purposes of Section 18 of the Securities Exchange
Act of 1934, as amended, and otherwise is not subject to liability under these sections.

 # Management contract or
compensatory plan or arrangement.

 Item 16.

 Form 10-K Summary

 None.

 Schedule I – Condensed financial information of registrant
– NI Holdings, Inc.

 Condensed Balance Sheets

 December 31,

 2024

 2023

 Assets:

 $
 3,345

 $

 Fixed income securities, at fair value (net of allowance for expected credit losses of $0 at December 31, 2024 and 2023)

 3,999

 Equity securities, at fair value

 Total cash and investments

 7,358

 1,131

 Income tax recoverable

 7,126

 Investment in wholly-owned subsidiaries

 230,311

 246,360

 Deferred income taxes

 Total assets

 $
 245,331

 $
 248,763

 Liabilities:

 $

 $
 1,122

 Total liabilities

 1,122

 Shareholders' equity

 244,631

 247,641

 Total liabilities and shareholders' equity

 $
 245,331

 $
 248,763

 Condensed Statements of Operations

 2024

 2023

 2022

 Revenues:

 Net investment income (loss)

 $
 (223
)

 $
 (122
)

 $

 (217
)

 (492
)

 Total revenues

 (222
)

 (339
)

 (349
)

 Expenses:

 Other underwriting and general expenses

 6,460

 4,612

 3,002

 Total expenses

 6,460

 4,612

 3,002

 Loss before income taxes and equity in undistributed net income (loss) of subsidiaries

 (6,682
)

 (4,951
)

 (3,351
)

 Income tax benefit

 (665
)

 (111
)

 (1,124
)

 Loss before equity in undistributed net income (loss) of subsidiaries

 (6,017
)

 (4,840
)

 (2,227
)

 Equity in undistributed net income (loss) of subsidiaries

 11,105

 (636
)

 (50,869
)

 Loss on sale of discontinued operations, net of tax

 (11,148
)

 —

 —

 Net loss attributable to NI Holdings, Inc.

 $
 (6,060
)

 $
 (5,476
)

 $
 (53,096
)

 Condensed Statements of Comprehensive Income

 2024

 2023

 2022

 Net loss attributable to NI Holdings, Inc.

 $
 (6,060
)

 $
 (5,476
)

 $
 (53,096
)

 Other comprehensive income (loss), net of income taxes:

 Unrealized gain (loss) on investments

 (165
)

 Unrealized gain (loss) attributed to subsidiaries

 (160
)

 7,887

 (34,358
)

 (153
)

 7,902

 (34,523
)

 Comprehensive income (loss)

 $
 (6,213
)

 $
 2,426

 $
 (87,619
)

 Condensed Statements of Cash Flows

 2024

 2023

 2022

 Cash flows from operating activities:

 Net income (loss) attributable to NI Holdings, Inc.

 $
 (6,060
)

 $
 (5,476
)

 $
 (53,096
)

 Adjustments to reconcile net income (loss) attributable to NI Holdings, Inc. to net cash flows from operating activities:

 Equity in undistributed net income of subsidiaries

 (11,105
)

 50,869

 Loss on sale of Westminster

 17,479

 —

 —

 Other

 (6,220
)

 2,603

 Net adjustments

 3,239

 51,228

 Net cash flows from operating activities

 (5,906
)

 (2,237
)

 (1,868
)

 Cash flows from investing activities:

 Proceeds from maturities and sales of fixed income securities

 9,942

 Proceeds from sales of equity securities

 —

 6,863

 4,278

 Purchases of fixed income securities

 (3,960
)

 —

 —

 Purchases of equity securities

 —

 (882
)

 (2,023
)

 Proceeds from disposition of Westminster

 12,272

 —

 —

 Net cash flows from investing activities

 9,101

 6,204

 12,197

 Cash flows from financing activities:

 Dividend from subsidiaries

 —

 —

 3,000

 Purchase of treasury stock

 —

 (7,278
)

 (4,180
)

 Installment payment on Westminster consideration payable

 —

 —

 (13,333
)

 (158
)

 (172
)

 (768
)

 Net cash flows from financing activities

 (158
)

 (7,450
)

 (15,281
)

 Net decrease in cash and cash equivalents

 3,037

 (3,483
)

 (4,952
)

 Cash and cash equivalents at beginning of period

 3,791

 8,743

 Cash and cash equivalents at end of period

 $
 3,345

 $

 $
 3,791

 Note A – Basis of Presentation

 In the parent-company-only financial statements, the Company's
investment in subsidiaries is stated at cost plus equity in undistributed earnings of subsidiaries since inception. The parent-company-only
financial statements should be read in conjunction with the Company's consolidated financial statements.

 Note B – Dividends from Subsidiaries

 The Company received no cash dividends from its subsidiaries during
the years ended December 31, 2024 and 2023. A cash dividend of $3,000 was received from Nodak Insurance during the year ended December
31, 2022.

 SIGNATURES

 Pursuant to the requirements of Section 13 or 15(d) of the Securities
Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized
on March 7, 2025.

 NI HOLDINGS, INC.

 /s/ Seth C. Daggett
Seth C. Daggett

President and Chief Executive Officer

 (Principal Executive Officer)

 Pursuant to the requirements of the Securities Exchange Act of 1934,
this report has been signed below on March 7, 2025, by the following persons on behalf of the registrant and in the capacities indicated.

 Signature

 Capacity

 Date

 /s/ Seth C. Daggett

 President and Chief Executive Officer ( Principal Executive Officer), Director

 Seth C. Daggett

 /s/ Matthew J. Maki

 Chief Financial Officer ( Principal Financial Officer and Principal Accounting Officer)

 Matthew J. Maki

 /s/ Eric K. Aasmundstad

 Eric K. Aasmundstad

 /s/ William R. Devlin

 William R. Devlin

 /s/ Duaine C. Espegard

 Duaine C. Espegard

 /s/ Cindy L. Launer

 Cindy L. Launer

 /s/ Stephen V. Marlow

 Stephen V. Marlow

 /s/ Prakash Mathew

 Prakash Mathew

 /s/ Jeffrey R. Missling

 Jeffrey R. Missling

 2025-02-28

 nodk: MazarsUSALLPMember

 nodk: AttributableToNIHoldingsIncMember

 nodk: AttributableToNonControllingInterestMember

 nodk: AttributableToNIHoldingsIncMember

 nodk: AttributableToNonControllingInterestMember

 nodk: AttributableToNIHoldingsIncMember

 nodk: AttributableToNonControllingInterestMember

 2024-01-02

 2024-01-02

 nodk: RightOfUseAssetMember

 nodk: LeaseLiabilityMember

 2018-08-31

 2020-01-01

 2020-01-01

 2024-09-30

 srt: ScenarioPreviouslyReportedMember

 srt: RestatementAdjustmentMember

 nodk: AsRestatedMember

 srt: ScenarioPreviouslyReportedMember

 2024-04-01

 srt: RestatementAdjustmentMember

 2024-04-01

 nodk: AsRestatedMember

 2024-04-01

 srt: ScenarioPreviouslyReportedMember

 srt: RestatementAdjustmentMember

 nodk: AsRestatedMember

 us-gaap: RealEstateSectorMember

 us-gaap: RealEstateSectorMember

 us-gaap: RealEstateSectorMember

 us-gaap: CashAndCashEquivalentsMember

 us-gaap: CashAndCashEquivalentsMember

 us-gaap: CashAndCashEquivalentsMember

 nodk: TotalMoneyMarketAccountsAndCashEquivalentsMember

 nodk: TotalMoneyMarketAccountsAndCashEquivalentsMember

 nodk: TotalMoneyMarketAccountsAndCashEquivalentsMember

 nodk: TotalMoneyMarketAccountsAndCashEquivalentsMember

 nodk: ExternalReinsuranceMember

 nodk: ExternalReinsuranceMember

 nodk: MultiPerilCropMember

 nodk: MultiPerilCropMember

 us-gaap: OtherReinsurerMember

 us-gaap: OtherReinsurerMember

 nodk: ExternalReinsuranceMember

 nodk: ExternalReinsuranceMember

 us-gaap: OtherReinsurerMember

 nodk: MultiPerilCropMember

 nodk: ContinuingAndDiscontinuedOperationsMember

 nodk: ContinuingAndDiscontinuedOperationsMember

 nodk: ContinuingAndDiscontinuedOperationsMember

 us-gaap: LandMember

 us-gaap: LandMember

 us-gaap: BuildingImprovementsMember

 us-gaap: BuildingImprovementsMember

 us-gaap: BuildingImprovementsMember

 us-gaap: BuildingImprovementsMember

 us-gaap: ComputerEquipmentMember

 us-gaap: ComputerEquipmentMember

 us-gaap: ComputerEquipmentMember

 us-gaap: ComputerEquipmentMember

 us-gaap: FurnitureAndFixturesMember

 us-gaap: FurnitureAndFixturesMember

 us-gaap: FurnitureAndFixturesMember

 us-gaap: FurnitureAndFixturesMember

 us-gaap: AutomobilesMember

 us-gaap: AutomobilesMember

 us-gaap: AutomobilesMember

 us-gaap: AutomobilesMember

 us-gaap: GoodwillMember

 us-gaap: GoodwillMember

 us-gaap: GoodwillMember

 us-gaap: TradeNamesMember

 nodk: DistributionNetworkMember

 nodk: SubjectToAmortizationMember

 nodk: StateInsuranceLicensesMember

 us-gaap: TradeNamesMember

 nodk: DistributionNetworkMember

 nodk: SubjectToAmortizationMember

 nodk: StateInsuranceLicensesMember

 nodk: SubjectToAmortizationMember

 nodk: NotSubjectToAmortizationContinuingOperationsMember

 nodk: NotSubjectToAmortizationDiscontinuedOperationsMember

 nodk: SubjectToAmortizationMember

 nodk: NotSubjectToAmortizationContinuingOperationsMember

 nodk: NotSubjectToAmortizationDiscontinuedOperationsMember

 nodk: NorthDakotaFarmBureauMember

 nodk: NorthDakotaFarmBureauMember

 nodk: NorthDakotaFarmBureauMember

 nodk: NorthDakotaFarmBureauMember

 nodk: ESOPLoanMember

 nodk: WestminsterAmericanInsuranceCompany1Member

 nodk: SpearfishMember

 nodk: ChicagoMember

 nodk: FargoMember

 2021-08-11

 2021-01-01

 srt: BoardOfDirectorsChairmanMember

 2022-05-09

 2022-08-16
 2022-08-16

 us-gaap: StockCompensationPlanMember

 us-gaap: StockCompensationPlanMember

 srt: DirectorMember
 us-gaap: StockCompensationPlanMember

 us-gaap: RestrictedStockMember

 us-gaap: RestrictedStockMember

 2024-05-07
 2024-05-07

 2024-05-07

 nodk: NodakInsuranceCompanyMember

 nodk: NorthDakotaInsuranceDepartmentMember

 srt: BoardOfDirectorsChairmanMember

 nodk: NorthDakotaInsuranceDepartmentMember

 2024-10-01