NI Holdings, Inc. 10-K

Item 8. Financial Statements and Supplementary Data REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM To the Shareholders, Board of Directors, and Audit Committee NI Holdings, Inc. Opinions on the Consolidated Financial Statements and Internal Control Over Financial Reporting We have audited the accompanying consolidated balance sheets of NI Holdings, Inc. and Subsidiaries (the “Company”) as of December 31, 2025 and 2024, 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, 2025, the related notes and the schedule listed in Item 15(a)(2) (collectively referred to as the “financial statements”). We also have audited the Company’s internal control over financial reporting as of December 31, 2025, 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 financial statements referred to above present fairly, in all material respects, the financial position of the Company as of December 31, 2025 and 2024, and the results of its operations and its cash flows for each of the years in the two-year period ended December 31, 2025, 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, 2025, based on criteria established in Internal Control – Integrated Framework: (2013) issued by COSO. We also have audited the adjustments to the Company’s 2023 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 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 consolidated financial statements taken as a whole. Basis for Opinion The Company’s management is responsible for these 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 financial statements and an opinion on the Company’s internal control over financial reporting based on our audits. 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 audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the 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 audits of the 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 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 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 audits also included performing such other procedures as we considered necessary in the circumstances. We believe that our audits provide 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 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 46 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 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 matter communicated below is a matter arising from the current-period audit of the financial statements that was communicated or required to be communicated to the audit committee and that: (1) relates to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective, or complex judgments. The communication of a critical audit matter does not alter in any way our opinion on the financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates. Evaluation of Losses and Loss Adjustment Expenses Critical Audit Matter Description On December 31, 2025, the Company’s liability for unpaid losses and loss adjustment expenses was approximately $138 million. As described in Note 3 and Note 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 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 March 6, 2026 47 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 statements of operations, comprehensive income (loss), changes in shareholders’ equity, and cash flows of NI Holdings, Inc. and Subsidiaries (collectively the “Company”) for the year 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 results of the Company’s operations and its cash flows for the year 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 audit. 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 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. Our audit 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 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. We believe that our audit provides 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 48 NI Holdings, Inc. Consolidated Balance Sheets December 31, 2025 and 2024 (dollar amounts in thousands, except par value) 2025 2024 Assets: Cash and cash equivalents $ 51,715 $ 50,930 Fixed income securities, at fair value (net of allowance for expected credit losses of $ 0 at December 31, 2025 and 2024) 301,393 307,712 Equity securities, at fair value 23,951 24,640 Other investments 1,621 1,812 Total cash and investments 378,680 385,094 Premiums and agents' balances receivable (net of allowance for expected credit losses of $ 334 at December 31, 2025 and $ 337 at December 31, 2024) 41,575 52,907 Deferred policy acquisition costs 19,209 26,300 Reinsurance premiums receivable — 746 Reinsurance recoverables on losses (net of allowance for expected credit losses of $ 0 at December 31, 2025 and 2024) 11,957 12,561 Income tax recoverable 11,490 7,017 Accrued investment income 2,462 2,629 Property and equipment, net 6,759 7,547 Deferred income taxes 6,145 7,324 Receivable from Federal Crop Insurance Corporation 15,605 13,223 Goodwill and other intangibles — 100 Other assets 12,120 11,097 Total assets $ 506,002 $ 526,545 Liabilities: Unpaid losses and loss adjustment expenses $ 137,855 $ 137,288 Unearned premiums 106,498 126,498 Reinsurance premiums payable 878 — Accrued expenses and other liabilities 20,434 18,128 Total liabilities 265,665 281,914 Shareholders’ equity: Common stock, $ 0.01 par value, authorized 25,000,000 shares, issued: 23,000,000 shares; and outstanding: 2025 – 20,554,144 shares, 2024 – 20,673,268 shares 230 230 Additional paid-in capital 95,932 95,796 Unearned employee stock ownership plan shares ( 212 ) ( 455 ) Retained earnings 191,074 201,584 Accumulated other comprehensive loss, net of income taxes ( 10,595 ) ( 18,231 ) Treasury stock, at cost, 2025 – 2,424,691 shares, 2024 – 2,281,252 shares ( 36,092 ) ( 34,293 ) Total shareholders’ equity 240,337 244,631 Total liabilities and shareholders’ equity $ 506,002 $ 526,545 The accompanying notes are an integral part of these consolidated financial statements. 49 NI Holdings, Inc. Consolidated Statements of Operations Years Ended December 31, 2025, 2024, and 2023 (dollar amounts in thousands, except per share data) 2025 2024 2023 Revenues: Net premiums earned $ 270,655 $ 310,110 $ 292,117 Fee and other income 997 1,938 1,940 Net investment income 11,702 10,943 8,034 Net investment gains (losses) 1,696 2,213 1,929 Total revenues 285,050 325,204 304,020 Expenses: Losses and loss adjustment expenses 200,788 207,465 186,516 Amortization of deferred policy acquisition costs 59,993 71,257 67,631 Other underwriting and general expenses 36,598 33,709 29,326 Goodwill impairment charge — 2,628 — Total expenses 297,379 315,059 283,473 Income (loss) from continuing operations before income taxes ( 12,329 ) 10,145 20,547 Income tax expense (benefit) ( 1,916 ) 3,545 716 Net income (loss) from continuing operations ( 10,413 ) 6,600 19,831 Net income attributable to non-controlling interest — — 250 Net income (loss) from continuing operations attributable to NI Holdings, Inc. ( 10,413 ) 6,600 19,581 Loss from discontinued operations, net of income taxes — ( 1,512 ) ( 25,057 ) Loss on sale of discontinued operations, net of income taxes — ( 11,148 ) — Net loss $ ( 10,413 ) $ ( 6,060 ) $ ( 5,476 ) Earnings (loss) per common share from continuing operations: Basic $ ( 0.50 ) $ 0.31 $ 0.93 Diluted $ ( 0.50 ) $ 0.31 $ 0.92 Earnings (loss) per common share: Basic $ ( 0.50 ) $ ( 0.29 ) $ ( 0.26 ) Diluted $ ( 0.50 ) $ ( 0.29 ) $ ( 0.26 ) Share data: Weighted average common share outstanding used in basic per common share calculations 20,991,331 20,968,545 21,159,073 Dilutive securities — 120,626 76,532 Weighted average common shares used in diluted per common share calculations 20,991,331 21,089,171 21,235,605 The accompanying notes are an integral part of these consolidated financial statements. 50 NI Holdings, Inc. Consolidated Statements of Comprehensive Income (Loss) Years Ended December 31, 2025, 2024, and 2023 (dollar amounts in thousands) 2025 Attributable to NI Holdings, Inc. Attributable to Non-Controlling Interest Total Net income (loss) $ ( 10,413 ) $ — $ ( 10,413 ) Other comprehensive income (loss), before income taxes: Holding gains (losses) on investments 9,840 — 9,840 Reclassification adjustment for net realized losses (gains) included in net income (loss) 340 — 340 Other comprehensive income (loss), before income taxes 10,180 — 10,180 Income tax benefit (expense) related to items of other comprehensive income (loss) ( 2,544 ) — ( 2,544 ) Other comprehensive income (loss), net of income taxes 7,636 — 7,636 Comprehensive income (loss) $ ( 2,777 ) $ — $ ( 2,777 ) 2024 Attributable to NI Holdings, Inc. Attributable to Non-Controlling Interest Total Net income (loss) $ ( 6,060 ) $ — $ ( 6,060 ) 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) 233 — 233 Other comprehensive income (loss), before income taxes ( 249 ) — ( 249 ) Income tax benefit (expense) related to items of other comprehensive income (loss) 96 — 96 Other comprehensive income (loss), net of income taxes ( 153 ) — ( 153 ) Comprehensive income (loss) $ ( 6,213 ) $ — $ ( 6,213 ) 2023 Attributable to NI Holdings, Inc. Attributable to Non-Controlling Interest Total Net income (loss) $ ( 5,476 ) $ 250 $ ( 5,226 ) Other comprehensive income (loss), before income taxes: Holding gains (losses) on investments 9,709 363 10,072 Reclassification adjustment for net realized losses (gains) included in net income (loss) 582 — 582 Other comprehensive income (loss), before income taxes 10,291 363 10,654 Income tax benefit (expense) related to items of other comprehensive income (loss) ( 2,389 ) ( 85 ) ( 2,474 ) Other comprehensive income (loss), net of income taxes 7,902 278 8,180 Comprehensive income (loss) $ 2,426 $ 528 $ 2,954 The accompanying notes are an integral part of these consolidated financial statements. 51 NI Holdings, Inc. Consolidated Statements of Changes in Shareholders’ Equity Years Ended December 31, 2025, 2024, and 2023 (dollar amounts in thousands) Common Stock Additional Paid-in Capital Unearned Employee Stock Ownership Plan Shares Retained Earnings Accumulated Other Comprehensive Income (Loss), Net of Income Taxes Treasury Stock Non- Controlling Interest Total Shareholders’ Equity Balance, January 1, 2023 $ 230 $ 95,671 $ ( 941 ) $ 214,121 $ ( 29,286 ) $ ( 28,818 ) $ 2,230 $ 253,207 Battle Creek demutualization — — — — — — — — Net income (loss) — — — ( 5,476 ) — — 250 ( 5,226 ) Impact of Westminster unrealized investment gains/losses — — — — — — — — Other comprehensive income (loss), net of income taxes — — — — 7,902 — 278 8,180 Purchase of treasury stock — — — — — ( 7,278 ) — ( 7,278 ) Share-based compensation — 1,366 — — — — — 1,366 Issuance of vested award shares — ( 822 ) — ( 269 ) — 919 — ( 172 ) Distribution of employee stock ownership plan shares — 79 243 — — — — 322 Balance, December 31, 2023 230 96,294 ( 698 ) 208,376 ( 21,384 ) ( 35,177 ) 2,758 250,399 Battle Creek demutualization — — — 3,832 ( 1,074 ) — ( 2,758 ) — Net income (loss) — — — ( 6,060 ) — — — ( 6,060 ) Impact of Westminster unrealized investment gains/losses — — — ( 4,380 ) 4,380 — — — Other comprehensive income (loss), net of income taxes — — — — ( 153 ) — — ( 153 ) Purchase of treasury stock — — — — — — — — Share-based compensation — 238 — — — — — 238 Issuance of vested award shares — ( 858 ) — ( 184 ) — 884 — ( 158 ) Distribution of employee stock ownership plan shares — 122 243 — — — — 365 Balance, December 31, 2024 230 95,796 ( 455 ) 201,584 ( 18,231 ) ( 34,293 ) — 244,631 Battle Creek demutualization — — — — — — — — Net income (loss) — — — ( 10,413 ) — — — ( 10,413 ) Impact of Westminster unrealized investment gains/losses — — — — — — — — Other comprehensive income (loss), net of income taxes — — — — 7,636 — — 7,636 Purchase of treasury stock — — — — — ( 2,517 ) — ( 2,517 ) Share-based compensation — 828 — — — — — 828 Issuance of vested award shares — ( 778 ) — ( 97 ) — 718 — ( 157 ) Distribution of employee stock ownership plan shares — 86 243 — — — — 329 Balance, December 31, 2025 $ 230 $ 95,932 $ ( 212 ) $ 191,074 $ ( 10,595 ) $ ( 36,092 ) $ — $ 240,337 The accompanying notes are an integral part of these consolidated financial statements. 52 NI Holdings, Inc. Consolidated Statements of Cash Flows Years Ended December 31, 2025, 2024, and 2023 (dollar amounts in thousands) 2025 2024 2023 Cash flows from operating activities: Net loss $ ( 10,413 ) $ ( 6,060 ) $ ( 5,226 ) Less net loss from discontinued operations, net of income taxes — ( 1,512 ) ( 25,057 ) Adjustments to reconcile net loss to net cash flows from operating activities: Net investment gains ( 1,696 ) ( 2,213 ) ( 1,929 ) Deferred income tax expense (benefit) ( 1,364 ) 1,901 ( 1,876 ) Depreciation of property and equipment 694 681 692 Amortization/impairment of intangibles 100 — 33 Goodwill impairment charge — 2,628 — Distribution of employee stock ownership plan shares 329 365 322 Share-based compensation 828 238 1,366 Amortization of deferred policy acquisition costs 59,993 71,257 67,631 Deferral of policy acquisition costs ( 52,902 ) ( 70,767 ) ( 71,746 ) Net amortization of premiums and discounts on investments 393 607 928 Gain on sale of property and equipment ( 64 ) ( 64 ) ( 52 ) Changes in operating assets and liabilities: Premiums and agents’ balances receivable 11,332 3,247 ( 8,808 ) Reinsurance premiums receivable / payable 1,624 ( 2,149 ) ( 424 ) Reinsurance recoverables on losses 604 ( 6,101 ) 2,126 Income tax recoverable / payable ( 4,473 ) ( 7,164 ) 14,105 Accrued investment income 167 ( 304 ) ( 179 ) Federal Crop Insurance Corporation receivable / payable ( 2,382 ) 4,181 ( 1,942 ) Other assets ( 1,023 ) ( 231 ) ( 1,506 ) Unpaid losses and loss adjustment expenses 567 18,103 4,889 Unearned premiums ( 20,000 ) 398 15,174 Accrued expenses and other liabilities 2,414 469 ( 215 ) Net cash flows from operating activities – continuing operations ( 4,859 ) 15,082 18,589 Net cash flows from operating activities – discontinued operations — 10,493 12,608 Net cash flows from operating activities – loss on sale of discontinued operations — 17,479 — Total adjustments ( 4,859 ) 43,054 31,197 Net cash flows from operating activities ( 15,272 ) 38,506 51,028 Cash flows from investing activities: Proceeds from maturities and sales of fixed income securities 42,563 43,633 33,888 Proceeds from sales of equity securities 10,768 7,587 39,020 Purchases of fixed income securities ( 26,797 ) ( 62,561 ) ( 56,318 ) Purchases of equity securities ( 8,043 ) ( 7,833 ) ( 11,741 ) Purchases of property and equipment ( 217 ) ( 991 ) ( 661 ) Proceeds from sales of property and equipment 374 280 147 Proceeds from disposition of Westminster — 12,272 — Other 191 194 — Net cash flows from investing activities – continuing operations 18,839 ( 7,419 ) 4,335 Net cash flows from investing activities – discontinued operations — 2,878 ( 13,148 ) Net cash flows from investing activities 18,839 ( 4,541 ) ( 8,813 ) Cash flows from financing activities: Purchase of treasury stock ( 2,517 ) — ( 7,278 ) Pooling (payments) receipts — ( 10,444 ) ( 28,114 ) Principal repayments of finance leases ( 108 ) ( 99 ) ( 16 ) Issuance of vested award shares ( 157 ) ( 158 ) ( 172 ) Net cash flows from financing activities – continuing operations ( 2,782 ) ( 10,701 ) ( 35,580 ) Net cash flows from financing activities – discontinued operations — 7,058 28,114 Net cash flows from financing activities ( 2,782 ) ( 3,643 ) ( 7,466 ) Net change in cash and cash equivalents 785 30,322 34,749 (Increase) decrease in cash and cash equivalents – discontinued operations — ( 20,429 ) ( 27,574 ) Net increase (decrease) in cash and cash equivalents – continuing operations 785 9,893 7,175 Cash and cash equivalents at beginning of period – continuing operations 50,930 41,037 33,862 Cash and cash equivalents at end of period – continuing operations $ 51,715 $ 50,930 $ 41,037 Federal and state income taxes paid (net of refunds received) $ 3,921 $ 2,853 $ ( 11,102 ) The accompanying notes are an integral part of these consolidated financial statements. 53 NI Holdings, Inc. Notes to Consolidated Financial Statements December 31, 2025, 2024, and 2023 (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 Insurance Company 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 based in North Dakota, offering private passenger auto, homeowners, farmowners, commercial multi-peril, excess lines, dwelling, 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 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. 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. Primero Insurance Company Primero is a wholly-owned subsidiary of Tri-State, Ltd. Tri-State, Ltd. is an inactive shell corporation that is 100 % owned by Nodak Insurance. Primero is a property and casualty insurance company that primarily provides non-standard auto coverage in the states of Arizona, North Dakota, South Dakota, and Nevada. The Company made the strategic decision to stop writing non-standard auto business for Primero in Nevada during 2024 and in Arizona and South Dakota during the third quarter of 2025, and existing policies will be non-renewed. 54 Direct Auto Insurance Company Direct Auto is a property and casualty insurance company that provides non-standard auto coverage in the state of Illinois. The Company made the strategic decision to stop writing non-standard auto business for Direct Auto in Illinois during the third quarter of 2025, and existing policies will be non-renewed. Westminster American Insurance Company Westminster was a property and casualty insurance company underwriting commercial multi-peril insurance in 18 states 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 2025 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, 2025, are rated “A” Excellent by AM Best. The same executive management team provides oversight and strategic direction for the entire organization. 2. Recent Accounting Pronouncements Adopted Improvements to Income Tax Disclosures In the fourth quarter of 2025, the Company adopted the annual disclosure requirements of ASU 2023-09, “Income Taxes (Topic 740): Improvements to Income Tax Disclosures” issued by the FASB in December 2023 on a retrospective basis. The amendments require 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. See Item II, Part 8, Note 14 “Income Taxes” section of this Annual Report for applicable disclosures required by this guidance. 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. Not Yet Adopted 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. 55 Internal-Use Software In September 2025, the FASB issued ASU 2025-06, "Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software." This guidance modernizes the accounting for internal-use software under ASC 350-40 to adapt to different development practices, especially agile and iterative methods. The updated guidance requires that an entity capitalize software costs when both: 1) management has authorized and committed to the funding of the software project, and 2) it is probable that the project will be completed, and the software will be used to perform its intended function. This update is effective for interim and annual periods beginning after December 15, 2027, with early adoption 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. 56 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 $ 1,621 at December 31, 2025 and $ 1,812 at December 31, 2024. Credit losses are recognized through an allowance account. 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). 57 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. The premium and agents’ receivable balances are reported net of an allowance for expected credit losses. 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. 58 Income Taxes Insurance companies typically pay state premium taxes rather than state income taxes. However, the Company is subject to state income taxes in the states of Illinois and Nebraska in conjunction with state premium taxes. Additionally, NI Holdings, on a stand-alone basis, is subject to state income taxes in 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, 2025 and 2024. 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, on uncertain tax positions as of December 31, 2025 and 2024. 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. 59 Amounts recoverable from reinsurers are estimated in a manner consistent with the associated claim liability. Credit losses are recognized through an allowance account developed using the current expected credit loss model (“CECL”) model. The allowance is based upon the Company’s ongoing review of amounts outstanding, changes in reinsurer credit standing, judgments regarding reinsurers’ solvency, historical experience, current economic conditions, 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 or “A+” or better by Standard & Poor’s., 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 on 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 year ended December 31, 2023. 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. 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. Based on our assessment, we concluded that the state insurance license intangible asset was fully impaired as of December 31, 2025, primarily due to the Company’s strategic decision to stop writing non-standard auto business for Direct Auto in Illinois and non-renew existing policies. We did not record any impairments of the intangible assets for this reporting unit during the years ended December 31, 2024 or 2023. 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 year ended December 31, 2023. 60 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 2025 Annual Report. All current and prior periods reflected in this 2025 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 2025 Annual Report. 61 4. Investments The amortized cost and estimated fair value of fixed income securities, presented on a consolidated basis as of December 31, 2025, and December 31, 2024, were as follows: December 31, 2025 Cost or Amortized Cost Allowance for Expected Credit Losses Gross Unrealized Gains Gross Unrealized Losses Fair Value Fixed income securities: U.S. Government and agencies $ 10,643 $ — $ 146 $ ( 73 ) $ 10,716 Obligations of states and political subdivisions 50,530 — 168 ( 4,648 ) 46,050 Corporate securities 125,978 — 1,434 ( 3,607 ) 123,805 Residential mortgage-backed securities 73,022 — 679 ( 5,002 ) 68,699 Commercial mortgage-backed securities 29,376 — 182 ( 2,030 ) 27,528 Asset-backed securities 21,519 — 200 ( 310 ) 21,409 Redeemable preferred stocks 3,736 — — ( 550 ) 3,186 Total fixed income securities $ 314,804 $ — $ 2,809 $ ( 16,220 ) $ 301,393 December 31, 2024 Cost or Amortized Cost Allowance for Expected Credit Losses Gross Unrealized Gains Gross Unrealized Losses Fair Value Fixed income securities: U.S. Government and agencies $ 12,601 $ — $ 8 $ ( 335 ) $ 12,274 Obligations of states and political subdivisions 48,559 — 184 ( 4,920 ) 43,823 Corporate securities 123,585 — 206 ( 7,517 ) 116,274 Residential mortgage-backed securities 53,714 — 44 ( 4,981 ) 48,777 Commercial mortgage-backed securities 30,062 — 65 ( 2,943 ) 27,184 Asset-backed securities 59,046 — 386 ( 3,301 ) 56,131 Redeemable preferred stocks 3,737 — — ( 488 ) 3,249 Total fixed income securities $ 331,304 $ — $ 893 $ ( 24,485 ) $ 307,712 The amortized cost and estimated fair value of fixed income securities by contractual maturity, presented on a consolidated basis, are shown below. Actual maturities could differ from contractual maturities because issuers may have the right to call or prepay these securities. December 31, 2025 Amortized Cost Fair Value Due to mature: One year or less $ 10,208 $ 10,097 After one year through five years 73,908 72,140 After five years through ten years 64,118 63,599 After ten years 38,917 34,735 Mortgage / asset-backed securities 123,917 117,636 Redeemable preferred stocks 3,736 3,186 Total fixed income securities $ 314,804 $ 301,393 December 31, 2024 Amortized Cost Fair Value 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 Redeemable preferred stocks 3,737 3,249 Total fixed income securities $ 331,304 $ 307,712 62 Fixed income securities and cash with a fair value of $ 4,574 at December 31, 2025, and $ 5,634 at December 31, 2024, 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, 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. December 31, 2025 Less than 12 Months Greater than 12 months Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses Fixed income securities: U.S. Government and agencies $ 997 $ ( 5 ) $ 3,433 $ ( 68 ) $ 4,430 $ ( 73 ) Obligations of states and political subdivisions 2,976 ( 93 ) 35,429 ( 4,555 ) 38,405 ( 4,648 ) Corporate securities 2,081 ( 147 ) 62,738 ( 3,460 ) 64,819 ( 3,607 ) Residential mortgage-backed securities 3,273 ( 15 ) 33,503 ( 4,987 ) 36,776 ( 5,002 ) Commercial mortgage-backed securities — — 19,754 ( 2,030 ) 19,754 ( 2,030 ) Asset-backed securities 1,433 ( 108 ) 5,832 ( 202 ) 7,265 ( 310 ) Redeemable preferred stocks — — 3,186 ( 550 ) 3,186 ( 550 ) Total fixed income securities $ 10,760 $ ( 368 ) $ 163,875 $ ( 15,852 ) $ 174,635 $ ( 16,220 ) December 31, 2024 Less than 12 Months Greater than 12 months Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses Fixed income securities: U.S. Government and agencies $ 5,443 $ ( 109 ) $ 4,177 $ ( 226 ) $ 9,620 $ ( 335 ) Obligations of states and political subdivisions 8,465 ( 143 ) 29,428 ( 4,777 ) 37,893 ( 4,920 ) Corporate securities 25,790 ( 481 ) 76,364 ( 7,036 ) 102,154 ( 7,517 ) Residential mortgage-backed securities 20,827 ( 451 ) 23,159 ( 4,530 ) 43,986 ( 4,981 ) Commercial mortgage-backed securities 1,409 ( 50 ) 19,442 ( 2,893 ) 20,851 ( 2,943 ) Asset-backed securities 10,926 ( 122 ) 20,579 ( 3,179 ) 31,505 ( 3,301 ) Redeemable preferred stocks — — 3,249 ( 488 ) 3,249 ( 488 ) Total fixed income securities $ 72,860 $ ( 1,356 ) $ 176,398 $ ( 23,129 ) $ 249,258 $ ( 24,485 ) We, along with our investment advisor, frequently review our investment portfolio for declines in fair value that could be indicative of credit losses, which 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 have not recognized any credit losses for fixed income securities since adoption of the credit loss standard. Therefore, there was no beginning balance, activity, or ending balance of credit losses for the years ended December 31, 2025 and 2024. See Item II, Part 8, Note 3 “Summary of Significant Accounting Policies and Basis of Presentation” section for additional information. 63 Net investment income for continuing and discontinued operations consisted of the following: Year Ended December 31, 2025 2024 2023 Continuing operations: Fixed income securities $ 12,619 $ 11,401 $ 9,418 Equity securities 904 904 874 Real estate 333 355 391 Cash and cash equivalents 1,264 1,699 456 Total gross investment income 15,120 14,359 11,139 Investment expenses 3,418 3,416 3,105 Net investment income – continuing operations 11,702 10,943 8,034 Net investment income – discontinued operations — 1,419 2,422 Net investment income $ 11,702 $ 12,362 $ 10,456 Net investment gains (losses) for continuing and discontinued operations consisted of the following: Year Ended December 31, 2025 2024 2023 Continuing Operations: Gross realized gains: Fixed income securities $ 66 $ 12 $ 1 Equity securities 2,320 1,329 13,840 Total gross realized gains 2,386 1,341 13,841 Gross realized losses, excluding credit impairment losses: Fixed income securities ( 406 ) ( 211 ) ( 524 ) Equity securities ( 674 ) ( 579 ) ( 1,221 ) Total gross realized losses, excluding credit impairment losses ( 1,080 ) ( 790 ) ( 1,745 ) Net realized gains 1,306 551 12,096 Change in net unrealized gains on equity securities 390 1,662 ( 10,167 ) Net investment gains (losses) – continuing operations 1,696 2,213 1,929 Net investment gains (losses) – discontinued operations — 116 195 Net investment gains (losses) $ 1,696 $ 2,329 $ 2,124 Non-cash investment transactions were $ 909 for the year ended December 31, 2025 and $ 0 for the years ended December 31, 2024 and 2023. The activity in the current year consisted of one non-cash exchange of a fixed income security and a stock spin-off transaction. 64 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 a second independent pricing service. 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 our investments. 65 Management reviews the reasonableness of the pricing provided by the independent pricing service by employing various analytical procedures. We also use information from a second independent pricing service 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 services. In its review, management did not identify any such discrepancies and no adjustments were made to the estimates provided by the independent pricing services for the years ended December 31, 2025, 2024, or 2023. 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, 2025 or 2024. 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: December 31, 2025 Total Level 1 Level 2 Level 3 Fixed income securities: U.S. Government and agencies $ 10,716 $ — $ 10,716 $ — Obligations of states and political subdivisions 46,050 — 46,050 — Corporate securities 123,805 — 123,805 — Residential mortgage-backed securities 68,699 — 68,699 — Commercial mortgage-backed securities 27,528 — 27,528 — Asset-backed securities 21,409 — 21,409 — Redeemable preferred stock 3,186 — 3,186 — Total fixed income securities 301,393 — 301,393 — Equity securities – common stock 23,951 23,951 Money market accounts and cash equivalents 10,165 10,165 — — Total assets at fair value $ 335,509 $ 34,116 $ 301,393 $ — December 31, 2024 Total Level 1 Level 2 Level 3 Fixed income securities: U.S. Government and agencies $ 12,274 $ — $ 12,274 $ — Obligations of states and political subdivisions 43,823 — 43,823 — Corporate securities 116,274 — 116,274 — Residential mortgage-backed securities 48,777 — 48,777 — Commercial mortgage-backed securities 27,184 — 27,184 — Asset-backed securities 56,131 — 56,131 — Redeemable preferred stocks 3,249 — 3,249 — Total fixed income securities 307,712 — 307,712 — Equity securities – common stock 24,640 24,640 Money market accounts and cash equivalents 10,950 10,950 — — Total assets at fair value $ 343,302 $ 35,590 $ 307,712 $ — There were no liabilities measured at fair value on a recurring basis at December 31, 2025 or 2024. 66 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, 2025, the Company maintained property catastrophe reinsurance protection covering $ 117,000 in excess of a $ 20,000 retention. Our 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. 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. 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). For 2026, the Company’s catastrophe retention will remain consistent with 2025 at $ 20,000 and the reinsurance protection will cover $ 123,000 . The lower limit for 2025 was primarily due to the sale of Westminster, which drove the top end of the catastrophe modeling results. Our per risk excess of loss treaty provides coverage of $ 3,900 in excess of $ 1,100 for property risks, and a property per-risk facultative contract is in place to provide coverage up to $ 35,000 in excess of $ 5,000 per property. 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, which would be recognized as credit losses through an allowance account developed using the CECL model. See the Part II, Item 8, Note 3 “Summary of Significant Accounting Policies and Basis of Presentation” section 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, the state of reinsurer relations in general, and other relevant factors. 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, 2025, and December 31, 2024, 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 or “A+” or better by Standard & Poor’s, and there is no history of write-offs. 67 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: Year Ended December 31, 2025 2024 2023 Premiums Written Premiums Earned Premiums Written Premiums Earned Premiums Written Premiums Earned Direct premium $ 289,784 $ 309,782 $ 383,933 $ 380,968 $ 418,399 $ 401,945 Assumed premium 2,625 2,627 2,967 2,984 3,098 3,570 Ceded premium ( 41,754 ) ( 41,754 ) ( 43,503 ) ( 42,786 ) ( 54,848 ) ( 54,378 ) Net premiums $ 250,655 $ 270,655 $ 343,397 $ 341,166 $ 366,649 $ 351,137 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: Year Ended December 31, 2025 2024 2023 Premiums Written Premiums Earned Premiums Written Premiums Earned Premiums Written Premiums Earned Continuing operations: Direct premium $ 289,784 $ 309,782 $ 342,301 $ 341,885 $ 341,234 $ 325,590 Assumed premium 2,625 2,627 2,967 2,984 3,098 3,570 Ceded premium ( 41,754 ) ( 41,754 ) ( 34,760 ) ( 34,759 ) ( 37,043 ) ( 37,043 ) Net premiums $ 250,655 $ 270,655 $ 310,508 $ 310,110 $ 307,289 $ 292,117 Year Ended December 31, 2025 2024 2023 Premiums Written Premiums Earned Premiums Written Premiums Earned Premiums Written Premiums Earned Discontinued operations: Direct premium $ — $ — $ 41,632 $ 39,083 $ 77,165 $ 76,355 Assumed premium — — — — — — Ceded premium — — ( 8,743 ) ( 8,027 ) ( 17,805 ) ( 17,335 ) Net premiums $ — $ — $ 32,889 $ 31,056 $ 59,360 $ 59,020 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: Year Ended December 31, 2025 2024 2023 Direct losses and loss adjustment expenses $ 247,431 $ 249,344 $ 293,978 Assumed losses and loss adjustment expenses 606 784 1,140 Ceded losses and loss adjustment expenses ( 47,249 ) ( 19,157 ) ( 50,706 ) Net losses and loss adjustment expenses $ 200,788 $ 230,971 $ 244,412 The reconciliations for current and prior year continuing and discontinued operations of direct to net losses and loss adjustment expenses is as follows: Year Ended December 31, 2025 2024 2023 Continuing Operations: Direct losses and loss adjustment expenses $ 247,431 $ 220,991 $ 195,138 Assumed losses and loss adjustment expenses 606 784 1,140 Ceded losses and loss adjustment expenses ( 47,249 ) ( 14,310 ) ( 9,762 ) Net losses and loss adjustment expenses $ 200,788 $ 207,465 $ 186,516 68 Year Ended December 31, 2025 2024 2023 Discontinued Operations: Direct losses and loss adjustment expenses $ — $ 28,353 $ 98,840 Assumed losses and loss adjustment expenses — — — Ceded losses and loss adjustment expenses — ( 4,847 ) ( 40,944 ) Net losses and loss adjustment expenses $ — $ 23,506 $ 57,896 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: Year Ended December 31, 2025 2024 2023 Balance, beginning of year $ 26,300 $ 34,120 $ 29,768 Deferral of policy acquisition costs 52,902 79,363 87,343 Amortization of deferred policy acquisition costs ( 59,993 ) ( 79,185 ) ( 82,991 ) Westminster balance disposed in sale — ( 7,998 ) — Balance, end of year $ 19,209 $ 26,300 $ 34,120 The tables for current and prior year continuing and discontinued operations showing the deferred policy acquisition costs and assets reconciliation are shown below: Year Ended December 31, 2025 2024 2023 Continuing operations: Balance, beginning of year $ 26,300 $ 26,790 $ 22,675 Deferral of policy acquisition costs 52,902 70,767 71,746 Amortization of deferred policy acquisition costs ( 59,993 ) ( 71,257 ) ( 67,631 ) Balance, end of year $ 19,209 $ 26,300 $ 26,790 Year Ended December 31, 2025 2024 2023 Discontinued operations: Balance, beginning of period $ — 7,330 7,093 Deferral of policy acquisition costs — 8,596 15,597 Amortization of deferred policy acquisition costs — ( 7,928 ) ( 15,360 ) Westminster balance disposed in sale — ( 7,998 ) — Balance, end of year $ — $ — $ 7,330 69 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: Year Ended December 31, 2025 2024 2023 Balance, beginning of year: Liability for unpaid losses and loss adjustment expenses $ 137,288 $ 217,119 $ 190,459 Reinsurance recoverables on losses 12,561 48,969 37,575 Net balance, beginning of year 124,727 168,150 152,884 Incurred related to: Current year 170,458 218,063 223,960 Prior years 30,330 12,908 20,452 Total incurred 200,788 230,971 244,412 Paid related to: Current year 112,532 131,570 138,600 Prior years 87,085 80,636 90,548 Total paid 199,617 212,206 229,148 Westminster balances disposed in sale: Liability for unpaid losses and loss adjustment expenses — 107,508 — Reinsurance recoverables on losses — 45,320 — Net balance, date of sale — 62,188 — Balance, end of year: Liability for unpaid losses and loss adjustment expenses 137,855 137,288 217,119 Reinsurance recoverables on losses 11,957 12,561 48,969 Net balance, end of year $ 125,898 $ 124,727 $ 168,150 During the year ended December 31, 2025, the Company’s incurred reported losses and loss adjustment expense included $ 30,330 of net unfavorable development on prior accident years. This was primarily attributable to unfavorable development on liability loss reserves for the Direct Auto non-standard auto business, primarily related to bodily injury coverage. 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 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. 70 The tables for the current and comparable prior year continuing and discontinued operations showing the liability for unpaid losses and loss adjustment expense are shown below: Year Ended December 31, 2025 2024 2023 Continuing operations: Balance, beginning of year: Liability for unpaid losses and loss adjustment expenses $ 137,288 $ 119,185 $ 114,296 Reinsurance recoverables on losses 12,561 6,460 8,586 Net balance, beginning of year 124,727 112,725 105,710 Incurred related to: Current year 170,458 193,948 184,210 Prior years 30,330 13,517 2,306 Total incurred 200,788 207,465 186,516 Paid related to: Current year 112,532 126,006 121,466 Prior years 87,085 69,457 58,036 Total paid 199,617 195,463 179,502 Balance, end of year: Liability for unpaid losses and loss adjustment expenses 137,855 137,288 119,185 Reinsurance recoverables on losses 11,957 12,561 6,460 Net balance, end of year $ 125,898 $ 124,727 $ 112,725 Year Ended December 31, 2025 2024 2023 Discontinued operations: Balance, beginning of year: Liability for unpaid losses and loss adjustment expenses $ — $ 97,934 $ 76,163 Reinsurance recoverables on losses — 42,509 28,989 Net balance, beginning of year — 55,425 47,174 Incurred related to: Current year — 24,115 39,750 Prior years — ( 609 ) 18,146 Total incurred — 23,506 57,896 Paid related to: Current year — 5,564 17,132 Prior years — 11,179 32,512 Total paid — 16,743 49,644 Westminster balances disposed in sale: Liability for unpaid losses and loss adjustment expenses — 107,508 — Reinsurance recoverables on losses — 45,320 — Net balance, date of sale — 62,188 — Balance, end of year: Liability for unpaid losses and loss adjustment expenses — — 97,934 Reinsurance recoverables on losses — — 42,509 Net balance, end of year $ — $ — $ 55,425 71 The tables on the following pages present information, organized by our primary operating segments, about incurred and paid claims development as of December 31, 2025, 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 years ended December 31, 2016 through December 31, 2024, which we present as supplementary information. Private Passenger Auto Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance For the Year Ended December 31, 2025 At December 31, 2025 Accident Year 2016* 2017* 2018* 2019* 2020* 2021* 2022* 2023* 2024* 2025 Total IBNR Plus Expected Development on Reported Claims Cumulative Number of Reported Claims (in thousands, except claim counts) 2016 $ 40,227 $ 39,260 $ 39,057 $ 39,314 $ 38,535 $ 38,416 $ 38,601 $ 38,566 $ 38,536 $ 38,620 $ — 14,344 2017 — 40,779 40,199 40,120 40,427 40,488 40,520 40,471 40,449 40,468 ( 2 ) 13,847 2018 — — 44,925 43,428 43,641 43,575 43,807 43,733 43,896 43,851 ( 8 ) 14,753 2019 — — — 53,769 53,328 53,364 52,802 52,749 52,535 52,585 18 16,616 2020 — — — — 46,247 48,519 47,403 47,174 46,713 46,913 163 13,665 2021 — — — — — 57,316 57,176 57,431 57,215 57,102 177 15,523 2022 — — — — — — 66,711 65,132 64,180 64,094 328 16,335 2023 — — — — — — — 62,357 61,917 62,721 985 13,986 2024 — — — — — — — — 54,082 55,656 1,370 11,533 2025 — — — — — — — — — 52,244 4,637 8,801 Total $ 514,254 * Prior years unaudited Private Passenger Auto Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance For the Year Ended December 31, 2025 Accident Year 2016* 2017* 2018* 2019* 2020* 2021* 2022* 2023* 2024* 2025 2016 $ 29,009 $ 35,845 $ 37,307 $ 38,108 $ 37,833 $ 38,173 $ 38,303 $ 38,539 $ 38,539 $ 38,620 2017 — 31,033 37,050 38,331 39,738 40,111 40,294 40,315 40,398 40,469 2018 — — 34,358 40,213 41,479 42,820 43,074 43,225 43,337 44,357 2019 — — — 42,414 48,414 50,370 51,556 52,060 52,437 52,567 2020 — — — — 35,495 42,585 45,670 46,211 46,204 46,731 2021 — — — — — 42,326 52,256 54,243 56,030 56,451 2022 — — — — — — 49,911 59,556 61,679 62,488 2023 — — — — — — — 45,452 55,548 57,783 2024 — — — — — — — — 39,617 49,302 2025 — — — — — — — — — 36,848 Total $ 485,616 All outstanding liabilities prior to 2016, net of reinsurance 13 Liabilities for Unpaid Losses and Loss Adjustment Expenses, net of reinsurance 28,650 * Prior years unaudited 72 Non- Standard Auto (Primero & Direct Auto) Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance For the Year Ended December 31, 2025 At December 31, 2025 Accident Year 2016* 2017* 2018* 2019* 2020* 2021* 2022* 2023* 2024* 2025 Total IBNR Plus Expected Development on Reported Claims Cumulative Number of Reported Claims (in thousands, except claim counts) 2016 $ 30,514 $ 24,708 $ 23,606 $ 23,989 $ 22,884 $ 22,267 $ 21,947 $ 22,095 $ 22,168 $ 22,265 $ 8 12,921 2017 — 32,098 27,275 24,414 23,189 22,221 21,903 22,224 22,327 22,518 15 13,505 2018 — — 36,236 34,466 33,743 32,307 32,038 32,741 33,020 33,104 24 16,525 2019 — — — 37,196 36,864 35,810 36,100 36,659 36,646 36,749 44 16,359 2020 — — — — 33,054 31,743 32,507 34,657 34,475 35,748 948 14,390 2021 — — — — — 40,652 40,612 45,337 46,412 46,009 ( 81 ) 15,931 2022 — — — — — — 39,514 43,372 51,912 56,647 751 14,405 2023 — — — — — — — 50,415 57,445 69,433 3,039 15,464 2024 — — — — — — — — 59,465 68,980 6,797 12,885 2025 — — — — — — — — — 40,280 14,092 5,252 Total $ 431,733 * Prior years unaudited Non-Standard Auto (Primero & Direct Auto) Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance For the Year Ended December 31, 2025 Accident Year 2016* 2017* 2018* 2019* 2020* 2021* 2022* 2023* 2024* 2025 2016 $ 8,935 $ 15,154 $ 18,349 $ 20,515 $ 21,032 $ 21,495 $ 21,794 $ 21,984 $ 22,044 $ 22,202 2017 — 8,733 14,641 18,238 19,826 20,604 21,528 22,063 22,173 22,378 2018 — — 11,526 22,821 26,820 28,489 30,489 32,202 32,663 32,873 2019 — — — 16,503 26,221 29,953 32,370 34,915 35,916 36,329 2020 — — — — 14,077 23,046 27,160 30,419 32,688 34,197 2021 — — — — — 18,611 30,155 36,890 41,590 44,261 2022 — — — — — — 14,966 29,533 42,122 51,142 2023 — — — — — — — 18,300 38,279 56,673 2024 — — — — — — — — 18,873 43,510 2025 — — — — — — — — — 12,299 Total $ 355,864 All outstanding liabilities prior to 2016, net of reinsurance 70 Liabilities for Unpaid Losses and Loss Adjustment Expenses, net of reinsurance $ 75,939 * Prior years unaudited 73 Home and Farm Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance For the Year Ended December 31, 2025 At December 31, 2025 Accident Year 2016* 2017* 2018* 2019* 2020* 2021* 2022* 2023* 2024* 2025 Total IBNR Plus Expected Development on Reported Claims Cumulative Number of Reported Claims (in thousands, except claim counts) 2016 $ 45,713 $ 44,513 $ 44,945 $ 44,597 $ 44,728 $ 44,745 $ 44,809 $ 44,788 $ 44,787 $ 44,792 $ — 6,354 2017 — 42,112 41,593 41,882 41,779 41,804 41,640 41,590 41,646 41,756 8 4,958 2018 — — 42,486 43,840 43,747 43,682 43,712 43,731 43,681 43,680 — 4,595 2019 — — — 45,334 45,828 45,471 45,352 45,106 45,050 45,049 2 5,525 2020 — — — — 36,264 35,668 34,656 34,761 34,813 34,789 3 4,119 2021 — — — — — 53,079 50,322 50,759 50,592 50,520 78 5,385 2022 — — — — — — 112,049 105,409 105,328 105,052 279 8,439 2023 — — — — — — — 57,205 56,985 56,680 543 4,337 2024 — — — — — — — — 65,092 65,676 973 4,316 2025 — — — — — — — — — 61,379 5,037 3,730 Total $ 549,373 * Prior years unaudited Home and Farm Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance For the Year Ended December 31, 2025 Accident Year 2016* 2017* 2018* 2019* 2020* 2021* 2022* 2023* 2024* 2025 2016 $ 37,655 $ 44,942 $ 44,270 $ 44,529 $ 44,583 $ 44,650 $ 44,690 $ 44,736 $ 44,787 $ 44,792 2017 — 34,657 38,928 40,441 40,941 41,414 41,504 41,506 41,516 41,523 2018 — — 37,880 42,814 43,178 43,549 43,634 43,688 43,681 43,680 2019 — — — 38,718 43,253 44,119 44,847 45,053 45,046 45,047 2020 — — — — 29,273 33,988 34,243 34,688 34,784 34,786 2021 — — — — — 41,096 48,890 50,117 50,403 50,749 2022 — — — — — — 92,482 101,957 104,321 104,593 2023 — — — — — — — 46,607 54,304 55,827 2024 — — — — — — — — 54,904 64,029 2025 — — — — — — — — — 51,596 Total $ 536,622 All outstanding liabilities prior to 2016, net of reinsurance — Liabilities for Unpaid Losses and Loss Adjustment Expenses, net of reinsurance $ 12,751 * Prior years unaudited 74 Crop Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance For the Year Ended December 31, 2025 At December 31, 2025 Accident Year 2016* 2017* 2018* 2019* 2020* 2021* 2022* 2023* 2024* 2025 Total IBNR Plus Expected Development on Reported Claims Cumulative Number of Reported Claims (in thousands, except claim counts) 2016 $ 20,209 $ 19,582 $ 19,487 $ 19,487 $ 19,487 $ 19,487 $ 19,487 $ 19,487 $ 19,487 $ 19,496 $ — 2,806 2017 — 33,734 34,181 34,181 34,181 34,181 34,181 34,181 34,181 34,177 — 2,968 2018 — — 12,506 11,730 11,730 11,730 11,730 11,730 11,730 11,767 — 2,147 2019 — — — 33,913 37,629 37,629 37,629 37,630 37,629 37,618 — 3,101 2020 — — — — 28,688 28,759 28,759 28,760 28,759 28,739 — 2,442 2021 — — — — — 28,574 28,144 28,146 28,143 28,138 — 2,726 2022 — — — — — — 21,834 20,745 20,740 20,741 — 2,021 2023 — — — — — — — 12,728 11,399 11,391 1 1,640 2024 — — — — — — — — 12,463 12,323 10 1,470 2025 — — — — — — — — — 12,314 104 1,464 Total $ 216,704 * Prior years unaudited Crop Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance For the Year Ended December 31, 2025 Accident Year 2016* 2017* 2018* 2019* 2020* 2021* 2022* 2023* 2024* 2025 2016 $ 16,444 $ 19,487 $ 19,487 $ 19,487 $ 19,487 $ 19,487 $ 19,487 $ 19,487 $ 19,487 $ 19,496 2017 — 32,768 34,181 34,181 34,181 34,181 34,181 34,181 34,181 34,177 2018 — — 10,737 11,730 11,730 11,730 11,730 11,730 11,730 11,767 2019 — — — 26,208 37,629 37,629 37,629 37,629 37,629 37,618 2020 — — — — 27,952 28,759 28,759 28,759 28,759 28,739 2021 — — — — — 29,424 28,143 28,143 28,143 28,138 2022 — — — — — — 20,279 20,735 20,735 20,741 2023 — — — — — — — 10,202 11,387 11,390 2024 — — — — — — — — 11,169 12,313 2025 — — — — — — — — — 9,181 Total $ 213,560 All outstanding liabilities prior to 2016, net of reinsurance — Liabilities for Unpaid Losses and Loss Adjustment Expenses, net of reinsurance $ 3,144 * Prior years unaudited 75 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: December 31, 2025 Liabilities for unpaid losses and loss adjustment expenses: Private passenger auto $ 29,934 Non-Standard auto 75,939 Home and farm 16,274 Crop 3,929 All other 11,779 Total liabilities for unpaid losses and loss adjustment expenses 137,855 Reinsurance recoverables on losses: Private passenger auto 1,284 Non-Standard auto — Home and farm 3,523 Crop 785 All other 6,365 Total reinsurance recoverables on losses 11,957 Net liability for unpaid losses and loss adjustment expenses $ 125,898 The following table presents required supplementary information about average historical claims duration as of December 31, 2025: Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance Years 1 2 3 4 5 6 7 8 9 10 Private Passenger Auto 51.2 % 19.9 % 12.2 % 6.1 % 4.5 % 3.2 % 2.6 % 0.2 % 0.1 % — Non-Standard Auto 43.6 % 23.5 % 14.7 % 8.0 % 4.6 % 2.6 % 1.3 % 1.2 % 0.4 % 0.1 % Home and Farm 67.0 % 15.9 % 8.0 % 3.9 % 1.4 % 0.6 % 0.8 % 0.7 % 1.7 % — Crop 100.0 % — — — — — — — — — 9. Property and Equipment Property and equipment consisted of the following: December 31, 2025 2024 Estimated Useful Life Cost: Land $ 1,249 $ 1,249 indefinite Building and improvements 11,257 12,497 10 – 43 years Electronic data processing equipment 1,491 1,444 5 – 7 years Furniture and fixtures 2,684 2,762 5 – 7 years Automobiles 1,287 1,280 2 – 3 years Gross cost 17,968 19,232 Accumulated depreciation ( 11,209 ) ( 11,685 ) Total property and equipment, net $ 6,759 $ 7,547 Depreciation expense was $ 694 , $ 770 , and $ 826 during the years ended December 31, 2025, 2024, and 2023, respectively. Depreciation expense for continuing operations was $ 694 , $ 681 , and $ 692 during the years ended December 31, 2025, 2024, and 2023, respectively. 76 10. Goodwill and Other Intangibles Goodwill The following table presents the carrying amount of the Company’s goodwill and related impairment by segment: Year Ended December 31, 2025 2024 2023 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 Impairment recognized during the period — — — ( 2,628 ) — ( 2,628 ) — ( 6,756 ) ( 6,756 ) Goodwill, end of year $ — $ — $ — $ — $ — $ — $ 2,628 $ — $ 2,628 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 prior 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 gross and net carrying value of the Company’s other intangible assets were $ 0 at December 31, 2025, and $ 100 at December 31, 2024, and consisted of the state insurance license for Direct Auto, which has an indefinite life. Due to the strategic actions taken regarding Direct Auto, we determined during our reviews that these state insurance licenses were fully impaired as of December 31, 2025, and resulted in a non-cash impairment charge of $ 100 in 2025. Amortization expense was $ 0 , $ 211 , and $ 455 during the years ended December 31, 2025, 2024, and 2023, respectively. Amortization expense for continuing operations was $ 0 , $ 0 , and $ 33 during the years ended December 31, 2025, 2024, and 2023, respectively. 77 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 $ 1,687 , $ 1,647 , and $ 1,603 during the years ended December 31, 2025, 2024, and 2023, respectively. Royalty amounts payable of $ 152 and $ 146 were accrued as a liability to the NDFB at December 31, 2025 and 2024, 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, 2025, 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 2026 without the prior approval of the North Dakota Insurance Department is approximately $ 6,730 as of December 31, 2025. No dividends were declared or paid by Nodak Insurance during the years ended December 31, 2025, 2024 or 2023. The amount available for payment of dividends from Direct Auto to NI Holdings during 2026 without the prior approval of the North Dakota Insurance Department is approximately $ 3,829 as of December 31, 2025. No dividends were declared or paid by Direct Auto during the years ended December 31, 2025, 2024, or 2023. 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 or 2023. 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. See the Part II, Item 8, Note 1 “Organization” section of this Annual Report for additional information. 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 $ 1,428 , $ 1,551 , and $ 1,533 during the years ended December 31, 2025, 2024, and 2023, 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 $ 280 , $ 360 , and $ 368 during the years ended December 31, 2025, 2024, and 2023, respectively. 78 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 $ 329 , $ 365 , and $ 322 during the years ended December 31, 2025, 2024, and 2023, respectively. Through December 31, 2025, the Company had released and allocated 218,835 ESOP shares to participants, with a remainder of 21,165 ESOP shares in suspense at December 31, 2025. Using the Company’s year-end market price of $ 13.30 per share, the fair value of the unearned ESOP shares was $ 281 at December 31, 2025. 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 2.25 % above the daily simple secured overnight financing rate. There were no outstanding amounts during the years ended December 31, 2025, 2024, or 2023. This line of credit is scheduled to expire on December 11, 2026 . 79 14. Income Taxes The sources of income for purposes of income tax expense (benefit) including both continuing and discontinued operations were as follows: Year Ended December 31, 2025 2024 2023 Income (loss) before income taxes Domestic $ ( 12,329 ) $ ( 9,056 ) $ ( 4,263 ) Foreign — — — Total income (loss) before income taxes $ ( 12,329 ) $ ( 9,056 ) $ ( 4,263 ) The components of our provision for income tax expense (benefit) including both continuing and discontinued operations were as follows: Year Ended December 31, 2025 2024 2023 Current income tax expense (benefit) Federal $ ( 483 ) $ ( 4,682 ) $ 2,567 State ( 68 ) 215 278 Total current ( 551 ) ( 4,467 ) 2,845 Deferred income tax expense (benefit) ( 1,365 ) 1,275 ( 1,882 ) Total income tax expense (benefit) $ ( 1,916 ) $ ( 3,192 ) $ 963 The following table presents a reconciliation of the U.S. federal statutory tax rate and our effective tax rate including both continuing and discontinued operations: Year Ended December 31, 2025 2024 2023 U.S federal statutory tax rate $ ( 2,589 ) 21.0 % $ ( 1,902 ) 21.0 % $ ( 895 ) 21.0 % State and local income taxes, net of federal benefit (1) ( 54 ) 0.4 % 277 ( 3.1 % ) 90 ( 2.1 % ) Tax credits Research and Development tax credit — — — — ( 59 ) 1.4 % Changes in valuation allowance — — 2,035 ( 22.5 % ) ( 171 ) 4.0 % Nontaxable or nondeductible items Tax-exempt interest ( 142 ) 1.2 % ( 130 ) 1.4 % ( 204 ) 4.8 % Dividends received deduction ( 95 ) 0.8 % ( 104 ) 1.2 % ( 118 ) 2.8 % Section 832(b)(5)(B) 24 ( 0.2 % ) 26 ( 0.3 % ) 77 ( 1.8 % ) Executive compensation 582 ( 4.7 % ) 892 ( 9.8 % ) 27 ( 0.7 % ) Meals and entertainment 46 ( 0.4 % ) 38 ( 0.4 % ) 47 ( 1.1 % ) COLI ( 42 ) 0.3 % ( 38 ) 0.4 % 27 ( 0.7 % ) Sale of Westminster — — ( 2,661 ) 29.4 % 1,419 ( 33.3 % ) Prior-period adjustments 480 ( 3.9 % ) 8 ( 0.1 % ) 627 ( 14.7 % ) Impact of tax rate change 149 ( 1.2 % ) ( 14 ) 0.2 % — — Demutualization of BCIC — — 793 ( 8.8 % ) — — Other ( 275 ) 2.2 % ( 2,412 ) 26.6 % 96 ( 2.2 % ) Effective tax rate $ ( 1,916 ) 15.5 % ( 3,192 ) 35.2 % 963 ( 22.6 % ) (1) State taxes in Illinois made up the majority (greater than 50 percent) of the tax effect in this category. 80 The following table presents additional supplemental cash flow information: Year Ended December 31, 2025 2024 2023 Income tax paid Federal $ 3,796 $ 2,413 $ ( 11,102 ) State (1) 125 440 — Foreign — — — Total income taxes paid $ 3,921 $ 2,853 $ ( 11,102 ) (1) State taxes paid in Illinois made up the entirety of this balance. 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 $ 2,345 , $ 2,506 , and $ 505 at December 31, 2025, 2024, and 2023, 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 including both continuing and discontinued operations at December 31, 2025 and 2024, were as follows: December 31, 2025 2024 Deferred income tax assets: Unearned premium $ 4,473 $ 5,749 Unpaid losses and loss adjustment expenses 1,240 1,286 Net unrealized losses on investments 2,181 4,762 Loss carryovers 3,150 2,506 Deferred compensation 666 603 Stock based compensation 679 355 Other 291 685 Total deferred income tax assets 12,680 15,946 Deferred income tax liabilities: Deferred policy acquisition costs 4,034 5,976 Other 156 140 Total deferred income tax liabilities 4,190 6,116 Net deferred income tax asset 8,490 9,830 Valuation allowance ( 2,345 ) ( 2,506 ) Deferred income tax asset, net $ 6,145 $ 7,324 At December 31, 2025 and 2024, we had no unrecognized tax benefits, no accrued interest and penalties, and no significant uncertain tax positions. No interest and penalties on uncertain tax positions were recognized during the years ended December 31, 2025, 2024, or 2023. At December 31, 2025 and 2024, the Company had no income tax related carryforwards for alternative minimum tax credits or capital losses. At December 31, 2025 and 2024, the Company had $ 2,345 and $ 2,506 in state net operating loss deferred tax assets, respectively, 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 at December 31, 2023. 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 81 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. 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. 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 $ 458 , $ 484 , and $ 407 related to these leases during the years ended December 31, 2025, 2024, and 2023, respectively. Additional information regarding the Company’s leases are as follows: As of and For the Year Ended December 31, 2025 2024 2023 Operating lease cost $ 366 $ 383 $ 389 Finance lease cost: Amortization of right-of-use assets 80 80 14 Interest on lease liabilities 12 21 4 Finance lease cost 92 101 18 Total lease cost $ 458 $ 484 $ 407 Other information on leases: Cash payments included in operating cash flows from operating leases $ 392 $ 406 $ 408 Cash payments included in operating cash flows from finance leases 12 21 4 Cash payments included in financing cash flows from finance leases 108 99 16 Right-of-use assets obtained in exchange for new operating lease liabilities — 185 247 Right-of-use assets obtained in exchange for new finance lease liabilities — — 319 Weighted average discount rate – operating leases 4.43 % 4.48 % 3.94 % Weighted average discount rate – finance leases 8.50 % 8.50 % 8.50 % Weighted average remaining lease term in years – operating leases 3.5 years 4.5 years 5.3 years Weighted average remaining lease term in years – finance leases 0.8 years 1.8 years 2.8 years 82 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, 2025: Year ending December 31, Operating Leases Finance Leases Total 2026 397 100 497 2027 401 — 401 2028 376 — 376 2029 212 — 212 Thereafter — — — Total undiscounted lease payments 1,386 100 1,486 Less: present value adjustment 96 3 99 Lease liability at December 31, 2025 $ 1,290 $ 97 $ 1,387 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: Year Ended December 31, 2025 2024 2023 Shares outstanding, beginning of period 20,673,268 20,599,908 21,076,255 Treasury shares repurchased through stock repurchase authorization ( 188,185 ) — ( 548,549 ) Issuance of treasury shares for vesting of restricted stock units 44,746 49,045 47,887 Issuance of shares related to employee stock ownership plan 24,315 24,315 24,315 Shares outstanding, end of period 20,554,144 20,673,268 20,599,908 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, 2025 excluded the weighted average effects of 58,760 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, 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. On August 25, 2025, our Board of Directors approved an authorization for the repurchase of up to approximately $ 5,000 of the Company’s outstanding common stock in addition to the $ 2,052 remaining from the May 9, 2022 authorization. During the year ended December 31, 2025, we completed the repurchase of 188,185 shares of our common stock for $ 2,517 , including the effects from applicable excise taxes under these authorizations. As of December 31, 2025, these share repurchases closed out the May 9, 2022 authorization, and $ 4,549 remains available under the August 25, 2025 authorization. The cost of this treasury stock is a reduction of shareholders’ equity within our Consolidated Balance Sheets. 83 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 beginning in 2024, the RSUs vest equally over a three-year period. As approved by the Compensation Committee, all executive share-based compensation granted in 2025 was awarded as RSUs. 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. 84 A summary of the Company’s outstanding and unearned RSUs is presented below: RSUs Weighted-Average Grant-Date Fair Value Per Share Units outstanding and unearned at January 1, 2023 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 RSUs granted during 2025 168,798 14.00 RSUs earned during 2025 ( 51,622 ) 15.02 Forfeitures (2) ( 89,140 ) 14.68 Units outstanding and unearned at December 31, 2025 132,434 $ 14.02 (1) Represents RSU forfeitures primarily related to the execution of the 2024 separation agreements with the former Chief Executive Officer and former Senior Vice President of Operations. (2) Represents RSU forfeitures primarily related to the execution of the 2025 separation agreement with the former Chief Executive Officer. The following table shows the impact of RSU activity to the Company’s financial results: Year Ended December 31, 2025 2024 2023 RSU compensation expense $ 815 $ 502 $ 1,095 Income tax benefit ( 171 ) ( 113 ) ( 249 ) RSU compensation expense, net of income taxes $ 644 $ 389 $ 846 Total grant-date fair value of vested RSUs at end of period $ 775 $ 1,028 $ 872 At December 31, 2025, there was $ 981 of unrecognized compensation cost related to outstanding RSUs. That cost is expected to be recognized over a weighted-average period of 1.99 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. 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. There were no PSUs granted in 2025. 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. 85 A summary of the Company’s outstanding PSUs is presented below: PSUs Weighted-Average Grant-Date Fair Value Per Share Units outstanding at January 1, 2023 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 PSUs granted during 2025 (at target) — — PSUs earned during 2025 — — Performance adjustment (1) — — Forfeitures (3) ( 11,694 ) 14.19 Units outstanding at December 31, 2025 14,633 $ 20.14 (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 2024 separation agreements with the former Chief Executive Officer and former Senior Vice President of Operations. (3) Represents PSU forfeitures primarily related to the execution of the 2025 separation agreement with the former Chief Executive Officer. The following table shows the impact of PSU activity to the Company’s financial results: Year Ended December 31, 2025 2024 2023 PSU compensation expense (benefit) $ 13 $ ( 264 ) $ 206 Income tax benefit (expense) ( 3 ) 60 ( 47 ) PSU compensation expense (benefit), net of income taxes $ 10 $ ( 204 ) $ 159 Total grant-date fair value of vested PSUs at end of period $ — $ — $ — 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, 2025, no performance adjustments were made to previously recognized compensation expenses. 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. At December 31, 2025, there was $ 76 of unrecognized compensation cost related to outstanding PSUs. That cost is expected to be recognized over a weighted-average period of 1.16 years. 86 19. Allowance for Expected Credit Losses Premiums Receivable The following table presents the balances of premiums and agents’ receivable balances, net of the allowance for expected credit losses as of December 31, 2025, and the changes in the allowance for expected credit losses for the year ended December 31, 2025, for continuing and discontinued operations. Year Ended December 31, 2025 Premiums and Agents’ Balances Receivable, Net of Allowance for Expected Credit Losses Allowance for Expected Credit Losses Continuing operations Balance, beginning of period $ 52,907 $ 337 Current period charge for expected credit losses 564 Write-offs of uncollectible premiums receivable ( 567 ) Balance, end of period $ 41,575 $ 334 Year Ended December 31, 2025 Premiums and Agents’ Balances Receivable, Net of Allowance for Expected Credit Losses Allowance for Expected Credit Losses Discontinued operations Balance, beginning of period $ — $ — Current period charge for expected credit losses — Write-offs of uncollectible premiums receivable — Westminster balances disposed in sale $ — $ — Balance, end of period $ — $ — 87 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, for continuing and discontinued operations. Year Ended December 31, 2024 Premiums and Agents’ Balances Receivable, Net of Allowance for Expected Credit Losses Allowance for Expected Credit Losses Continuing operations Balance, beginning of period $ 56,154 $ 394 Current period charge for expected credit losses 210 Write-offs of uncollectible premiums receivable ( 267 ) Balance, end of period $ 52,907 $ 337 Year Ended December 31, 2024 Premiums and Agents’ Balances Receivable, Net of Allowance for Expected Credit Losses Allowance for Expected Credit Losses Discontinued operations Balance, beginning of period $ 17,904 $ 8 Current period charge for expected credit losses 4 Write-offs of uncollectible premiums receivable ( 4 ) Westminster balances disposed in sale 16,030 ( 8 ) Balance, end of period $ — $ — 88 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 Company’s Consolidated Statements of Cash Flows presents operating, investing, and financing cash flows of the discontinued operations separately. Summary operating results of discontinued operations were as follows for the periods indicated: Year Ended December 31, 2025 2024 2023 Revenues: Net premiums earned $ — $ 31,056 $ 59,020 Fee and other income — 14 39 Net investment income — 1,419 2,422 Net investment gains (losses) — 116 195 Total revenues — 32,605 61,676 Expenses Losses and loss adjustment expenses — 23,506 57,896 Amortization of deferred policy acquisition costs — 7,928 15,360 Other underwriting and general expenses — 3,088 6,474 Goodwill impairment charge — — 6,756 Total expenses — 34,522 86,486 Loss before income taxes — ( 1,917 ) ( 24,810 ) Income tax benefit — ( 405 ) 247 Net loss $ — $ ( 1,512 ) $ ( 25,057 ) Loss per common share from discontinued operations: Basic $ — $ ( 0.07 ) $ ( 1.18 ) Diluted $ — $ ( 0.07 ) $ ( 1.18 ) 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, 2025, 2024, and 2023. Our chief operating decision maker is 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 employee, 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. 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 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. 89 Year Ended December 31, 2025 Private Passenger Auto Non-Standard Auto Home and Farm Crop All Other Total Direct premiums earned $ 95,947 $ 50,070 $ 111,496 $ 36,707 $ 15,562 $ 309,782 Assumed premiums earned — — — 2,141 486 2,627 Ceded premiums earned ( 4,920 ) ( 70 ) ( 17,576 ) ( 17,183 ) ( 2,005 ) ( 41,754 ) Net premiums earned 91,027 50,000 93,920 21,665 14,043 270,655 Direct losses and loss adjustment expenses 57,354 67,848 96,657 14,920 10,652 247,431 Assumed losses and loss adjustment expenses — — — 981 ( 375 ) 606 Ceded losses and loss adjustment expenses ( 2,096 ) — ( 35,232 ) ( 4,761 ) ( 5,160 ) ( 47,249 ) Net losses and loss adjustment expenses 55,258 67,848 61,425 11,140 5,117 200,788 Gross margin 35,769 ( 17,848 ) 32,495 10,525 8,926 69,867 Amortization of deferred policy acquisition costs 17,808 15,297 20,578 3,473 2,837 59,993 Other underwriting and general expenses (1) 11,981 7,660 13,410 1,182 2,365 36,598 Underwriting and general expenses 29,789 22,957 33,988 4,655 5,202 96,591 Underwriting gain (loss) 5,980 ( 40,805 ) ( 1,493 ) 5,870 3,724 ( 26,724 ) Fee and other income 997 Net investment income 11,702 Net investment gains (losses) 1,696 Income (loss) before income taxes ( 12,329 ) Income tax expense (benefit) ( 1,916 ) Net income (loss) ( 10,413 ) Net income (loss) attributable to non-controlling interest — Net income (loss) attributable to NI Holdings, Inc. $ ( 10,413 ) Operating Ratios: Loss and loss adjustment expense ratio 60.7 % 135.7 % 65.4 % 51.4 % 36.4 % 74.2 % Expense ratio 32.7 % 45.9 % 36.2 % 21.5 % 37.0 % 35.7 % Combined ratio 93.4 % 181.6 % 101.6 % 72.9 % 73.4 % 109.9 % Balances at December 31, 2025: Premiums and agents’ balances receivable $ 25,462 $ 830 $ 11,670 $ 458 $ 3,155 $ 41,575 Deferred policy acquisition costs 6,486 1,053 10,256 — 1,414 19,209 Reinsurance recoverables on losses 1,284 — 3,523 785 6,365 11,957 Receivable from Federal Crop Insurance Corporation — — — 15,605 — 15,605 Goodwill and other intangibles — — — — — — Unpaid losses and loss adjustment expenses 29,934 75,939 16,274 3,929 11,779 137,855 Unearned premiums 36,919 3,819 57,587 — 8,173 106,498 (1) Other underwriting and general expenses for each segment include expenses related to compensation, vendor services, and other administrative items. 90 Year Ended December 31, 2024 Private Passenger Auto Non-Standard Auto Home and Farm Crop All Other Total Direct premiums earned $ 94,865 $ 95,502 $ 102,073 $ 36,421 $ 13,024 $ 341,885 Assumed premiums earned — — — 2,147 837 2,984 Ceded premiums earned ( 4,551 ) ( 277 ) ( 11,312 ) ( 17,426 ) ( 1,193 ) ( 34,759 ) Net premiums earned 90,314 95,225 90,761 21,142 12,668 310,110 Direct losses and loss adjustment expenses 54,340 76,130 66,968 12,310 11,243 220,991 Assumed losses and loss adjustment expenses — — — 537 247 784 Ceded losses and loss adjustment expenses ( 2,471 ) — ( 2,407 ) ( 3,776 ) ( 5,656 ) ( 14,310 ) Net losses and loss adjustment expenses 51,869 76,130 64,561 9,071 5,834 207,465 Gross margin 38,445 19,095 26,200 12,071 6,834 102,645 Amortization of deferred policy acquisition costs 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 93 ( 2,321 ) Goodwill impairment charge ( 2,628 ) Fee and other income 1,938 Net investment income 10,943 Net investment gains (losses) 2,213 Income (loss) before income taxes 10,145 Income tax expense (benefit) 3,545 Net income (loss) 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: Premiums and agents’ balances receivable $ 25,843 $ 13,757 $ 10,560 $ 103 $ 2,644 $ 52,907 Deferred policy acquisition costs 6,535 9,135 9,437 — 1,193 26,300 Reinsurance recoverables on losses 2,358 — 1,934 478 7,791 12,561 Receivable from Federal Crop Insurance Corporation — — — 13,223 — 13,223 Goodwill and other intangibles — 100 — — — 100 Unpaid losses and loss adjustment expenses 28,103 77,580 16,162 1,789 13,654 137,288 Unearned premiums 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. 91 Year Ended December 31, 2023 Private Passenger Auto Non-Standard Auto Home and 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 ) Net premiums earned 83,360 87,760 83,389 25,817 11,791 292,117 Direct losses and loss adjustment expenses 59,385 63,041 52,455 17,669 2,588 195,138 Assumed losses and loss adjustment expenses — — — 787 353 1,140 Ceded losses and loss adjustment expenses 819 — ( 1,520 ) ( 7,663 ) ( 1,398 ) ( 9,762 ) Net losses and loss adjustment expenses 60,204 63,041 50,935 10,793 1,543 186,516 Gross margin 23,156 24,719 32,454 15,024 10,248 105,601 Amortization of deferred policy acquisition costs 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 Goodwill impairment charge — Fee and other income 1,940 Net investment income 8,034 Net investment gains (losses) 1,929 Income (loss) before income taxes 20,547 Income tax expense (benefit) 716 Net income (loss) 19,831 Net income (loss) attributable to non-controlling interest 250 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: Premiums and agents’ balances receivable $ 24,152 $ 19,853 $ 9,755 $ 89 $ 2,305 $ 56,154 Deferred policy acquisition costs 5,834 11,966 8,005 — 985 26,790 Reinsurance recoverables on losses 15 — 2,949 1,343 2,153 6,460 Receivable from Federal Crop Insurance Corporation — — — 17,404 — 17,404 Goodwill and other intangibles — 2,728 — — — 2,728 Unpaid losses and loss adjustment expenses 28,037 61,272 18,205 3,884 7,787 119,185 Unearned premiums 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. 92 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, 2025, 2024, and 2023: 2025 2024 2023 Nodak Insurance: Statutory capital and surplus $ 188,740 $ 189,694 $ 176,783 Statutory unassigned surplus 183,740 184,694 171,783 Statutory net income (loss) ( 1,039 ) 8,492 7,839 American West: Statutory capital and surplus 16,156 16,315 15,423 Statutory unassigned surplus 10,155 10,314 9,422 Statutory net income (loss) 67 1,001 ( 38 ) Primero: Statutory capital and surplus 8,851 9,056 8,585 Statutory unassigned surplus ( 408 ) ( 203 ) ( 675 ) Statutory net income (loss) ( 33 ) 395 ( 136 ) Battle Creek: Statutory capital and surplus 6,132 6,132 6,047 Statutory unassigned surplus 3,132 3,132 3,047 Statutory net income (loss) 34 162 146 Direct Auto: Statutory capital and surplus 38,289 36,875 32,843 Statutory unassigned surplus 35,289 33,875 29,843 Statutory net income (loss) 1,259 3,325 90 Westminster: Statutory capital and surplus — — 21,328 Statutory unassigned surplus — — 16,328 Statutory net income (loss) — — 1,200 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, 2025 and 2024 exceeded the amount of statutory capital and surplus necessary to satisfy risk-based capital requirements by a significant margin. Amounts available for distribution in 2026 to Nodak Insurance as dividends from its insurance subsidiaries without prior approval of the North Dakota Insurance Department are $ 1,063 from American West, $ 41 from Primero, and $ 192 from Battle Creek. No dividends were paid to Nodak Insurance from any of these entities during the years ended December 31, 2025, 2024, or 2023. The amount available for payment of dividends from Nodak Insurance to NI Holdings during 2026 without the prior approval of the North Dakota Insurance Department is approximately $ 6,730 as of December 31, 2025. No dividends were declared or paid by Nodak Insurance during the years ended December 31, 2025 and 2024. 93 The amount available for payment of dividends from Direct Auto to NI Holdings during 2026 without the prior approval of the North Dakota Insurance Department is approximately $ 3,829 as of December 31, 2025. No dividends were declared or paid by Direct Auto during the years ended December 31, 2025, 2024, or 2023. 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 and 2023. See Part II, Item 8, Note 20 “Discontinued Operations” for additional information. 94 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.