NI (NODK) 10-Q 4 Nov 20 2020 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2020	Oct. 31, 2020
Document and Entity Information [Abstract]
Entity Central Index Key	0001681206
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	Q3
Amendment Flag	false
Document Type	10-Q
Document Quarterly Report	true
Document Transition Report	false
Entity Ex Transition Period	false
Document Period End Date	Sep. 30, 2020
Entity File Number	001-37973
Entity Registrant Name	NI HOLDINGS, INC.
Entity Incorporation, State or Country Code	ND
Entity Tax Identification Number	81-2683619
Entity Address, Address Line One	1101 First Avenue North
Entity Address, Address Line Two	Fargo, North Dakota
Entity Address, City or Town	Fargo
Entity Address, State or Province	ND
Entity Address, Postal Zip Code	58102
City Area Code	701
Local Phone Number	298-4200
Title of 12(b) Security	Common Stock, $0.01 par value per share
Trading Symbol	NODK
Name of Exchange on which Security is Registered	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	true
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		21,200,000

Unaudited Consolidated Balance

Unaudited Consolidated Balance Sheets - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Assets:
Cash and cash equivalents	$ 71,305	$ 62,132
Fixed income securities, at fair value	322,429	295,945
Equity securities, at fair value	65,786	59,932
Other investments	2,907	1,914
Total cash and investments	462,427	419,923
Premiums and agents' balances receivable	84,868	36,691
Deferred policy acquisition costs	23,885	15,399
Reinsurance recoverables on losses	13,556	4,045
Income tax recoverables	543
Accrued investment income	2,094	2,089
Property and equipment	10,008	7,694
Receivable from Federal Crop Insurance Corporation	9,519	14,230
Goodwill and other intangibles	18,637	2,912
Other assets	4,499	5,176
Total assets	630,036	508,159
Liabilities:
Unpaid losses and loss adjustment expenses	134,803	93,250
Unearned premiums	125,966	89,276
Reinsurance premiums payable	1,173	170
Income tax payable		1,645
Deferred income taxes, net	7,401	4,590
Accrued expenses and other liabilities	35,180	9,425
Commitments and Contingencies
Total liabilities	304,523	198,356
Shareholders' equity:
Common stock, $0.01 par value, authorized: 25,000,000 shares; issued: 23,000,000 shares; and outstanding: 2020 - 21,346,079 shares, 2019 - 22,119,380 shares	230	230
Preferred stock, without par value, authorized 5,000,000 shares, no shares issued or outstanding
Additional paid-in capital	97,146	95,961
Unearned employee stock ownership plan shares	(1,671)	(1,671)
Retained earnings	237,162	218,480
Accumulated other comprehensive income, net of income taxes	12,064	5,612
Treasury stock, at cost, 2020 - 1,486,866 shares, 2019 - 713,565 shares	(23,097)	(12,308)
Non-controlling interest	3,679	3,499
Total shareholders' equity	325,513	309,803
Total liabilities and shareholders' equity	$ 630,036	$ 508,159

Unaudited Consolidated Balanc_2

Unaudited Consolidated Balance Sheets (Parenthetical) - $ / shares	Sep. 30, 2020	Dec. 31, 2019
Statement of Financial Position [Abstract]
Common stock, par value	$ 0.01	$ 0.01
Common stock, shares authorized	25,000,000	25,000,000
Common stock, shares issued	23,000,000	23,000,000
Common stock, shares outstanding	21,346,079	22,119,380
Preferred stock, shares authorized	5,000,000	5,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Treasury stock, shares	1,486,866	713,565

Unaudited Consolidated Statemen

Unaudited Consolidated Statements of Operations - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Revenues:
Net premiums earned	$ 73,342	$ 67,116	$ 214,120	$ 182,736
Fee and other income	524	527	1,332	1,637
Net investment income	1,886	1,983	5,875	5,504
Net capital gain on investments	5,102	622	1,380	9,591
Total revenues	80,854	70,248	222,707	199,468
Expenses:
Losses and loss adjustment expenses	53,836	61,558	136,622	135,985
Amortization of deferred policy acquisition costs	15,061	11,309	39,277	36,682
Other underwriting and general expenses	7,083	5,982	22,651	14,243
Total expenses	75,980	78,849	198,550	186,910
Income (loss) before income taxes	4,874	(8,601)	24,157	12,558
Income tax expense (benefit)	1,188	(1,642)	5,259	3,206
Net income (loss)	3,686	(6,959)	18,898	9,352
Net income attributable to non-controlling interest	22	20	88	80
Net income (loss) attributable to NI Holdings, Inc.	$ 3,664	$ (6,979)	$ 18,810	$ 9,272
Basic earnings (loss) per common share	$ 0.17	$ (0.32)	$ 0.86	$ 0.42
Diluted earnings (loss) per common share	$ 0.17	$ (0.31)	$ 0.85	$ 0.42

Unaudited Consolidated Statem_2

Unaudited Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Net income (loss)	$ 3,686	$ (6,959)	$ 18,898	$ 9,352
Other comprehensive income, before income taxes:
Holding gains on investments	2,049	2,054	8,970	10,048
Reclassification adjustment for net realized capital (gain) loss included in net income	(531)	(12)	(686)	19
Other comprehensive income, before income taxes	1,518	2,042	8,284	10,067
Income tax expense related to items of other comprehensive income	(319)	(429)	(1,740)	(2,114)
Other comprehensive income, net of income taxes	1,199	1,613	6,544	7,953
Comprehensive income (loss)	4,885	(5,346)	25,442	17,305
Attributable to NI Holdings, [Member]
Net income (loss)	3,664	(6,979)	18,810	9,272
Other comprehensive income, before income taxes:
Holding gains on investments	2,038	2,018	8,851	9,876
Reclassification adjustment for net realized capital (gain) loss included in net income	(539)	(12)	(684)	22
Other comprehensive income, before income taxes	1,499	2,006	8,167	9,898
Income tax expense related to items of other comprehensive income	(315)	(422)	(1,715)	(2,079)
Other comprehensive income, net of income taxes	1,184	1,584	6,452	7,819
Comprehensive income (loss)	4,848	(5,395)	25,262	17,091
Attributable to Non-Controlling Interest [Member]
Net income (loss)	22	20	88	80
Other comprehensive income, before income taxes:
Holding gains on investments	11	36	119	172
Reclassification adjustment for net realized capital (gain) loss included in net income	8		(2)	(3)
Other comprehensive income, before income taxes	19	36	117	169
Income tax expense related to items of other comprehensive income	(4)	(7)	(25)	(35)
Other comprehensive income, net of income taxes	15	29	92	134
Comprehensive income (loss)	$ 37	$ 49	$ 180	$ 214

Unaudited Consolidated Statem_3

Unaudited Consolidated Statements of Changes in Shareholders' Equity - USD ($) $ in Thousands	Common Stock [Member]	Additional Paid-in Capital [Member]	Unearned Employee Stock Ownership Plan Shares [Member]	Retained Earnings [Member]	Accumulated Other Comprehensive Income, Net of Income Taxes [Member]	Treasury Stock	Non-controlling Interest [Member]	Total
Balance at Dec. 31, 2018	$ 230	$ 94,486	$ (1,914)	$ 183,946	$ 6,376	$ (10,634)	$ 3,263	$ 275,753
Cumulative effect of change in accounting for equity securities				8,184	(8,184)
Net income				9,272			80	9,352
Other comprehensive income, net of income taxes					7,819			7,953
Purchase of treasury stock						(2,006)		(2,006)
Share-based compensation		1,274						1,274
Issuance of vested award shares		(300)		(51)		332		(19)
Balance at Sep. 30, 2019	230	95,460	(1,914)	201,351	6,011	(12,308)	3,477	292,307
Balance at Dec. 31, 2018	230	94,486	(1,914)	183,946	6,376	(10,634)	3,263	275,753
Purchase of treasury stock								(2,006)
Balance at Dec. 31, 2019	230	95,961	(1,671)	218,480	5,612	(12,308)	3,499	309,803
Balance at Jun. 30, 2019	230	95,121	(1,914)	208,330	4,427	(12,308)	3,428	297,314
Net income				(6,979)			20	(6,959)
Other comprehensive income, net of income taxes					1,584		29	1,613
Share-based compensation		339						339
Balance at Sep. 30, 2019	230	95,460	(1,914)	201,351	6,011	(12,308)	3,477	292,307
Balance at Dec. 31, 2019	230	95,961	(1,671)	218,480	5,612	(12,308)	3,499	309,803
Net income				18,810			88	18,898
Other comprehensive income, net of income taxes					6,452		92	6,544
Purchase of treasury stock						(11,363)		(11,363)
Share-based compensation		1,662						1,662
Issuance of vested award shares		(477)		(128)		574		(31)
Balance at Sep. 30, 2020	230	97,146	(1,671)	237,162	12,064	(23,097)	3,679	325,513
Balance at Jun. 30, 2020	230	96,661	(1,671)	233,498	10,880	(18,517)	3,642	324,723
Net income				3,664			22	3,686
Other comprehensive income, net of income taxes					1,184		15	1,199
Purchase of treasury stock						(4,580)		(4,580)
Share-based compensation		485						485
Balance at Sep. 30, 2020	$ 230	$ 97,146	$ (1,671)	$ 237,162	$ 12,064	$ (23,097)	$ 3,679	$ 325,513

Unaudited Consolidated Statem_4

Unaudited Consolidated Statements of Cash Flows - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019
Cash Flows from Operating Activities:
Net income	$ 18,898	$ 9,352
Adjustments to reconcile net income to net cash flows from operating activities:
Net capital gain on investments	(1,380)	(9,591)
Deferred income tax (benefit) expense	(511)	569
Depreciation of property and equipment	545	374
Amortization of intangibles	4,781	1,695
Share-based compensation	1,662	1,274
Amortization of deferred policy acquisition costs	39,277	36,682
Deferral of policy acquisition costs	(47,763)	(39,620)
Net amortization of premiums and discounts on investments	1,031	827
Loss on sale of property and equipment	7	11
Changes in operating assets and liabilities:
Premiums and agents' balances receivable	(39,670)	(42,739)
Reinsurance premiums receivable / payable	438	4,277
Reinsurance recoverables on losses	(8,748)	(3,521)
Accrued investment income	64	(133)
Receivable from Federal Crop Insurance Corporation	4,711	(8,022)
Income tax recoverable / payable	(2,050)	(1,454)
Other assets	753	1,208
Unpaid losses and loss adjustment expenses	32,985	30,252
Unearned premiums	20,079	16,650
Accrued expenses and other liabilities	5,835	412
Net cash flows from operating activities	30,944	(1,497)
Cash flows from investing activities:
Proceeds from maturities and sales of fixed income securities	67,029	36,924
Proceeds from sales of equity securities	13,176	12,373
Purchases of fixed income securities	(73,502)	(71,828)
Purchases of equity securities	(15,630)	(16,708)
Purchases of property and equipment, net	(489)	(1,009)
Acquisition of Westminster American Insurance Company (cash consideration paid net of cash and cash equivalents acquired)	(703)
Other	(258)	62
Net cash flows from investing activities	(10,377)	(40,186)
Cash flows from financing activities:
Purchases of treasury stock	(11,363)	(2,006)
Issuance of restricted stock awards	(31)	(19)
Net cash flows from financing activities	(11,394)	(2,025)
Net increase (decrease) in cash and cash equivalents	9,173	(43,708)
Cash and cash equivalents at beginning of period	62,132	68,950
Cash and cash equivalents at end of period	71,305	25,242
Non-cash item:
Present value of installment payable issued in connection with acquisition of Westminster American Insurance Company	18,787
Income taxes paid	$ 7,819	$ 3,955

Organization

Organization	9 Months Ended
	Sep. 30, 2020
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Organization	1. Organization NI Holdings, Inc. (“NI Holdings”) is a North Dakota business corporation that is the stock holding company of Nodak Insurance Company and became such in connection with the conversion of Nodak Mutual Insurance Company from a mutual to stock form of organization and the creation of a mutual holding company. The conversion was consummated on March 13, 2017. Immediately following the conversion, all of the outstanding shares of common stock of Nodak Insurance Company (the successor to Nodak Mutual Insurance Company) were issued to Nodak Mutual Group, Inc., which then contributed the shares to NI Holdings in exchange for 55% of the outstanding shares of common stock of NI Holdings. Nodak Insurance Company then became a wholly-owned stock subsidiary of NI Holdings. Prior to completion of the conversion, NI Holdings conducted no business and had no assets or liabilities. As a result of the conversion, NI Holdings became the holding company for Nodak Insurance Company and its existing subsidiaries. The newly issued shares of NI Holdings were available for public trading on March 16, 2017. These consolidated financial statements of NI Holdings include the financial position and results of NI Holdings and seven other entities: • Nodak Insurance Company (“Nodak Insurance”, formerly Nodak Mutual Insurance Company prior to the conversion);   • Nodak Agency, Inc. (“Nodak Agency”);   • American West Insurance Company (“American West”);   • Primero Insurance Company (“Primero”);   • Battle Creek Mutual Insurance Company (“Battle Creek”, an affiliated company with Nodak Insurance);   • Direct Auto Insurance Company (“Direct Auto”); and   • Westminster American Insurance Company (“Westminster”).   Nodak Insurance is the largest domestic property and casualty insurance company in North Dakota. Nodak Insurance was incorporated on April 15, 1946 under the laws of North Dakota, and benefits from a strong marketing affiliation with the North Dakota Farm Bureau (“NDFB”). Nodak Insurance specializes in providing private passenger auto, homeowners, farmowners, commercial, crop hail, and Federal multi-peril crop insurance coverages. Nodak Agency, a wholly-owned subsidiary of Nodak Insurance, is an inactive shell corporation. American West, a wholly-owned subsidiary of Nodak Insurance, is a property and casualty insurance company licensed in eight states in the Midwest and Western regions of the United States. American West began writing policies in 2002 and primarily writes personal auto, homeowners, and farm coverages in South Dakota. American West also writes personal auto coverage in North Dakota, as well as crop hail and Federal multi-peril crop insurance coverages in Minnesota and South Dakota. Primero is a wholly-owned subsidiary of Tri-State, Ltd. Tri-State, Ltd. is an inactive shell corporation 100% owned by Nodak Insurance. Primero is a property and casualty insurance company writing non-standard automobile coverage in the states of Nevada, Arizona, North Dakota and South Dakota. Battle Creek is controlled by Nodak Insurance via a surplus note and 100% quota-share agreement. The terms of the surplus note and quota-share agreement allow Nodak Insurance to appoint two-thirds of the Battle Creek Board of Directors. Battle Creek is a property and casualty insurance company writing personal auto, homeowners, and farm coverages solely in the state of Nebraska. Direct Auto, a wholly-owned subsidiary of NI Holdings, is a property and casualty company licensed in Illinois. Direct Auto began writing non-standard automobile coverage in 2007, and was acquired by NI Holdings on August 31, 2018 via a stock purchase agreement. Westminster, a wholly-owned subsidiary of NI Holdings, is a property and casualty insurance company licensed in seventeen states and the District of Columbia. Westminster is headquartered in Owings Mills, Maryland and underwrites multi-peril commercial insurance in the states of Delaware, Georgia, Maryland, New Jersey, North Carolina, Pennsylvania, South Carolina, Virginia, West Virginia, and the District of Columbia. Westminster was acquired by NI Holdings on January 1, 2020 via a stock purchase agreement. The financial results of Westminster have been included in the Consolidated Financial Statements herein since January 1, 2020. See Note 4. The same executive management team provides oversight and strategic direction for the entire organization. Nodak Insurance provides common product oversight, pricing practices, and underwriting standards, as well as underwriting and claims administration, to itself, American West, and Battle Creek. Primero, Direct Auto, and Westminster personnel manage the day-to-day operations of their respective companies. The insurance companies share a combined business plan to achieve market penetration and underwriting profitability objectives. Distinctions within the products of the insurance companies generally relate to the states in which the risk is located and specific risk profiles targeted within similar classes of business.

Basis of Presentation

Basis of Presentation	9 Months Ended
	Sep. 30, 2020
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Presentation	2. Basis of Presentation The accompanying unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the interim periods ended September 30, 2020 are not necessarily indicative of the results that may be expected for the year ended December 31, 2020. Our consolidated financial statements include our accounts and those of our wholly-owned subsidiaries, as well as Battle Creek, an entity we control via contract. We have eliminated all significant inter-company accounts and transactions in consolidation. The terms “we”, “us”, “our”, or “the Company” as used herein refer to the consolidated entity.

Summary of Significant Accounti

Summary of Significant Accounting Policies	9 Months Ended
	Sep. 30, 2020
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	3. Summary of Significant Accounting Policies Use of Estimates: In preparing our Consolidated Financial Statements, management makes estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the balance sheet and revenues and expenses for the periods then ended. Actual results could differ significantly from those estimates. We make estimates and assumptions that can have a significant effect on amounts and disclosures we report in our Consolidated Financial Statements. The most significant estimates relate to our reserves for unpaid losses and loss adjustment expenses, earned premiums for crop insurance, valuation of investments, determination of other-than-temporary impairments, valuation allowances for deferred income tax assets, deferred policy acquisition costs, and the valuations used to establish intangible assets acquired related to business combinations. While we believe our estimates are appropriate, the ultimate amounts may differ from the estimates provided. We regularly review our methods for making these estimates as well as the continuing appropriateness of the estimated amounts, and we reflect any adjustment we consider necessary in our current results of operations. Variable-Interest Entities: Any company deemed to be a variable interest entity (“VIE”) is required to be consolidated by the primary beneficiary of the VIE. We assess our investments in other entities at inception to determine if any meet the qualifications of a VIE. We consider an investment in another company to be a VIE if (a) the total equity investment at risk is not sufficient to permit the entity to finance its activities without additional subordinated financial support, (b) the characteristics of a controlling financial interest are missing (either the ability to make decisions through voting or other rights, the obligation to absorb expected losses of the entity or the right to receive the expected residual returns of the entity), or (c) the voting rights of the equity holders are not proportional to their obligations to absorb the expected losses of the entity and/or the rights to receive the expected residual returns of the entity, and substantially all of the entity’s activities either involve or are conducted on behalf of an investor that has disproportionately few voting rights. Upon the occurrence of certain events, we would reassess our initial determination of whether the investment is a VIE. We evaluate whether we are the primary beneficiary of each VIE and we consolidate the VIE if we have both (1) the power to direct the economically significant activities of the entity and (2) the obligation to absorb losses of, or the right to receive benefits from, the entity. We consider the contractual agreements that define the ownership structure, distribution of profits and losses, risks, responsibilities, indebtedness, voting rights, and board representation of the respective parties in determining whether we qualify as the primary beneficiary. Our assessment of whether we are the primary beneficiary of a VIE is performed at least annually. We control Battle Creek via a 100% quota-share reinsurance agreement between Nodak Insurance and Battle Creek, as well as the ability to control a majority of the Board of Directors of Battle Creek. Through the effects of the 100% quota-share agreement with Battle Creek, we are considered the primary beneficiary of Battle Creek’s operating results excluding net investment income, bad 10 Table of Contents NI Holdings, Inc. Notes to Unaudited Consolidated Financial Statements (dollar amounts in thousands, except per share amounts) debt expense, and income taxes. Therefore, we consolidate the financial statements of Battle Creek, and Battle Creek’s policyholders’ interest in Battle Creek is reflected as a non-controlling interest in shareholders’ equity in our Consolidated Balance Sheet. Cash and Cash Equivalents: Cash and cash equivalents include certain investments in highly liquid debt instruments with original maturities of three months or less. Cost approximates fair value for these short-term investments. Investments: We have categorized our investment portfolio as “available-for-sale” and have reported the portfolio at fair value. Unrealized gains and losses on fixed income securities, and on equity securities prior to January 1, 2019, net of income taxes, are reported in accumulated other comprehensive income. Effective January 1, 2019, in accordance with a change in accounting principle, changes in unrealized gains and losses on equity securities are reported as a component of net capital gain (loss) on investments in our operating results. Fair values are based on quoted market prices or dealer quotes, if available. If a quoted market price is not available, fair value is estimated using quoted market prices for similar securities. Amortization of premium and accretion of discount are computed using an effective interest method. Net investment income includes interest and dividend income together with amortization of purchase premiums and discounts, and is net of investment management and custody fees. Realized gains and losses on investments are determined using the specific identification method and are included in net capital gain (loss) on investments, along with the change in unrealized gains and losses on equity securities after January 1, 2019. We review our investments each quarter to determine whether a decline in fair value below the amortized cost basis is other than temporary. Accordingly, we assess whether we intend to sell or it is more likely than not that we will be required to sell a security before recovery of its amortized cost basis. For fixed income securities that are considered other-than-temporarily impaired and that we do not intend to sell and will not be required to sell prior to recovery of the amortized cost basis, we separate the amount of the impairment into the amount that is credit related (credit loss component) and the amount due to all other factors. The credit loss component is recognized in earnings and is the difference between the security’s amortized cost basis and the present value of its expected future cash flows discounted at the security’s effective yield. The remaining difference between the security’s fair value and the present value of future expected cash flows is due to factors that are not credit related and, therefore, is not required to be recognized as losses in the Consolidated Statement of Operations, but is recognized in other comprehensive income (loss). We classify each fair value measurement at the appropriate level in the fair value hierarchy. The hierarchy gives the highest priority to unadjusted quoted market price in active markets for identical assets or liabilities (Level I measurements) and the lowest priority to unobservable inputs (Level III measurements). An asset’s or liability’s classification within the fair value hierarchy is based on the lowest level of significant input to its valuation. Level I – Quoted price in active markets for identical assets and liabilities. Level II – Quoted prices in markets that are not active or inputs that are observable either directly or indirectly. Level II inputs include quoted prices for similar assets or liabilities other than quoted in prices in Level I, quoted prices in markets that are not active, or other inputs that are observable or can be derived principally from or corroborated by observable market data for substantially the full term of the assets or liabilities. Level III – Unobservable inputs that are supported by little or no market activity and are significant to the fair value of the assets or liabilities. Unobservable inputs reflect the reporting entity’s own assumptions that market participants would use in pricing the asset or liability. Level III assets and liabilities include financial instruments whose values are determined using pricing models, discounted cash flow methodologies, or similar techniques, as well as instruments for which the determination of fair value requires significant management judgment or estimation. Fair Value of Other Financial Instruments: Our other financial instruments, aside from investments, are cash and cash equivalents, premiums and agents’ balances receivable, and accrued expenses and accounts payable. The carrying amounts for cash and cash equivalents, premiums and agents’ balances receivable, and accrued expenses and accounts payable approximate their fair value based on their short-term nature. Other invested assets that do not have observable inputs and little or no market activity are carried on a cost basis. All other invested assets have been assessed for impairment. The carrying value of these other invested assets was $2,907 at September 30, 2020 and $1,914 at December 31, 2019. 11 Table of Contents NI Holdings, Inc. Notes to Unaudited Consolidated Financial Statements (dollar amounts in thousands, except per share amounts) Reclassification of Segment Information: Effective in the first quarter of 2020, the Company’s results are being reported in our Consolidated Financial Statements in the following five primary operating segments – private passenger auto insurance, non-standard auto insurance, home and farm insurance, crop insurance, and commercial insurance. A sixth “all other” segment captures all other insurance business, including our assumed reinsurance lines of business. Commercial insurance was previously reported within the all other segment. All prior periods presented have been reclassified to conform to this presentation. Revenue Recognition: We record premiums written at policy inception and recognize them as revenue on a pro rata basis over the policy term or, in the case of crop insurance, over the period of risk. The portion of premiums that could be earned in the future is deferred and reported as unearned premiums. When policies lapse, the Company reverses the unearned portion of the written premium and removes the applicable unearned premium. Policy-related fee income is recognized when collected. The period of risk for our crop insurance program, which comprise primarily spring-planted crops, typically runs from April1 (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). The crop insurance program provides indemnification for acreage that cannot be planted because of flood, drought, or other natural disaster (known as “prevented planting”). In cases where a valid prevented planting claim is made by an insured, the Company assumes that the risk period has ended as there will be no additional coverage under the policy, and the Company will immediately recognize the remaining unearned premium. The Company uses the direct write-off method for recognizing bad debts. Accounts billed directly to the policyholder are provided grace payment and cancellation notice periods per state insurance regulations. Any earned but uncollected premiums are written off within 90 days after the effective date of policy cancellation. Direct Auto also provides for agency billing for a portion of their agents. Accounts billed to agents are due within 60 days of the statement date. The balances are carried as agents’ balances receivable until it is determined the amount is not collectible from the agent. At that time, the balance is written off as uncollectible. The agent is responsible for all past due balances. As part of its agent appointment, Direct Auto requires a personal guarantee for all balances due to Direct Auto from the principal of the contracted agency. Policy Acquisition Costs: We defer our policy acquisition costs, consisting primarily of commissions, state premium taxes and certain other underwriting costs, reduced by ceding commissions, which vary with and relate directly to the production of business. We amortize these deferred policy acquisition costs over the period in which we earn the premiums. The method we follow in computing deferred policy acquisition costs limits the amount of such deferred costs to their estimated realizable value, which gives effect to the premium to be earned, related investment income, losses and loss adjustment expenses, and certain other costs we expect to incur as we earn the premium. Property and Equipment: We report property and equipment at cost less accumulated depreciation. Depreciation is computed using the straight-line method based upon the estimated useful lives of the assets. Losses and Loss Adjustment Expenses: Liabilities for unpaid losses and loss adjustment expenses are estimates at a given point in time of the amounts we expect to pay with respect to policyholder claims based on facts and circumstances then known. At the time of establishing our estimates, we recognize that our ultimate liability for losses and loss adjustment expenses will exceed or be less than such estimates. We base our estimates of liabilities for unpaid losses and loss adjustment expenses on assumptions as to future loss trends, expected claims severity, judicial theories of liability, and other factors. During the loss adjustment period, we may learn additional facts regarding certain claims, and, consequently, it often becomes necessary for us to refine and adjust our estimates of the liability. We reflect any adjustments to our liabilities for unpaid losses and loss adjustment expenses in our operating results in the period in which we determine the need for a change in the estimates. We maintain liabilities for unpaid losses and loss adjustment expenses with respect to both reported and unreported claims. We establish these liabilities for the purpose of covering the ultimate costs of settling all losses, including investigation and litigation costs. We base the amount of our liability for reported losses primarily upon a case-by-case evaluation of the type of risk involved, knowledge of the circumstances surrounding each claim, and the insurance policy provisions relating to the type of loss our policyholder incurred. We determine the amount of our liability for unreported losses and loss adjustment expenses on the basis of historical information by line of insurance. Inflation is not explicitly selected in the loss reserve analysis. However, historical 12 Table of Contents NI Holdings, Inc. Notes to Unaudited Consolidated Financial Statements (dollar amounts in thousands, except per share amounts) inflation is embedded in the estimated loss development factors. We closely monitor our liabilities and update them periodically using new information on reported claims and a variety of statistical techniques. We do not discount our liabilities for unpaid losses and loss adjustment expense. Reserve estimates can change over time because of unexpected changes in assumptions related to our external environment and, to a lesser extent, assumptions as to our internal operations. Assumptions related to our external environment include the absence of significant changes in tort law and the legal environment which may impact liability exposure, the trends in judicial interpretations of insurance coverage and policy provisions, and the rate of loss cost inflation. Internal assumptions include consistency in the recording of premium and loss statistics, consistency in the recording of claims, payment and case reserving methodologies, accurate measurement of the impact of rate changes and changes in policy provisions, consistency in the quality and characteristics of business written within a given line of business, and consistency in reinsurance coverage and collectability of reinsured losses, among other items. To the extent we determine that underlying factors impacting our assumptions have changed, we attempt to make appropriate adjustments for such changes in our reserves. Accordingly, our ultimate liability for unpaid losses and loss adjustment expenses will likely differ from the amount recorded. Income Taxes: With the exception of Battle Creek, which files a stand-alone federal income tax return, we currently file a consolidated federal income tax return which includes NI Holdings and its wholly-owned subsidiaries. Direct Auto and Westminster became part of the consolidated federal income tax return as of their acquisition dates. Insurance companies typically pay state premium taxes rather than state income taxes. However, Direct Auto is subject to state income taxes in the state of Illinois, in addition to state premium taxes. Additionally, NI Holdings, on a stand-alone basis, pays state income taxes to the state of North Dakota for income or losses generated as a separate financial entity. While state premium taxes are included as a part of amortization of deferred policy acquisition costs, state income taxes are combined with federal income taxes within the financial reporting category labeled income taxes. The Company reports tax-related interest and penalties, if any, as part of income tax expense in the year such amounts are determinable. We account for deferred income taxes using the asset and liability method. The objective of the asset and liability method is to establish deferred income tax assets and liabilities for the temporary differences between the financial reporting basis and the income tax basis of our assets and liabilities at enacted tax rates expected to be in effect when we realize or settle such amounts. Accounting guidance requires that companies re-measure existing deferred income tax assets (including loss carryforwards) and liabilities when a change in tax rate occurs, and record an offset for the net amount of the change as a component of income tax expense from continuing operations in the period of enactment. The guidance also requires any change to a previously recorded valuation allowance as a result of re-measuring existing temporary differences and loss carryforwards to be reflected as a component of income tax expense from continuing operations. The Company has elected to reclassify any tax effects stranded in accumulated other comprehensive income as a result of a change in income tax rates to retained earnings. Credit Risk: Our primary investment objective is to earn competitive returns by investing in a diversified portfolio of securities. Our portfolio of fixed income securities and, to a lesser extent, short-term investments, is subject to credit risk. We define this risk as the potential loss in fair value resulting from adverse changes in the borrower’s ability to repay the debt. We manage this risk by performing an analysis of prospective investments and through regular reviews of our portfolio by our management team and investment advisors. We also limit the amount of our total investment portfolio that we invest in any one security. Property and liability insurance coverages are marketed through captive agents in North Dakota and through independent insurance agencies located throughout all other operating areas. All business, except for the majority of Direct Auto’s business, is billed directly to the policyholders. We maintain cash balances primarily at one bank, which are insured by the Federal Deposit Insurance Corporation (“FDIC”) up to $250. During the normal course of business, balances are maintained above the FDIC insurance limit. The Company maintains short-term investment balances in investment grade money market accounts that are insured by the Securities Investor Protection 13 Table of Contents NI Holdings, Inc. Notes to Unaudited Consolidated Financial Statements (dollar amounts in thousands, except per share amounts) Corporation (“SIPC”) up to $500. On occasion, balances for these accounts are maintained in excess of the SIPC insurance limit. Reinsurance: The Company limits the maximum net loss that can arise from large risks or risks in concentrated areas of exposure by reinsuring (ceding) certain levels of risks to other insurers or reinsurers, either on an automatic basis under general reinsurance contracts knows as “treaties” or by negotiation on substantial individual risks. Ceded reinsurance is treated as the risk and liability of the assuming companies. Reinsurance contracts do not relieve the Company from its obligations to policyholders. In the event that all or any of the reinsuring companies might be unable to meet their obligations under existing reinsurance agreements, the Company would be liable for such defaulted amounts. Goodwill and Other Intangibles: Goodwill represents the excess of the purchase price over the underlying fair value of acquired entities. When completing acquisitions, we seek also to identify separately identifiable intangible assets that we have acquired. We assess goodwill and other intangibles with an indefinite useful life for impairment annually. We also assess goodwill and other intangibles for impairment upon the occurrence of certain events. In making our assessment, we consider a number of factors including operating results, business plans, economic projections, anticipated future cash flows, and current market data. Inherent uncertainties exist with respect to these factors and to our judgment in applying them when we make our assessment. Impairment of goodwill and other intangibles could result from changes in economic and operating conditions in future periods. We did not record any impairments of goodwill or other intangibles during the three or nine month periods ended September 30, 2020 and 2019. Goodwill arising from the acquisition of Primero in 2014 represents the excess of the purchase price over the fair value of the net assets acquired. The purchase price in excess of the fair value of net assets acquired was negotiated at arms-length with an unrelated party and was based upon the strategic decision by Company management to expand both the geographic footprint and product lines of the Company. The nature of the business acquired was such that there were limited intangibles not reflected in the net assets acquired. The purchase price was paid with a combination of cash and cancellation of obligations owed to the acquired company by the sellers. The goodwill which arose from this transaction is included in the basis of the net assets acquired and is not deductible for income tax purposes. Intangible assets arising from the acquisition of Direct Auto in 2018 represent the estimated fair values of certain intangible assets, including a favorable lease contract, a state insurance license, the value of the Direct Auto trade name, and the value of business acquired (“VOBA”). The state insurance license asset has an indefinite life, while the favorable lease contract, Direct Auto trade name, and VOBA assets will be amortized over eighteen months, five years, and twelve months, respectively, from the August 31, 2018 acquisition/valuation date. Goodwill arising from the acquisition of Westminster in January 2020 represents the excess of the purchase price over the fair value of the net assets acquired. The purchase price in excess of the fair value of net assets acquired was negotiated at arms-length with an unrelated party and was based upon the strategic decision by Company management to expand both the geographic footprint and commercial business product line of the Company. Other intangible assets arising from the acquisition of Westminster represent the estimated fair values of certain intangible assets, including state insurance licenses, the value of Westminster’s distribution network, the value of the Westminster trade name, and the VOBA. The state insurance license asset has an indefinite life, while the distribution networks asset, Westminster trade name, and VOBA assets will be amortized over twenty years, ten years, and twelve months, respectively, from the January 1, 2020 acquisition/valuation date.

Acquisition of Westminster Amer

Acquisition of Westminster American Insurance Company	9 Months Ended
	Sep. 30, 2020
Business Combinations [Abstract]
Acquisition of Westminster American Insurance Company	4. Acquisition of Westminster American Insurance Company On January 1, 2020, the Company completed the acquisition of 100% of the common stock of Westminster from the private shareholder of Westminster, and Westminster became a consolidated subsidiary of the Company. Westminster is a property and casualty insurance company specializing in multi-peril commercial insurance in nine states and the District of Columbia. Westminster remains headquartered in Owings Mills, Maryland, and the current president of Westminster continues to manage the Westminster insurance operations along with the staff and management team in place at the time of the acquisition. The results of Westminster are included as part of the Company’s commercial business segment following the closing date. We account for business acquisitions in accordance with the acquisition method of accounting, which requires, among other things, that most assets acquired, liabilities assumed, and contingent consideration be recognized at their fair values as of the acquisition date, which is the closing date for the Westminster transaction. During the measurement period, adjustments to provisional purchase price allocations are recognized if new information is obtained about the facts and circumstances that existed as of the acquisition date that, if known, would have resulted in the recognition of those assets and liabilities as of that date. The measurement period ends as soon as it is determined that no more information is obtainable, but in no case shall the measurement period exceed one year from the acquisition date. During the three months ended June 30, 2020, the Company made minor adjustments to property and equipment, the value of business acquired intangible asset, and deferred income taxes. During the three months ended September 30, 2020, the Company made minor adjustments to fixed income securities, deferred income taxes, and goodwill. The acquired Westminster business contributed revenues of $10,294 and net income of $1,763 to the Company for the three months ended September 30, 2020, and revenues of $24,085 and net income of $1,080 for the nine months ended September 30, 2020. The following unaudited pro forma summary presents consolidated information of the Company as if the business combination had occurred on January 1, 2019: Pro forma Three Months Ended September 30, Pro forma Nine Months Ended September 30, 2020 2019 2020 2019 Revenues $ 80,854 $ 75,915 $ 222,707 $ 215,814 Net income (loss) attributable to NI Holdings, Inc. 3,913 (7,031 ) 20,624 7,636 Basic earnings (loss) per share attributable to NI Holdings, Inc. 0.18 (0.32 ) 0.94 0.34 The Company did not reflect any material, nonrecurring pro forma adjustments directly attributable to the business combination in the above pro forma revenue and earnings. These pro forma amounts have been calculated after applying the Company’s accounting policies and adjusting the results of Westminster to reflect the deferral and amortization of policy acquisition costs and the additional amortization that would have been charged assuming the fair value adjustments to intangible assets had been applied from January 1, 2019, with the related income tax effects. The Company incurred acquisition-related costs of $828 during the nine months ended September 30, 2020, and $83 during the year ended December 31, 2019. These expenses were reclassified to occur in first quarter 2019 in the pro forma amounts presented above. 15 Table of Contents NI Holdings, Inc. Notes to Unaudited Consolidated Financial Statements (dollar amounts in thousands, except per share amounts) The Company paid $20,000 in cash consideration to the private shareholder of Westminster as of the closing date, and will pay an additional $20,000 in three equal annual installments. The acquisition of Westminster did not include any contingent consideration other than a provision regarding future changes to federal income tax rates. The following table summarizes the consideration transferred to acquire Westminster and the amounts of identified assets acquired and liabilities assumed at the acquisition date: Fair Value of Consideration: Cash consideration transferred $ 20,000 Present value of future cash consideration 18,787 Total cash consideration $ 38,787 Recognized Amounts of Identifiable Assets Acquired and Liabilities Assumed: Identifiable net assets: Cash and cash equivalents $ 19,297 Fixed income securities, at fair value 12,073 Equity securities, at fair value 2,705 Other investments 735 Premiums and agents' balances receivable 8,507 Reinsurance recoverables on losses 763 Accrued investment income 70 Property and equipment 2,376 Federal income tax recoverable 138 State insurance licenses (included in goodwill and other intangibles) 1,800 Distribution network (included in goodwill and other intangibles) 6,700 Trade name (included in goodwill and other intangibles) 500 Value of business acquired (included in goodwill and other intangibles) 4,750 Other assets 76 Unpaid losses and loss adjustment expenses (8,568 ) Unearned premiums (16,611 ) Deferred income taxes, net (1,583 ) Reinsurance premiums payable (565 ) Accrued expenses and other liabilities (1,132 ) Total identifiable net assets $ 32,031 Goodwill $ 6,756 The fair value of the assets acquired includes premiums and agents’ balances receivable of $8,507 and reinsurance recoverables on losses of $763. These are the gross amounts due from policyholders and reinsurers, respectively, none of which are anticipated to be uncollectible. The Company did not acquire any other material class of receivable as a result of the acquisition of Westminster. The fair values of the acquired distribution network, state insurance licenses, Westminster trade name, and VOBA intangible assets of $6,700, $1,800, $500, and $4,750, respectively, are provisional pending final valuation for those assets. The state insurance license intangible has an indefinite life, while the other intangible assets will be amortized over useful lives of up to twenty years.

Recent Accounting Pronouncement

Recent Accounting Pronouncements	9 Months Ended
	Sep. 30, 2020
Accounting Policies [Abstract]
Recent Accounting Pronouncements	5. Recent Accounting Pronouncements As an emerging growth company, we have elected to use the extended transition period for complying with any new or revised financial accounting standards pursuant to Section 13(a) of the Exchange Act. The following discussion includes effective dates for both public business entities and emerging growth companies, as well as whether specific guidance may be adopted early. Adopted In January 2019, the Company adopted amended guidance from the Financial Accounting Standards Board (“FASB”) that generally requires entities to measure equity securities at fair value and recognize changes in fair value in their results of operations. The FASB issued other impairment, disclosure, and presentation improvements related to financial instruments within the guidance. Effective January 1, 2019, we applied this guidance, which resulted in a cumulative-effect reclassification of after-tax unrealized net capital gains aggregating $8,184, from accumulated other comprehensive income to retained earnings. This reclassification had no 16 Table of Contents NI Holdings, Inc. Notes to Unaudited Consolidated Financial Statements (dollar amounts in thousands, except per share amounts) impact to the Company’s results of operations at the date of adoption. The after-tax change in accounting for equity securities did not affect the Company’s total shareholders’ equity; however, the unrealized net capital gains reclassified at the transition date to retained earnings will never be recognized in net income. Prior year financial statements were not restated. Going forward, the accounting used for equity securities will record the market fluctuations attributed to equity securities through our results of operations rather than as a component of other comprehensive income (loss), which will add a level of volatility to our net income. In December 2019, the Company adopted guidance from the FASB that establishes the manner in which an entity recognizes the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. While the guidance replaces most existing GAAP revenue recognition guidance, the scope of the guidance excludes insurance contracts. The Company has reviewed its sources of revenues, and has determined that no material revenues are derived from non-insurance contracts and thus subject to the new revenue recognition guidance. As a result, there was no impact to the Company’s financial position, results of operations, or cash flows. In December 2019, the Company adopted amended guidance from the FASB that addressed diversity in how certain cash receipts and cash payments are presented and classified in the Consolidated Statement of Cash Flows, and the presentation of restricted cash in the Consolidated Statement of Cash Flows. The amendments provided clarity on the treatment of eight specifically defined types of cash inflows and outflows, and requires entities to explain the changes during a reporting period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. There was no impact to the Company’s financial position, results of operations, or cash flows. In March 2020, the Company adopted modified disclosure requirements from the FASB relating to the fair value of assets and liabilities. The modifications primarily related to Level 3 fair value measurements. The Company does not currently carry any Level 3 assets or liabilities. As a result, there was no impact to the Company’s financial statement disclosures. Not Yet Adopted In February 2016, the FASB issued new guidance that requires lessees to recognize leases, including operating leases, on the lessee’s Consolidated Balance Sheet, unless a lease is considered a short-term lease. The new guidance also requires entities to make new judgments to identify leases. In July 2018, the FASB issued additional guidance to allow an optional transition method. An entity may apply the new leases guidance at the beginning of the earliest period presented in the financial statements, or at the adoption date and recognize a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. The new guidance, which replaces the current lease guidance, is effective for annual and interim reporting periods beginning after December 15, 2019 for public business entities. For private companies and emerging growth companies, this guidance is effective for annual reporting periods beginning after December 15, 2021 and interim periods within fiscal years beginning after December 15, 2022. Early adoption is permitted for all entities. We do not expect the adoption of this new guidance to have a significant impact on our financial position, results of operations, or cash flows.In June 2016, the FASB issued a new standard that will require timelier recording of credit losses on loans and other financial instruments held by financial institutions and other organizations. The guidance will require the measurement of all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. Financial institutions and other organizations will now use forward-looking information to better form their credit loss estimates. Many of the loss estimation techniques applied today will still be permitted, although the inputs to those techniques will change to reflect the full amount of expected credit losses. Organizations will continue to use judgment to determine which loss estimation method is appropriate for their circumstances. Additionally, the guidance requires enhanced disclosures to help investors and other financial statement users better understand significant estimates and judgments used in estimating credit losses, as well as the credit quality and underwriting standards of an organization’s portfolio. These disclosures include qualitative and quantitative requirements that provide additional information about the amounts recorded in the financial statements. Finally, the guidance amends the accounting for credit losses on available-for-sale fixed income securities and purchased financial assets with credit deterioration. The guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019 for filers with the Securities and Exchange Commission (“SEC”) excluding smaller reporting companies, and emerging growth companies that did not relinquish private company relief. For all other entities, this guidance is effective for annual reporting periods beginning after December 15, 2022 and interim periods within those fiscal years. Early adoption is permitted for all entities. We are evaluating the impact this new guidance will have on our financial position, results of operations, and cash flows. In March 2017, the FASB issued amended guidance to shorten the amortization period of premiums on certain purchased callable fixed income securities to the earliest call date. The amended guidance is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years, for public business entities. For private companies and emerging growth companies, this amended guidance is effective for fiscal years beginning after December 15, 2019, and interim periods within fiscal years beginning after December 15, 2020. Early adoption is permitted, including adoption in an interim period. If an entity early adopts the amendments in an interim period, any adjustments should be reflected as of the beginning of the fiscal year that includes that interim period. An entity should apply the amendments on a modified retrospective basis through a cumulative-effect adjustment 17 Table of Contents NI Holdings, Inc. Notes to Unaudited Consolidated Financial Statements (dollar amounts in thousands, except per share amounts) directly to retained earnings as of the beginning of the period of adoption. We are evaluating the requirements of this guidance and the potential impact to our financial position, results of operations, and cash flows. In December 2019, the FASB issued amended guidance to simplify the accounting for income taxes. The amended guidance is effective for fiscal years beginning after December 15, 2020, including interim periods within those fiscal years, for public business entities. For private companies and emerging growth companies, this amended guidance is effective for fiscal years beginning after December 15, 2021, and interim periods within fiscal years beginning after December 15, 2022. Early adoption is permitted, including adoption in an interim period. We are evaluating the impact this new guidance will have on our financial position, results of operations, and cash flows.

Investments

Investments	9 Months Ended
	Sep. 30, 2020
Marketable Securities [Abstract]
Investments	6. Investments The amortized cost and estimated fair value of investment securities as of September 30, 2020 and December 31, 2019, were as follows: September 30, 2020 Cost or Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Fixed income securities: U.S. Government and agencies $ 16,110 $ 1,324 $ (1 ) $ 17,433 Obligations of states and political subdivisions 62,975 3,044 (150 ) 65,869 Corporate securities 120,955 8,137 (434 ) 128,658 Residential mortgage-backed securities 36,384 1,612 (4 ) 37,992 Commercial mortgage-backed securities 24,574 1,705 (29 ) 26,250 Asset-backed securities 45,906 509 (188 ) 46,227 Total fixed income securities 306,904 16,331 (806 ) 322,429 Equity securities: Basic materials 1,259 289 (69 ) 1,479 Communications 4,304 2,563 (507 ) 6,360 Consumer, cyclical 5,903 3,139 (596 ) 8,446 Consumer, non-cyclical 10,456 6,092 (758 ) 15,790 Energy 1,931 18 (532 ) 1,417 Financial 5,879 520 (491 ) 5,908 Industrial 6,857 4,240 (132 ) 10,965 Technology 7,905 7,570 (90 ) 15,385 Utility 37 - (1 ) 36 Total equity securities 44,531 24,431 (3,176 ) 65,786 Total investments $ 351,435 $ 40,762 $ (3,982 ) $ 388,215 December 31, 2019 Cost or Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Fixed income securities: U.S. Government and agencies $ 17,078 $ 472 $ (4 ) $ 17,546 Obligations of states and political subdivisions 55,232 1,511 (91 ) 56,652 Corporate securities 109,457 3,772 (16 ) 113,213 Residential mortgage-backed securities 50,458 1,050 (22 ) 51,486 Commercial mortgage-backed securities 26,450 658 (51 ) 27,057 Asset-backed securities 30,029 132 (170 ) 29,991 Total fixed income securities 288,704 7,595 (354 ) 295,945 Equity securities: Basic materials 1,062 155 (7 ) 1,210 Communications 4,823 2,342 (169 ) 6,996 Consumer, cyclical 5,477 4,207 (72 ) 9,612 Consumer, non-cyclical 7,483 5,255 (171 ) 12,567 Energy 2,817 124 (485 ) 2,456 Financial 5,059 905 (35 ) 5,929 Industrial 5,293 4,023 (17 ) 9,299 Technology 6,022 5,867 (26 ) 11,863 Total equity securities 38,036 22,878 (982 ) 59,932 Total investments $ 326,740 $ 30,473 $ (1,336 ) $ 355,877 19 Table of Contents NI Holdings, Inc. Notes to Unaudited Consolidated Financial Statements (dollar amounts in thousands, except per share amounts) The amortized cost and estimated fair value of fixed income securities by contractual maturity are shown below. Actual maturities could differ from contractual maturities because issuers of the securities may have the right to call or prepay certain obligations, which may or may not include call or prepayment penalties. September 30, 2020 Amortized Cost Fair Value Due to mature: One year or less $ 16,413 $ 16,659 After one year through five years 90,477 95,182 After five years through ten years 59,812 64,928 After ten years 33,338 35,191 Mortgage / asset-backed securities 106,864 110,469 Total fixed income securities $ 306,904 $ 322,429 December 31, 2019 Amortized Cost Fair Value Due to mature: One year or less $ 19,567 $ 19,663 After one year through five years 84,937 87,134 After five years through ten years 55,927 58,466 After ten years 21,336 22,148 Mortgage / asset-backed securities 106,937 108,534 Total fixed income securities $ 288,704 $ 295,945 Fixed income securities with a fair value of $6,164 at September 30, 2020 and $5,585 at December 31, 2019, were deposited with various state regulatory agencies as required by law. The Company has not pledged any assets to secure any obligations. 20 Table of Contents NI Holdings, Inc. Notes to Unaudited Consolidated Financial Statements (dollar amounts in thousands, except per share amounts) The investment category and duration of the Company’s gross unrealized losses on fixed income securities and equity securities were as follows: September 30, 2020 Less than 12 Months Greater than 12 months Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses Fixed income securities: U.S. Government and agencies $ 203 $ (1 ) $ - $ - $ 203 $ (1 ) Obligations of states and political subdivisions 4,578 (150 ) - - 4,578 (150 ) Corporate securities 8,763 (420 ) 693 (14 ) 9,456 (434 ) Residential mortgage-backed securities 397 (4 ) - - 397 (4 ) Commercial mortgage-backed securities 1,511 (29 ) - - 1,511 (29 ) Asset-backed securities 10,324 (80 ) 4,393 (108 ) 14,717 (188 ) Total fixed income securities 25,776 (684 ) 5,086 (122 ) 30,862 (806 ) Equity securities: Basic materials 345 (69 ) - - 345 (69 ) Communications 1,272 (507 ) - - 1,272 (507 ) Consumer, cyclical 1,184 (528 ) 211 (68 ) 1,395 (596 ) Consumer, non-cyclical 2,456 (758 ) - - 2,456 (758 ) Energy 47 (33 ) 442 (499 ) 489 (532 ) Financial 2,750 (491 ) - - 2,750 (491 ) Industrial 1,139 (132 ) - - 1,139 (132 ) Technology 1,379 (90 ) - - 1,379 (90 ) Utility 37 (1 ) - - 37 (1 ) Total equity securities 10,609 (2,609 ) 653 (567 ) 11,262 (3,176 ) Total investments $ 36,385 $ (3,293 ) $ 5,739 $ (689 ) $ 42,124 $ (3,982 ) 21 Table of Contents NI Holdings, Inc. Notes to Unaudited Consolidated Financial Statements (dollar amounts in thousands, except per share amounts) December 31, 2019 Less than 12 Months Greater than 12 months Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses Fixed income securities: U.S. Government and agencies $ 494 $ (4 ) $ - $ - $ 494 $ (4 ) Obligations of states and political subdivisions 8,018 (91 ) - - 8,018 (91 ) Corporate securities 2,066 (15 ) 650 (1 ) 2,716 (16 ) Residential mortgage-backed securities 2,911 (9 ) 2,583 (13 ) 5,494 (22 ) Commercial mortgage-backed securities 4,841 (35 ) 653 (16 ) 5,494 (51 ) Asset-backed securities 8,511 (96 ) 7,686 (74 ) 16,197 (170 ) Total fixed income securities 26,841 (250 ) 11,572 (104 ) 38,413 (354 ) Equity securities: Basic materials 258 (7 ) - - 258 (7 ) Communications 506 (- ) 658 (169 ) 1,164 (169 ) Consumer, cyclical 595 (30 ) 146 (42 ) 741 (72 ) Consumer, non-cyclical 1,033 (171 ) - - 1,033 (171 ) Energy 823 (432 ) 6 (53 ) 829 (485 ) Financial 393 (35 ) - - 393 (35 ) Industrial 620 (17 ) - - 620 (17 ) Technology 575 (26 ) - - 575 (26 ) Total equity securities 4,803 (718 ) 810 (264 ) 5,613 (982 ) Total investments $ 31,644 $ (968 ) $ 12,382 $ (368 ) $ 44,026 $ (1,336 ) Investments with unrealized losses are categorized with a duration of greater than 12 months when all positions of a security have continually been in a loss position for at least 12 months. We frequently review our investment portfolio for declines in fair value. Our process for identifying declines in the fair value of investments that are other than temporary involves consideration of several factors. These factors include (i) the time period in which there has been a significant decline in value, (ii) an analysis of the liquidity, business prospects, and overall financial condition of the issuer, (iii) the significance of the decline, and (iv) our intent and ability to hold the investment for a sufficient period of time for the value to recover. When our analysis of the above factors results in the conclusion that declines in fair values are other than temporary, the cost of the securities is written down to fair value and the previously unrealized loss is therefore reflected as a realized capital loss on investment. The Company did not record any impairments during the three or nine month periods ended September 30, 2020 and 2019. As of September 30, 2020, we held 83 fixed income securities with unrealized losses. As of December 31, 2019, we held 88 fixed income securities with unrealized losses. In conjunction with our outside investment advisors, we analyzed the credit ratings of the securities as well as the historical monthly amortized cost to fair value ratio of securities in an unrealized loss position. This analysis yielded no fixed income securities which had fair values less than 80% of amortized cost for the preceding 12-month period. 22 Table of Contents NI Holdings, Inc. Notes to Unaudited Consolidated Financial Statements (dollar amounts in thousands, except per share amounts) Net investment income consisted of the following: Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Fixed income securities $ 2,065 $ 2,196 $ 6,655 $ 6,167 Equity securities 278 247 903 704 Real estate 170 91 440 273 Cash and cash equivalents 1 15 27 50 Total gross investment income 2,514 2,549 8,025 7,194 Investment expenses 628 566 2,150 1,690 Net investment income $ 1,886 $ 1,983 $ 5,875 $ 5,504 Net capital gain (loss) on investments consisted of the following: Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Gross realized gains: Fixed income securities $ 279 $ 58 $ 756 $ 114 Equity securities 637 1,386 2,887 2,408 Total gross realized gains 916 1,444 3,643 2,522 Gross realized losses, excluding other-than-temporary impairment losses: Fixed income securities 252 (46 ) (70 ) (132 ) Equity securities (532 ) (392 ) (1,552 ) (1,052 ) Total gross realized losses, excluding other-than-temporary impairment losses (280 ) (438 ) (1,622 ) (1,184 ) Net realized gain on investments 636 1,006 2,021 1,338 Change in net unrealized gain on equity securities 4,466 (384 ) (641 ) 8,253 Net capital gain on investments $ 5,102 $ 622 $ 1,380 $ 9,591

Fair Value Measurements

Fair Value Measurements	9 Months Ended
	Sep. 30, 2020
Investments, All Other Investments [Abstract]
Fair Value Measurements	7. Fair Value Measurements We maximize the use of observable inputs in our valuation techniques and apply unobservable inputs only to the extent that observable inputs are unavailable. The largest class of assets and liabilities carried at fair value by the Company at September 30, 2020 and December 31, 2019 were fixed income securities. Prices provided by independent pricing services and independent broker quotes can vary widely, even for the same security. Our available-for-sale investments are comprised of a variety of different securities, which are classified into levels based on the valuation technique and inputs used in their valuation. The valuation of cash equivalents and equity securities are generally based on Level I inputs, which use the market approach valuation technique. The valuation of fixed income securities generally incorporates significant Level II inputs using the market and income approach techniques. We may assign a lower level to inputs typically considered to be Level II based on our assessment of liquidity and relative level of uncertainty surrounding inputs. There were no assets or liabilities classified as Level III at September 30, 2020 or December 31, 2019. 23 Table of Contents NI Holdings, Inc. Notes to Unaudited Consolidated Financial Statements (dollar amounts in thousands, except per share amounts) 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: September 30, 2020 Total Level I Level II Level III Fixed income securities: U.S. Government and agencies $ 17,433 $ - $ 17,433 $ - Obligations of states and political subdivisions 65,869 - 65,869 - Corporate securities 128,658 - 128,658 - Residential mortgage-backed securities 37,992 - 37,992 - Commercial mortgage-backed securities 26,250 - 26,250 - Asset-backed securities 46,227 - 46,227 - Total fixed income securities 322,429 - 322,429 - Equity securities: Basic materials 1,479 1,479 - - Communications 6,360 6,360 - - Consumer, cyclical 8,446 8,446 - - Consumer, non-cyclical 15,790 15,790 - - Energy 1,417 1,417 - - Financial 5,908 5,908 - - Industrial 10,965 10,965 - - Technology 15,385 15,385 Utility 36 36 - - Total equity securities 65,786 65,786 - - Cash and cash equivalents 71,305 71,305 - - Total assets at fair value $ 459,520 $ 137,091 $ 322,429 $ - December 31, 2019 Total Level I Level II Level III Fixed income securities: U.S. Government and agencies $ 17,546 $ - $ 17,546 $ - Obligations of states and political subdivisions 56,652 - 56,652 - Corporate securities 113,213 - 113,213 - Residential mortgage-backed securities 51,486 - 51,486 - Commercial mortgage-backed securities 27,057 - 27,057 - Asset-backed securities 29,991 - 29,991 - Total fixed income securities 295,945 - 295,945 - Equity securities: Basic materials 1,210 1,210 - - Communications 6,996 6,996 - - Consumer, cyclical 9,612 9,612 - - Consumer, non-cyclical 12,567 12,567 - - Energy 2,456 2,456 - - Financial 5,929 5,929 - - Industrial 9,299 9,299 - - Technology 11,863 11,863 - - Total equity securities 59,932 59,932 - - Cash and cash equivalents 62,132 62,132 - - Total assets at fair value $ 418,009 $ 122,064 $ 295,945 $ - There were no liabilities measured at fair value on a recurring basis at September 30, 2020 or December 31, 2019.

Reinsurance

Reinsurance	9 Months Ended
	Sep. 30, 2020
Reinsurance Disclosures [Abstract]
Reinsurance	8. Reinsurance The Company will assume and cede certain premiums and losses to and from various companies and associations under various reinsurance agreements. The Company seeks to limit the maximum net loss that can arise from large risks or risks in concentrated areas of exposure through use of these agreements, either on an automatic basis under general reinsurance contracts known as treaties or by negotiation on substantial individual risks. Reinsurance contracts do not relieve the Company from its obligation to policyholders. Additionally, failure of reinsurers to honor their obligations could result in significant losses to us. There can be no assurance that reinsurance will continue to be available to us at the same extent, and at the same cost, as it has in the past. The Company may choose in the future to reevaluate the use of reinsurance to increase or decrease the amounts of risk ceded to reinsurers. As a group, during the nine month period ended September 30, 2020, the Company retained the first $10,000 of weather-related losses from catastrophic events and had reinsurance under various reinsurance agreements up to $97,000 in excess of its $10,000 retained risk. During the year ended December 31, 2019, the Company retained the first $10,000 of weather-related losses from catastrophic events and had reinsurance under various reinsurance agreements up to $78,600 in excess of its $10,000 retained risk. The Company actively monitors and evaluates the financial condition of the reinsurers and develops estimates of the uncollectible amounts due from reinsurers. Such estimates are made based on periodic evaluation of balances due from reinsurers, judgments regarding reinsurers’ solvency, known disputes, reporting characteristics of the underlying reinsured business, historical experience, current economic conditions, and the state of reinsurer relations in general. Collection risk is mitigated from reinsurers by entering into reinsurance arrangements only with reinsurers that have strong credit ratings and statutory surplus above certain levels. The Company’s largest reinsurance recoverables on paid and unpaid losses were due from reinsurance companies with A.M. Best ratings of “A-” or higher. A reconciliation of direct to net premiums on both a written and an earned basis is as follows: Three Months Ended September 30, 2020 Nine Months Ended September 30, 2020 Premiums Written Premiums Earned Premiums Written Premiums Earned Direct premium $ 68,322 $ 79,455 $ 244,053 $ 224,300 Assumed premium 1,426 1,372 5,728 5,655 Ceded premium (7,596 ) (7,485 ) (15,497 ) (15,835 ) Net premiums $ 62,152 $ 73,342 $ 234,284 $ 214,120 Percentage of assumed earned premium to direct earned premium 1.7% 2.5% Three Months Ended September 30, 2019 Nine Months Ended September 30, 2019 Premiums Written Premiums Earned Premiums Written Premiums Earned Direct premium $ 49,984 $ 70,481 $ 208,880 $ 192,233 Assumed premium 1,203 1,234 5,235 5,233 Ceded premium (4,599 ) (4,599 ) (14,730 ) (14,730 ) Net premiums $ 46,588 $ 67,116 $ 199,385 $ 182,736 Percentage of assumed earned premium to direct earned premium 1.8% 2.7% 25 Table of Contents NI Holdings, Inc. Notes to Unaudited Consolidated Financial Statements (dollar amounts in thousands, except per share amounts) A reconciliation of direct to net losses and loss adjustment expenses is as follows: Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Direct losses and loss adjustment expenses $ 59,936 $ 62,248 $ 153,203 $ 138,481 Assumed losses and loss adjustment expenses 2,436 2,017 3,538 3,000 Ceded losses and loss adjustment expenses (8,536 ) (2,707 ) (20,119 ) (5,496 ) Net losses and loss adjustment expenses $ 53,836 $ 61,558 $ 136,622 $ 135,985 If 100% of our ceded reinsurance was cancelled as of September 30, 2020 or December 31, 2019, no ceded commissions would need to be returned to the reinsurers. Reinsurance contracts are typically effective from January 1 through December 31 each year.

Deferred Policy Acquisition Cos

Deferred Policy Acquisition Costs	9 Months Ended
	Sep. 30, 2020
Deferred Policy Acquisition Costs Disclosures [Abstract]
Deferred Policy Acquisition Costs	9. Deferred Policy Acquisition Costs Activity with regards to our deferred policy acquisition costs was as follows: Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Balance, beginning of period $ 24,204 $ 16,721 $ 15,399 $ 12,866 Deferral of policy acquisition costs 14,742 10,392 47,763 39,620 Amortization of deferred policy acquisition costs (15,061 ) (11,309 ) (39,277 ) (36,682 ) Balance, end of period $ 23,885 $ 15,804 $ 23,885 $ 15,804

Unpaid Losses and Loss Adjustme

Unpaid Losses and Loss Adjustment Expenses	9 Months Ended
	Sep. 30, 2020
Liability for Unpaid Claims and Claims Adjustment Expense, Activity in Liability [Abstract]
Unpaid Losses and Loss Adjustment Expenses	10. Unpaid Losses and Loss Adjustment Expenses Activity in the liability for unpaid losses and loss adjustment expenses is summarized as follows: Nine Months Ended September 30, 2020 2019 Balance at beginning of period: Liability for unpaid losses and loss adjustment expenses $ 93,250 $ 87,121 Reinsurance recoverables on losses 4,045 2,232 Net balance at beginning of period 89,205 84,889 Acquired unpaid losses and loss adjustment expenses related to: Current year - - Prior years 8,568 - Total incurred 8,568 - Incurred related to: Current year 140,890 142,428 Prior years (4,268 ) (6,443 ) Total incurred 136,622 135,985 Paid related to: Current year 65,234 73,974 Prior years 47,914 35,280 Total paid 113,148 109,254 Balance at end of period: Liability for unpaid losses and loss adjustment expenses 134,803 117,373 Reinsurance recoverables on losses 13,556 5,753 Net balance at end of period $ 121,247 $ 111,620 During the nine months ended September 30, 2020, the Company’s reported losses and LAE included $4,268 of net favorable development on prior accident years, compared to $6,443 of net favorable development on prior accident years during the nine months ended September 30, 2019. Increases and decreases are generally the result of ongoing analysis of loss development trends. As 26 Table of Contents NI Holdings, Inc. Notes to Unaudited Consolidated Financial Statements (dollar amounts in thousands, except per share amounts) additional information becomes known regarding individual claims, original estimates are increased or decreased accordingly. The net favorable development reported for the nine months ended September 30, 2020 was primarily attributable to our Direct Auto non-standard auto business and North Dakota personal lines of business, partially offset by unfavorable development from our 2019 multi-peril crop business.

Property and Equipment

Property and Equipment	9 Months Ended
	Sep. 30, 2020
Property, Plant and Equipment [Abstract]
Property and Equipment	11. Property and Equipment Property and equipment consisted of the following: September 30, 2020 December 31, 2019 Estimated Useful Life Cost: Real estate $ 15,260 $ 12,733 10 - 31 years Electronic data processing equipment 1,342 1,271 5-7 years Furniture and fixtures 2,867 2,796 5-7 years Automobiles 1,237 1,130 2-3 years Gross cost 20,706 17,930 Accumulated depreciation (10,698 ) (10,236 ) Total property and equipment, net $ 10,008 $ 7,694 Depreciation expense was $180 and $129 for the three months ended September 30, 2020 and 2019, respectively, and $545 and $374 for the nine months ended September 30, 2020 and 2019, respectively.

Goodwill and Other Intangibles

Goodwill and Other Intangibles	9 Months Ended
	Sep. 30, 2020
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill and Other Intangibles	12. Goodwill and Other Intangibles Goodwill The following table presents the carrying amount of the Company’s goodwill by segment: September 30, 2020 December 31, 2019 Non-standard auto from acquisition of Primero $ 2,628 $ 2,628 Commercial from acquisition of Westminster 6,756 - Total $ 9,384 $ 2,628 Other Intangible Assets The following table presents the carrying amount of the Company’s other intangible assets: September 30, 2020 Gross Carrying Amount Accumulated Amortization Net Subject to amortization: Trade names $ 748 $ 141 $ 607 Distribution network 6,700 279 6,421 Value of business acquired 4,750 4,425 325 Total subject to amortization 12,198 4,845 7,353 Not subject to amortization – state insurance licenses 1,900 - 1,900 Total $ 14,098 $ 4,845 $ 9,253 27 Table of Contents NI Holdings, Inc. Notes to Unaudited Consolidated Financial Statements (dollar amounts in thousands, except per share amounts) December 31, 2019 Gross Carrying Amount Accumulated Amortization Net Subject to amortization: Trade names $ 248 $ 66 $ 182 Other 20 18 2 Total subject to amortization 268 84 184 Not subject to amortization – state insurance license 100 - 100 Total $ 368 $ 84 $ 284 Amortization expense was $1,070 and $108 for the three months ended September 30, 2020 and 2019, respectively, and $4,781 and $1,695 for the nine months ended September 30, 2020 and 2019, respectively.

Related Party Transactions

Related Party Transactions	9 Months Ended
	Sep. 30, 2020
Related Party Transactions [Abstract]
Related Party Transactions	13. Related Party Transactions We were organized by the NDFB to provide insurance protection for its members. We have a royalty agreement with the NDFB that recognizes the use of their trademark and provides royalties to the NDFB based on the premiums written on Nodak Insurance’s insurance policies. Royalties paid to the NDFB were $386 and $384 during the three months ended September 30, 2020 and 2019, respectively, and $1,115 and $1,104 during the nine months ended September 30, 2020 and 2019, respectively. Royalty amounts payable of $23 and $115 were accrued as a liability to the NDFB at September 30, 2020 and December 31, 2019, respectively. State insurance laws require our insurance subsidiaries to maintain certain minimum capital and surplus amounts on a statutory basis. Our insurance subsidiaries are subject to regulations that restrict the payment of dividends from statutory surplus and may require prior approval from their domiciliary insurance regulatory authorities. Our insurance subsidiaries are also subject to risk-based capital (“RBC”) requirements that may further affect their ability to pay dividends. Our insurance subsidiaries statutory capital and surplus at December 31, 2019 exceeded the amount of statutory capital and surplus necessary to satisfy regulatory requirements, including the RBC requirements, by a significant margin. The amount available for payment of dividends from Nodak Insurance to NI Holdings during 2020 without the prior approval of the North Dakota Insurance Department is $18,984 based upon the policyholders’ surplus of Nodak Insurance at December 31, 2019. Prior to its payment of any extraordinary dividend, Nodak Insurance will be required to provide notice of the dividend to the North Dakota Insurance Department. This notice must be provided to the North Dakota Insurance Department 30 days prior to the payment of an extraordinary dividend and 10 days prior to the payment of an ordinary dividend. The North Dakota Insurance Department has the power to limit or prohibit dividend payments if Nodak Insurance is in violation of any law or regulation. These restrictions or any subsequently imposed restrictions may affect our future liquidity. The Board of Directors of Nodak Insurance declared a $6,000 dividend during the nine months ended September 30, 2020, to be paid to NI Holdings in the fourth quarter of 2020. No dividends were declared or paid by Nodak Insurance during the year ended December 31, 2019. The amount available for payment of dividends from Direct Auto to NI Holdings during 2020 without the prior approval of the Illinois Department of Insurance is $6,881 based upon the statutory net income of Direct Auto for the year ended December 31, 2019. Prior to its payment of any dividend, Direct Auto will be required to provide notice of the dividend to the Illinois Department of Insurance. This notice must be provided to the Illinois Department of Insurance within five business days following declaration of any dividend and no less than 30 days prior to the payment of an extraordinary dividend or 10 days prior to the payment of an ordinary dividend. The Illinois Department of Insurance has the power to limit or prohibit dividend payments if Direct Auto is in violation of any law or regulation. These restrictions or any subsequently imposed restrictions may affect our future liquidity. No dividends were declared or paid by Direct Auto during the nine months ended September 30, 2020 or the year ended December 31, 2019. The amount available for payment of dividends from Westminster to NI Holdings during 2020 without the prior approval of the Maryland Insurance Administration is $636 based upon the statutory net investment income of Westminster for the year ended December 31, 2019 and the three preceding years. Prior to its payment of any dividend, Westminster will be required to provide notice of the dividend to the Maryland Insurance Administration. This notice must be provided to the Maryland Insurance Administration within five business days following declaration of any dividend and no less than 30 days prior to the payment of an extraordinary dividend or 10 days prior to the payment of an ordinary dividend. The Maryland Insurance Administration has the power to limit or prohibit dividend payments if Westminster is in violation of any law or regulation. These restrictions or any subsequently imposed restrictions may affect our future liquidity. No dividends were declared or paid by Westminster during the nine months ended September 30, 2020. 28 Table of Contents NI Holdings, Inc. Notes to Unaudited Consolidated Financial Statements (dollar amounts in thousands, except per share amounts) The following table illustrates the impact of including Battle Creek in our Consolidated Balance Sheets prior to intercompany eliminations: September 30, 2020 December 31, 2019 Assets: Cash and cash equivalents (overdraft) $ 5,988 $ (716 ) Investments 4,611 4,661 Premiums and agents’ balances receivable 4,992 4,801 Reinsurance recoverables on losses (1) 27,894 26,330 Accrued investment income 29 33 Deferred income tax asset, net 294 343 Property and equipment 341 348 Other assets 46 45 Total assets $ 44,195 $ 35,845 Liabilities: Unpaid losses and loss adjustment expenses $ 11,026 $ 10,622 Unearned premiums 16,868 15,708 Notes payable (1) 3,000 3,000 Reinsurance premiums payable (1) 2,727 1,706 Accrued expenses and other liabilities 6,895 1,310 Total liabilities 40,516 32,346 Equity: Non-controlling interest 3,679 3,499 Total equity 3,679 3,499 Total liabilities and equity $ 44,195 $ 35,845 (1) Amount eliminated in consolidation. Total statutory revenues of Battle Creek, after intercompany eliminations, which is limited to net investment income and other income, were $27 and $26, respectively, during the three months ended September 30, 2020 and 2019, respectively. Total statutory revenues of Battle Creek, after intercompany eliminations, which is limited to net investment income and other income, were $112 and $103, respectively, during the nine months ended September 30, 2020 and 2019, respectively. There were no statutory-basis expenses reported, after intercompany eliminations, during the three or nine months ended September 30, 2020 and 2019.

Benefit Plans

Benefit Plans	9 Months Ended
	Sep. 30, 2020
Compensation Related Costs [Abstract]
Benefit Plans	14. Benefit Plans The Company sponsors a money purchase plan that covers all Nodak Insurance eligible employees. Plan costs are funded annually as they are earned. The Company reported expenses related to the money purchase plan totaling $97 and $95 during the three months ended September 30, 2020 and 2019, respectively, and $500 and $493 during the nine months ended September 30, 2020 and 2019, respectively. The Company sponsors a 401(k) plan with an automatic contribution to all eligible employees and a matching contribution for eligible employees of 50% up to 3% of eligible compensation. Primero, Direct Auto, and Westminster also sponsor 401(k) plans. The Company reported expenses related to the 401(k) plans totaling $164 and $139 during the three months ended September 30, 2020 and 2019, respectively, and $489 and $417 during the nine months ended September 30, 2020 and 2019, respectively. All fees associated with all plans are deducted from the eligible employee accounts. Deferred Compensation Plan The Board of Directors has authorized a non-qualified deferred compensation plan covering key executives of the Company (as designated by the Board of Directors). The Company’s policy is to fund the plan by amounts that represent the excess of the maximum contribution allowed by the Employee Retirement Income Security Act (“ERISA”) over the key executives’ allowable 401(k) contribution. The plan also allows employee-directed deferral of key executive’s compensation or incentive payments. The Company reported expenses related to this plan totaling $15 and $14 during the three months ended September 30, 2020 and 2019, respectively, and $43 and $41 during the nine months ended September 30, 2020 and 2019, respectively. Employee Stock Ownership Plan The Company has established an Employee Stock Ownership Plan (the “ESOP”). The ESOP is intended to be an employee stock ownership plan within the meaning of Internal Revenue Code Section 4975(e)(7) and will invest solely in common stock of the Company. 29 Table of Contents NI Holdings, Inc. Notes to Unaudited Consolidated Financial Statements (dollar amounts in thousands, except per share amounts) In connection with our initial public offering in March 2017, Nodak Insurance loaned $2,400 to the ESOP’s related trust (the “ESOP Trust”). The ESOP loan will be for a period of ten years and bears interest at the long-term Applicable Federal Rate effective on the closing date of the offering (2.79% annually). The ESOP Trust used the proceeds of the loan to purchase shares in our initial public offering, which results in the ESOP Trust owning approximately 1.0% of the Company’s authorized shares. The ESOP has purchased the shares for investment and not for resale. The shares purchased by the ESOP Trust in the offering are held in a suspense account as collateral for the ESOP loan. The shares held in the ESOP’s suspense account are not considered outstanding for earnings per share purposes. Nodak Insurance will make semi-annual cash contributions to the ESOP in amounts no smaller than the amounts required for the ESOP Trust to make its loan payments to Nodak Insurance. While the ESOP makes two loan payments per year, a pre-determined portion of the shares will be released from the suspense account and allocated to participant accounts at the end of the calendar year. This release and allocation will occur on an annual basis over the ten-year term of the ESOP loan. Nodak Insurance will have a lien on the shares of common stock of the Company held by the ESOP to secure repayment of the loan from the ESOP to Nodak Insurance. If the ESOP is terminated as a result of a change in control of the Company, the ESOP may be required to pay the costs of terminating the plan. It is anticipated that the only assets held by the ESOP will be shares of the Company’s common stock. Participants in the ESOP cannot direct the investment of any assets allocated to their accounts. The current ESOP participants are employees of Nodak Insurance. The employees of Primero, Direct Auto, and Westminster do not participate in the ESOP. American West and Battle Creek have no employees. Each employee of Nodak Insurance will automatically become a participant in the ESOP if such employee is at least 21 years old, has completed a minimum of one thousand hours of service with Nodak Insurance, and has completed an Eligibility Computation Period. Employees are not permitted to make any contributions to the ESOP. Participants in the ESOP will receive annual reports from the Company showing the number of shares of common stock of the Company allocated to the participant’s account and the market value of those shares. The shares are allocated to participants based on compensation as provided for in the ESOP. In connection with the initial public offering, the Company created a contra-equity account on the Company’s Consolidated Balance Sheet equal to the ESOP’s basis in the shares. The basis of those shares was set at $10.00 per share as part of the initial public offering. As shares are released from the ESOP suspense account, the contra-equity account will be credited, which shall reduce the impact of the contra-equity account on the Company’s Consolidated Balance Sheet. The Company shall record a compensation expense related to the shares released, which compensation expense is equal to the number of shares released from the suspense account multiplied by the average market value of the Company’s stock during the period. The Company recognized compensation expense of $98 and $104 during the three months ended September 30, 2020 and 2019, respectively, related to the ESOP, and $270 and $301 during the nine months ended September 30, 2020 and 2019, respectively. Through September 30, 2020 and December 31, 2019, the Company had released and allocated 72,945 ESOP shares to participants, with a remainder of 167,055 ESOP shares in suspense at September 30, 2020 and December 31, 2019. Using the Company’s quarter-end market price of $16.89 per share, the fair value of the unearned ESOP shares was $2,822 at September 30, 2020.

Line of Credit

Line of Credit	9 Months Ended
	Sep. 30, 2020
Debt Disclosure [Abstract]
Line of Credit	15. Line of Credit Nodak Insurance has a $5,000 line of credit with Wells Fargo Bank, N.A., of which there were no outstanding amounts during the nine months ended September 30, 2020, or the year ended December 31, 2019. This line of credit is scheduled to expire on January 30, 2022.

Income Taxes

Income Taxes	9 Months Ended
	Sep. 30, 2020
Income Tax Disclosure [Abstract]
Income Taxes	16. Income Taxes At September 30, 2020 and December 31, 2019, we had no unrecognized tax benefits, no accrued interest and penalties, and no significant uncertain tax positions. No interest and penalties were recognized during the three or nine month periods ended September 30, 2020 or 2019. At September 30, 2020 and December 31, 2019, the Company, other than Battle Creek and Westminster, had no income tax related carryovers for net operating losses, alternative minimum tax credits, or capital losses. Battle Creek, which files its income tax returns on a stand-alone basis, had $4,652 of net operating loss carryover at December 31, 2019. The net operating loss carryforward expires beginning in 2021 through 2030 Westminster, which became part of the Company’s consolidated federal income tax return beginning in 2020, had $2,559 of net operating loss carryover at December 31, 2019. This net operating loss carryforward expires beginning in 2021 through 2023

Operating Leases

Operating Leases	9 Months Ended
	Sep. 30, 2020
Leases, Operating [Abstract]
Operating Leases	17. Operating Leases Our Primero subsidiary leases a facility in Spearfish, South Dakota under a non-cancellable operating lease expiring in 2023 2029 As of September 30, 2020, we have minimum future commitments under non-cancellable leases as follows: Year ending December 31, Estimated Future Minimum Commitments 2020 $ 94 2021 249 2022 319 2023 358 2024 320 Thereafter 1,353 We also sub-lease portions of our home office building under non-cancellable operating leases.

Contingencies

Contingencies	9 Months Ended
	Sep. 30, 2020
Commitments and Contingencies Disclosure [Abstract]
Contingencies	18. Contingencies We have been named as a defendant in various lawsuits relating to our insurance operations. Contingent liabilities arising from litigation, income taxes, and other matters are not considered to be material to our financial position. The Company does not have any unrecorded or potential contingent liabilities or material commitments requiring the use of assets as of September 30, 2020 or December 31, 2019.

Common Stock

Common Stock	9 Months Ended
	Sep. 30, 2020
Equity [Abstract]
Common Stock	19. Common Stock Changes in the number of common stock shares outstanding are as follows: Nine Months Ended September 30, 2020 2019 Shares outstanding, beginning of period 22,119,380 22,192,894 Treasury shares repurchased through stock repurchase authorization (804,743 ) (116,034 ) Issuance of treasury shares for vesting of restricted stock units 31,442 18,205 Shares outstanding, end of period 21,346,079 22,095,065 On February 28, 2018, our Board of Directors approved an authorization for the repurchase of up to approximately $10,000 of the Company’s outstanding common stock. We completed the repurchase of 191,265 shares of our common stock for $2,966 during 2018, and an additional 116,034 shares for $2,006 during 2019. During the nine months ended September 30, 2020, we completed the repurchase of 402,056 shares of our common stock for $4,996 to close out this authorization. On May 4, 2020, our Board of Directors approved an additional authorization for the repurchase of up to approximately $10,000 of the Company’s outstanding common stock. During the nine months ended September 30, 2020, we completed the repurchase of 402,687 shares of our common stock for $6,367 under this new authorization. The cost of this treasury stock is a reduction of shareholders’ equity within our Consolidated Balance Sheet.

Stock Based Compensation

Stock Based Compensation	9 Months Ended
	Sep. 30, 2020
Share-based Payment Arrangement [Abstract]
Stock Based Compensation	20. Stock Based Compensation At its 2020 Annual Shareholders’ Meeting, the NI Holdings, Inc. 2020 Stock and Incentive Plan (the “Plan”) was approved by shareholders. The purpose of the Plan is to promote the interests of the Company and its shareholders by aiding the Company in attracting and retaining employees, officers, consultants, independent contractors, advisors, and non-employee directors capable of assuring the future success of the Company, to offer such persons incentives to put forth maximum efforts for the success of the Company’s business and to afford such persons an opportunity to acquire an ownership interest in the Company, thereby aligning the interests of such persons with the Company’s shareholders. The Plan provides for the grant of nonqualified stock options, incentive stock options, restricted stock units (“RSUs”), stock appreciation rights, dividend equivalents, and performance share units (“PSUs”) to employees, officers, consultants, advisors, non-employee directors, and independent contractors designated by the Compensation Committee of the Board of Directors (the “Compensation Committee”). Awards made under the Plan are based upon, among other things, a participant’s level of responsibility and performance within the Company. The total aggregate number of shares of common stock that awards may be issued under all awards made under the Plan shall not exceed 1,000,000 shares of common stock, subject to adjustments as provided in the Plan. No eligible participant may be granted any awards for more than 100,000 shares in the aggregate in any calendar year, subject to adjustment in accordance with the Plan. The aggregate amount payable pursuant to all performance awards denominated in cash to any eligible person in any calendar year is limited to $1,000 in value. Directors who are not also employees of the Company may not be granted awards denominated in shares that exceed $150 in any calendar year. Restricted Stock Units The Compensation Committee has awarded RSUs to non-employee directors and select executives. RSUs are promises to issue actual shares of common stock at the end of a vesting period. The RSUs granted to executives under the Plan were based on salary and vest 20% per year over a five-year period, while RSUs granted to non-employee directors vest 100% on the date of the next annual meeting of shareholders following the grant date. Dividend equivalents on RSUs are accrued during the vesting period and paid in cash at the end of the vesting period, but are subject to forfeiture until the underlying shares become vested. Participants do not have voting rights with respect to RSUs. The Company recognizes stock-based compensation costs 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. 32 Table of Contents NI Holdings, Inc. Notes to Unaudited Consolidated Financial Statements (dollar amounts in thousands, except per share amounts) A summary of the Company’s outstanding and unearned restricted stock units is presented below: RSUs Weighted-Average Grant-Date Fair Value Per Share Units outstanding and unearned at January 1, 2019 73,880 $ 16.87 RSUs granted during 2019 57,100 15.81 RSUs earned during 2019 (34,440 ) 16.24 Units outstanding and unearned at December 31, 2019 96,540 $ 16.47 RSUs granted during 2020 66,000 14.27 RSUs earned during 2020 (46,760 ) 16.33 Units outstanding and unearned at September 30, 2020 115,780 $ 15.27 The following table shows the impact of RSU activity to the Company’s financial results: Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 RSU compensation expense $ 211 $ 165 $ 824 $ 627 Income tax benefit (44 ) (35 ) (173 ) (132 ) RSU compensation expense, net of income taxes $ 167 $ 130 $ 651 $ 495 At September 30, 2020, there was $892 of unrecognized compensation cost related to outstanding RSUs. That cost is expected to be recognized over a weighted-average period of 1.93 years. Performance Stock Units The Compensation Committee has awarded PSUs to select executives. PSUs are promises to issue actual shares of common stock at the end of a vesting period, if certain performance conditions are met. The PSUs granted to employees under the Plan were based on salary and include a three-year book value cumulative growth target with threshold and stretch goals. They will vest on the third anniversary of the grant date, subject to the participant’s continuous employment through the vesting date and the level of performance achieved. Dividend equivalents on PSUs are accrued and paid in cash at the end of the performance period in accordance with the level of performance achieved, but are subject to forfeiture until the underlying shares become vested. Participants do not have voting rights with respect to PSUs. The Company recognizes stock-based compensation costs based on the grant date fair value over the performance period of the awards. Estimated forfeitures are included in the determination of compensation costs. No forfeitures are currently estimated. The current cost estimate assumes that the cumulative growth target will be achieved. 33 Table of Contents NI Holdings, Inc. Notes to Unaudited Consolidated Financial Statements (dollar amounts in thousands, except per share amounts) A summary of the Company’s outstanding performance share units is presented below: PSUs Weighted-Average Grant-Date Fair Value Per Share Units outstanding at January 1, 2019 48,600 $ 16.25 PSUs granted during 2019 (at target) 62,400 15.21 Units outstanding at December 31, 2019 111,000 $ 15.27 PSUs granted during 2020 (at target) 63,600 14.26 Units outstanding at September 30, 2020 174,600 $ 15.15 The following table shows the impact of PSU activity to the Company’s financial results: Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 PSU compensation expense $ 274 $ 175 $ 838 $ 647 Income tax benefit (58 ) (37 ) (176 ) (136 ) PSU compensation expense, net of income taxes $ 216 $ 138 $ 662 $ 511 The PSU grants above represent initial target awards and do not reflect potential increases or decreases resulting from financial performance objectives to be determined at the end of the performance period. The actual number of shares to be issued at the end of the performance period will range from 0% to 150% of the initial target awards. At September 30, 2020, there was $1,288 of unrecognized compensation cost related to outstanding PSUs. That cost is expected to be recognized over a weighted-average period of 1.73 years.

Earnings Per Share

Earnings Per Share	9 Months Ended
	Sep. 30, 2020
Earnings Per Share [Abstract]
Earnings Per Share	21. Earnings Per Share As described in Note 1, the conversion of the mutual company to a stock company resulted in the issuance of NI Holdings common shares on March 13, 2017. Earnings per share are computed by dividing net income available to common shareholders for the period by the weighted average number of common shares outstanding for the same period. The weighted average number of common shares outstanding was 21,565,962 and 22,136,885 during the three months ended September 30, 2020 and 2019, respectively, and 21,889,138 and 22,194,102 during the nine months ended September 30, 2020 and 2019, respectively. Unearned ESOP shares are not considered outstanding until they are released and allocated to plan participants. Unearned RSU and PSU shares are not considered outstanding until they are earned by award participants. The following table presents a reconciliation of the numerators and denominators we used in the basic and diluted per share computations for our common stock: Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Basic earnings (loss) per common share: Numerator: Net income (loss) attributable to NI Holdings, Inc. $ 3,664 $ (6,979 ) $ 18,810 $ 9,272 Denominator: Weighted average shares outstanding 21,565,962 22,136,885 21,889,138 22,194,102 Basic earnings (loss) per common share $ 0.17 $ (0.32 ) $ 0.86 $ 0.42 Diluted earnings (loss) per common share: Numerator: Net income (loss) attributable to NI Holdings, Inc. $ 3,664 $ (6,979 ) $ 18,810 $ 9,272 Denominator: Number of shares used in basic computation 21,565,962 22,136,885 21,889,138 22,194,102 Weighted average effect of dilutive securities Add: RSUs and PSUs 189,266 95,189 149,748 75,398 Number of shares used in diluted computation 21,755,228 22,232,074 22,038,886 22,269,500 Diluted earnings (loss) per common share $ 0.17 $ (0.31 ) $ 0.85 $ 0.42

Segment Information

Segment Information	9 Months Ended
	Sep. 30, 2020
Segment Reporting [Abstract]
Segment Information	22. Segment Information We have five primary reportable operating segments, which consist of private passenger auto insurance, non-standard auto insurance, home and farm insurance, crop insurance, and commercial insurance. A sixth segment captures all other insurance coverages we sell, including our assumed reinsurance lines of business. We operate only in the United States, and no single customer or agent provides 10 percent or more of our revenues. The following tables provide available information of these segments for the three and nine month periods ended September 30, 2020 and 2019. For presentation in these tables, “LAE” refers to loss adjustment expenses. The ratios presented in these tables are non-GAAP financial measures under Securities and Exchange Commission rules and regulations. The non-GAAP ratios may not be comparable to similarly-named measures reported by other companies. The loss and LAE ratio equals losses and loss adjustment expenses divided by net premiums earned. The expense ratio equals amortization of deferred policy acquisition costs and other underwriting and general expenses, divided by net premiums earned. The combined ratio equals losses and loss adjustment expenses, amortization of deferred policy acquisition costs, and other underwriting and general expenses, divided by net premiums earned. 36 Table of Contents NI Holdings, Inc. Notes to Unaudited Consolidated Financial Statements (dollar amounts in thousands, except per share amounts) Three Months Ended September 30, 2020 Private Passenger Auto Non- Standard Auto Home and Farm Crop Commercial All Other Total Direct premiums earned $ 19,002 $ 13,882 $ 20,688 $ 12,189 $ 12,516 $ 1,178 $ 79,455 Assumed premiums earned - - - (33 ) - 1,405 1,372 Ceded premiums earned (1,055 ) (43 ) (2,140 ) (2,437 ) (1,743 ) (67 ) (7,485 ) Net premiums earned 17,947 13,839 18,548 9,719 10,773 2,516 73,342 Direct losses and LAE 13,570 9,425 13,912 12,154 9,257 1,618 59,936 Assumed losses and LAE (165 ) - - 617 - 1,984 2,436 Ceded losses and LAE 165 - (475 ) (3,546 ) (3,680 ) (1,000 ) (8,536 ) Net losses and LAE 13,570 9,425 13,437 9,225 5,577 2,602 53,836 Gross margin 4,377 4,414 5,111 494 5,196 (86 ) 19,506 Underwriting and general expenses 5,103 5,140 5,507 1,542 4,289 563 22,144 Underwriting gain (loss) (726 ) (726 ) (396 ) (1,048 ) 907 (649 ) (2,638 ) Fee and other income 336 524 (390 ) Net investment income 1,886 Net capital gain on investments 5,102 Income before income taxes 4,874 Income taxes 1,118 Net income 3,686 Net income attributable to non-controlling interest 22 Net income attributable to NI Holdings, Inc. $ 3,664 Non-GAAP Ratios: Loss and LAE ratio 75.6% 68.1% 72.4% 94.9% 51.8% 103.4% 73.4% Expense ratio 28.4% 37.1% 29.7% 15.9% 39.8% 22.4% 30.2% Combined ratio 104.0% 105.2% 102.1% 110.8% 91.6% 125.8% 103.6% Balances at September 30, 2020: Premiums and agents’ balances receivable $ 19,269 $ 7,358 $ 9,323 $ 39,182 $ 9,071 $ 665 $ 84,868 Deferred policy acquisition costs 5,629 4,931 7,900 409 4,564 452 23,885 Reinsurance recoverables 341 - 1,984 3,675 5,082 2,474 13,556 Receivable from Federal Crop Insurance Corporation - - - 9,519 - - 9,519 Goodwill and other intangibles - 2,872 - - 15,765 - 18,637 Unpaid losses and LAE 20,399 44,526 12,361 29,723 16,602 11,192 134,803 Unearned premiums 29,203 17,147 41,724 8,730 26,247 2,915 125,966 37 Table of Contents NI Holdings, Inc. Notes to Unaudited Consolidated Financial Statements (dollar amounts in thousands, except per share amounts) Three Months Ended September 30, 2019 Private Passenger Auto Non- Standard Auto Home and Farm Crop Commercial All Other Total Direct premiums earned $ 18,256 $ 14,167 $ 19,844 $ 15,943 $ 1,144 $ 2,271 $ 70,481 Assumed premiums earned (7 ) - 8 (10 ) - 1,243 1,234 Ceded premiums earned (933 ) (123 ) (1,944 ) (1,416 ) (126 ) (57) (4,599 ) Net premiums earned 17,316 14,044 17,908 14,517 1,018 3,331 67,116 Direct losses and LAE 19,120 8,440 18,639 13,977 1,356 2,072 62,248 Assumed losses and LAE 94 - - 1,316 - 607 2,017 Ceded losses and LAE (498 ) - 41 (2,151 ) (16 ) (17 ) (2,707 ) Net losses and LAE 18,716 8,440 18,598 13,142 1,340 2,662 61,558 Gross margin (1,400 ) 5,604 (690 ) 1,375 (322 ) 669 5,558 Underwriting and general expenses 4,438 5,207 4,892 1,983 286 771 17,291 Underwriting gain (loss) (5,838 ) 397 (5,582 ) (608 ) (608 ) (102 ) (11,733 ) Fee and other income 363 527 760 Net investment income 1,983 Net capital gain on investments 622 Income before income taxes (8,601 ) Income taxes (1,642 ) Net income (6,959 ) Net income attributable to non-controlling interest 20 Net income attributable to NI Holdings, Inc. $ (6,979 ) Non-GAAP Ratios: Loss and LAE ratio 108.1% 60.1% 103.9% 90.5% 131.6% 79.9% 91.7% Expense ratio 25.6% 37.1% 27.3% 13.7% 28.1% 23.1% 25.8% Combined ratio 133.7% 97.2% 131.2% 104.2% 159.7% 103.1% 117.5% Balances at June 30, 2019: Premiums and agents’ balances receivable $ 18,776 $ 8,186 $ 9,238 $ 39,275 $ 945 $ 1,551 $ 77,026 Deferred policy acquisition costs 4,143 4,794 5,945 281 316 641 15,804 Reinsurance recoverables 377 - 1,330 2,855 (29 ) 1,191 5,753 Receivable from Federal Crop Insurance Corporation - - - 24,191 - - 24,191 Goodwill and other intangibles - 2,928 - - - - 2,928 Unpaid losses and LAE 21,447 47,672 14,574 23,738 1,233 9,942 117,373 Unearned premiums 28,312 16,723 40,114 11,233 2,706 5,035 101,417 38 Table of Contents NI Holdings, Inc. Notes to Unaudited Consolidated Financial Statements (dollar amounts in thousands, except per share amounts) Nine Months Ended September 30, 2020 Private Passenger Auto Non- Standard Auto Home and Farm Crop Commercial All Other Total Direct premiums earned $ 55,899 $ 40,253 $ 61,062 $ 31,438 $ 32,173 $ 3,475 $ 224,300 Assumed premiums earned - - - 1,903 - 3,752 5,655 Ceded premiums earned (3,267 ) (129 ) (61,062 ) 109 (5,206 ) (217 ) (15,835 ) Net premiums earned 52,632 40,124 53,937 33,450 26,967 7,010 214,120 Direct losses and LAE 33,324 23,560 32,661 35,212 26,169 2,277 153,203 Assumed losses and LAE - - - 839 - 2,699 3,538 Ceded losses and LAE (1 ) - (1,826 ) (5,352 ) (11,640 ) (1,300 ) (20,119 ) Net losses and LAE 33,323 23,560 30,835 30,699 14,529 3,676 136,622 Gross margin 19,309 16,564 23,102 2,751 12,438 3,334 77,498 Underwriting and general expenses 14,248 15,482 15,102 3,542 11,842 1,712 61,928 Underwriting gain (loss) 5,061 1,082 8,000 (791 ) 596 1,622 15,570 Fee and other income 993 1,332 2,075 Net investment income 5,875 Net capital loss on investments 1,380 Income before income taxes 24,157 Income taxes 5,259 Net income 18,898 Net income attributable to non-controlling interest 88 Net income attributable to NI Holdings, Inc. $ 18,810 Non-GAAP Ratios: Loss and LAE ratio 63.3% 58.7% 57.2% 91.8% 53.9% 52.4% 63.8% Expense ratio 27.1% 38.6% 28.0% 10.6% 43.9% 24.4% 28.9% Combined ratio 90.4% 97.3% 85.2% 102.4% 97.8% 76.9% 92.7% 39 Table of Contents NI Holdings, Inc. Notes to Unaudited Consolidated Financial Statements (dollar amounts in thousands, except per share amounts) Nine Months Ended September 30, 2019 Private Passenger Auto Non- Standard Auto Home and Farm Crop Commercial All Other Total Direct premiums earned $ 52,792 $ 44,029 $ 57,592 $ 31,159 $ 3,379 $ 3,282 $ 192,233 Assumed premiums earned - - - 2,087 1 3,145 5,233 Ceded premiums earned (2,698 ) (123 ) (5,642 ) (5,718 ) (380 ) (169 ) (14,730 ) Net premiums earned 50,094 43,906 51,950 27,528 3,000 6,258 182,736 Direct losses and LAE 41,300 27,416 41,396 23,046 2,169 3,154 138,481 Assumed losses and LAE 173 - - 1,394 - 1,433 3,000 Ceded losses and LAE (730 ) - (1,329 ) (2,558 ) (29 ) (850 ) (5,496 ) Net losses and LAE 40,743 27,416 40,067 21,882 2,140 3,737 135,985 Gross margin 9,351 16,490 11,883 5,646 860 2,521 46,751 Underwriting and general expenses 14,097 15,845 15,327 3,091 995 1,570 50,925 Underwriting gain (4,746 ) 645 3,444 2,555 (135 ) 951 (4,174 ) Fee and other income 1,339 1,637 1,984 Net investment income 5,504 Net capital gain on investments 9,591 Income before income taxes 12,558 Income taxes 3,206 Net income 9,352 Net income attributable to non-controlling interest 80 Net income attributable to NI Holdings, Inc. $ 9,272 Non-GAAP Ratios: Loss and LAE ratio 81.3% 62.4% 77.1% 79.5% 71.3% 59.7% 74.4% Expense ratio 28.1% 36.1% 29.5% 11.2% 33.2% 25.1% 27.9% Combined ratio 109.5% 98.5% 106.6% 90.7% 104.5% 84.8% 102.3% 40 Table of Contents NI Holdings, Inc. Notes to Unaudited Consolidated Financial Statements (dollar amounts in thousands, except per share amounts) For purposes of evaluating profitability of the non-standard auto segment, management combines the policy fees paid by the insured with the underwriting gain or loss as its primary measure. As a result, these fees are allocated to the non-standard auto segment (included in fee and other income) in the above tables. The remaining fee and other income amounts are not allocated to any segment. We do not assign or allocate all Consolidated Statement of Operations or Consolidated Balance Sheet line items to our operating segments. Those line items include investment income, net capital gain (loss) on investments, other income excluding non-standard auto insurance fees, and income taxes within the Consolidated Statement of Operations. For the Consolidated Balance Sheet, those items include cash and investments, property and equipment, other assets, accrued expenses, income taxes recoverable or payable, and shareholders’ equity.

Subsequent Events

Subsequent Events	9 Months Ended
	Sep. 30, 2020
Subsequent Events [Abstract]
Subsequent Events	23. Subsequent Events We have evaluated subsequent events through November 4, 2020, the date these consolidated financial statements were available for issuance. COVID-19 Pandemic Beginning in March 2020, the global pandemic associated with novel coronavirus COVID-19 (“COVID-19”) and related economic conditions began to impact the Company’s results. For the nine month period ended September 30, 2020, the Company’s underwriting results were impacted by reduced net premiums earned in our non-standard auto segment. The Company also incurred net unrealized investment losses driven by the impact of changes in fair value on the Company’s equity investments, attributable to the disruption in global financial markets. The actual long-term impact of the pandemic on the property and casualty industry is highly uncertain and will not be known for some time. In the short-term, we expect decreased economic activity to pressure overall top-line growth while negatively impacting investment results, dependent on the extent and duration of the economic contraction.

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)	9 Months Ended
	Sep. 30, 2020
Accounting Policies [Abstract]
Use of Estimates	Use of Estimates: In preparing our Consolidated Financial Statements, management makes estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the balance sheet and revenues and expenses for the periods then ended. Actual results could differ significantly from those estimates. We make estimates and assumptions that can have a significant effect on amounts and disclosures we report in our Consolidated Financial Statements. The most significant estimates relate to our reserves for unpaid losses and loss adjustment expenses, earned premiums for crop insurance, valuation of investments, determination of other-than-temporary impairments, valuation allowances for deferred income tax assets, deferred policy acquisition costs, and the valuations used to establish intangible assets acquired related to business combinations. While we believe our estimates are appropriate, the ultimate amounts may differ from the estimates provided. We regularly review our methods for making these estimates as well as the continuing appropriateness of the estimated amounts, and we reflect any adjustment we consider necessary in our current results of operations.
Variable-Interest Entities	Variable-Interest Entities: Any company deemed to be a variable interest entity (“VIE”) is required to be consolidated by the primary beneficiary of the VIE. We assess our investments in other entities at inception to determine if any meet the qualifications of a VIE. We consider an investment in another company to be a VIE if (a) the total equity investment at risk is not sufficient to permit the entity to finance its activities without additional subordinated financial support, (b) the characteristics of a controlling financial interest are missing (either the ability to make decisions through voting or other rights, the obligation to absorb expected losses of the entity or the right to receive the expected residual returns of the entity), or (c) the voting rights of the equity holders are not proportional to their obligations to absorb the expected losses of the entity and/or the rights to receive the expected residual returns of the entity, and substantially all of the entity’s activities either involve or are conducted on behalf of an investor that has disproportionately few voting rights. Upon the occurrence of certain events, we would reassess our initial determination of whether the investment is a VIE. We evaluate whether we are the primary beneficiary of each VIE and we consolidate the VIE if we have both (1) the power to direct the economically significant activities of the entity and (2) the obligation to absorb losses of, or the right to receive benefits from, the entity. We consider the contractual agreements that define the ownership structure, distribution of profits and losses, risks, responsibilities, indebtedness, voting rights, and board representation of the respective parties in determining whether we qualify as the primary beneficiary. Our assessment of whether we are the primary beneficiary of a VIE is performed at least annually. We control Battle Creek via a 100% quota-share reinsurance agreement between Nodak Insurance and Battle Creek, as well as the ability to control a majority of the Board of Directors of Battle Creek. Through the effects of the 100% quota-share agreement with Battle Creek, we are considered the primary beneficiary of Battle Creek’s operating results excluding net investment income, bad 10 Table of Contents NI Holdings, Inc. Notes to Unaudited Consolidated Financial Statements (dollar amounts in thousands, except per share amounts) debt expense, and income taxes. Therefore, we consolidate the financial statements of Battle Creek, and Battle Creek’s policyholders’ interest in Battle Creek is reflected as a non-controlling interest in shareholders’ equity in our Consolidated Balance Sheet.
Cash and Cash Equivalents	Cash and Cash Equivalents: Cash and cash equivalents include certain investments in highly liquid debt instruments with original maturities of three months or less. Cost approximates fair value for these short-term investments.
Investments	Investments: We have categorized our investment portfolio as “available-for-sale” and have reported the portfolio at fair value. Unrealized gains and losses on fixed income securities, and on equity securities prior to January 1, 2019, net of income taxes, are reported in accumulated other comprehensive income. Effective January 1, 2019, in accordance with a change in accounting principle, changes in unrealized gains and losses on equity securities are reported as a component of net capital gain (loss) on investments in our operating results. Fair values are based on quoted market prices or dealer quotes, if available. If a quoted market price is not available, fair value is estimated using quoted market prices for similar securities. Amortization of premium and accretion of discount are computed using an effective interest method. Net investment income includes interest and dividend income together with amortization of purchase premiums and discounts, and is net of investment management and custody fees. Realized gains and losses on investments are determined using the specific identification method and are included in net capital gain (loss) on investments, along with the change in unrealized gains and losses on equity securities after January 1, 2019. We review our investments each quarter to determine whether a decline in fair value below the amortized cost basis is other than temporary. Accordingly, we assess whether we intend to sell or it is more likely than not that we will be required to sell a security before recovery of its amortized cost basis. For fixed income securities that are considered other-than-temporarily impaired and that we do not intend to sell and will not be required to sell prior to recovery of the amortized cost basis, we separate the amount of the impairment into the amount that is credit related (credit loss component) and the amount due to all other factors. The credit loss component is recognized in earnings and is the difference between the security’s amortized cost basis and the present value of its expected future cash flows discounted at the security’s effective yield. The remaining difference between the security’s fair value and the present value of future expected cash flows is due to factors that are not credit related and, therefore, is not required to be recognized as losses in the Consolidated Statement of Operations, but is recognized in other comprehensive income (loss). We classify each fair value measurement at the appropriate level in the fair value hierarchy. The hierarchy gives the highest priority to unadjusted quoted market price in active markets for identical assets or liabilities (Level I measurements) and the lowest priority to unobservable inputs (Level III measurements). An asset’s or liability’s classification within the fair value hierarchy is based on the lowest level of significant input to its valuation. Level I – Quoted price in active markets for identical assets and liabilities. Level II – Quoted prices in markets that are not active or inputs that are observable either directly or indirectly. Level II inputs include quoted prices for similar assets or liabilities other than quoted in prices in Level I, quoted prices in markets that are not active, or other inputs that are observable or can be derived principally from or corroborated by observable market data for substantially the full term of the assets or liabilities. Level III – Unobservable inputs that are supported by little or no market activity and are significant to the fair value of the assets or liabilities. Unobservable inputs reflect the reporting entity’s own assumptions that market participants would use in pricing the asset or liability. Level III assets and liabilities include financial instruments whose values are determined using pricing models, discounted cash flow methodologies, or similar techniques, as well as instruments for which the determination of fair value requires significant management judgment or estimation.
Fair Value of Other Financial Instruments	Fair Value of Other Financial Instruments: Our other financial instruments, aside from investments, are cash and cash equivalents, premiums and agents’ balances receivable, and accrued expenses and accounts payable. The carrying amounts for cash and cash equivalents, premiums and agents’ balances receivable, and accrued expenses and accounts payable approximate their fair value based on their short-term nature. Other invested assets that do not have observable inputs and little or no market activity are carried on a cost basis. All other invested assets have been assessed for impairment. The carrying value of these other invested assets was $2,907 at September 30, 2020 and $1,914 at December 31, 2019.
Reclassification of Segment Information	Reclassification of Segment Information: Effective in the first quarter of 2020, the Company’s results are being reported in our Consolidated Financial Statements in the following five primary operating segments – private passenger auto insurance, non-standard auto insurance, home and farm insurance, crop insurance, and commercial insurance. A sixth “all other” segment captures all other insurance business, including our assumed reinsurance lines of business. Commercial insurance was previously reported within the all other segment. All prior periods presented have been reclassified to conform to this presentation.
Revenue Recognition	Revenue Recognition: We record premiums written at policy inception and recognize them as revenue on a pro rata basis over the policy term or, in the case of crop insurance, over the period of risk. The portion of premiums that could be earned in the future is deferred and reported as unearned premiums. When policies lapse, the Company reverses the unearned portion of the written premium and removes the applicable unearned premium. Policy-related fee income is recognized when collected. The period of risk for our crop insurance program, which comprise primarily spring-planted crops, typically runs from April1 (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). The crop insurance program provides indemnification for acreage that cannot be planted because of flood, drought, or other natural disaster (known as “prevented planting”). In cases where a valid prevented planting claim is made by an insured, the Company assumes that the risk period has ended as there will be no additional coverage under the policy, and the Company will immediately recognize the remaining unearned premium. The Company uses the direct write-off method for recognizing bad debts. Accounts billed directly to the policyholder are provided grace payment and cancellation notice periods per state insurance regulations. Any earned but uncollected premiums are written off within 90 days after the effective date of policy cancellation. Direct Auto also provides for agency billing for a portion of their agents. Accounts billed to agents are due within 60 days of the statement date. The balances are carried as agents’ balances receivable until it is determined the amount is not collectible from the agent. At that time, the balance is written off as uncollectible. The agent is responsible for all past due balances. As part of its agent appointment, Direct Auto requires a personal guarantee for all balances due to Direct Auto from the principal of the contracted agency.
Policy Acquisition Costs	Policy Acquisition Costs: We defer our policy acquisition costs, consisting primarily of commissions, state premium taxes and certain other underwriting costs, reduced by ceding commissions, which vary with and relate directly to the production of business. We amortize these deferred policy acquisition costs over the period in which we earn the premiums. The method we follow in computing deferred policy acquisition costs limits the amount of such deferred costs to their estimated realizable value, which gives effect to the premium to be earned, related investment income, losses and loss adjustment expenses, and certain other costs we expect to incur as we earn the premium.
Property and Equipment	Property and Equipment: We report property and equipment at cost less accumulated depreciation. Depreciation is computed using the straight-line method based upon the estimated useful lives of the assets.
Losses and Loss Adjustment Expenses	Losses and Loss Adjustment Expenses: Liabilities for unpaid losses and loss adjustment expenses are estimates at a given point in time of the amounts we expect to pay with respect to policyholder claims based on facts and circumstances then known. At the time of establishing our estimates, we recognize that our ultimate liability for losses and loss adjustment expenses will exceed or be less than such estimates. We base our estimates of liabilities for unpaid losses and loss adjustment expenses on assumptions as to future loss trends, expected claims severity, judicial theories of liability, and other factors. During the loss adjustment period, we may learn additional facts regarding certain claims, and, consequently, it often becomes necessary for us to refine and adjust our estimates of the liability. We reflect any adjustments to our liabilities for unpaid losses and loss adjustment expenses in our operating results in the period in which we determine the need for a change in the estimates. We maintain liabilities for unpaid losses and loss adjustment expenses with respect to both reported and unreported claims. We establish these liabilities for the purpose of covering the ultimate costs of settling all losses, including investigation and litigation costs. We base the amount of our liability for reported losses primarily upon a case-by-case evaluation of the type of risk involved, knowledge of the circumstances surrounding each claim, and the insurance policy provisions relating to the type of loss our policyholder incurred. We determine the amount of our liability for unreported losses and loss adjustment expenses on the basis of historical information by line of insurance. Inflation is not explicitly selected in the loss reserve analysis. However, historical 12 Table of Contents NI Holdings, Inc. Notes to Unaudited Consolidated Financial Statements (dollar amounts in thousands, except per share amounts) inflation is embedded in the estimated loss development factors. We closely monitor our liabilities and update them periodically using new information on reported claims and a variety of statistical techniques. We do not discount our liabilities for unpaid losses and loss adjustment expense. Reserve estimates can change over time because of unexpected changes in assumptions related to our external environment and, to a lesser extent, assumptions as to our internal operations. Assumptions related to our external environment include the absence of significant changes in tort law and the legal environment which may impact liability exposure, the trends in judicial interpretations of insurance coverage and policy provisions, and the rate of loss cost inflation. Internal assumptions include consistency in the recording of premium and loss statistics, consistency in the recording of claims, payment and case reserving methodologies, accurate measurement of the impact of rate changes and changes in policy provisions, consistency in the quality and characteristics of business written within a given line of business, and consistency in reinsurance coverage and collectability of reinsured losses, among other items. To the extent we determine that underlying factors impacting our assumptions have changed, we attempt to make appropriate adjustments for such changes in our reserves. Accordingly, our ultimate liability for unpaid losses and loss adjustment expenses will likely differ from the amount recorded.
Income Taxes	Income Taxes: With the exception of Battle Creek, which files a stand-alone federal income tax return, we currently file a consolidated federal income tax return which includes NI Holdings and its wholly-owned subsidiaries. Direct Auto and Westminster became part of the consolidated federal income tax return as of their acquisition dates. Insurance companies typically pay state premium taxes rather than state income taxes. However, Direct Auto is subject to state income taxes in the state of Illinois, in addition to state premium taxes. Additionally, NI Holdings, on a stand-alone basis, pays state income taxes to the state of North Dakota for income or losses generated as a separate financial entity. While state premium taxes are included as a part of amortization of deferred policy acquisition costs, state income taxes are combined with federal income taxes within the financial reporting category labeled income taxes. The Company reports tax-related interest and penalties, if any, as part of income tax expense in the year such amounts are determinable. We account for deferred income taxes using the asset and liability method. The objective of the asset and liability method is to establish deferred income tax assets and liabilities for the temporary differences between the financial reporting basis and the income tax basis of our assets and liabilities at enacted tax rates expected to be in effect when we realize or settle such amounts. Accounting guidance requires that companies re-measure existing deferred income tax assets (including loss carryforwards) and liabilities when a change in tax rate occurs, and record an offset for the net amount of the change as a component of income tax expense from continuing operations in the period of enactment. The guidance also requires any change to a previously recorded valuation allowance as a result of re-measuring existing temporary differences and loss carryforwards to be reflected as a component of income tax expense from continuing operations. The Company has elected to reclassify any tax effects stranded in accumulated other comprehensive income as a result of a change in income tax rates to retained earnings.
Credit Risk	Credit Risk: Our primary investment objective is to earn competitive returns by investing in a diversified portfolio of securities. Our portfolio of fixed income securities and, to a lesser extent, short-term investments, is subject to credit risk. We define this risk as the potential loss in fair value resulting from adverse changes in the borrower’s ability to repay the debt. We manage this risk by performing an analysis of prospective investments and through regular reviews of our portfolio by our management team and investment advisors. We also limit the amount of our total investment portfolio that we invest in any one security. Property and liability insurance coverages are marketed through captive agents in North Dakota and through independent insurance agencies located throughout all other operating areas. All business, except for the majority of Direct Auto’s business, is billed directly to the policyholders. We maintain cash balances primarily at one bank, which are insured by the Federal Deposit Insurance Corporation (“FDIC”) up to $250. During the normal course of business, balances are maintained above the FDIC insurance limit. The Company maintains short-term investment balances in investment grade money market accounts that are insured by the Securities Investor Protection 13 Table of Contents NI Holdings, Inc. Notes to Unaudited Consolidated Financial Statements (dollar amounts in thousands, except per share amounts) Corporation (“SIPC”) up to $500. On occasion, balances for these accounts are maintained in excess of the SIPC insurance limit.
Reinsurance	Reinsurance: The Company limits the maximum net loss that can arise from large risks or risks in concentrated areas of exposure by reinsuring (ceding) certain levels of risks to other insurers or reinsurers, either on an automatic basis under general reinsurance contracts knows as “treaties” or by negotiation on substantial individual risks. Ceded reinsurance is treated as the risk and liability of the assuming companies. Reinsurance contracts do not relieve the Company from its obligations to policyholders. In the event that all or any of the reinsuring companies might be unable to meet their obligations under existing reinsurance agreements, the Company would be liable for such defaulted amounts.
Goodwill and Other Intangibles	Goodwill and Other Intangibles: Goodwill represents the excess of the purchase price over the underlying fair value of acquired entities. When completing acquisitions, we seek also to identify separately identifiable intangible assets that we have acquired. We assess goodwill and other intangibles with an indefinite useful life for impairment annually. We also assess goodwill and other intangibles for impairment upon the occurrence of certain events. In making our assessment, we consider a number of factors including operating results, business plans, economic projections, anticipated future cash flows, and current market data. Inherent uncertainties exist with respect to these factors and to our judgment in applying them when we make our assessment. Impairment of goodwill and other intangibles could result from changes in economic and operating conditions in future periods. We did not record any impairments of goodwill or other intangibles during the three or nine month periods ended September 30, 2020 and 2019. Goodwill arising from the acquisition of Primero in 2014 represents the excess of the purchase price over the fair value of the net assets acquired. The purchase price in excess of the fair value of net assets acquired was negotiated at arms-length with an unrelated party and was based upon the strategic decision by Company management to expand both the geographic footprint and product lines of the Company. The nature of the business acquired was such that there were limited intangibles not reflected in the net assets acquired. The purchase price was paid with a combination of cash and cancellation of obligations owed to the acquired company by the sellers. The goodwill which arose from this transaction is included in the basis of the net assets acquired and is not deductible for income tax purposes. Intangible assets arising from the acquisition of Direct Auto in 2018 represent the estimated fair values of certain intangible assets, including a favorable lease contract, a state insurance license, the value of the Direct Auto trade name, and the value of business acquired (“VOBA”). The state insurance license asset has an indefinite life, while the favorable lease contract, Direct Auto trade name, and VOBA assets will be amortized over eighteen months, five years, and twelve months, respectively, from the August 31, 2018 acquisition/valuation date. Goodwill arising from the acquisition of Westminster in January 2020 represents the excess of the purchase price over the fair value of the net assets acquired. The purchase price in excess of the fair value of net assets acquired was negotiated at arms-length with an unrelated party and was based upon the strategic decision by Company management to expand both the geographic footprint and commercial business product line of the Company. Other intangible assets arising from the acquisition of Westminster represent the estimated fair values of certain intangible assets, including state insurance licenses, the value of Westminster’s distribution network, the value of the Westminster trade name, and the VOBA. The state insurance license asset has an indefinite life, while the distribution networks asset, Westminster trade name, and VOBA assets will be amortized over twenty years, ten years, and twelve months, respectively, from the January 1, 2020 acquisition/valuation date.

Acquisition of Westminster Am_2

Acquisition of Westminster American Insurance Company (Tables)	9 Months Ended
	Sep. 30, 2020
Business Combinations [Abstract]
Schedule of Proforma Information of Business Combination	The acquired Westminster business contributed revenues of $10,294 and net income of $1,763 to the Company for the three months ended September 30, 2020, and revenues of $24,085 and net income of $1,080 for the nine months ended September 30, 2020. The following unaudited pro forma summary presents consolidated information of the Company as if the business combination had occurred on January 1, 2019: Pro forma Three Months Ended September 30, Pro forma Nine Months Ended September 30, 2020 2019 2020 2019 Revenues $ 80,854 $ 75,915 $ 222,707 $ 215,814 Net income (loss) attributable to NI Holdings, Inc. 3,913 (7,031 ) 20,624 7,636 Basic earnings (loss) per share attributable to NI Holdings, Inc. 0.18 (0.32 ) 0.94 0.34
Schedule of Identified Assets Acquired and Liabilities Assumed	The Company paid $20,000 in cash consideration to the private shareholder of Westminster as of the closing date, and will pay an additional $20,000 in three equal annual installments. The acquisition of Westminster did not include any contingent consideration other than a provision regarding future changes to federal income tax rates. The following table summarizes the consideration transferred to acquire Westminster and the amounts of identified assets acquired and liabilities assumed at the acquisition date: Fair Value of Consideration: Cash consideration transferred $ 20,000 Present value of future cash consideration 18,787 Total cash consideration $ 38,787 Recognized Amounts of Identifiable Assets Acquired and Liabilities Assumed: Identifiable net assets: Cash and cash equivalents $ 19,297 Fixed income securities, at fair value 12,073 Equity securities, at fair value 2,705 Other investments 735 Premiums and agents' balances receivable 8,507 Reinsurance recoverables on losses 763 Accrued investment income 70 Property and equipment 2,376 Federal income tax recoverable 138 State insurance licenses (included in goodwill and other intangibles) 1,800 Distribution network (included in goodwill and other intangibles) 6,700 Trade name (included in goodwill and other intangibles) 500 Value of business acquired (included in goodwill and other intangibles) 4,750 Other assets 76 Unpaid losses and loss adjustment expenses (8,568 ) Unearned premiums (16,611 ) Deferred income taxes, net (1,583 ) Reinsurance premiums payable (565 ) Accrued expenses and other liabilities (1,132 ) Total identifiable net assets $ 32,031 Goodwill $ 6,756

Investments (Tables)

Investments (Tables)	9 Months Ended
	Sep. 30, 2020
Marketable Securities [Abstract]
Schedule of amortized cost and estimated fair value of securities	The amortized cost and estimated fair value of investment securities as of September 30, 2020 and December 31, 2019, were as follows: September 30, 2020 Cost or Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Fixed income securities: U.S. Government and agencies $ 16,110 $ 1,324 $ (1 ) $ 17,433 Obligations of states and political subdivisions 62,975 3,044 (150 ) 65,869 Corporate securities 120,955 8,137 (434 ) 128,658 Residential mortgage-backed securities 36,384 1,612 (4 ) 37,992 Commercial mortgage-backed securities 24,574 1,705 (29 ) 26,250 Asset-backed securities 45,906 509 (188 ) 46,227 Total fixed income securities 306,904 16,331 (806 ) 322,429 Equity securities: Basic materials 1,259 289 (69 ) 1,479 Communications 4,304 2,563 (507 ) 6,360 Consumer, cyclical 5,903 3,139 (596 ) 8,446 Consumer, non-cyclical 10,456 6,092 (758 ) 15,790 Energy 1,931 18 (532 ) 1,417 Financial 5,879 520 (491 ) 5,908 Industrial 6,857 4,240 (132 ) 10,965 Technology 7,905 7,570 (90 ) 15,385 Utility 37 - (1 ) 36 Total equity securities 44,531 24,431 (3,176 ) 65,786 Total investments $ 351,435 $ 40,762 $ (3,982 ) $ 388,215 December 31, 2019 Cost or Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Fixed income securities: U.S. Government and agencies $ 17,078 $ 472 $ (4 ) $ 17,546 Obligations of states and political subdivisions 55,232 1,511 (91 ) 56,652 Corporate securities 109,457 3,772 (16 ) 113,213 Residential mortgage-backed securities 50,458 1,050 (22 ) 51,486 Commercial mortgage-backed securities 26,450 658 (51 ) 27,057 Asset-backed securities 30,029 132 (170 ) 29,991 Total fixed income securities 288,704 7,595 (354 ) 295,945 Equity securities: Basic materials 1,062 155 (7 ) 1,210 Communications 4,823 2,342 (169 ) 6,996 Consumer, cyclical 5,477 4,207 (72 ) 9,612 Consumer, non-cyclical 7,483 5,255 (171 ) 12,567 Energy 2,817 124 (485 ) 2,456 Financial 5,059 905 (35 ) 5,929 Industrial 5,293 4,023 (17 ) 9,299 Technology 6,022 5,867 (26 ) 11,863 Total equity securities 38,036 22,878 (982 ) 59,932 Total investments $ 326,740 $ 30,473 $ (1,336 ) $ 355,877
Schedule of amortized cost and fair value of fixed income securities by contractual maturity	The amortized cost and estimated fair value of fixed income securities by contractual maturity are shown below. Actual maturities could differ from contractual maturities because issuers of the securities may have the right to call or prepay certain obligations, which may or may not include call or prepayment penalties. September 30, 2020 Amortized Cost Fair Value Due to mature: One year or less $ 16,413 $ 16,659 After one year through five years 90,477 95,182 After five years through ten years 59,812 64,928 After ten years 33,338 35,191 Mortgage / asset-backed securities 106,864 110,469 Total fixed income securities $ 306,904 $ 322,429 December 31, 2019 Amortized Cost Fair Value Due to mature: One year or less $ 19,567 $ 19,663 After one year through five years 84,937 87,134 After five years through ten years 55,927 58,466 After ten years 21,336 22,148 Mortgage / asset-backed securities 106,937 108,534 Total fixed income securities $ 288,704 $ 295,945
Schedule of unrealized loss of securities	The investment category and duration of the Company’s gross unrealized losses on fixed income securities and equity securities were as follows: September 30, 2020 Less than 12 Months Greater than 12 months Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses Fixed income securities: U.S. Government and agencies $ 203 $ (1 ) $ - $ - $ 203 $ (1 ) Obligations of states and political subdivisions 4,578 (150 ) - - 4,578 (150 ) Corporate securities 8,763 (420 ) 693 (14 ) 9,456 (434 ) Residential mortgage-backed securities 397 (4 ) - - 397 (4 ) Commercial mortgage-backed securities 1,511 (29 ) - - 1,511 (29 ) Asset-backed securities 10,324 (80 ) 4,393 (108 ) 14,717 (188 ) Total fixed income securities 25,776 (684 ) 5,086 (122 ) 30,862 (806 ) Equity securities: Basic materials 345 (69 ) - - 345 (69 ) Communications 1,272 (507 ) - - 1,272 (507 ) Consumer, cyclical 1,184 (528 ) 211 (68 ) 1,395 (596 ) Consumer, non-cyclical 2,456 (758 ) - - 2,456 (758 ) Energy 47 (33 ) 442 (499 ) 489 (532 ) Financial 2,750 (491 ) - - 2,750 (491 ) Industrial 1,139 (132 ) - - 1,139 (132 ) Technology 1,379 (90 ) - - 1,379 (90 ) Utility 37 (1 ) - - 37 (1 ) Total equity securities 10,609 (2,609 ) 653 (567 ) 11,262 (3,176 ) Total investments $ 36,385 $ (3,293 ) $ 5,739 $ (689 ) $ 42,124 $ (3,982 ) 21 Table of Contents NI Holdings, Inc. Notes to Unaudited Consolidated Financial Statements (dollar amounts in thousands, except per share amounts) December 31, 2019 Less than 12 Months Greater than 12 months Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses Fixed income securities: U.S. Government and agencies $ 494 $ (4 ) $ - $ - $ 494 $ (4 ) Obligations of states and political subdivisions 8,018 (91 ) - - 8,018 (91 ) Corporate securities 2,066 (15 ) 650 (1 ) 2,716 (16 ) Residential mortgage-backed securities 2,911 (9 ) 2,583 (13 ) 5,494 (22 ) Commercial mortgage-backed securities 4,841 (35 ) 653 (16 ) 5,494 (51 ) Asset-backed securities 8,511 (96 ) 7,686 (74 ) 16,197 (170 ) Total fixed income securities 26,841 (250 ) 11,572 (104 ) 38,413 (354 ) Equity securities: Basic materials 258 (7 ) - - 258 (7 ) Communications 506 (- ) 658 (169 ) 1,164 (169 ) Consumer, cyclical 595 (30 ) 146 (42 ) 741 (72 ) Consumer, non-cyclical 1,033 (171 ) - - 1,033 (171 ) Energy 823 (432 ) 6 (53 ) 829 (485 ) Financial 393 (35 ) - - 393 (35 ) Industrial 620 (17 ) - - 620 (17 ) Technology 575 (26 ) - - 575 (26 ) Total equity securities 4,803 (718 ) 810 (264 ) 5,613 (982 ) Total investments $ 31,644 $ (968 ) $ 12,382 $ (368 ) $ 44,026 $ (1,336 )
Schedule of net investment income	Net investment income consisted of the following: Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Fixed income securities $ 2,065 $ 2,196 $ 6,655 $ 6,167 Equity securities 278 247 903 704 Real estate 170 91 440 273 Cash and cash equivalents 1 15 27 50 Total gross investment income 2,514 2,549 8,025 7,194 Investment expenses 628 566 2,150 1,690 Net investment income $ 1,886 $ 1,983 $ 5,875 $ 5,504
Schedule of net realized gain (loss) on investments	Net capital gain (loss) on investments consisted of the following: Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Gross realized gains: Fixed income securities $ 279 $ 58 $ 756 $ 114 Equity securities 637 1,386 2,887 2,408 Total gross realized gains 916 1,444 3,643 2,522 Gross realized losses, excluding other-than-temporary impairment losses: Fixed income securities 252 (46 ) (70 ) (132 ) Equity securities (532 ) (392 ) (1,552 ) (1,052 ) Total gross realized losses, excluding other-than-temporary impairment losses (280 ) (438 ) (1,622 ) (1,184 ) Net realized gain on investments 636 1,006 2,021 1,338 Change in net unrealized gain on equity securities 4,466 (384 ) (641 ) 8,253 Net capital gain on investments $ 5,102 $ 622 $ 1,380 $ 9,591

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	9 Months Ended
	Sep. 30, 2020
Investments, All Other Investments [Abstract]
Schedule of Financial Instruments at Fair Value Measured on a Recurring Basis	The following tables set forth our assets which are measured on a recurring basis by the level within the fair value hierarchy in which fair value measurements fall: September 30, 2020 Total Level I Level II Level III Fixed income securities: U.S. Government and agencies $ 17,433 $ - $ 17,433 $ - Obligations of states and political subdivisions 65,869 - 65,869 - Corporate securities 128,658 - 128,658 - Residential mortgage-backed securities 37,992 - 37,992 - Commercial mortgage-backed securities 26,250 - 26,250 - Asset-backed securities 46,227 - 46,227 - Total fixed income securities 322,429 - 322,429 - Equity securities: Basic materials 1,479 1,479 - - Communications 6,360 6,360 - - Consumer, cyclical 8,446 8,446 - - Consumer, non-cyclical 15,790 15,790 - - Energy 1,417 1,417 - - Financial 5,908 5,908 - - Industrial 10,965 10,965 - - Technology 15,385 15,385 Utility 36 36 - - Total equity securities 65,786 65,786 - - Cash and cash equivalents 71,305 71,305 - - Total assets at fair value $ 459,520 $ 137,091 $ 322,429 $ - December 31, 2019 Total Level I Level II Level III Fixed income securities: U.S. Government and agencies $ 17,546 $ - $ 17,546 $ - Obligations of states and political subdivisions 56,652 - 56,652 - Corporate securities 113,213 - 113,213 - Residential mortgage-backed securities 51,486 - 51,486 - Commercial mortgage-backed securities 27,057 - 27,057 - Asset-backed securities 29,991 - 29,991 - Total fixed income securities 295,945 - 295,945 - Equity securities: Basic materials 1,210 1,210 - - Communications 6,996 6,996 - - Consumer, cyclical 9,612 9,612 - - Consumer, non-cyclical 12,567 12,567 - - Energy 2,456 2,456 - - Financial 5,929 5,929 - - Industrial 9,299 9,299 - - Technology 11,863 11,863 - - Total equity securities 59,932 59,932 - - Cash and cash equivalents 62,132 62,132 - - Total assets at fair value $ 418,009 $ 122,064 $ 295,945 $ -

Reinsurance (Tables)

Reinsurance (Tables)	9 Months Ended
	Sep. 30, 2020
Reinsurance Disclosures [Abstract]
Schedule of reconciliation of direct to net premiums on both a written and an earned basis	A reconciliation of direct to net premiums on both a written and an earned basis is as follows: Three Months Ended September 30, 2020 Nine Months Ended September 30, 2020 Premiums Written Premiums Earned Premiums Written Premiums Earned Direct premium $ 68,322 $ 79,455 $ 244,053 $ 224,300 Assumed premium 1,426 1,372 5,728 5,655 Ceded premium (7,596 ) (7,485 ) (15,497 ) (15,835 ) Net premiums $ 62,152 $ 73,342 $ 234,284 $ 214,120 Percentage of assumed earned premium to direct earned premium 1.7% 2.5% Three Months Ended September 30, 2019 Nine Months Ended September 30, 2019 Premiums Written Premiums Earned Premiums Written Premiums Earned Direct premium $ 49,984 $ 70,481 $ 208,880 $ 192,233 Assumed premium 1,203 1,234 5,235 5,233 Ceded premium (4,599 ) (4,599 ) (14,730 ) (14,730 ) Net premiums $ 46,588 $ 67,116 $ 199,385 $ 182,736 Percentage of assumed earned premium to direct earned premium 1.8% 2.7%
Schedule of reconciliation of direct to net losses and loss adjustment expenses	A reconciliation of direct to net losses and loss adjustment expenses is as follows: Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Direct losses and loss adjustment expenses $ 59,936 $ 62,248 $ 153,203 $ 138,481 Assumed losses and loss adjustment expenses 2,436 2,017 3,538 3,000 Ceded losses and loss adjustment expenses (8,536 ) (2,707 ) (20,119 ) (5,496 ) Net losses and loss adjustment expenses $ 53,836 $ 61,558 $ 136,622 $ 135,985

Deferred Policy Acquisition C_2

Deferred Policy Acquisition Costs (Tables)	9 Months Ended
	Sep. 30, 2020
Reinsurance Disclosures [Abstract]
Schedule of deferred policy acquisition costs	Activity with regards to our deferred policy acquisition costs was as follows: Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Balance, beginning of period $ 24,204 $ 16,721 $ 15,399 $ 12,866 Deferral of policy acquisition costs 14,742 10,392 47,763 39,620 Amortization of deferred policy acquisition costs (15,061 ) (11,309 ) (39,277 ) (36,682 ) Balance, end of period $ 23,885 $ 15,804 $ 23,885 $ 15,804

Unpaid Losses and Loss Adjust_2

Unpaid Losses and Loss Adjustment Expenses (Tables)	9 Months Ended
	Sep. 30, 2020
Liability for Unpaid Claims and Claims Adjustment Expense, Activity in Liability [Abstract]
Schedule of Activity in the liability for unpaid losses and loss adjustment expenses	Activity in the liability for unpaid losses and loss adjustment expenses is summarized as follows: Nine Months Ended September 30, 2020 2019 Balance at beginning of period: Liability for unpaid losses and loss adjustment expenses $ 93,250 $ 87,121 Reinsurance recoverables on losses 4,045 2,232 Net balance at beginning of period 89,205 84,889 Acquired unpaid losses and loss adjustment expenses related to: Current year - - Prior years 8,568 - Total incurred 8,568 - Incurred related to: Current year 140,890 142,428 Prior years (4,268 ) (6,443 ) Total incurred 136,622 135,985 Paid related to: Current year 65,234 73,974 Prior years 47,914 35,280 Total paid 113,148 109,254 Balance at end of period: Liability for unpaid losses and loss adjustment expenses 134,803 117,373 Reinsurance recoverables on losses 13,556 5,753 Net balance at end of period $ 121,247 $ 111,620

Property and Equipment (Tables)

Property and Equipment (Tables)	9 Months Ended
	Sep. 30, 2020
Reinsurance Disclosures [Abstract]
Schedule of Property and equipment	Property and equipment consisted of the following: September 30, 2020 December 31, 2019 Estimated Useful Life Cost: Real estate $ 15,260 $ 12,733 10 - 31 years Electronic data processing equipment 1,342 1,271 5-7 years Furniture and fixtures 2,867 2,796 5-7 years Automobiles 1,237 1,130 2-3 years Gross cost 20,706 17,930 Accumulated depreciation (10,698 ) (10,236 ) Total property and equipment, net $ 10,008 $ 7,694

Goodwill and Other Intangibles

Goodwill and Other Intangibles (Tables)	9 Months Ended
	Sep. 30, 2020
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of Carrying Amount of Goodwill by Segment	The following table presents the carrying amount of the Company’s goodwill by segment: September 30, 2020 December 31, 2019 Non-standard auto from acquisition of Primero $ 2,628 $ 2,628 Commercial from acquisition of Westminster 6,756 - Total $ 9,384 $ 2,628
Schedule of Carrying Amount of Other Intangible Assets	The following table presents the carrying amount of the Company’s other intangible assets: September 30, 2020 Gross Carrying Amount Accumulated Amortization Net Subject to amortization: Trade names $ 748 $ 141 $ 607 Distribution network 6,700 279 6,421 Value of business acquired 4,750 4,425 325 Total subject to amortization 12,198 4,845 7,353 Not subject to amortization – state insurance licenses 1,900 - 1,900 Total $ 14,098 $ 4,845 $ 9,253 27 Table of Contents NI Holdings, Inc. Notes to Unaudited Consolidated Financial Statements (dollar amounts in thousands, except per share amounts) December 31, 2019 Gross Carrying Amount Accumulated Amortization Net Subject to amortization: Trade names $ 248 $ 66 $ 182 Other 20 18 2 Total subject to amortization 268 84 184 Not subject to amortization – state insurance license 100 - 100 Total $ 368 $ 84 $ 284

Related Party Transactions (Tab

Related Party Transactions (Tables)	9 Months Ended
	Sep. 30, 2020
Related Party Transactions [Abstract]
Schedule of illustrates the impact of consolidating Battle Creek into our consolidated balance sheets prior to intercompany eliminations	The following table illustrates the impact of including Battle Creek in our Consolidated Balance Sheets prior to intercompany eliminations: September 30, 2020 December 31, 2019 Assets: Cash and cash equivalents (overdraft) $ 5,988 $ (716 ) Investments 4,611 4,661 Premiums and agents’ balances receivable 4,992 4,801 Reinsurance recoverables on losses (1) 27,894 26,330 Accrued investment income 29 33 Deferred income tax asset, net 294 343 Property and equipment 341 348 Other assets 46 45 Total assets $ 44,195 $ 35,845 Liabilities: Unpaid losses and loss adjustment expenses $ 11,026 $ 10,622 Unearned premiums 16,868 15,708 Notes payable (1) 3,000 3,000 Reinsurance premiums payable (1) 2,727 1,706 Accrued expenses and other liabilities 6,895 1,310 Total liabilities 40,516 32,346 Equity: Non-controlling interest 3,679 3,499 Total equity 3,679 3,499 Total liabilities and equity $ 44,195 $ 35,845 (1) Amount eliminated in consolidation.

Operating Leases (Tables)

Operating Leases (Tables)	9 Months Ended
	Sep. 30, 2020
Operating Leases Tables Abstract
Schedule of Minimum Future Commitments Under Non-Cancellable Leases	As of September 30, 2020, we have minimum future commitments under non-cancellable leases as follows: Year ending December 31, Estimated Future Minimum Commitments 2020 $ 94 2021 249 2022 319 2023 358 2024 320 Thereafter 1,353

Common Stock (Tables)

Common Stock (Tables)	9 Months Ended
	Sep. 30, 2020
Common Stock Tables Abstract
Schedule of number of common stock shares	Changes in the number of common stock shares outstanding are as follows: Nine Months Ended September 30, 2020 2019 Shares outstanding, beginning of period 22,119,380 22,192,894 Treasury shares repurchased through stock repurchase authorization (804,743 ) (116,034 ) Issuance of treasury shares for vesting of restricted stock units 31,442 18,205 Shares outstanding, end of period 21,346,079 22,095,065

Stock Based Compensation (Table

Stock Based Compensation (Tables)	9 Months Ended
	Sep. 30, 2020
Share-based Payment Arrangement [Abstract]
Schedule of Restricted Stock Outstanding	The following table shows the impact of RSU activity to the Company’s financial results: Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 RSU compensation expense $ 211 $ 165 $ 824 $ 627 Income tax benefit (44 ) (35 ) (173 ) (132 ) RSU compensation expense, net of income taxes $ 167 $ 130 $ 651 $ 495
Schedule of RSU activity	A summary of the Company’s outstanding and unearned restricted stock units is presented below: RSUs Weighted-Average Grant-Date Fair Value Per Share Units outstanding and unearned at January 1, 2019 73,880 $ 16.87 RSUs granted during 2019 57,100 15.81 RSUs earned during 2019 (34,440 ) 16.24 Units outstanding and unearned at December 31, 2019 96,540 $ 16.47 RSUs granted during 2020 66,000 14.27 RSUs earned during 2020 (46,760 ) 16.33 Units outstanding and unearned at September 30, 2020 115,780 $ 15.27
Schedule of Performance Stock Outstanding	A summary of the Company’s outstanding performance share units is presented below: PSUs Weighted-Average Grant-Date Fair Value Per Share Units outstanding at January 1, 2019 48,600 $ 16.25 PSUs granted during 2019 (at target) 62,400 15.21 Units outstanding at December 31, 2019 111,000 $ 15.27 PSUs granted during 2020 (at target) 63,600 14.26 Units outstanding at September 30, 2020 174,600 $ 15.15
Schedule of PSU activity	The following table shows the impact of PSU activity to the Company’s financial results: Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 PSU compensation expense $ 274 $ 175 $ 838 $ 647 Income tax benefit (58 ) (37 ) (176 ) (136 ) PSU compensation expense, net of income taxes $ 216 $ 138 $ 662 $ 511

Earnings Per Share (Tables)

Earnings Per Share (Tables)	9 Months Ended
	Sep. 30, 2020
Earnings Per Share [Abstract]
Schedule of reconciliation of the numerators and denominators we used in the basic and diluted per share	The following table presents a reconciliation of the numerators and denominators we used in the basic and diluted per share computations for our common stock: Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Basic earnings (loss) per common share: Numerator: Net income (loss) attributable to NI Holdings, Inc. $ 3,664 $ (6,979 ) $ 18,810 $ 9,272 Denominator: Weighted average shares outstanding 21,565,962 22,136,885 21,889,138 22,194,102 Basic earnings (loss) per common share $ 0.17 $ (0.32 ) $ 0.86 $ 0.42 Diluted earnings (loss) per common share: Numerator: Net income (loss) attributable to NI Holdings, Inc. $ 3,664 $ (6,979 ) $ 18,810 $ 9,272 Denominator: Number of shares used in basic computation 21,565,962 22,136,885 21,889,138 22,194,102 Weighted average effect of dilutive securities Add: RSUs and PSUs 189,266 95,189 149,748 75,398 Number of shares used in diluted computation 21,755,228 22,232,074 22,038,886 22,269,500 Diluted earnings (loss) per common share $ 0.17 $ (0.31 ) $ 0.85 $ 0.42

Segment Information (Tables)

Segment Information (Tables)	9 Months Ended
	Sep. 30, 2020
Income Tax Disclosure [Abstract]
Schedule of revenue by insurance product line	NI Holdings, Inc. Notes to Unaudited Consolidated Financial Statements (dollar amounts in thousands, except per share amounts) Three Months Ended September 30, 2020 Private Passenger Auto Non- Standard Auto Home and Farm Crop Commercial All Other Total Direct premiums earned $ 19,002 $ 13,882 $ 20,688 $ 12,189 $ 12,516 $ 1,178 $ 79,455 Assumed premiums earned - - - (33 ) - 1,405 1,372 Ceded premiums earned (1,055 ) (43 ) (2,140 ) (2,437 ) (1,743 ) (67 ) (7,485 ) Net premiums earned 17,947 13,839 18,548 9,719 10,773 2,516 73,342 Direct losses and LAE 13,570 9,425 13,912 12,154 9,257 1,618 59,936 Assumed losses and LAE (165 ) - - 617 - 1,984 2,436 Ceded losses and LAE 165 - (475 ) (3,546 ) (3,680 ) (1,000 ) (8,536 ) Net losses and LAE 13,570 9,425 13,437 9,225 5,577 2,602 53,836 Gross margin 4,377 4,414 5,111 494 5,196 (86 ) 19,506 Underwriting and general expenses 5,103 5,140 5,507 1,542 4,289 563 22,144 Underwriting gain (loss) (726 ) (726 ) (396 ) (1,048 ) 907 (649 ) (2,638 ) Fee and other income 336 524 (390 ) Net investment income 1,886 Net capital gain on investments 5,102 Income before income taxes 4,874 Income taxes 1,118 Net income 3,686 Net income attributable to non-controlling interest 22 Net income attributable to NI Holdings, Inc. $ 3,664 Non-GAAP Ratios: Loss and LAE ratio 75.6% 68.1% 72.4% 94.9% 51.8% 103.4% 73.4% Expense ratio 28.4% 37.1% 29.7% 15.9% 39.8% 22.4% 30.2% Combined ratio 104.0% 105.2% 102.1% 110.8% 91.6% 125.8% 103.6% Balances at September 30, 2020: Premiums and agents’ balances receivable $ 19,269 $ 7,358 $ 9,323 $ 39,182 $ 9,071 $ 665 $ 84,868 Deferred policy acquisition costs 5,629 4,931 7,900 409 4,564 452 23,885 Reinsurance recoverables 341 - 1,984 3,675 5,082 2,474 13,556 Receivable from Federal Crop Insurance Corporation - - - 9,519 - - 9,519 Goodwill and other intangibles - 2,872 - - 15,765 - 18,637 Unpaid losses and LAE 20,399 44,526 12,361 29,723 16,602 11,192 134,803 Unearned premiums 29,203 17,147 41,724 8,730 26,247 2,915 125,966 37 Table of Contents NI Holdings, Inc. Notes to Unaudited Consolidated Financial Statements (dollar amounts in thousands, except per share amounts) Three Months Ended September 30, 2019 Private Passenger Auto Non- Standard Auto Home and Farm Crop Commercial All Other Total Direct premiums earned $ 18,256 $ 14,167 $ 19,844 $ 15,943 $ 1,144 $ 2,271 $ 70,481 Assumed premiums earned (7 ) - 8 (10 ) - 1,243 1,234 Ceded premiums earned (933 ) (123 ) (1,944 ) (1,416 ) (126 ) (57) (4,599 ) Net premiums earned 17,316 14,044 17,908 14,517 1,018 3,331 67,116 Direct losses and LAE 19,120 8,440 18,639 13,977 1,356 2,072 62,248 Assumed losses and LAE 94 - - 1,316 - 607 2,017 Ceded losses and LAE (498 ) - 41 (2,151 ) (16 ) (17 ) (2,707 ) Net losses and LAE 18,716 8,440 18,598 13,142 1,340 2,662 61,558 Gross margin (1,400 ) 5,604 (690 ) 1,375 (322 ) 669 5,558 Underwriting and general expenses 4,438 5,207 4,892 1,983 286 771 17,291 Underwriting gain (loss) (5,838 ) 397 (5,582 ) (608 ) (608 ) (102 ) (11,733 ) Fee and other income 363 527 760 Net investment income 1,983 Net capital gain on investments 622 Income before income taxes (8,601 ) Income taxes (1,642 ) Net income (6,959 ) Net income attributable to non-controlling interest 20 Net income attributable to NI Holdings, Inc. $ (6,979 ) Non-GAAP Ratios: Loss and LAE ratio 108.1% 60.1% 103.9% 90.5% 131.6% 79.9% 91.7% Expense ratio 25.6% 37.1% 27.3% 13.7% 28.1% 23.1% 25.8% Combined ratio 133.7% 97.2% 131.2% 104.2% 159.7% 103.1% 117.5% Balances at June 30, 2019: Premiums and agents’ balances receivable $ 18,776 $ 8,186 $ 9,238 $ 39,275 $ 945 $ 1,551 $ 77,026 Deferred policy acquisition costs 4,143 4,794 5,945 281 316 641 15,804 Reinsurance recoverables 377 - 1,330 2,855 (29 ) 1,191 5,753 Receivable from Federal Crop Insurance Corporation - - - 24,191 - - 24,191 Goodwill and other intangibles - 2,928 - - - - 2,928 Unpaid losses and LAE 21,447 47,672 14,574 23,738 1,233 9,942 117,373 Unearned premiums 28,312 16,723 40,114 11,233 2,706 5,035 101,417 38 Table of Contents NI Holdings, Inc. Notes to Unaudited Consolidated Financial Statements (dollar amounts in thousands, except per share amounts) Nine Months Ended September 30, 2020 Private Passenger Auto Non- Standard Auto Home and Farm Crop Commercial All Other Total Direct premiums earned $ 55,899 $ 40,253 $ 61,062 $ 31,438 $ 32,173 $ 3,475 $ 224,300 Assumed premiums earned - - - 1,903 - 3,752 5,655 Ceded premiums earned (3,267 ) (129 ) (61,062 ) 109 (5,206 ) (217 ) (15,835 ) Net premiums earned 52,632 40,124 53,937 33,450 26,967 7,010 214,120 Direct losses and LAE 33,324 23,560 32,661 35,212 26,169 2,277 153,203 Assumed losses and LAE - - - 839 - 2,699 3,538 Ceded losses and LAE (1 ) - (1,826 ) (5,352 ) (11,640 ) (1,300 ) (20,119 ) Net losses and LAE 33,323 23,560 30,835 30,699 14,529 3,676 136,622 Gross margin 19,309 16,564 23,102 2,751 12,438 3,334 77,498 Underwriting and general expenses 14,248 15,482 15,102 3,542 11,842 1,712 61,928 Underwriting gain (loss) 5,061 1,082 8,000 (791 ) 596 1,622 15,570 Fee and other income 993 1,332 2,075 Net investment income 5,875 Net capital loss on investments 1,380 Income before income taxes 24,157 Income taxes 5,259 Net income 18,898 Net income attributable to non-controlling interest 88 Net income attributable to NI Holdings, Inc. $ 18,810 Non-GAAP Ratios: Loss and LAE ratio 63.3% 58.7% 57.2% 91.8% 53.9% 52.4% 63.8% Expense ratio 27.1% 38.6% 28.0% 10.6% 43.9% 24.4% 28.9% Combined ratio 90.4% 97.3% 85.2% 102.4% 97.8% 76.9% 92.7% 39 Table of Contents NI Holdings, Inc. Notes to Unaudited Consolidated Financial Statements (dollar amounts in thousands, except per share amounts) Nine Months Ended September 30, 2019 Private Passenger Auto Non- Standard Auto Home and Farm Crop Commercial All Other Total Direct premiums earned $ 52,792 $ 44,029 $ 57,592 $ 31,159 $ 3,379 $ 3,282 $ 192,233 Assumed premiums earned - - - 2,087 1 3,145 5,233 Ceded premiums earned (2,698 ) (123 ) (5,642 ) (5,718 ) (380 ) (169 ) (14,730 ) Net premiums earned 50,094 43,906 51,950 27,528 3,000 6,258 182,736 Direct losses and LAE 41,300 27,416 41,396 23,046 2,169 3,154 138,481 Assumed losses and LAE 173 - - 1,394 - 1,433 3,000 Ceded losses and LAE (730 ) - (1,329 ) (2,558 ) (29 ) (850 ) (5,496 ) Net losses and LAE 40,743 27,416 40,067 21,882 2,140 3,737 135,985 Gross margin 9,351 16,490 11,883 5,646 860 2,521 46,751 Underwriting and general expenses 14,097 15,845 15,327 3,091 995 1,570 50,925 Underwriting gain (4,746 ) 645 3,444 2,555 (135 ) 951 (4,174 ) Fee and other income 1,339 1,637 1,984 Net investment income 5,504 Net capital gain on investments 9,591 Income before income taxes 12,558 Income taxes 3,206 Net income 9,352 Net income attributable to non-controlling interest 80 Net income attributable to NI Holdings, Inc. $ 9,272 Non-GAAP Ratios: Loss and LAE ratio 81.3% 62.4% 77.1% 79.5% 71.3% 59.7% 74.4% Expense ratio 28.1% 36.1% 29.5% 11.2% 33.2% 25.1% 27.9% Combined ratio 109.5% 98.5% 106.6% 90.7% 104.5% 84.8% 102.3%

Organization (Details)

Organization (Details) - Nodak Insurance [Member]	9 Months Ended
	Sep. 30, 2020
Percentage of shares exchanged	55.00%
Percentage of quota share agreement	100.00%

Summary of Significant Accoun_3

Summary of Significant Accounting Policies (Narrative) (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Other invested assets	$ 2,907	$ 1,914
Federal Deposit Insurance Corporation amount	250
Short-term investment balances in investment that are insured by SIPC	$ 500
Nodak Insurance [Member]
Ownership percentage	100.00%
Battle Creek [Member]
Ownership percentage	100.00%

Acquisition of Westminster Am_3

Acquisition of Westminster American Insurance Company (Narrative) (Details) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020USD ($)Number	Sep. 30, 2019USD ($)	Sep. 30, 2020USD ($)Number	Sep. 30, 2019USD ($)	Jan. 02, 2020	Dec. 31, 2019USD ($)
Business Acquisition [Line Items]
Revenue contribution	$ 80,854	$ 70,248	$ 222,707	$ 199,468
Net income	3,686	(6,959)	18,898	9,352
Westminster American Insurance Company [Member]
Business Acquisition [Line Items]
Ownership percentage in acquisition					100.00%
Revenue contribution	10,294		24,085
Net income	1,763		1,080
Acquisition related costs incurred	$ 828	$ 83	828	$ 83		$ 83
Additional acquisition of entity			$ 20,000
Number of installments | Number	3		3

Acquisition of Westminster Am_4

Acquisition of Westminster American Insurance Company (Schedule of Proforma Information of Business Combination) (Details) - Westminster American Insurance Company [Member] - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Business Acquisition [Line Items]
Revenues	$ 80,854	$ 75,915	$ 222,707	$ 215,814
Net income (loss) attributable to NI Holdings, Inc.	$ 3,913	$ (7,031)	$ 20,624	$ 7,636
Basic earnings (loss) per share attributable to NI Holdings, Inc.	$ 0.18	$ (0.32)	$ 0.94	$ 0.34

Acquisition of Westminster Am_5

Acquisition of Westminster American Insurance Company (Schedule of Assets Acquired and Liabilities Assumed) (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2020	Dec. 31, 2019
Identifiable net assets:
Goodwill	$ 9,384	$ 2,628
Westminster American Insurance Company [Member]
Fair Value of Consideration:
Cash consideration transferred	20,000
Present value of future cash consideration	18,787
Total cash consideration	38,787
Identifiable net assets:
Cash and cash equivalents	19,297
Fixed income securities, at fair value	12,073
Equity securities, at fair value	2,705
Other investments	735
Premiums and agents' balances receivable	8,507
Reinsurance recoverables on losses	763
Accrued investment income	70
Property and equipment	2,376
Federal income tax recoverable	138
State insurance licenses (included in goodwill and other intangibles)	1,800
Distribution network (included in goodwill and other intangibles)	6,700
Trade name (included in goodwill and other intangibles)	500
Value of business acquired (included in goodwill and other intangibles)	4,750
Other assets	76
Unpaid losses and loss adjustment expenses	(8,568)
Unearned premiums	(16,611)
Deferred income taxes, net	(1,583)
Reinsurance premiums payable	(565)
Accrued expenses and other liabilities	(1,132)
Total identifiable net assets	32,031
Goodwill	$ 6,756

Recent Accounting Pronounceme_2

Recent Accounting Pronouncements (Narrative) (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2020USD ($)
Recent Accounting Pronouncements Narrative
Pre-tax unrealized net capital gains	$ 8,184

Investments (Narrative) (Detail

Investments (Narrative) (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2020USD ($)	Dec. 31, 2019USD ($)
Investments [Abstract]
Fixed income securities with a fair value	$ 6,164	$ 5,585
Percentage of fixed maturities amortized cost values	80.00%
Fixed income securities [Member]
Investments [Abstract]
Number of securities	83	88

Investments (Schedule of amorti

Investments (Schedule of amortized cost and estimated fair value of investment securities) (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Cost or Amortized Cost	$ 351,435	$ 326,740
Gross Unrealized Gains	40,762	30,473
Gross Unrealized Losses	(3,982)	(1,336)
Fair Value	388,215	355,877
Fixed income securities [Member]
Cost or Amortized Cost	306,904	288,704
Gross Unrealized Gains	16,331	7,595
Gross Unrealized Losses	(806)	(354)
Fair Value	322,429	295,945
Fixed income securities [Member] | U.S. Government and agencies [Member]
Cost or Amortized Cost	16,110	17,078
Gross Unrealized Gains	1,324	472
Gross Unrealized Losses	(1)	(4)
Fair Value	17,433	17,546
Fixed income securities [Member] | Obligations of states and political subdivisions [Member]
Cost or Amortized Cost	62,975	55,232
Gross Unrealized Gains	3,044	1,511
Gross Unrealized Losses	(150)	(91)
Fair Value	65,869	56,652
Fixed income securities [Member] | Corporate securities [Member]
Cost or Amortized Cost	120,955	109,457
Gross Unrealized Gains	8,137	3,772
Gross Unrealized Losses	(434)	(16)
Fair Value	128,658	113,213
Fixed income securities [Member] | Residential mortgage-backed securities [Member]
Cost or Amortized Cost	36,384	50,458
Gross Unrealized Gains	1,612	1,050
Gross Unrealized Losses	(4)	(22)
Fair Value	37,992	51,486
Fixed income securities [Member] | Commercial mortgage-backed securities [Member]
Cost or Amortized Cost	24,574	26,450
Gross Unrealized Gains	1,705	658
Gross Unrealized Losses	(29)	(51)
Fair Value	26,250	27,057
Fixed income securities [Member] | Asset backed securities [Member]
Cost or Amortized Cost	45,906	30,029
Gross Unrealized Gains	509	132
Gross Unrealized Losses	(188)	(170)
Fair Value	46,227	29,991
Equity Securities [Member]
Cost or Amortized Cost	44,531	38,036
Gross Unrealized Gains	24,431	22,878
Gross Unrealized Losses	(3,176)	(982)
Fair Value	65,786	59,932
Equity Securities [Member] | Basic materials [Member]
Cost or Amortized Cost	1,259	1,062
Gross Unrealized Gains	289	155
Gross Unrealized Losses	(69)	(7)
Fair Value	1,479	1,210
Equity Securities [Member] | Communications [Member]
Cost or Amortized Cost	4,304	4,823
Gross Unrealized Gains	2,563	2,342
Gross Unrealized Losses	(507)	(169)
Fair Value	6,360	6,996
Equity Securities [Member] | Consumer, cyclical [Member]
Cost or Amortized Cost	5,903	5,477
Gross Unrealized Gains	3,139	4,207
Gross Unrealized Losses	(596)	(72)
Fair Value	8,446	9,612
Equity Securities [Member] | Consumer, non-cyclical [Member]
Cost or Amortized Cost	10,456	7,483
Gross Unrealized Gains	6,092	5,255
Gross Unrealized Losses	(758)	(171)
Fair Value	15,790	12,567
Equity Securities [Member] | Energy [Member]
Cost or Amortized Cost	1,931	2,817
Gross Unrealized Gains	18	124
Gross Unrealized Losses	(532)	(485)
Fair Value	1,417	2,456
Equity Securities [Member] | Financial [Member]
Cost or Amortized Cost	5,879	5,059
Gross Unrealized Gains	520	905
Gross Unrealized Losses	(491)	(35)
Fair Value	5,908	5,929
Equity Securities [Member] | Industrial [Member]
Cost or Amortized Cost	6,857	5,293
Gross Unrealized Gains	4,240	4,023
Gross Unrealized Losses	(132)	(17)
Fair Value	10,965	9,299
Equity Securities [Member] | Technology [Member]
Cost or Amortized Cost	7,905	6,022
Gross Unrealized Gains	7,570	5,867
Gross Unrealized Losses	(90)	(26)
Fair Value	15,385	$ 11,863
Equity Securities [Member] | Utility [Member]
Cost or Amortized Cost	37
Gross Unrealized Gains
Gross Unrealized Losses	(1)
Fair Value	$ 36

Investments (Schedule of Fixed

Investments (Schedule of Fixed Maturities) (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Marketable Securities [Abstract]
Amortized Cost, Due to mature One year or less	$ 16,413	$ 19,567
Amortized Cost, Due to mature After one year through five years	90,477	84,937
Amortized Cost, Due to mature After five years through ten years	59,812	55,927
Amortized Cost, Due to mature After ten years	33,338	21,336
Amortized Cost, Due to mature Mortgage/asset-backed securities	106,864	106,937
Available-for-sale Securities, Debt Maturities, Amortized Cost	306,904	288,704
Fair Value, Due to mature One year or less	16,659	19,663
Fair Value, Due to mature After one year through five years	95,182	87,134
Fair Value, Due to mature After five years through ten years	64,928	58,466
Fair Value, Due to mature After ten years	35,191	22,148
Fair Value, Due to mature Mortgage/asset-backed securities	110,469	108,534
Available-for-sale Securities, Debt Securities, Estimated Fair Value	$ 322,429	$ 295,945

Investments (Schedule of aggreg

Investments (Schedule of aggregate fair value and unrealized loss) (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Less than 12 months Fair Value	$ 36,385	$ 31,644
Less than 12 months Unrealized Losses	(3,293)	(968)
Greater than 12 months Fair Value	5,739	12,382
Greater than 12 months Unrealized Losses	(689)	(368)
Fair Value, Total	42,124	44,026
Unrealized Losses, Total	(3,982)	(1,336)
Fixed income securities [Member]
Less than 12 months Fair Value	25,776	26,841
Less than 12 months Unrealized Losses	(684)	(250)
Greater than 12 months Fair Value	5,086	11,572
Greater than 12 months Unrealized Losses	(122)	(104)
Fair Value, Total	30,862	38,413
Unrealized Losses, Total	(806)	(354)
Fixed income securities [Member] | U.S. Government and agencies [Member]
Less than 12 months Fair Value	203	494
Less than 12 months Unrealized Losses	(1)	(4)
Greater than 12 months Fair Value
Greater than 12 months Unrealized Losses
Fair Value, Total	203	494
Unrealized Losses, Total	(1)	(4)
Fixed income securities [Member] | Obligations of states and political subdivisions [Member]
Less than 12 months Fair Value	4,578	8,018
Less than 12 months Unrealized Losses	(150)	(91)
Greater than 12 months Fair Value
Greater than 12 months Unrealized Losses
Fair Value, Total	4,578	8,018
Unrealized Losses, Total	(150)	(91)
Fixed income securities [Member] | Corporate securities [Member]
Less than 12 months Fair Value	8,763	2,066
Less than 12 months Unrealized Losses	(420)	(15)
Greater than 12 months Fair Value	693	650
Greater than 12 months Unrealized Losses	(14)	(1)
Fair Value, Total	9,456	2,716
Unrealized Losses, Total	(434)	(16)
Fixed income securities [Member] | Residential mortgage-backed securities [Member]
Less than 12 months Fair Value	397	2,911
Less than 12 months Unrealized Losses	(4)	(9)
Greater than 12 months Fair Value		2,583
Greater than 12 months Unrealized Losses		(13)
Fair Value, Total	397	5,494
Unrealized Losses, Total	(4)	(22)
Fixed income securities [Member] | Commercial mortgage-backed securities [Member]
Less than 12 months Fair Value	1,511	4,841
Less than 12 months Unrealized Losses	(29)	(35)
Greater than 12 months Fair Value		653
Greater than 12 months Unrealized Losses		(16)
Fair Value, Total	1,511	5,494
Unrealized Losses, Total	(29)	(51)
Fixed income securities [Member] | Asset backed securities [Member]
Less than 12 months Fair Value	10,324	8,511
Less than 12 months Unrealized Losses	(80)	(96)
Greater than 12 months Fair Value	4,393	7,686
Greater than 12 months Unrealized Losses	(108)	(74)
Fair Value, Total	14,717	16,197
Unrealized Losses, Total	(188)	(170)
Equity Securities [Member]
Less than 12 months Fair Value	10,609	4,803
Less than 12 months Unrealized Losses	(2,609)	(718)
Greater than 12 months Fair Value	653	810
Greater than 12 months Unrealized Losses	(567)	(264)
Fair Value, Total	11,262	5,613
Unrealized Losses, Total	(3,176)	(982)
Equity Securities [Member] | Basic materials [Member]
Less than 12 months Fair Value	345	258
Less than 12 months Unrealized Losses	(69)	(7)
Greater than 12 months Fair Value
Greater than 12 months Unrealized Losses
Fair Value, Total	345	258
Unrealized Losses, Total	(69)	(7)
Equity Securities [Member] | Communications [Member]
Less than 12 months Fair Value	1,272	506
Less than 12 months Unrealized Losses	(507)
Greater than 12 months Fair Value		658
Greater than 12 months Unrealized Losses		(169)
Fair Value, Total	1,272	1,164
Unrealized Losses, Total	(507)	(169)
Equity Securities [Member] | Consumer, cyclical [Member]
Less than 12 months Fair Value	1,184	595
Less than 12 months Unrealized Losses	(528)	(30)
Greater than 12 months Fair Value	211	146
Greater than 12 months Unrealized Losses	(68)	(42)
Fair Value, Total	1,395	741
Unrealized Losses, Total	(596)	(72)
Equity Securities [Member] | Consumer, non-cyclical [Member]
Less than 12 months Fair Value	2,456	1,033
Less than 12 months Unrealized Losses	(758)	(171)
Greater than 12 months Fair Value
Greater than 12 months Unrealized Losses
Fair Value, Total	2,456	1,033
Unrealized Losses, Total	(758)	(171)
Equity Securities [Member] | Energy [Member]
Less than 12 months Fair Value	47	823
Less than 12 months Unrealized Losses	(33)	(432)
Greater than 12 months Fair Value	442	6
Greater than 12 months Unrealized Losses	(499)	(53)
Fair Value, Total	489	829
Unrealized Losses, Total	(532)	(485)
Equity Securities [Member] | Financial [Member]
Less than 12 months Fair Value	2,750	393
Less than 12 months Unrealized Losses	(491)	(35)
Greater than 12 months Fair Value
Greater than 12 months Unrealized Losses
Fair Value, Total	2,750	393
Unrealized Losses, Total	(491)	(35)
Equity Securities [Member] | Industrial [Member]
Less than 12 months Fair Value	1,139	620
Less than 12 months Unrealized Losses	(132)	(17)
Greater than 12 months Fair Value
Greater than 12 months Unrealized Losses
Fair Value, Total	1,139	620
Unrealized Losses, Total	(132)	(17)
Equity Securities [Member] | Technology [Member]
Less than 12 months Fair Value	1,379	575
Less than 12 months Unrealized Losses	(90)	(26)
Greater than 12 months Fair Value
Greater than 12 months Unrealized Losses
Fair Value, Total	1,379	575
Unrealized Losses, Total	(90)	$ (26)
Equity Securities [Member] | Utility [Member]
Less than 12 months Fair Value	37
Less than 12 months Unrealized Losses	(1)
Greater than 12 months Fair Value
Greater than 12 months Unrealized Losses
Fair Value, Total	37
Unrealized Losses, Total	$ (1)

Investments (Schedule of Net In

Investments (Schedule of Net Investment Income) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Total gross investment income	$ 2,514	$ 2,549	$ 8,025	$ 7,194
Investment expenses	628	566	2,150	1,690
Net investment income	1,886	1,983	5,875	5,504
Fixed income securities [Member]
Total gross investment income	2,065	2,196	6,655	6,167
Equity Securities [Member]
Total gross investment income	278	247	903	704
Real estate [Member]
Total gross investment income	170	91	440	273
Cash and Cash Equivalents [Member]
Total gross investment income	$ 1	$ 15	$ 27	$ 50

Investments (Schedule of compon

Investments (Schedule of components of Net realized capital gains on investments) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Gross realized gains		$ 1,444	$ 3,643	$ 2,522
Gross realized losses, excluding other-than-temporary impairment losses		(438)	(1,622)	(1,184)
Net realized gain (loss) on investments	$ 636	1,006	2,021	1,338
Change in net unrealized gain on equity securities	4,466	(384)	(641)	8,253
Net capital gain (loss) on investments	5,102	622	1,380	9,591
Fixed income securities [Member]
Gross realized gains		58	756	114
Gross realized losses, excluding other-than-temporary impairment losses		(46)	(70)	(132)
Equity Securities [Member]
Gross realized gains	$ 637	1,386	2,887	2,408
Gross realized losses, excluding other-than-temporary impairment losses		$ (392)	$ (1,552)	$ (1,052)

Fair Value Measurements (Schedu

Fair Value Measurements (Schedule of assets, which are measured on a recurring basis) (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019	Sep. 30, 2019	Dec. 31, 2018
Total fixed income securities	$ 322,429	$ 295,945
Total equity securities	65,786	59,932
Cash and cash equivalents	71,305	62,132	$ 25,242	$ 68,950
Total assets at fair value	459,520	418,009
U.S. Government and agencies [Member]
Total fixed income securities	17,433	17,546
Obligations of states and political subdivisions [Member]
Total fixed income securities	65,869	56,652
Corporate securities [Member]
Total fixed income securities	128,658	113,213
Residential mortgage-backed securities [Member]
Total fixed income securities	37,992	51,486
Commercial mortgage-backed securities [Member]
Total fixed income securities	26,250	27,057
Asset backed securities [Member]
Total fixed income securities	46,227	29,991
Basic materials [Member]
Total equity securities	1,479	1,210
Communications [Member]
Total equity securities	6,360	6,996
Consumer, cyclical [Member]
Total equity securities	8,446	9,612
Consumer, non-cyclical [Member]
Total equity securities	15,790	12,567
Energy [Member]
Total equity securities	1,417	2,456
Financial [Member]
Total equity securities	5,908	5,929
Industrial [Member]
Total equity securities	10,965	9,299
Technology [Member]
Total equity securities	15,385	11,863
Utility [Member]
Total equity securities	36
Level I [Member]
Total fixed income securities
Total equity securities	65,786	59,932
Cash and cash equivalents	71,305	62,132
Total assets at fair value	137,091	122,064
Level I [Member] | U.S. Government and agencies [Member]
Total fixed income securities
Level I [Member] | Obligations of states and political subdivisions [Member]
Total fixed income securities
Level I [Member] | Corporate securities [Member]
Total fixed income securities
Level I [Member] | Residential mortgage-backed securities [Member]
Total fixed income securities
Level I [Member] | Commercial mortgage-backed securities [Member]
Total fixed income securities
Level I [Member] | Asset backed securities [Member]
Total fixed income securities
Level I [Member] | Basic materials [Member]
Total equity securities	1,479	1,210
Level I [Member] | Communications [Member]
Total equity securities	6,360	6,996
Level I [Member] | Consumer, cyclical [Member]
Total equity securities	8,446	9,612
Level I [Member] | Consumer, non-cyclical [Member]
Total equity securities	15,790	12,567
Level I [Member] | Energy [Member]
Total equity securities	1,417	2,456
Level I [Member] | Financial [Member]
Total equity securities	5,908	5,929
Level I [Member] | Industrial [Member]
Total equity securities	10,965	9,299
Level I [Member] | Technology [Member]
Total equity securities	15,385	11,863
Level I [Member] | Utility [Member]
Total equity securities	36
Level II [Member]
Total fixed income securities	322,429	295,945
Total equity securities
Cash and cash equivalents
Total assets at fair value	322,429	295,945
Level II [Member] | U.S. Government and agencies [Member]
Total fixed income securities	17,433	17,546
Level II [Member] | Obligations of states and political subdivisions [Member]
Total fixed income securities	65,869	56,652
Level II [Member] | Corporate securities [Member]
Total fixed income securities	128,658	113,213
Level II [Member] | Residential mortgage-backed securities [Member]
Total fixed income securities	37,992	51,486
Level II [Member] | Commercial mortgage-backed securities [Member]
Total fixed income securities	26,250	27,057
Level II [Member] | Asset backed securities [Member]
Total fixed income securities	46,227	29,991
Level II [Member] | Basic materials [Member]
Total equity securities
Level II [Member] | Communications [Member]
Total equity securities
Level II [Member] | Consumer, cyclical [Member]
Total equity securities
Level II [Member] | Consumer, non-cyclical [Member]
Total equity securities
Level II [Member] | Energy [Member]
Total equity securities
Level II [Member] | Financial [Member]
Total equity securities
Level II [Member] | Industrial [Member]
Total equity securities
Level II [Member] | Technology [Member]
Total equity securities
Level II [Member] | Utility [Member]
Total equity securities
Level III [Member]
Total fixed income securities
Total equity securities
Cash and cash equivalents
Total assets at fair value
Level III [Member] | U.S. Government and agencies [Member]
Total fixed income securities
Level III [Member] | Obligations of states and political subdivisions [Member]
Total fixed income securities
Level III [Member] | Corporate securities [Member]
Total fixed income securities
Level III [Member] | Residential mortgage-backed securities [Member]
Total fixed income securities
Level III [Member] | Commercial mortgage-backed securities [Member]
Total fixed income securities
Level III [Member] | Asset backed securities [Member]
Total fixed income securities
Level III [Member] | Basic materials [Member]
Total equity securities
Level III [Member] | Communications [Member]
Total equity securities
Level III [Member] | Consumer, cyclical [Member]
Total equity securities
Level III [Member] | Consumer, non-cyclical [Member]
Total equity securities
Level III [Member] | Energy [Member]
Total equity securities
Level III [Member] | Financial [Member]
Total equity securities
Level III [Member] | Industrial [Member]
Total equity securities
Level III [Member] | Technology [Member]
Total equity securities
Level III [Member] | Utility [Member]
Total equity securities

Reinsurance (Narrative) (Detail

Reinsurance (Narrative) (Details) - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2020	Dec. 31, 2019
Reinsurance Disclosures [Abstract]
Reinsurance Retention Policy, Amount Retained	$ 10,000	$ 10,000
Reinsurance Retention Policy, Excess Retention, Amount Reinsured	97,000	78,600
Retained risk amount	$ 10,000	$ 10,000
Ceded reinsurance commission percentage	100.00%	100.00%

Reinsurance (Schedule of reconc

Reinsurance (Schedule of reconciliation of direct to net premiums on both a written and an earned basis) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Premiums Written
Direct premium	$ 68,322	$ 49,984	$ 244,053	$ 208,880
Assumed premium	1,426	1,203	5,728	5,235
Ceded premium	(7,596)	(4,599)	(15,497)	(14,730)
Net premiums	62,152	46,588	234,284	199,385
Premiums Earned
Direct premium	79,455	70,481	224,300	192,233
Assumed premium	1,372	1,234	5,655	5,233
Ceded premium	(7,485)	(4,599)	(15,835)	(14,730)
Net premiums	$ 73,342	$ 67,116	$ 214,120	$ 182,736
Percentage of assumed earned premium to direct earned premium	1.70%	1.80%	2.50%	2.70%

Reinsurance (Schedule of reco_2

Reinsurance (Schedule of reconciliation of direct to net losses and loss adjustment expenses) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Reinsurance Disclosures [Abstract]
Direct losses and loss adjustment expenses	$ 59,936	$ 62,248	$ 153,203	$ 138,481
Assumed losses and loss adjustment expenses	2,436	2,017	3,538	3,000
Ceded losses and loss adjustment expenses	(8,536)	(2,707)	(20,119)	(5,496)
Net losses and loss adjustment expenses	$ 53,836	$ 61,558	$ 136,622	$ 135,985

Deferred Policy Acquisition C_3

Deferred Policy Acquisition Costs (Schedule of deferred policy acquisition costs) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Deferred Policy Acquisition Costs Disclosures [Abstract]
Balance, beginning of period	$ 24,204	$ 16,721	$ 15,399	$ 12,866
Deferral of policy acquisition costs	14,742	10,392	47,763	39,620
Amortization of deferred policy acquisition costs	(15,061)	(11,309)	(39,277)	(36,682)
Balance, end of period	$ 23,885	$ 15,804	$ 23,885	$ 15,804

Unpaid Losses and Loss Adjust_3

Unpaid Losses and Loss Adjustment Expenses (Schedule of liability for unpaid losses and loss adjustment expenses) (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019
Liability for Unpaid Claims and Claims Adjustment Expense, Activity in Liability [Abstract]
Liability for unpaid losses and loss adjustment expenses	$ 93,250	$ 87,121
Reinsurance recoverables on losses	4,045	2,232
Net balance at beginning of period	89,205	84,889
Acquired unpaid losses and loss adjustment expenses related to:
Current year
Prior years	8,568
Total incurred	8,568
Incurred related to:
Current year	140,890	142,428
Prior years	(4,268)	(6,443)
Total Incurred	136,622	135,985
Paid related to:
Current year	65,234	73,974
Prior years	47,914	35,280
Total paid	113,148	109,254
Liability for unpaid losses and loss adjustment expenses	134,803	117,373
Reinsurance recoverables on losses	13,556	5,753
Net balance at end of period	$ 121,247	$ 111,620

Property and Equipment (Details

Property and Equipment (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019	Dec. 31, 2019
Cost:	$ 20,706		$ 20,706		$ 17,930
Accumulated depreciation	(10,698)		(10,698)		(10,236)
Total property and equipment, net	10,008		10,008		7,694
Depreciation expense	180	$ 129	545	$ 374
Real estate [Member]
Cost:	15,260		$ 15,260		12,733
Real estate [Member] | Minimum [Member]
Estimated Useful Life			10 years
Real estate [Member] | Maximum [Member]
Estimated Useful Life			31 years
Electronic data processing equipment [Member]
Cost:	1,342		$ 1,342		1,271
Electronic data processing equipment [Member] | Minimum [Member]
Estimated Useful Life			5 years
Electronic data processing equipment [Member] | Maximum [Member]
Estimated Useful Life			7 years
Furniture and Fixtures [Member]
Cost:	2,867		$ 2,867		2,796
Furniture and Fixtures [Member] | Minimum [Member]
Estimated Useful Life			5 years
Furniture and Fixtures [Member] | Maximum [Member]
Estimated Useful Life			7 years
Automobiles [Member]
Cost:	$ 1,237		$ 1,237		$ 1,130
Automobiles [Member] | Minimum [Member]
Estimated Useful Life			2 years
Automobiles [Member] | Maximum [Member]
Estimated Useful Life			3 years

Goodwill and Other Intangible_2

Goodwill and Other Intangibles (Schedule of Carrying Amount of Goodwill by Segment) (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Goodwill [Line Items]
Goodwill	$ 9,384	$ 2,628
Primero Insurance Company [Member]
Goodwill [Line Items]
Goodwill	2,628	2,628
Westminster American Insurance Company [Member]
Goodwill [Line Items]
Goodwill	$ 6,756

Goodwill and Other Intangible_3

Goodwill and Other Intangibles (Schedule of Carrying Amount of Other Intangible Assets) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019	Dec. 31, 2019
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	$ 14,098		$ 14,098		$ 368
Accumulated Amortization	4,845		4,845		84
Net	9,253		9,253		284
Amortization expense	1,070	$ 108	4,781	$ 1,695
Trade Names [Member]
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	748		748		248
Accumulated Amortization	141		141		66
Net	607		607		182
Distribution Network [Member]
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	6,700		6,700
Accumulated Amortization	279		279
Net	6,421		6,421
Value of Business Acquired [Member]
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	4,750		4,750
Accumulated Amortization	4,425		4,425
Net	325		325
Other [Member]
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount					20
Accumulated Amortization					18
Net					2
Subject to Amortization [Member]
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	12,198		12,198		268
Accumulated Amortization	4,845		4,845		84
Net	7,353		7,353		184
Not Subject to Amortization - State Insurance Licenses [Member]
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	1,900		1,900		100
Accumulated Amortization
Net	$ 1,900		$ 1,900		$ 100

Related Party Transactions (Nar

Related Party Transactions (Narrative) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019	Dec. 31, 2019
Related Party Transaction [Line Items]
Payment of dividends					$ 18,984
NDFB [Member]
Related Party Transaction [Line Items]
Royalties	$ 386	$ 384	$ 1,115	$ 1,104
Accrued royalties	23		23		115
Direct Auto Insurance Company [Member]
Related Party Transaction [Line Items]
Payment of dividends					6,881
Westminster Insurance Company [Member]
Related Party Transaction [Line Items]
Payment of dividends					$ 636
Battle Creek [Member]
Related Party Transaction [Line Items]
Related party revenues	$ 27	$ 26	112	$ 103
Board of Directors [Member]
Related Party Transaction [Line Items]
Payment of dividends			$ 6,000

Related Party Transactions (Sch

Related Party Transactions (Schedule of impact of consolidating Battle Creek into our consolidated balance sheets) (Details) - USD ($) $ in Thousands		Sep. 30, 2020	Dec. 31, 2019	Sep. 30, 2019
Assets:
Accrued investment income		$ 2,094	$ 2,089
Property and equipment		10,008	7,694
Other assets		4,499	5,176
Total assets		630,036	508,159
Liabilities:
Unpaid losses and loss adjustment expenses		134,803	93,250	$ 117,373
Unearned premiums		125,966	89,276	$ 101,417
Total liabilities		304,523	198,356
Equity:
Non-controlling interest		3,679	3,499
Total liabilities and shareholders' equity		630,036	508,159
Battle Creek [Member]
Assets:
Cash and cash equivalents (overdraft)		5,988	(716)
Investments		4,611	4,661
Premiums and agents' balances receivable		4,992	4,801
Reinsurance recoverables on losses	[1]	27,894	26,330
Accrued investment income		29	33
Deferred income tax asset, net		294	343
Property and equipment		341	348
Other assets		46	45
Total assets		44,195	35,845
Liabilities:
Unpaid losses and loss adjustment expenses		11,026	10,622
Unearned premiums		16,868	15,708
Notes payable	[1]	3,000	3,000
Reinsurance premiums payable	[1]	2,727	1,706
Accrued expenses and other liabilities		6,895	1,310
Total liabilities		40,516	32,346
Equity:
Non-controlling interest		3,679	3,499
Total shareholders' equity		3,679	3,499
Total liabilities and shareholders' equity		$ 44,195	$ 35,845
[1]	Amount eliminated in consolidation.

Benefit Plans (Details)

Benefit Plans (Details) - USD ($) $ / shares in Units, $ in Thousands	1 Months Ended	3 Months Ended		9 Months Ended
	Mar. 31, 2017	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019	Dec. 31, 2019
Company's Total contribution to the profit sharing plan		$ 97	$ 95	$ 500	$ 493
Company's total contributions to the 401(k) plan		164	139	489	417
Compensation expense		$ 98	104	$ 270	301
ESOP shares were released and allocated		72,945		72,945		72,945
ESOP shares in suspense		167,055		167,055		167,055
Market price				$ 16.89
Fair value of unearned ESOP shares		$ 2,822		$ 2,822
Debt from ESOP	$ 2,400
Debt term	10 years
Interest rate	2.79%
Percentage of ESOP in authorized shares	1.00%
Per share price	$ 10
Deferred compensation plan expenses		$ 15	$ 14	$ 43	$ 41
Minimum [Member]
Employee contribution in percentage				3.00%
Maximum [Member]
Employee contribution in percentage				50.00%

Line of Credit (Details)

Line of Credit (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2020USD ($)
Debt Disclosure [Abstract]
Line of credit with Wells Fargo	$ 5,000
Line of credit expiration date	Jan. 30, 2022

Income Taxes (Narrative) (Detai

Income Taxes (Narrative) (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2020	Dec. 31, 2019
Unrecognized tax benefits
Interest and penalties
Battle Creek [Member]
Net operating loss carryover		4,652
Expiration date	Dec. 31, 2030
Westminster [Member]
Net operating loss carryover		$ 2,559
Expiration date	Dec. 31, 2023

Operating Leases (Details)

Operating Leases (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Operating Leased Assets [Line Items]
Operating lease expenses	$ 94	$ 76	$ 277	$ 227
Primero Subsidiary Lease [Member]
Operating Leased Assets [Line Items]
Lease expiration date			Dec. 31, 2023
Direct Auto Subsidiary Lease [Member]
Operating Leased Assets [Line Items]
Lease expiration date			Dec. 31, 2029

Operating Leases (Schedule of M

Operating Leases (Schedule of Minimum Future Commitments Under Non-Cancellable Leases) (Details) $ in Thousands	Sep. 30, 2020USD ($)
Leases, Operating [Abstract]
2020	$ 94
2021	249
2022	319
2023	358
2024	320
Thereafter	$ 1,353

Common Stock (Narrative) (Detai

Common Stock (Narrative) (Details) - USD ($) $ in Thousands	3 Months Ended	9 Months Ended		12 Months Ended
	Sep. 30, 2020	Sep. 30, 2020	Sep. 30, 2019	Dec. 31, 2019	Dec. 31, 2018	May 04, 2020	Feb. 28, 2018
Authorization for repurchase of shares value						$ 10,000	$ 10,000
Shares repurchased		804,743	116,034	116,034	191,265
Shares repurchased, value	$ 4,580	$ 11,363	$ 2,006	$ 2,006	$ 2,966
Additional Authorization [Member]
Shares repurchased		402,687
Shares repurchased, value		$ 6,367
First Authorization [Member]
Shares repurchased		402,056
Shares repurchased, value		$ 4,996

Common Stock (Schedule of chang

Common Stock (Schedule of changes in number of common stock) (Details) - shares	9 Months Ended		12 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Dec. 31, 2019	Dec. 31, 2018
Equity [Abstract]
Shares outstanding, beginning of period	22,119,380	22,192,894	22,192,894
Treasury shares repurchased through stock repurchase authorization	(804,743)	(116,034)	(116,034)	(191,265)
Issuance of treasury shares for vesting of restricted stock units	31,442	18,205
Shares outstanding, end of period	21,346,079	22,095,065	22,119,380	22,192,894

Stock Based Compensation (Narra

Stock Based Compensation (Narrative) (Details) - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2020	Dec. 31, 2019
All award [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share issued	1,000,000
Shares granted	100,000
Outstanding, Aggregate Intrinsic Value	$ 1,000
All award [Member] | Director [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share granted not exceed	$ 150
Restricted Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares granted	66,000	57,100
Vesting period	5 years
Total unrecognized compensation cost	$ 892
Total unrecognized compensation cost, weighted average period	1 year 11 months 4 days
Percentage of RSU granted to employees per year	20.00%
Percentage of RSU granted to non-employee directors per year	100.00%
Performance Stock Units [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares granted	63,600	62,400
Total unrecognized compensation cost	$ 1,288
Total unrecognized compensation cost, weighted average period	1 year 8 months 23 days

Stock Based Compensation (Sched

Stock Based Compensation (Schedule of Restricted Stock Outstanding) (Details) - Restricted Stock [Member] - $ / shares	9 Months Ended	12 Months Ended
	Sep. 30, 2020	Dec. 31, 2019
Shares
Units outstanding at Begning	96,540	73,880
RSUs granted during 2019	66,000	57,100
RSUs earned during 2019	(46,760)	(34,440)
Units outstanding at Ending	115,780	96,540
Weighted Average Grant-Date Fair Value Per Share
Units outstanding at Begning	$ 16.47	$ 16.87
RSUs granted during 2020	14.27	15.81
RSUs earned during 2020	16.33	16.24
Units outstanding at Ending	$ 15.27	$ 16.47

Stock Based Compensation (Sch_2

Stock Based Compensation (Schedule of RSU activity) (Details) - Restricted Stock [Member] - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
RSU compensation expense	$ 211	$ 165	$ 824	$ 627
Income tax benefit	(44)	(35)	(173)	(132)
RSU compensation expense, net of income taxes	$ 167	$ 130	$ 651	$ 495

Stock Based Compensation (Sch_3

Stock Based Compensation (Schedule of Outstanding Performance Stock Units) (Details) - Performance Stock Units [Member] - $ / shares	9 Months Ended	12 Months Ended
	Sep. 30, 2020	Dec. 31, 2019
Shares
Units outstanding at Begning	111,000	48,600
Grants (at target)	63,600	62,400
Units outstanding at Ending	174,600	111,000
Weighted Average Grant Date Fair Value
Units outstanding at Begning	$ 15.27	$ 16.25
Grants (at target)	14.26	15.21
Units outstanding at Ending	$ 15.15	$ 15.27

Stock Based Compensation (Sch_4

Stock Based Compensation (Schedule of PSU Activity) (Details) - Performance Stock Units [Member] - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
PSU compensation expense	$ 274	$ 175	$ 838	$ 647
Income tax benefit	(58)	(37)	(176)	(136)
PSU compensation expense, net of income taxes	$ 216	$ 138	$ 662	$ 511

Earnings Per Share (Details)

Earnings Per Share (Details) - shares	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019	Dec. 31, 2019
Weighted average shares outstanding	21,565,962	22,136,885	21,889,138	22,194,102
Net common shares outstanding	21,346,079		21,346,079		22,119,380
Common Stock [Member]
Net common shares outstanding

Earnings per Share (Schedule of

Earnings per Share (Schedule of Calculations of Basic and Diluted Earnings Per Share) (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Basic earnings (loss) per common share:
Net income (loss) attributable to NI Holdings, Inc.	$ 3,664	$ (6,979)	$ 18,810	$ 9,272
Weighted average shares outstanding	21,565,962	22,136,885	21,889,138	22,194,102
Basic earnings (loss) per common share	$ 0.17	$ (0.32)	$ 0.86	$ 0.42
Numerator:
Net income (loss) attributable to NI Holdings, Inc.	$ 3,664	$ (6,979)	$ 18,810	$ 9,272
Denominator:
Number of shares used in basic computation	21,565,962	22,136,885	21,889,138	22,194,102
Add: Restricted stock units and performance share units	189,266	95,189	149,748	75,398
Number of shares used in diluted computation	21,755,228	22,232,074	22,038,886	22,269,500
Diluted earnings (loss) per common share	$ 0.17	$ (0.31)	$ 0.85	$ 0.42

Segment Information (Schedule o

Segment Information (Schedule of revenue by insurance product line) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019	Jun. 30, 2020	Dec. 31, 2019	Jun. 30, 2019	Dec. 31, 2018
Direct premiums earned	$ 79,455	$ 70,481	$ 224,300	$ 192,233
Assumed premiums earned	1,372	1,234	5,655	5,233
Ceded premiums earned	(7,485)	(4,599)	(15,835)	(14,730)
Net premiums earned	73,342	67,116	214,120	182,736
Direct losses and LAE	59,936	62,248	153,203	138,481
Assumed losses and LAE	2,436	2,017	3,538	3,000
Ceded losses and LAE	(8,536)	(2,707)	(20,119)	(5,496)
Net losses and LAE	53,836	61,558	136,622	135,985
Gross margin	19,506	5,558	77,498	46,751
Underwriting and general expenses	22,144	17,291	61,928	50,925
Underwriting gain (loss)	(2,638)	(11,733)	15,570	(4,174)
Fee and other income	524	527	1,332	1,637
Net investment income	1,886	1,983	5,875	5,504
Net capital gain (loss) on investments	5,102	622	1,380	9,591
Income (loss) before income taxes	4,874	(8,601)	24,157	12,558
Income taxes	1,188	(1,642)	5,259	3,206
Net Income	3,686	(6,959)	18,898	9,352
Net income (loss) attributable to non-controlling interest	22	20	88	80
Net Income attributable to NI Holdings, Inc.	$ 3,664	$ (6,979)	$ 18,810	$ 9,272
Non-GAAP Ratios:
Loss and LAE ratio	73.40%	91.70%	63.80%	74.40%
Expense ratio	30.20%	25.80%	28.90%	27.90%
Combined ratio	103.60%	117.50%	92.70%	102.30%
Premiums and agents' balances receivable	$ 84,868	$ 77,026	$ 84,868	$ 77,026		$ 36,691
Deferred policy acquisition costs	23,885	15,804	23,885	15,804	$ 24,204	15,399	$ 16,721	$ 12,866
Reinsurance recoverables	13,556	5,753	13,556	5,753		4,045
Receivable from Federal Crop Insurance Corporation	9,519	24,191	9,519	24,191		14,230
Goodwill and other intangibles	18,637	2,928	18,637	2,928		2,912
Unpaid losses and LAE	134,803	117,373	134,803	117,373		93,250
Unearned premiums	125,966	101,417	125,966	101,417		$ 89,276
Private Passenger Auto [Member]
Direct premiums earned	19,002	18,256	55,899	52,792
Assumed premiums earned
Assumed premiums earned		(7)
Ceded premiums earned	(1,055)	(933)	(3,267)	(2,698)
Net premiums earned	17,947	17,316	52,632	50,094
Direct losses and LAE	13,570	19,120	33,324	41,300
Assumed losses and LAE		94		173
Assumed lossed and LAE	(165)
Ceded losses and LAE		(498)	(1)	(730)
Ceded losses and LAE	165
Net losses and LAE	13,570	18,716	33,323	40,743
Gross margin	4,377	(1,400)	19,309	9,351
Underwriting and general expenses	5,103	4,438	14,248	14,097
Underwriting gain (loss)	$ (726)	$ (5,838)	$ 5,061	$ (4,746)
Non-GAAP Ratios:
Loss and LAE ratio	75.60%	108.10%	63.30%	81.30%
Expense ratio	28.40%	25.60%	27.10%	28.10%
Combined ratio	104.00%	133.70%	90.40%	109.50%
Premiums and agents' balances receivable	$ 19,269	$ 18,776	$ 19,269	$ 18,776
Deferred policy acquisition costs	5,629	4,143	5,629	4,143
Reinsurance recoverables	341	377	341	377
Receivable from Federal Crop Insurance Corporation
Goodwill and other intangibles
Unpaid losses and LAE	20,399	21,447	20,399	21,447
Unearned premiums	29,203	28,312	29,203	28,312
Non Standard Auto [Member]
Direct premiums earned	13,882	14,167	40,253	44,029
Assumed premiums earned
Ceded premiums earned	(43)	(123)	(129)	(123)
Net premiums earned	13,839	14,044	40,124	43,906
Direct losses and LAE	9,425	8,440	23,560	27,416
Assumed losses and LAE
Ceded losses and LAE
Net losses and LAE	9,425	8,440	23,560	27,416
Gross margin	4,414	5,604	16,564	16,490
Underwriting and general expenses	5,140	5,207	15,482	15,845
Underwriting gain (loss)	(726)	397	1,082	645
Fee and other income	336	363	993	1,339
Other income net	$ (390)	$ 760	$ 2,075	$ 1,984
Non-GAAP Ratios:
Loss and LAE ratio	68.10%	60.10%	58.70%	62.40%
Expense ratio	37.10%	37.10%	38.60%	36.10%
Combined ratio	105.20%	97.20%	97.30%	98.50%
Premiums and agents' balances receivable	$ 7,358	$ 8,186	$ 7,358	$ 8,186
Deferred policy acquisition costs	4,931	4,794	4,931	4,794
Reinsurance recoverables
Receivable from Federal Crop Insurance Corporation
Goodwill and other intangibles	2,872	2,928	2,872	2,928
Unpaid losses and LAE	44,526	47,672	44,526	47,672
Unearned premiums	17,147	16,723	17,147	16,723
Home and Farm [Member]
Direct premiums earned	20,688	19,844	61,062	57,592
Assumed premiums earned		8
Ceded premiums earned	(2,140)	(1,944)	(61,062)	(5,642)
Net premiums earned	18,548	17,908	53,937	51,950
Direct losses and LAE	13,912	18,639	32,661	41,396
Assumed losses and LAE
Ceded losses and LAE	(475)	(41)	(1,826)	(1,329)
Net losses and LAE	13,437	18,598	30,835	40,067
Gross margin	5,111	(690)	23,102	11,883
Underwriting and general expenses	5,507	4,892	15,102	15,327
Underwriting gain (loss)	$ (396)	$ (5,582)	$ 8,000	$ 3,444
Non-GAAP Ratios:
Loss and LAE ratio	72.40%	103.90%	57.20%	77.10%
Expense ratio	29.70%	27.30%	28.00%	29.50%
Combined ratio	102.10%	131.20%	85.20%	106.60%
Premiums and agents' balances receivable	$ 9,323	$ 9,238	$ 9,323	$ 9,238
Deferred policy acquisition costs	7,900	5,945	7,900	5,945
Reinsurance recoverables	1,984	1,330	1,984	1,330
Receivable from Federal Crop Insurance Corporation
Goodwill and other intangibles
Unpaid losses and LAE	12,361	14,574	12,361	14,574
Unearned premiums	41,724	40,114	41,724	40,114
Crop [Member]
Direct premiums earned	12,189	15,943	31,438	31,159
Assumed premiums earned			1,903	2,087
Assumed premiums earned	(33)	(10)
Ceded premiums earned	(2,437)	(1,416)		(5,718)
Ceded premiums earned			109
Net premiums earned	9,719	14,517	33,450	27,528
Direct losses and LAE	12,154	13,977	35,212	23,046
Assumed losses and LAE	617	1,316	839	1,394
Ceded losses and LAE	(3,546)	(2,151)	(5,352)	(2,558)
Net losses and LAE	9,225	13,142	30,699	21,882
Gross margin	494	1,375	2,751	5,646
Underwriting and general expenses	1,542	1,983	3,542	3,091
Underwriting gain (loss)	$ (1,048)	$ (608)	$ (791)	$ 2,555
Non-GAAP Ratios:
Loss and LAE ratio	94.90%	90.50%	91.80%	79.50%
Expense ratio	15.90%	13.70%	10.60%	11.20%
Combined ratio	110.80%	104.20%	102.40%	90.70%
Premiums and agents' balances receivable	$ 39,182	$ 39,275	$ 39,182	$ 39,275
Deferred policy acquisition costs	409	281	409	281
Reinsurance recoverables	3,675	2,855	3,675	2,855
Receivable from Federal Crop Insurance Corporation	9,519	24,191	9,519	24,191
Goodwill and other intangibles
Unpaid losses and LAE	29,723	23,738	29,723	23,738
Unearned premiums	8,730	11,233	8,730	11,233
Commercial [Member]
Direct premiums earned	12,516	1,144	32,173	3,379
Assumed premiums earned				1
Ceded premiums earned	(1,743)	(126)	(5,206)	(380)
Net premiums earned	10,773	1,018	26,967	3,000
Direct losses and LAE	9,257	1,356	26,169	2,169
Assumed losses and LAE
Ceded losses and LAE	(3,680)	(16)	(11,640)	(29)
Net losses and LAE	5,577	1,340	14,529	2,140
Gross margin	5,196	(322)	12,438	860
Underwriting and general expenses	4,289	286	11,842	995
Underwriting gain (loss)	$ 907	$ (608)	$ 596	$ (135)
Non-GAAP Ratios:
Loss and LAE ratio	51.80%	131.60%	53.90%	71.30%
Expense ratio	39.80%	28.10%	43.90%	33.20%
Combined ratio	91.60%	159.70%	97.80%	104.50%
Premiums and agents' balances receivable	$ 9,071	$ 945	$ 9,071	$ 945
Deferred policy acquisition costs	4,564	316	4,564	316
Reinsurance recoverables	5,082		5,082
Reinsurance recoverables		(29)		(29)
Receivable from Federal Crop Insurance Corporation
Goodwill and other intangibles
Unpaid losses and LAE	16,602	1,233	16,602	1,233
Unearned premiums	2,915	2,706	2,915	2,706
All Other [Member]
Direct premiums earned	1,178	2,271	3,475	3,282
Assumed premiums earned	1,405	1,243	3,752	3,145
Ceded premiums earned	(67)	(57)	(217)	(169)
Net premiums earned	2,516	3,331	7,010	6,258
Direct losses and LAE	1,618	2,072		3,154
Assumed losses and LAE	1,984	607		1,433
Ceded losses and LAE	(1,000)	(17)	(1,300)	(850)
Net losses and LAE	2,602	2,662	3,676	3,737
Gross margin	(86)	669	3,334	2,521
Underwriting and general expenses	563	771	1,712	1,570
Underwriting gain (loss)	$ (649)	$ 102	$ 1,622	$ 951
Non-GAAP Ratios:
Loss and LAE ratio	103.40%	79.90%	52.40%	59.70%
Expense ratio	22.40%	23.10%	24.40%	25.10%
Combined ratio	125.80%	103.10%	76.90%	84.80%
Premiums and agents' balances receivable	$ 665	$ 1,551	$ 665	$ 1,551
Deferred policy acquisition costs	452	641	452	641
Reinsurance recoverables	2,474	1,191	2,474	1,191
Receivable from Federal Crop Insurance Corporation
Goodwill and other intangibles
Unpaid losses and LAE	11,192	9,942	11,192	9,942
Unearned premiums	$ 26,247	$ 5,035	$ 26,247	$ 5,035