<general_context>
	- Current date: 2026-11-06 21:06 UTC.
</general_context>
<company_context>
	- Ticker: NODK.
	- Company: NI.
</company_context>


                <data>
                    <label>Press release on Q3 financial results</label>
                    <content>[IMAGE:  | Source: image_001.jpg]
**NI Holdings, Inc. Reports Results for Third
Quarter Ended September 30, 2026**
**FARGO, North Dakota, November 6, 2026** –
NI Holdings, Inc. \(NASDAQ: NODK\) announced today results for the quarter ended September 30, 2026.
**Summary of Third Quarter 2026 Results**
*\(All comparisons vs. the third quarter of 2025,
unless noted otherwise\)*
|  | · | Gross premiums written of $54,346 compared to<br>$58,586 in the prior year quarter. This decrease was driven by Non-Standard Auto \\\(-100.2%\\\) due to the continued impact of the Company’s<br>strategic decision to exit the segment. Also impacting the decrease was a decline in Private Passenger Auto \\\(-8.4%\\\) due to lower new business<br>and renewal premiums in South Dakota and Nebraska and the impact of rate decreases in North Dakota, South Dakota and Nebraska. These declines<br>were partially offset by All Other \\\(\\\+50.6%\\\) due to continued increased assumed premiums from participation on catastrophe reinsurance<br>programs of certain farm bureau insurance companies and Home and Farm \\\(\\\+1.9%\\\) due to strong renewal premiums, rate increases and increased<br>new business in North Dakota.  |
|  | · | Combined ratio of 93.6% versus 109.1% in the<br>prior year quarter. The improvement was primarily driven by favorable prior year development on loss reserves in Non-Standard Auto during<br>the current year quarter compared to unfavorable prior year development in the prior year quarter as well as favorable development on<br>loss reserves for current year storms and lower weather-related losses within the Home and Farm segment. These improvements were slightly<br>offset by higher losses in Crop due to drought conditions in North Dakota as well as increased large loss activity and adverse prior year<br>development on loss reserves in Private Passenger Auto. |
|  | · | Net investment income of $2.7 million, down 10.7%<br>from the prior year quarter, primarily due to a lower average fixed income portfolio balance as proceeds from maturities and sales were<br>used to fund operating cash needs in the Non-Standard Auto segment. |
|  | · | Basic earnings per share of<br>$0.27, compared to basic loss per share of $\\\(0.08\\\) in the prior year quarter, reflecting improved profitability for the quarter.  |
|   | \*\*Three Months Ended September 30,\*\* | \*\*Three Months Ended September 30,\*\* | \*\*Three Months Ended September 30,\*\* |   | \*\*Nine Months Ended September 30,\*\* | \*\*Nine Months Ended September 30,\*\* | \*\*Nine Months Ended September 30,\*\* |   |
| <br>Dollars in thousands, except per share data<br><br><br>\\\(unaudited\\\)<br><br> | \*\*2026\*\* | \*\*2025\*\* | \*\*Change\*\* |   | \*\*2026\*\* | \*\*2025\*\* | \*\*Change\*\* |   |
| Gross premiums written | $54,346 | $58,586 | \\\(7.2%\\\) |   | $219,049 | $238,180 | \\\(8.0%\\\) |   |
| Net premiums earned | $65,756 | $71,905 | \\\(8.6%\\\) |   | $185,886 | $212,407 | \\\(12.5%\\\) |   |
| Loss and loss adjustment expense ratio | 64.1% | 78.2% | \\\(14.1\\\) pts |   | 61.3% | 76.0% | \\\(14.7\\\) pts |   |
| Expense ratio | 29.5% | 30.9% | \\\(1.4\\\) pts |   | 33.1% | 34.0% | \\\(0.9\\\) pts |   |
| Combined ratio | 93.6% | 109.1% | \\\(15.5\\\) pts |   | 94.4% | 110.0% | \\\(15.6\\\) pts |   |
| Net investment income | $2,716 | $3,040 | \\\(10.7%\\\) |   | $8,181 | $9,024 | \\\(9.3%\\\) |   |
| Net investment gains \\\(losses\\\) | $\\\(93\\\) | $1,362 | \*NM\* |   | $3,674 | $1,821 | \*NM\* |   |
| Net income \\\(loss\\\) | $5,528 | $\\\(1,666\\\) | \*NM\* |   | $18,182 | $\\\(7,257\\\) | \*NM\* |   |
| Return on average equity | 9.0% | \\\(2.7%\\\) | 11.7 pts |   | 10.0% | \\\(4.0%\\\) | 14.0 pts |   |
| Basic earnings \\\(loss\\\) per<br>    share | $0.27 | $\\\(0.08\\\) | \*NM\* |   | $0.87 | $\\\(0.35\\\) | \*NM\* |   |
| \*NM = not meaningful\* | \*NM = not meaningful\* | \*NM = not meaningful\* | \*NM = not meaningful\* | \*NM = not meaningful\* | \*NM = not meaningful\* | \*NM = not meaningful\* | \*NM = not meaningful\* |   |
**Management Commentary**
“We delivered significantly improved underwriting results in
the third quarter, reflecting continued progress on our strategic priorities,” said Cindy Launer, President and Chief Executive
Officer. “We are seeing strong performance in Home and Farm in North Dakota and continued progress in the runoff of Non-Standard
Auto. Despite challenges in Crop and Private Passenger Auto, we are encouraged by our momentum and believe we are well positioned to deliver
more consistent, profitable performance and long-term shareholder value.”
***Securities and Exchange Commission \(SEC\) Filings***
The Company’s Quarterly Report on Form
10-Q and latest financial supplement can be found on the Company’s website at *<u>www.niholdingsinc.com</u>*. The Company’s
filings with the SEC can also be found at *<u>www.sec.gov</u>*.
***About the Company***
*NI Holdings, Inc. is an insurance holding company.
The Company 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 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. NI Holdings’ financial statements are the consolidated financial results of NI Holdings; Nodak Insurance, including
Nodak’s wholly-owned subsidiaries American West Insurance Company, Primero Insurance Company, and Battle Creek Insurance Company;
and Direct Auto Insurance Company.*
***Safe Harbor Statement***
*Some of the statements included in this news
release, particularly those anticipating future financial performance, business prospects, growth and operating strategies, the impact
of exiting the Non-Standard Auto segment and other strategic actions on operating results, our ability to continue to improve performance,
our ability to create long-term value for our shareholders, and similar matters, are forward-looking statements within the meaning of
the U.S. Private Securities Litigation Reform Act of 1995. Actual results could vary materially. Factors that could cause actual results
to vary materially include: our ability to maintain profitable operations, the adequacy of the loss and loss adjustment expense reserves,
business and economic conditions, the changes in the international trade policies and the potential impact of such changes, interest rates,
competition from various insurance and other financial businesses, terrorism, the availability and cost of reinsurance, adverse and catastrophic
weather events, including the impacts of climate change, legal and judicial developments, changes in regulatory requirements, our ability
to integrate and manage successfully the insurance companies we may acquire from time to time, the impact of inflation on our operating
results, and other risks we describe in the periodic reports we file with the SEC. You should not place undue reliance on any such forward-looking
statements. We disclaim any obligation to update such statements or to announce publicly the results of any revisions that we may make
to any forward-looking statements to reflect the occurrence of anticipated or unanticipated events or circumstances after the date of
such statements, except as required by applicable securities law.*
*For a detailed discussion of the risk factors
that could affect our actual results, please refer to the risk factors identified in our SEC reports, including, but not limited to our
Annual Report on Form 10-K, as filed with the SEC.*
***Investor Relations Contact:*** *Matt Maki*
*Executive Vice President, Treasurer and Chief Financial Officer
701-212-5976
IR@nodakins.com*</content>
                </data>
            

                <data>
                    <label>NODK 10-Q, date: 2026-11-06 21:06 UTC</label>
                    <content>UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q
For the quarterly period ended September 30, 2026

For the transition period fromto
Commission file number 001-37973

NI HOLDINGS, INC.

\(Exact name of registrant as specified in its charter\)

\(701\) 298-4200

Registrant’s telephone number, including area code

Not applicable

Former name, former address, and former fiscal year, if changed since last report

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

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

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
i
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13\(a\) of the Exchange Act. ☐

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

The number of shares of Registrant’s common stock outstanding on October 31, 2026 was . No preferred shares are issued or outstanding.
ii

TABLE OF CONTENTS

iii

CERTAIN IMPORTANT INFORMATION
Unless the context otherwise requires, as used in this Quarterly Report on Form 10-Q \(“Form 10-Q”\):
1

FORWARD-LOOKING STATEMENTS
This report contains, and management may make, certain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. All statements, other than statements of historical facts, may be forward-looking statements. Words such as “may,” “will,” “should,” “likely,” “anticipates,” “expects,” “intends,” “plans,” “projects,” “believes,” “views,” “estimates,” and similar expressions are used to identify these forward-looking statements. These statements include, among other things, the Company’s statements about:

Given their nature, we cannot assure that any outcome expressed in these or other forward-looking statements will be realized in whole or in part. Actual outcomes may vary materially from past results and those anticipated, estimated, implied, or projected. These forward-looking statements may be affected by underlying assumptions that may prove inaccurate or incomplete, or by known or unknown risks and uncertainties, including those described in Part II, Item 1A, “Risk Factors” of this Quarterly Report on Form 10-Q \(“Form 10-Q”\) and in the Part I, Item 1A, “Risk Factors” section in our Annual Report on Form 10-K for the year ended December 31, 2025 \(“2025 Annual Report”\). The occurrence of any of the risks identified in the Part I, Item 1A, “Risk Factors” section of the 2025 Annual Report, or other risks currently unknown, could have a material adverse effect on our business, financial condition or results of operations, or we may be required to increase our accruals for contingencies. It is not possible to predict or identify all such factors. Consequently, you should not consider such discussion to be a complete discussion of all potential risks or uncertainties.

Therefore, you are cautioned not to unduly rely on forward-looking statements, which speak only as of the date of this Form 10-Q. We undertake no obligation to update forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable securities law. You are advised, however, to consult any further disclosures we make on related subjects.
2

Part I. - FINANCIAL INFORMATION
Item 1. - Financial Statements

NI Holdings, Inc.

Consolidated Balance Sheets \(Unaudited\)

\(dollar amounts in thousands, except par value\)

The accompanying notes are an integral part of these unaudited consolidated financial statements.
3
NI Holdings, Inc.

Consolidated Statements of Operations \(Unaudited\)

\(dollar amounts in thousands, except per share data\)

The accompanying notes are an integral part of these unaudited consolidated financial statements.
4
NI Holdings, Inc.

Consolidated Statements of Comprehensive Income \(Loss\) \(Unaudited\)

\(dollar amounts in thousands\)

The accompanying notes are an integral part of these unaudited consolidated financial statements.
5
NI Holdings, Inc.

Consolidated Statements of Changes in Shareholders’ Equity \(Unaudited\)

\(dollar amounts in thousands\)

The accompanying notes are an integral part of these unaudited consolidated financial statements.
6
NI Holdings, Inc.

Consolidated Statements of Changes in Shareholders’ Equity \(Unaudited\)

\(dollar amounts in thousands\)

The accompanying notes are an integral part of these unaudited consolidated financial statements.
7
NI Holdings, Inc.

Consolidated Statements of Cash Flows \(Unaudited\)

\(dollar amounts in thousands\)

The accompanying notes are an integral part of these unaudited consolidated financial statements.
8
Notes to Unaudited Consolidated Financial Statements

NI Holdings is a North Dakota business corporation that is the stock holding company of Nodak Insurance and became such in connection with the Nodak conversion, whereby Nodak Mutual Insurance Company converted from a mutual to stock form of organization and the creation of a mutual holding company. The Nodak conversion was consummated on March 13, 2017. Immediately following the Nodak conversion, all of the outstanding shares of common stock of Nodak Insurance were issued to Nodak Mutual Group, which then contributed the shares to NI Holdings in exchange for % of the outstanding shares of common stock of NI Holdings. Nodak Insurance then became a wholly-owned stock subsidiary of NI Holdings. Prior to completion of the Nodak conversion, NI Holdings conducted no business and had no assets or liabilities. As a result of the Nodak conversion, NI Holdings became the holding company for Nodak Insurance and its existing subsidiaries.

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

Nodak Insurance Company

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

Nodak Agency, Inc.

Nodak Agency is an inactive shell corporation.

American West Insurance Company

American West is a property and casualty insurance company licensed in eight states in the Midwest and Western regions of the United States \(“U.S.”\). American West primarily writes private passenger auto, homeowners, and farm coverages in South Dakota. American West also writes private passenger auto coverage in North Dakota, as well as crop hail and federal multi-peril crop insurance coverages in Minnesota and South Dakota.

Battle Creek Insurance Company

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

Primero Insurance Company

Primero is a wholly-owned subsidiary of Tri-State, Ltd. Tri-State, Ltd. is an inactive shell corporation that is % owned by Nodak Insurance. Primero is a property and casualty insurance company that primarily provides non-standard auto coverage in the states of Arizona, North Dakota, South Dakota, and Nevada. The Company made the strategic decision to stop writing non-standard auto business for Primero in Nevada during 2024, Arizona and South Dakota during the third quarter of 2025, and North Dakota during the third quarter of 2026, and existing policies for these states have been or will be non-renewed.

Direct Auto Insurance Company

Direct Auto is a property and casualty insurance company that provides non-standard auto coverage in the state of Illinois. The Company made the strategic decision to stop writing non-standard auto business for Direct Auto in Illinois during the third quarter of 2025, and existing policies have been non-renewed.

9

Organizational Structure and Credit Ratings

Nodak Insurance markets and distributes its policies through its captive agents, while all other companies utilize the independent agent distribution channel. Additionally, all of the Company’s insurance subsidiary and affiliate companies as of September 30, 2026, are rated “A” Excellent by A.M. Best Company, Inc. \(“AM Best”\), a global credit rating agency specializing in the insurance industry. The same executive management team provides oversight and strategic direction for the entire organization.

Geographic Concentration

The states of North Dakota, Nebraska, and South Dakota accounted for %, %, and % of direct premiums written during the nine months ended September 30, 2026. No other states accounted for more than 10.0% of direct premiums written during the nine months ended September 30, 2026.

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 statement have been included. All material intercompany transactions and balances have been eliminated. These financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in our 2025 Annual Report.

The Consolidated Balance Sheet at December 31, 2025, has been derived from the audited consolidated financial statements at that date but does not include all of the information and footnotes required by GAAP for complete financial statements.

The preparation of the interim unaudited consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the interim unaudited consolidated financial statements and the reported amounts of revenues, claims, and expenses during the reporting period.

We make estimates and assumptions that can have a significant effect on amounts and disclosures we report in our unaudited consolidated financial statements. The most significant estimates relate to our reserves for unpaid losses and loss adjustment expenses, earned premiums for crop insurance, valuation of investments, determination of credit impairments, valuation allowances for deferred income tax assets, as well as deferred policy acquisition costs. While we believe our estimates are appropriate, the ultimate amounts may differ from the estimates provided. We regularly review our methods for making these estimates as well as the continued appropriateness of the estimated amounts, and we reflect any adjustment we consider necessary in our current results of operations.

Operating results for the interim periods ended September 30, 2026, are not necessarily indicative of the results that may be expected for the year ending December 31, 2026.

Our 2025 Annual Report describes the accounting policies and estimates that are critical to the understanding of our results of operations, financial condition, and liquidity. The accounting policies and estimation processes described in the 2025 Annual Report were consistently applied to the unaudited consolidated financial statements as of and for the three and nine months ended September 30, 2026 and 2025.

Enactment of the One Big Beautiful Bill Act of 2025

On July 4, 2025, the U.S. enacted a budget reconciliation package known as the One Big Beautiful Bill Act of 2025 \(“OBBBA”\) which includes both tax and non-tax provisions. The legislation has multiple effective dates, with certain provisions effective in 2025 and others through 2027. The Company believes that the changes resulting from the tax provisions in the OBBBA are not expected to have a material impact on the Company’s results of operations.

10

Recent Accounting Pronouncements

Not Yet Adopted

Disaggregation of Income Statement Expenses

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

Internal-Use Software

In September 2025, the FASB issued ASU 2025-06, "Intangibles - Goodwill and Other - Internal-Use Software \(Subtopic 350-40\): Targeted Improvements to the Accounting for Internal-Use Software." This guidance modernizes the accounting for internal-use software under ASC 350-40 to adapt to different development practices, especially agile and iterative methods. The updated guidance requires that an entity capitalize software costs when both: 1\) management has authorized and committed to the funding of the software project, and 2\) it is probable that the project will be completed, and the software will be used to perform its intended function. This update is effective for interim and annual periods beginning after December 15, 2027, with early adoption permitted. The Company has determined this guidance is not expected to have a material impact on the consolidated financial statements.
11
The amortized cost and estimated fair value of fixed income securities as of September 30, 2026, and December 31, 2025, were as follows:

The amortized cost and estimated fair value of fixed income securities by contractual maturity are shown below. Actual maturities could differ from contractual maturities because issuers may have the right to call or prepay these securities.

12

Fixed income securities and restricted cash with a fair value of $ at September 30, 2026, and $ at December 31, 2025, were deposited with various state regulatory agencies as required by law. The Company has not pledged any assets to secure any obligations.

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

We, along with our investment advisor, frequently review our investment portfolio for declines in fair value that could be indicative of credit losses, which are recognized through an allowance account. We consider a number of factors when determining if an allowance for credit losses is necessary, including payment and default history, credit spreads, credit ratings and rating actions, and probability of default. We determine the credit loss component of fixed income investments by utilizing discounted cash flow modeling to determine the present value of the security and comparing the present value with the amortized cost of the security. We have not recognized any credit losses for fixed income securities and have concluded that an allowance is not required. There was no beginning balance, activity, or ending balance of credit losses as of and during the three and nine months ended September 30, 2026 and 2025.

13

Net investment income consisted of the following:

Net investment gains \(losses\) consisted of the following:

Non-cash investment transactions were $ and $ for the three and nine months ended September 30, 2026, respectively. Non-cash investment transactions were $ and $ for the three and nine months ended September 30, 2025, respectively.

The Company maintains cash and money market accounts at multiple major financial institutions. Certain account balances exceed the Federal Deposit Insurance Corporation insurance limits of $ per account. As a result, there is a concentration of credit risk related to amounts in excess of the insurance limits. The Company believes there is no exposure to any significant credit risk in these balances due to the financial stability of these financial institutions.
14
The Company uses fair value measurements to record fair value adjustments to certain assets to determine fair value disclosures. Investment securities available for sale are recorded at fair value on a recurring basis. Additionally, from time to time, we may be required to record other assets or liabilities at fair value on a nonrecurring basis. These nonrecurring fair value adjustments typically involve application of lower-of-cost-or-market accounting or write-downs of individual assets. Accounting guidance on fair value measurements and disclosures establishes a fair value hierarchy that prioritizes the inputs to valuation methods used to measure fair value. The three levels of the fair value hierarchy are as follows:

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

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

Should the independent pricing service be unable to provide a fair value estimate, we would first attempt to obtain a fair value estimate from a second independent pricing service. If unsuccessful, we would attempt to obtain a non-binding fair value estimate from a number of broker-dealers and would review this estimate in conjunction with a fair value estimate reported by an independent business news service or other sources. In instances where only one broker-dealer provides a fair value for a fixed income security, we would use that estimate. In instances where the Company would be able to obtain fair value estimates from more than one broker-dealer, we would review the range of estimates and select the most appropriate value based on the facts and circumstances. Should neither the independent pricing service nor a broker-dealer provide a fair value estimate, we would develop a fair value estimate based on cash flow analyses and other valuation techniques that utilize certain unobservable inputs. Accordingly, the Company classifies such a security as a Level 3 investment.

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

15

Management reviews the reasonableness of the pricing provided by the independent pricing service by employing various analytical procedures. We also use information from a second independent pricing service to further validate the reasonableness of the valuation of our fixed income portfolio. If, after this review, management does not believe the pricing for any security is a reasonable estimate of fair value, then it will seek to resolve the discrepancy through discussions with the independent pricing services. In its review, management did not identify any such discrepancies and no adjustments were made to the estimates provided by the independent pricing services for the nine-month period ended September 30, 2026, or the year ended December 31, 2025. The classification within the fair value hierarchy is then confirmed based on the final conclusions from the pricing review.

The valuation of money market accounts, preferred stocks, and equity securities are generally based on Level 1 inputs, which use the market-approach valuation technique. The valuation of certain cash equivalents and our fixed income securities generally incorporates significant Level 2 inputs using the market and income approach techniques. We may assign a lower level to inputs typically considered to be Level 2 based on our assessment of liquidity and relative level of uncertainty surrounding inputs. There were no assets or liabilities classified at Level 3 at September 30, 2026, or December 31, 2025.

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:

There were no liabilities measured at fair value on a recurring basis at September 30, 2026, or December 31, 2025.
16
External Reinsurance

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

During the nine-month period ended September 30, 2026, the Company maintained property catastrophe reinsurance protection covering $ in excess of a $ retention. Our per risk excess of loss treaty provides coverage of $ in excess of $ for property risks and $ in excess of $ for casualty risks. Additionally, a property per-risk facultative contract is in place to provide coverage up to $ in excess of $ per property. Aggregate stop loss reinsurance agreements are also in place for both crop hail and multi-peril crop coverage. The crop hail aggregate attaches at a % net loss ratio providing 50 points of cover. The multi-peril crop aggregate attaches at a % net loss ratio providing 45 points of cover. In addition to the aggregate covers, underlying multi-peril crop reinsurance is provided through the Federal Crop Insurance Corporation \(“FCIC”\).

During the year ended December 31, 2025, the Company maintained property catastrophe reinsurance protection covering $ in excess of a $ retention. Our per risk excess of loss treaty provides coverage of $ in excess of $ for property risks and $ in excess of $ for casualty risks. Additionally, a property per-risk facultative contract is in place to provide coverage up to $ in excess of $ per property. Aggregate stop loss reinsurance agreements are also in place for both crop hail and multi-peril crop coverage. The crop hail aggregate attaches at a % net loss ratio providing 50 points of cover. The multi-peril crop aggregate attaches at a % net loss ratio providing 45 points of cover. In addition to the aggregate covers, underlying multi-peril crop reinsurance is provided through the FCIC.

The Company actively monitors and evaluates the financial condition of the reinsurers and develops estimates of the uncollectible amounts due from reinsurers, which would be recognized as credit losses through an allowance account developed using the current expected credit losses \(“CECL”\) model. Credit loss estimates are made based on periodic evaluation of balances due from reinsurers, changes in reinsurer credit standing, judgments regarding reinsurers’ solvency, known disputes, reporting characteristics of the underlying reinsured business, historical experience, current economic conditions, the state of reinsurer relations in general, and other relevant factors. Collection risk is mitigated by entering into reinsurance arrangements only with reinsurers that have strong credit ratings and statutory surplus above certain levels. At September 30, 2026, and December 31, 2025, management has concluded that it is not necessary to record an allowance for expected credit losses related to reinsurance recoverables. All of our significant reinsurance partners are rated “A-” \(Excellent\) or better by AM Best or “A\+” or better by Standard & Poor’s, and there is no history of write-offs.

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

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

Intercompany Reinsurance Pooling Arrangement

Effective January 1, 2020, all of our insurance subsidiary and affiliate companies entered into an intercompany reinsurance pooling agreement. Nodak Insurance is the lead company of the pool, and assumes the net premiums, net losses, and underwriting expenses from each of the other companies. Nodak Insurance then retrocedes balances back to each company, while retaining its own share of the pool’s net underwriting results, based on individual pool percentages established in the respective pooling agreement. This arrangement allows each insurance company to rely upon the capacity of the pool’s total statutory capital and surplus. As a result, they are evaluated by AM Best on a group basis and hold a single combined financial strength rating, long-term issuer credit rating, and financial size category. Pooling percentages for the insurance subsidiaries are updated periodically based on their respective surplus as a percentage of the pool’s surplus.
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Expenses directly related to successfully acquired insurance policies, primarily commissions, premium taxes and underwriting costs, are deferred and amortized over the terms of the policies. We update our acquisition cost assumptions periodically to reflect actual experience, and we evaluate the costs for recoverability.

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

During the three and nine months ended September 30, 2026, the Company’s incurred reported losses and loss adjustment expense included $ and $, respectively, of net favorable development on prior accident years. This was primarily attributable to favorable development for the Non-Standard Auto and Home and Farm segments. During the three and nine months ended September 30, 2025, the Company’s incurred reported losses and loss adjustment expenses included $ and $, respectively, of net unfavorable development on prior accident years. This was primarily attributable to unfavorable development for the Non-Standard Auto segment.

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

Depreciation expense was $ and $ for the three months ended September 30, 2026 and 2025, respectively, and $ and $ for the nine months ended September 30, 2026 and 2025, respectively.

North Dakota Farm Bureau

Nodak Insurance was organized by the North Dakota Farm Bureau \(“NDFB”\) to provide insurance protection for its members. We have a royalty agreement with the NDFB that recognizes the use of their trademark and provides royalties to the NDFB based on the premiums written on Nodak Insurance’s policies. Royalties paid to the NDFB were $ and $ during the three months ended September 30, 2026 and 2025, respectively, and $ and $ for the nine months ended September 30, 2026 and 2025, respectively. Royalty amounts payable of $ and $ were accrued as a liability to the NDFB at September 30, 2026, and December 31, 2025, respectively.

Dividends

State insurance laws require our insurance subsidiaries to maintain certain minimum capital and surplus amounts on a statutory basis. Our insurance subsidiaries are subject to regulations that restrict the payment of dividends from statutory surplus and may require prior approval from their domiciliary insurance regulatory authorities. Our insurance subsidiaries are also subject to risk-based capital requirements that may further affect their ability to pay dividends. Our insurance subsidiaries statutory capital and surplus at December 31, 2025, exceeded the amount of statutory capital and surplus necessary to satisfy risk-based capital requirements. For information regarding the availability of subsidiaries to pay dividends to NI Holdings during 2026, see Part II, Item 8, Note 11 “Royalties, Dividends, and Affiliations” section of the 2025 Annual Report.

Nodak Insurance sponsors a 401\(k\) plan with an automatic and matching contribution for eligible employees at Nodak Insurance, Primero, and Direct Auto. Nodak Insurance also contributes an additional elective amount of employee compensation as a profit-sharing contribution for eligible employees. American West and Battle Creek have no employees. The Company reported expenses related to these plans totaling $ and $ during the three months ended September 30, 2026 and 2025, respectively, and $ and $ during the nine months ended September 30, 2026 and 2025, respectively.

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

The Company also offers a non-qualified deferred compensation plan to key executives of the Company \(as designated by the Board of Directors\). The Company’s policy is to fund the plan by amounts that represent the excess of the maximum contribution allowed by the Employee Retirement Income Security Act over the key executives’ allowable 401\(k\) contribution. The plan also allows employee-directed deferral of key executives’ compensation or incentive payments. The Company reported expenses related to this plan totaling $ and $ during the three months ended September 30, 2026 and 2025, respectively, and $ and $ during the nine months ended September 30, 2026 and 2025, respectively.

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In connection with our initial public offering \(“IPO”\) in March 2017, the Company established its Employee Stock Ownership Plan \(the “ESOP”\) within the meaning of Internal Revenue Code Section 4975\(e\)\(7\) and invests solely in common stock of the Company.

Upon establishment of the ESOP, Nodak Insurance loaned $ to the ESOP’s related trust \(the “ESOP Trust”\). The ESOP loan was for a period of ten years, bearing interest at the long-term Applicable Federal Rate effective on the closing date of the offering \(% annually\). The ESOP Trust used the proceeds of the loan to purchase shares in our IPO, which resulted in the ESOP Trust owning approximately % of the Company’s authorized shares. The ESOP has purchased the shares for investment and not for resale.

The shares purchased by the ESOP Trust in the offering are held in a suspense account as collateral for the ESOP loan. Nodak Insurance makes semi-annual cash contributions to the ESOP in amounts no smaller than the amounts required for the ESOP Trust to make its loan payments to Nodak Insurance. While the ESOP makes two loan payments per year, a pre-determined portion of the shares are released from the suspense account and allocated to participant accounts at the end of the calendar year. This release and allocation occurs on an annual basis over the ten-year term of the ESOP loan. Nodak Insurance has a lien on the shares of common stock of the Company held by the ESOP to secure repayment of the loan from the ESOP to Nodak Insurance. If the ESOP is terminated as a result of a change in control of the Company, the ESOP may be required to pay the costs of terminating the plan.

It is anticipated that the only assets held by the ESOP will be shares of the Company’s common stock. Participants in the ESOP cannot direct the investment of any assets allocated to their accounts. The ESOP participants are employees of Nodak Insurance. The employees of Primero and Direct Auto do not participate in the ESOP.

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

In connection with the establishment of the ESOP, the Company created a contra-equity account on the Consolidated Balance Sheet equal to the ESOP’s basis in the shares. The basis of those shares was set at $ per share as part of the IPO. As shares are released from the ESOP suspense account, the contra-equity account is credited, which reduces the impact of the contra-equity account on the Company’s Consolidated Balance Sheets over time. The Company records compensation expense related to the shares released, equal to the number of shares released from the suspense account multiplied by the average market value of the Company’s stock during the period.

The Company recognized compensation expense related to the ESOP of $ and $ during the three months ended September 30, 2026 and 2025, respectively, and $ and $ during the nine months ended September 30, 2026 and 2025, respectively.

Through September 30, 2026, and December 31, 2025, the Company had released and allocated ESOP shares to participants, with a remainder of ESOP shares in suspense at September 30, 2026, and December 31, 2025. Using the Company’s quarter-end market price of $ per share, the fair value of the unearned ESOP shares was $ at September 30, 2026.

NI Holdings has a $ line of credit with Wells Fargo Bank, N.A. The terms of the line of credit include a floating interest rate of % above the daily simple secured overnight financing rate. There were no outstanding amounts during the nine months ended September 30, 2026, or the year ended December 31, 2025. This line of credit is scheduled to expire on .

We record any change to a previously recorded valuation allowance as a result of re-measuring existing temporary differences and loss carryforwards as a component of income tax expense \(benefit\). The valuation allowance against certain deferred income tax assets was $ and $ at September 30, 2026 and December 31, 2025, respectively.

At September 30, 2026, and December 31, 2025, we had no unrecognized tax benefits, no accrued interest and penalties, and no significant uncertain tax positions. No interest and penalties on uncertain tax positions were recognized during the nine-month period ended September 30, 2026, or the year ended December 31, 2025.

Our effective tax rate was % and % for the three and nine months ended September 30, 2026, respectively, which reflects the impact of tax-exempt investment income on the calculation of the Company’s income tax provision. The effective tax rate was not impacted by the change in valuation allowance noted above. The effective tax rate was % and % for the three and nine months ended September 30, 2025, respectively, which was impacted by a change in our forecasted taxable income which impacted our annual effective tax rate.
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We are, from time to time, party to routine litigation incidental to the normal course of our business. Based upon information presently available to us, we do not consider any litigation to be material. However, given the uncertainties attendant to litigation, we cannot assure you that our results of operations and financial condition will not be materially adversely affected by any litigation. Contingent liabilities arising from litigation, income taxes, and other matters are not considered to be material to our financial position.

Common Stock

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

The changes in the number of common shares outstanding excludes certain non-forfeitable stock award shares that are included in the weighted average common shares outstanding used in basic earnings per common share calculations.

On August 25, 2025, our Board of Directors approved an authorization for the repurchase of up to approximately $ of the Company’s outstanding common stock in addition to the $ remaining from the May 9, 2022 authorization. During the nine months ended September 30, 2025, we completed the repurchase of shares of our common stock for $ under this authorization, including the applicable excise tax. During the year ended December 31, 2025, we completed the repurchase of shares of our common stock for $, including the effects from applicable excise taxes under these authorizations. As of December 31, 2025, these share repurchases closed out the May 9, 2022 authorization, and $ remained available under the August 25, 2025 authorization. During the nine months ended September 30, 2026, we completed the repurchase of shares of our common stock for $, including the effects from applicable excise taxes under these authorizations. On September 30, 2026, $ remains available under this authorization.

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

Preferred Stock

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

The NI Holdings, Inc. 2020 Stock and Incentive Plan \(the “Plan”\) is designed to promote the interests of the Company and its shareholders by aiding the Company in attracting and retaining employees, officers, consultants, independent contractors, advisors, and non-employee directors capable of assuring the future success of the Company, to offer such persons incentives to put forth maximum efforts for the success of the Company’s business and to afford such persons an opportunity to acquire an ownership interest in the Company, thereby aligning the interests of such persons with the Company’s shareholders.

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

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The total aggregate number of shares of common stock that may be issued under the Plan shall not exceed shares, subject to adjustments as provided in the Plan. No eligible participant may be granted any awards for more than 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 $ in value. Directors who are not also employees of the Company may not be granted awards denominated in shares that exceed $ in any calendar year.

Restricted Stock Units

The Compensation Committee has awarded RSUs to non-employee directors and select executives. RSUs are promises to issue actual shares of common stock at the end of a vesting period. The RSUs granted to executives under the Plan are based on salary. RSUs granted prior to 2024 vest equally over a five-year period. Effective for executive grants beginning in 2024, the RSUs vest equally over a three-year period. As approved by the Compensation Committee, all executive share-based compensation granted in 2025 and 2026 was awarded as RSUs. The RSUs granted to non-employee directors vest % on the date of the next annual meeting of shareholders following the grant date. If applicable, dividend equivalents on RSUs are accrued during the vesting period and paid in cash at the end of the vesting period but are subject to forfeiture until the underlying shares become vested. Participants do not have voting rights with respect to RSUs.

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

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

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

At September 30, 2026, there was $ of unrecognized compensation cost related to outstanding RSUs. That cost is expected to be recognized over a weighted-average period of years.

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Performance Share Units

The Compensation Committee has awarded PSUs to select executives. PSUs are promises to issue actual shares of common stock at the end of a vesting period, if certain performance conditions are met. The PSUs granted to employees under the Plan are based on salary and, prior to 2024, include a three-year adjusted book value cumulative growth target with threshold and stretch goals. For grants made in 2024, the performance metric is calculated based on an adjusted return on equity over a three-year period, with annual resets. There were no PSUs granted in 2025 or 2026. PSUs 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. If applicable, dividend equivalents on PSUs are accrued and paid in cash at the end of the performance period in accordance with the level of performance achieved but are subject to forfeiture until the underlying shares become vested. Participants do not have voting rights with respect to PSUs.

The Company recognizes stock-based compensation costs for PSUs based on the grant date fair value over the performance period of the awards. Estimated forfeitures are included in the determination of compensation costs. The current cost estimates represent the Company’s forecasted performance against cumulative growth targets.

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

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

The cost estimates for PSU grants represent initial target awards until we can reasonably forecast the financial performance of each PSU award grant. At the end of the performance period, we will reflect a performance adjustment, which may be either an increase or decrease from the initial target awards. The actual number of shares to be issued at the end of the performance period will range from % to % of the initial target awards. During the nine months ended September 30, 2026, a performance adjustment was recorded to compensation expense related to the PSU awards granted during 2024 due to the Company's expectations regarding performance goals. During the year ended December 31, 2025, no performance adjustments were made to previously recognized compensation expenses.

At September 30, 2026, there was $ of unrecognized compensation cost related to outstanding PSUs. That cost is expected to be recognized over a weighted-average period of years.
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Premiums Receivable

The following table presents the balances of premiums and agents’ balances receivable, net of the allowance for expected credit losses as of September 30, 2026 and 2025, and the changes in the allowance for expected credit losses for the three and nine months ended September 30, 2026 and 2025.
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We have five reportable operating segments, which consist of Private Passenger Auto, Non-Standard Auto, Home and Farm, Crop, and All Other \(which primarily consists of commercial, assumed reinsurance, and our excess liability business\). We operate only in the U.S., and no single customer or agent provides 10 percent or more of our revenues. The following tables provide available information of these segments.

Segment underwriting gain \(loss\) is used to monitor segment results compared to prior period, forecasted results, and the annual plan.

We do not assign or allocate all line items in our Consolidated Statement of Operations or Consolidated Balance Sheets to our operating segments. Those line items include fee and other income, net investment income, net investment gains \(losses\), and income tax expense \(benefit\) within the Consolidated Statement of Operations.

NM = not meaningful due to the significantly reduced amount of net premium earned in the current year as a result of the strategic decision to stop writing non-standard auto business

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

NM = not meaningful due to the significantly reduced amount of net premium earned in the current year as a result of the strategic decision to stop writing non-standard auto business

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

NM = not meaningful due to the significantly reduced amount of net premium earned in the current year as a result of the strategic decision to stop writing non-standard auto business

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

NM = not meaningful due to the significantly reduced amount of net premium earned in the current year as a result of the strategic decision to stop writing non-standard auto business

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Item 2. - Management’s Discussion and Analysis of Financial Condition and Results of Operations

The following discussion is intended to provide a more comprehensive review of our operating results and financial condition than can be obtained from reading the unaudited consolidated financial statements alone. This discussion should be read in conjunction with the unaudited consolidated financial statements and the notes thereto included in Part I, Item 1, “Financial Statements.” Some of the information contained in this discussion and analysis or set forth elsewhere in this Form 10-Q constitutes forward-looking statements that involve risks and uncertainties. Please see “Forward-Looking Statements” included elsewhere in this Form 10-Q. Part I, Item 1A, “Risk Factors” included in our 2025 Annual Report should also be reviewed for a discussion of important factors that could cause actual results to differ materially from the results described, or implied by, the forward-looking statements contained herein.

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

Financial Highlights

2026 Third Quarter Consolidated Results of Operations

2026 Third Quarter Consolidated Financial Condition
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Results of Operations

Our consolidated net income \(loss\) was $5,528 and \($1,666\) for the three months ended September 30, 2026 and 2025, respectively. Our consolidated net income \(loss\) was $18,182 and \($7,257\) for the nine months ended September 30, 2026 and 2025, respectively.

The major components of our revenues and net loss are shown below:

Net Premiums Earned

Net premiums earned for the three months ended September 30, 2026, decreased $6,149, or 8.6%, compared to the three months ended September 30, 2025. Net premiums earned for the nine months ended September 30, 2026, decreased $26,521, or 12.5%, compared to the nine months ended September 30, 2025.
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Below are comments regarding significant changes in net premiums earned by business segment:

Private Passenger Auto – Net premiums earned for the third quarter of 2026 decreased $1,327, or 5.7%, compared to the same period in 2025. Net premiums earned for the first nine months of 2026 decreased $2,518, or 3.7% from the first nine months of 2025. Results were driven by lower new business and renewal premiums in South Dakota and Nebraska and the impact of rate decreases in North Dakota, South Dakota and Nebraska, partially offset by increased new business year to date in North Dakota.

Non-Standard Auto – Net premiums earned for the third quarter of 2026 decreased $10,521, or 96.9%, compared to the same period in 2025. Net premiums earned for the first nine months of 2026 decreased $39,733, or 91.1% from the first nine months of 2025. These decreases were driven by the strategic decisions to stop writing non-standard auto business in Illinois, Arizona, and South Dakota during the third quarter of 2025 and in North Dakota during the third quarter of 2026, with existing policies being non-renewed. We anticipate further reductions in net premiums earned in the near term as a result of the decisions to run off these non-standard auto operations.

Home and Farm – Net premiums earned for the third quarter of 2026 increased $2,963, or 12.5%, compared to the same period in 2025. Net premiums earned for the first nine months of 2026 increased $9,744, or 14.2% from the first nine months of 2025. Results were driven by higher renewal premiums, increased new business and rate increases in North Dakota, partially offset by lower new business in South Dakota and Nebraska. Results were also impacted by lower ceded premiums earned compared to the prior year due to the significant catastrophe event in North Dakota during the second quarter of 2025.

Crop– Net premiums earned for the third quarter of 2026, increased $1,281, or 12.4%, compared to the same period in 2025. Net premiums earned for the first nine months of 2026 increased $785, or 3.8% from the first nine months of 2025. The increase in both periods was primarily the result of increased direct written premiums within the segment due to an increased governmental subsidy for certain multi-peril crop insurance products, as well as improved quoting capabilities that led to increased new business.

All Other – Net premiums earned for the third quarter of 2026, increased $1,455, or 37.9%, compared to the same period in 2025. Net premiums earned for the first nine months of 2026 increased $5,201, or 48.9%, from the first nine months of 2025. Results were primarily driven by the Company’s decision to participate on the catastrophe reinsurance programs of certain farm bureau insurance companies.

Losses and Loss Adjustment Expenses

Our net losses and loss adjustment expenses for the three months ended September 30, 2026, decreased $14,059, or 25.0%, compared to the three months ended September 30, 2025. Our net losses and loss adjustment expenses for the nine months ended September 30, 2026, decreased $47,418, or 29.4%, compared to the nine months ended September 30, 2025.
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NM = not meaningful due to the significantly reduced amount of net premium earned in the current year as a result of the strategic decision to stop writing non-standard auto business

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

Private Passenger Auto – The net loss and loss adjustment expense ratio increased 24.1 percentage points and 2.6 percentage points in the three- and nine-month periods ended September 30, 2026, respectively, compared to the same periods in 2025. The increases in the three- and nine-month periods were driven by increased large loss experience in South Dakota and adverse prior year development on loss reserves in North Dakota, partially offset by lower severity in Nebraska. The nine-month period also benefited from lower frequency of losses during the first and second quarters of the year. Both periods were adversely impacted by lower earned premiums.

Non-Standard Auto – The change in net loss and loss adjustment expense ratio is not meaningful due to the significantly reduced amount of net premium earned in the current year as a result of the strategic decision to stop writing non-standard auto business in Illinois, Arizona, and South Dakota, with existing policies being non-renewed. The decreases in net loss and loss adjustment expense in the three- and nine-month periods ended September 30, 2026, were primarily driven by favorable prior year development on loss reserves in the current year compared to unfavorable prior year development on loss reserves in the prior year.

Home and Farm – The net loss and loss adjustment expense ratio decreased 19.0 percentage points and 11.1 percentage points in the three- and nine-month periods ended September 30, 2026, respectively, compared to the same periods in 2025. The three-month period decrease was driven by favorable development on loss reserves for current year storms as well as lower weather-related losses in North Dakota, offset by increased weather-related losses in Nebraska. The nine-month period decrease was primarily driven by lower catastrophe losses and corresponding ceded premiums earned, as well as favorable prior year development on loss reserves. Both periods benefited from growth in net premiums earned and were impacted by increased non-catastrophe weather related losses, primarily in Nebraska.

Crop – The net loss and loss adjustment expense ratio increased 25.1 percentage points and 9.7 percentage points in the three- and nine-month periods ended September 30, 2026, respectively, compared to the same periods in 2025. These increases were primarily driven by drought conditions in North Dakota adversely impacting multi-peril crop insurance.

All Other – The net loss and loss adjustment expense ratio decreased 25.3 percentage points and 14.1 percentage points in the three- and nine-month periods ended September 30, 2026, compared to the same period in 2025. These decreases were primarily driven by lower losses within the commercial line of business in North Dakota. The segment also benefited from the strong performance of the assumed reinsurance line of business associated with the Company’s participation on reinsurance pools of certain farm bureau reinsurance companies.

Underwriting and General Expenses and Expense Ratio
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The expense ratio is calculated by dividing other underwriting and general expenses and amortization of deferred policy acquisition costs by net premiums earned. The expense ratio measures a company’s operational efficiency in producing, underwriting, and administering its insurance business. The overall expense ratio decreased 1.4 percentage points and 0.9 percentage points in the three- and nine-month periods ended September 30, 2026, respectively, compared to the same periods in 2025. The decrease in the amortization of deferred policy acquisition costs is due to lower deferrable costs resulting from the strategic reduction in premium for the Non-Standard Auto segment, which generally pays higher agent commissions than our other segments. Other underwriting and general expenses increased year-over-year, primarily due to strategic investments in the business.

Underwriting Gain \(Loss\) and Combined Ratio

NM = not meaningful due to the significantly reduced amount of net premium earned in the current year as a result of the strategic decision to stop writing non-standard auto business

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

The total underwriting gain increased $10,712 for the three-month period ended September 30, 2026, compared to the same period in 2025. The total underwriting income increased $31,510 for the nine-month period ended September 30, 2026, compared to the same period in 2025. These results were driven by the factors discussed in the Loss and Loss Adjustment Expenses as well as the Underwriting and General Expenses and Expense Ratio sections above.

The overall combined ratio decreased 15.5 percentage points in the three-month period ended September 30, 2026, compared to the same period in 2025. The overall combined ratio decreased 15.6 percentage points in the nine-month period ended September 30, 2026, compared to the same period in 2025. These results were driven by the factors discussed in the Loss and Loss Adjustment Expenses as well as the Underwriting and General Expenses and Expense Ratio sections above.
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Net Investment Income

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

Net investment income decreased $324 for the three months ended September 30, 2026, compared to the three months ended September 30, 2025. Net investment income decreased $843 for the nine months ended September 30, 2026, compared to the nine months ended September 30, 2025. These decreases were primarily the result of a lower average fixed income asset base and a small decrease in yield.

Gross and net return on average cash and invested assets decreased year-over-year, primarily driven by consistent yields on a lower average fixed income securities balance \(measured at fair value\) and lower returns on cash and other short-term investments, partially offset by lower investment expenses. The decrease in average cash and invested assets was driven by a decrease in the fixed income securities balance in 2026 as proceeds from maturities and sales were used to fund operating cash needs in the Non-Standard Auto segment.

Net Investment Gains \(Losses\)

Net investment gains \(losses\) consisted of the following:

We had net realized gains of $1,239 and $2,910 for the three and nine months ended September 30, 2026, respectively, compared to net realized gains of $811 and $1,244 for the three and nine months ended September 30, 2025, respectively. The elevated net realized gains in the nine months ended September 30, 2026, were driven by sales of securities that were executed to raise cash for operational liquidity related to claim payments in the Non-Standard Auto segment. No credit impairment losses were reported during any of the periods presented.

We experienced a decrease of $1,332 and an increase of $764 in net unrealized gains on equity securities during the three and nine months ended September 30, 2026, respectively. These results were driven by the sale of equity securities that were executed to raise cash for operational liquidity related to claim payments in the Non-Standard Auto segment as well as the impact of changes in fair value attributable to overall favorable equity markets during those periods.

Our fixed income securities are classified as available for sale because we will, from time to time, execute sales of securities that are not impaired, consistent with our investment goals and policies. The fixed income portion of the portfolio experienced net unrealized losses of $11,628 and $13,897 during the three and nine months ended September 30, 2026, respectively, compared to net unrealized gains of $3,895 and $8,677 during the three and nine months ended September 30, 2025, respectively. The changes were primarily the result of changes in U.S. interest rates. The change in the fair value of fixed income securities is not reflected in net income; rather it is reflected as a separate component \(net of income taxes\) of other comprehensive income.

Fee and Other Income

We had fee and other income of $198 and $672 for the three and nine months ended September 30, 2026, respectively, compared to $261 and $807 for the three and nine months ended September 30, 2025, respectively. These decreases were driven by strategic reductions in the premiums that generate fee income and write-offs of uncollectible premiums receivable.
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Income \(Loss\) before Income Taxes

For the three months ended September 30, 2026, we had pre-tax income of $7,012 compared to a pre-tax loss of $1,858 for the three months ended September 30, 2025. For the nine months ended September 30, 2026, we had pre-tax income of $22,952 compared to a pre-tax loss of $9,433 for the nine months ended September 30, 2025. These year-over-year changes were largely attributable to favorable prior year development on loss reserves for Non-Standard Auto compared to unfavorable prior year development on loss reserves for Non-Standard Auto in the prior year, lower catastrophe losses and corresponding ceded premiums earned, and strong results for the assumed business with certain farm bureau insurance companies within All Other. These were partially offset by increased non-catastrophe weather-related losses in Home and Farm, drought conditions impacting multi-peril crop insurance, and lower net earned premiums in Private Passenger Auto.

Income Tax Expense \(Benefit\)

We recorded income tax expense of $1,484 for the three months ended September 30, 2026, compared to income tax benefit of $192 for the three months ended September 30, 2025. Our effective tax rate for the third quarter of 2026 was 21.2% compared to an effective tax rate of 10.3% for the third quarter of 2025.

We recorded income tax expense of $4,770 for the nine months ended September 30, 2026, compared to income tax benefit of $2,176 for the nine months ended September 30, 2025. Our effective tax rate for the nine months ended September 30, 2026 was 20.8%, which reflects the impact of tax-exempt investment income on the calculation of the Company’s income tax provision. The effective tax rate was 23.1% for the nine months ended September 30, 2025, which was impacted by a change in the recorded valuation allowance.

Net Income \(Loss\)

For the three months ended September 30, 2026, we had a net income of $5,528 compared to net loss of $1,666 for the three months ended September 30, 2025. For the nine months ended September 30, 2026, we had a net income of $18,182 compared to net loss of $7,257 for the nine months ended September 30, 2025. These year-over-year changes were largely attributable to favorable prior year development on loss reserves for Non-Standard Auto compared to unfavorable prior year development on loss reserves for Non-Standard Auto in the prior year, lower catastrophe losses and corresponding ceded premiums earned, and strong results for the assumed business with certain farm bureau insurance companies within All Other. These were partially offset by increased non-catastrophe weather-related losses in Home and Farm, drought conditions impacting multi-peril crop insurance, and lower net earned premiums in Private Passenger Auto.

Return on Average Equity

For the three months ended September 30, 2026, we had annualized return on average equity of 9.0% compared to \(2.7\)% for the three months ended September 30, 2025.

For the nine months ended September 30, 2026, we had annualized return on average equity of 10.0% compared to \(4.0\)% for the nine months ended September 30, 2025.

Average equity is calculated as the average between beginning and ending equity for the period.
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Critical Accounting Policies

The preparation of financial statements in accordance with GAAP requires both the use of estimates and judgment relative to the application of appropriate accounting policies. We are required to make estimates and assumptions in certain circumstances that affect amounts reported in the unaudited consolidated financial statements and related footnotes. We evaluate these estimates and assumptions on an ongoing basis based on historical developments, market conditions, industry trends, and other information that we believe to be reasonable under the circumstances. There can be no assurance that actual results will conform to these estimates and assumptions or that reported results of operations will not be materially and adversely affected by the need to make accounting adjustments to reflect changes in these estimates and assumptions from time to time. Our critical accounting policies are more fully described in Part II, Item 7, “Management's Discussion and Analysis of Financial Condition and Results of Operations” presented in our 2025 Annual Report. There have been no changes in our critical accounting policies from December 31, 2025.

Liquidity and Capital Resources

We expect to generate sufficient funds from our operations and maintain a high degree of liquidity in our investment portfolio to meet the demands of claim settlements and operating expenses for the foreseeable future, with the exception of our Non-Standard Auto segment which may be required to sell securities to fund claim payments in future periods. Our primary sources of funds are premium collections, investment earnings, and fixed income maturities, supplemented by sales of securities when necessary.

We also have a $3,000 line of credit with Wells Fargo Bank, N.A. The terms of the line of credit include a floating interest rate of 2.25% above the daily simple secured overnight financing rate. There were no outstanding amounts during the nine months ended September 30, 2026, or the year ended December 31, 2025. This line of credit is scheduled to expire on December 11, 2026.

The change in cash and cash equivalents for the nine months ended September 30, 2026 and 2025, were as follows:

For the nine months ended September 30, 2026, net cash used by operating activities totaled $16,006 compared to net cash used of $28,511 a year ago. This change was primarily driven by lower levels of claim payments, higher investment gains, and lower taxes paid, partially offset by lower levels of premium collections, in the current year.

For the nine months ended September 30, 2026, net cash provided by investing activities totaled $13,454 compared to net cash provided of $3,621 a year ago. The net cash provided in both periods was driven by cash inflows from net sales of equity and fixed income securities.

For the nine months ended September 30, 2026, net cash used by financing activities totaled $4,135 compared to net cash used of $1,387 a year ago. This change was primary driven by net cash outflows for share repurchases.

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

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

The amount available for payment of dividends from Nodak Insurance to NI Holdings during 2026 without the prior approval of the North Dakota Insurance Department was approximately $6,730 as of December 31, 2025. The Nodak Insurance Board of Directors declared and Nodak Insurance paid dividends of $3,000 to NI Holdings during the nine months ended September 30, 2026. No dividends were declared or paid by Nodak Insurance during the year ended December 31, 2025.
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The amount available for payment of dividends from Direct Auto to NI Holdings during 2026 without the prior approval of the North Dakota Insurance Department was approximately $3,829 as of December 31, 2025. The Direct Auto Board of Directors declared and Direct Auto paid dividends of $2,000 to NI Holdings during the nine months ended September 30, 2026. No dividends were declared or paid by Direct Auto during the year ended December 31, 2025.

Prior to its payment of any dividend, Nodak Insurance will be required to provide notice of the dividend to the North Dakota Insurance Department. This notice must be provided to the North Dakota Insurance Department 30 days prior to the payment of an extraordinary dividend and 10 days prior to the payment of an ordinary dividend. The North Dakota Insurance Department has the power to limit or prohibit dividend payments if an insurance company is in violation of any law or regulation. These restrictions or any subsequently imposed restrictions may affect our future liquidity.

Item 3. - Quantitative and Qualitative Disclosures about Market Risk

The Company’s assessment of market risk as of September 30, 2026, indicates there have been no material changes in the quantitative and qualitative disclosures from those in Part II, Item 7A, “Quantitative and Qualitative Disclosures About Market Risk” in our 2025 Annual Report.

Item 4. - Controls and Procedures

Evaluation of Disclosure Controls and Procedures

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

Changes in Internal Control over Financial Reporting

In the ordinary course of business, we periodically review our system of internal control over financial reporting to identify opportunities to improve our controls and increase efficiency, while ensuring that we maintain an effective internal control environment. There have not been any changes in the Company’s internal control over financial reporting \(as such term is defined in Rules 13a-15\(f\) and 15d-15\(f\) under the Exchange Act\) during the fiscal quarter to which this report relates that have materially affected, or are reasonably likely to materially affect, the Company’s internal control over financial reporting.
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Part II. - OTHER INFORMATION
Item 1. - Legal Proceedings

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

Item 1A. - Risk Factors

There have been no material changes in our assessment of our risk factors from those set forth in Part I, Item 1A, “Risk Factors” in our 2025 Annual Report.
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Item 2. - Unregistered Sales of Equity Securities and Use of Proceeds

All dollar amounts included in Item 2 herein, except per share data, are in thousands.

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

From time to time, the Company may repurchase its own stock. To date, the Company has used the net proceeds from the IPO to fund these share repurchases.

On May 9, 2022, our Board of Directors approved an authorization for the repurchase of up to approximately $10,000 of the Company’s outstanding common stock. During the year ended December 31, 2022, we completed the repurchase of 54,223 shares of our common stock for $734 under this authorization. During the year ended December 31, 2023, we repurchased an additional 548,549 shares of our common stock for $7,278, including the effect from applicable excise taxes. During the year ended December 31, 2024, we did not repurchase any shares of our common stock.

On August 25, 2025, our Board of Directors approved an authorization for the repurchase of up to approximately $5,000 of the Company’s outstanding common stock in addition to the $2,052 remaining from the May 9, 2022 authorization. During the year ended December 31, 2025, we completed the repurchase of 188,185 shares of our common stock for $2,517, including the effects from applicable excise taxes under these authorizations. As of December 31, 2025, these share repurchases closed out the May 9, 2022 authorization, and $4,549 remained available under the August 25, 2025 authorization. During the nine months ended September 30, 2026, we completed the repurchase of 266,988 shares of our common stock for $3,819, including the effects from applicable excise taxes under these authorizations. At September 30, 2026, $760 remains available under this authorization.

Share repurchase activity during the three months ended September 30, 2026, is presented below:

Item 3. - Defaults upon Senior Securities

Not Applicable

Item 4. - Mine Safety Disclosures

Not Applicable
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Item 5. - Other Information

10b5-1 Trading Plans

During the third quarter of 2026, none of our directors or executive officers \(as defined in Rule 16a-1\(f\) under the Exchange Act\) adoptedor terminatedany “Rule 10b5-1 trading arrangement” or “non-Rule 10b5-1 trading arrangement” \(as each term is defined in Item 408\(a\) of Regulation S-K\).

Item 6. - Exhibits

\* Filed herewith.

\*\* Furnished herewith.
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Signatures
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized on November 6, 2026.
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