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

12 Months Ended

Dec. 31, 2022

Insurance [Abstract]

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

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

The following table presents selected information, as filed with insurance regulatory authorities, for our insurance subsidiaries as determined in accordance with accounting practices prescribed or permitted by such insurance regulatory authorities as of and for the years ended December 31, 2022, 2021, and 2020:

	2022			2021			2020
Nodak Insurance:
Statutory capital and surplus	$	175,673		$	221,761		$	216,278
Statutory unassigned surplus		170,673			216,761			211,278
Statutory net income (loss)		(29,978	)		5,311			24,529
American West:
Statutory capital and surplus		14,957			18,400			18,368
Statutory unassigned surplus		8,956			12,399			12,367
Statutory net income (loss)		(3,228	)		(54	)		2,158
Primero:
Statutory capital and surplus		8,677			10,138			9,818
Statutory unassigned surplus		(582	)		879			559
Statutory net income (loss)		(1,211	)		127			1,023
Battle Creek:
Statutory capital and surplus		5,660			6,821			6,875
Statutory unassigned surplus		2,660			3,821			3,875
Statutory net income (loss)		(1,189	)		(77	)		693
Direct Auto:
Statutory capital and surplus		32,054			37,960			35,819
Statutory unassigned surplus		29,054			34,960			32,819
Statutory net income (loss)		(6,074	)		6,451			7,898
Westminster:
Statutory capital and surplus		20,090			24,706			23,592
Statutory unassigned surplus		15,090			19,706			18,592
Statutory net income (loss)		(3,861	)		1,723			2,719

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, 2022 and 2021 exceeded the amount of statutory capital and surplus necessary to satisfy risk-based capital requirements by a significant margin.

Amounts available for distribution in 2023 to Nodak Insurance as dividends from its insurance subsidiaries without prior approval of insurance regulatory authorities are $0 from American West and Primero. No dividends were paid to Nodak Insurance from either entity during the years ended December 31, 2022, 2021, or 2020.

There is no amount available for payment of dividends from Nodak Insurance to NI Holdings during 2023 without the prior approval of the North Dakota Insurance Department based upon the net loss of Nodak Insurance for the year ended December 31, 2022. Prior to its payment of any dividend, Nodak Insurance will be required to provide notice of the dividend to the North Dakota Insurance Department. This notice must be provided to the North Dakota Insurance Department 30 days prior to the payment of an extraordinary dividend and 10 days prior to the payment of an ordinary dividend. The North Dakota Insurance Department has the power to limit or prohibit dividend payments if an insurance company is in violation of any law or regulation. These restrictions or any subsequently imposed restrictions may affect our future liquidity. The Nodak Insurance Board of Directors declared and paid dividends of $3,000 and $6,000 to NI Holdings during the years ended December 31, 2022 and 2020, respectively. No dividends were declared or paid by Nodak Insurance during the year ended December 31, 2021.

Direct Auto re-domesticated from Illinois to North Dakota during 2021, and is now subject to the same dividend restrictions as Nodak Insurance. There is no amount available for payment of dividends from Direct Auto to NI Holdings during 2023 without the prior approval of the North Dakota Insurance Department based upon the net loss of Direct Auto for the year ended December 31, 2022. No dividends were declared or paid by Direct Auto during the years ended December 31, 2022, 2021, or 2020.

Westminster re-domesticated from Maryland to North Dakota during 2021, and is now subject to the same dividend restrictions as Nodak Insurance. There is no amount available for payment of dividends from Westminster to NI Holdings during 2023 without the prior approval of the North Dakota Insurance Department based upon the net loss of Westminster for the year ended December 31, 2022. No dividends were declared or paid by Westminster during the years ended December 31, 2022, 2021 or 2020.