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

12 Months Ended

Dec. 31, 2023

Statutory Net Income (Loss), Capital and Surplus, and Dividend Restrictions [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, 2023, 2022, and 2021:

	2023			2022			2021
Nodak Insurance:
Statutory capital and surplus	$	176,783		$	175,673		$	221,761
Statutory unassigned surplus		171,783			170,673			216,761
Statutory net income (loss)		7,839			(29,978	)		5,311
American West:
Statutory capital and surplus		15,423			14,957			18,400
Statutory unassigned surplus		9,422			8,956			12,399
Statutory net income (loss)		(38	)		(3,228	)		(54	)
Primero:
Statutory capital and surplus		8,585			8,677			10,138
Statutory unassigned surplus		(675	)		(582	)		879
Statutory net income (loss)		(136	)		(1,211	)		127
Battle Creek:
Statutory capital and surplus		6,047			5,660			6,821
Statutory unassigned surplus		3,047			2,660			3,821
Statutory net income (loss)		146			(1,189	)		(77	)
Direct Auto:
Statutory capital and surplus		32,843			32,054			37,960
Statutory unassigned surplus		29,843			29,054			34,960
Statutory net income (loss)		90			(6,074	)		6,451
Westminster:
Statutory capital and surplus		21,328			20,090			24,706
Statutory unassigned surplus		16,328			15,090			19,706
Statutory net income (loss)		1,200			(3,861	)		1,723

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, 2023 and 2022 exceeded the amount of statutory capital and surplus necessary to satisfy risk-based capital requirements by a significant margin.

Amounts available for distribution in 2024 to Nodak Insurance as dividends from its insurance subsidiaries without prior approval of insurance regulatory authorities are $134 from American West and Primero. No dividends were paid to Nodak Insurance from either entity during the years ended December 31, 2023, 2022, or 2021.

There is no amount available for payment of dividends from Nodak Insurance to NI Holdings during 2024 without the prior approval of the North Dakota Insurance Department. 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. No dividends were declared or paid by Nodak Insurance during the years ended December 31, 2023 and 2021. The Nodak Insurance Board of Directors declared and paid dividends of $3,000 to NI Holdings during the year ended December 31, 2022.

Direct Auto re-domesticated from Illinois to North Dakota during 2021 and is now subject to the same dividend restrictions as Nodak Insurance. The amount available for payment of dividends from Direct Auto to NI Holdings during 2024 without the prior approval of the North Dakota Insurance Department is approximately $90 as of December 31, 2023. No dividends were declared or paid by Direct Auto during the years ended December 31, 2023, 2022, or 2021.

Westminster re-domesticated from Maryland to North Dakota during 2021 and is now subject to the same dividend restrictions as Nodak Insurance. The amount available for payment of dividends from Westminster to NI Holdings during 2024 without the prior approval of the North Dakota Insurance Department is approximately $1,200 as of December 31, 2023. No dividends were declared or paid by Westminster during the years ended December 31, 2023, 2022 or 2021.