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Royalties, Dividends, and Affiliations | 12 Months Ended
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Dec. 31, 2023
Royalties, Dividends, and Affiliations [Abstract] |
Royalties, Dividends, and Affiliations |
11. | Royalties, Dividends, and Affiliations
North Dakota Farm Bureau Nodak Insurance was organized by the NDFB to provide insurance protection for its members. We have a royalty agreement with the NDFB that recognizes the use of their trademark and provides royalties to the NDFB based on the premiums written on Nodak Insurance’s policies. Royalties paid to the NDFB were $1,603, $1,453, and $1,369 during the years ended December 31, 2023, 2022, and 2021, respectively. Royalty amounts payable of $131 and $119 were accrued as a liability to the NDFB at December 31, 2023 and 2022, 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, 2023, exceeded the amount of statutory capital and surplus necessary to satisfy risk-based capital requirements by a significant margin. 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. The Nodak Insurance Board of Directors declared and paid dividends of $3,000 to NI Holdings during the year ended December 31, 2022. No dividends were declared or paid by Nodak Insurance during the years ended December 31, 2023 and 2021. 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. Battle Creek Mutual Insurance Company The following tables disclose the standalone balance sheets and statements of operations of Battle Creek, prior to intercompany eliminations, to illustrate the impact of including Battle Creek in our Consolidated Balance Sheets and Consolidated Statements of Operations:
|  | December 31, |
|  | 2023 |  |  | 2022 |
Assets: |  |  |  |  |  |  |  |
Cash and cash equivalents |  | $ | 2,621 |  |  | $ | 5,008 |
Investments |  |  | 15,394 |  |  |  | 13,350 |
Premiums and agents’ balances receivable |  |  | 5,953 |  |  |  | 5,422 |
Deferred policy acquisition costs |  |  | 682 |  |  |  | 595 |
Reinsurance recoverables on losses (2) |  |  | 6,918 |  |  |  | 12,597 |
Accrued investment income |  |  | 85 |  |  |  | 59 |
Income tax recoverable |  |  | 225 |  |  |  | 225 |
Deferred income taxes |  |  | 706 |  |  |  | 780 |
Property and equipment |  |  | 306 |  |  |  | 319 |
Other assets |  |  | 97 |  |  |  | 52 |
Total assets |  | $ | 32,987 |  |  | $ | 38,407 |
Liabilities: |  |  |  |  |  |  |  |
Unpaid losses and loss adjustment expenses |  | $ | 4,276 |  |  | $ | 6,453 |
Unearned premiums |  |  | 3,269 |  |  |  | 2,959 |
Notes payable (1) |  |  | 3,000 |  |  |  | 3,000 |
Pooling payable (1) |  |  | 5,932 |  |  |  | 8,337 |
Reinsurance losses payable (2) |  |  | 13,275 |  |  |  | 13,125 |
Accrued expenses and other liabilities |  |  | 477 |  |  |  | 2,303 |
Total liabilities |  |  | 30,229 |  |  |  | 36,177 |
Equity: |  |  |  |  |  |  |  |
Non-controlling interest |  |  | 2,758 |  |  |  | 2,230 |
Total equity |  |  | 2,758 |  |  |  | 2,230 |
Total liabilities and equity |  | $ | 32,987 |  |  | $ | 38,407 |
(1) | Amount fully eliminated in consolidation.
(2) | Amount partly eliminated in consolidation.
|  | Year Ended December 31, |
|  | 2023 |  |  | 2022 |  |  | 2021 |
Revenues: |  |  |  |  |  |  |  |  |
Net premiums earned |  | $ | 7,023 |  |  | $ | 6,566 |  |  | $ | 5,992 |
Fee and other income (expense) |  |  | 37 |  |  |  | (30 | ) |  |  | (11 | )
Net investment income |  |  | 320 |  |  |  | 113 |  |  |  | 49 |
Net investment gains (losses) |  |  | 1 |  |  |  | (20 | ) |  |  | 2 |
Total revenues |  |  | 7,381 |  |  |  | 6,629 |  |  |  | 6,032 |
Expenses: |  |  |  |  |  |  |  |  |  |  |  |
Losses and loss adjustment expenses |  |  | 4,888 |  |  |  | 5,889 |  |  |  | 4,328 |
Amortization of deferred policy acquisition costs |  |  | 1,660 |  |  |  | 1,336 |  |  |  | 1,291 |
Other underwriting and general expenses |  |  | 588 |  |  |  | 564 |  |  |  | 470 |
Total expenses |  |  | 7,136 |  |  |  | 7,789 |  |  |  | 6,089 |
Income (loss) before income taxes |  |  | 245 |  |  |  | (1,160 | ) |  |  | (57 | )
Income tax expense (benefit) |  |  | (5 | ) |  |  | (481 | ) |  |  | 27 |
Net income (loss) |  | $ | 250 |  |  | $ | (679 | ) |  | $ | (84 | )

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- Definition The entire disclosure for a banking or savings institution's compliance during the year with (a) federal and state laws and regulations relative to dividend restrictions and (b) federal laws and regulations relative to insider loans. + References No definition available. + Details
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