Non Reliance of Financial Report Form 8 K

On October 25, 2024, the Audit Committee of the Board of Directors (the "Audit Committee") of NI Holdings, Inc. (the "Company") determined, upon the recommendation of Company management, that the Company's unaudited financial statements in its Quarterly Report on Form 10-Q for the quarter ended June 30, 2024 ("prior period financial statements") and any earnings releases or other communications relating to this period should no longer be relied upon. Management and the Audit Committee have determined that the errors described below require a restatement of the prior period financial statements, which will be corrected by filing an amended Quarterly Report on Form 10-Q (the "Form 10-Q/A") as soon as practicable subsequent to the filing of this Current Report on Form 8-K.

During the preparation of the Company's consolidated financial statements as of and for the three- and nine-month periods ended September 30, 2024, the Company identified prior period accounting errors resulting from the incorrect accounting for, and presentation of, the previously announced sale of the Company's subsidiary, Westminster American Insurance Company ("Westminster"). Subsequent to the June 30, 2024 date of sale, Westminster was no longer a member of the intercompany reinsurance pooling arrangement (the "pool") that includes each of the Company's insurance subsidiaries, the effects of which are eliminated during consolidation for current members. The Company failed to record approximately $3.4 million of receivables on Westminster's closing balance sheet and the corresponding payable for Nodak Insurance Company ("Nodak"), a subsidiary of the Company, for amounts owed to Westminster related to the final settlement of the pool once Westminster was no longer a member. Failure to include this receivable in Westminster's closing net assets and liabilities caused an approximately $3.4 million understatement of the loss on sale of discontinued operations, which also understated the Company's total net loss by the same $3.4 million, or $0.17 and $0.16 per basic and diluted share for the three- and six-month periods ended June 30, 2024, respectively.

As a result of the errors described above, management is in the process of reevaluating the previous conclusions regarding the effectiveness of the Company's disclosure controls and procedures as of June 30, 2024 and will provide any required modifications to these conclusions within the Form 10-Q/A.

The Audit Committee and management of the Company have discussed the matters disclosed in this Item 4.02(a) with Forvis Mazars, LLP, the Company's independent registered public accounting firm.