AI Earnings Predictions for Donegal Group Inc. (DGICA)

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Donegal Group Inc. Announces Second Quarter and First Half 2026 Results

MARIETTA, Pa., July 30, 2026 (GLOBE NEWSWIRE) -- Donegal Group Inc. (NASDAQ: DGICA) and (NASDAQ: DGICB) today reported its financial results for the second quarter and first half of 2026.

Significant Items for Second Quarter of 2026 (all comparisons to second quarter of 2025):

Net premiums earned decreased 4.0% to $222.6 million Combined ratio of 95.6%, compared to 97.7% Net income of $22.3 million, or 60 cents per diluted Class A share, compared to $16.9 million, or 46 cents per diluted Class A share Net investment gains (after tax) of $2.6 million, or 7 cents per diluted Class A share, compared to $1.2 million, or 3 cents per diluted Class A share, are included in net income Annualized return on average equity of 13.6%, compared to 11.3% Book value per share of $17.98 at June 30, 2026, compared to $16.62 at June 30, 2025 Financial Summary

Three Months Ended June 30, Six Months Ended June 30,

2026   2025  % Change  2026   2025  % Change

(dollars in thousands, except per share amounts)

Income Statement Data

Net premiums earned$222,574  $231,775  -4.0% $443,932  $464,476  -4.4%

Investment income, net 14,491   12,540  15.6   28,778   24,524  17.3

Net investment gains 3,267   1,544  111.6   2,788   1,073  159.8

Total revenues 241,119   247,148  -2.4   477,115   491,953  -3.0

Net income 22,306   16,866  32.3   33,816   42,071  -19.6

Non-GAAP operating income1 19,697   15,647  25.9   31,587   41,224  -23.4

Annualized return on average equity 13.6%  11.3% 2.3 pts   10.4%  14.6% -4.2 pts

Per Share Data

Net income – Class A (diluted)$0.60  $0.46  30.4% $0.91  $1.17  -22.2%

Net income – Class B 0.55   0.43  27.9   0.84   1.08  -22.2

Non-GAAP operating income – Class A (diluted) 0.53   0.43  23.3   0.85   1.14  -25.4

Non-GAAP operating income – Class B 0.49   0.40  22.5   0.79   1.06  -25.5

Book value 17.98   16.62  8.2   17.98   16.62  8.2

1The “Definitions of Non-GAAP Financial Measures” section of this release defines and reconciles data that we prepare on an accounting basis other than U.S. generally accepted accounting principles (“GAAP”).

Management Commentary

Kevin G. Burke, President and Chief Executive Officer of Donegal Group Inc., stated, “Our net premiums earned for the second quarter of 2026 reflected a continuation of challenging trends and market conditions we experienced last quarter. Against that backdrop, we are pleased to report solid quarterly results that provided further growth in our book value to $17.98 per share at June 30, 2026, compared to $17.54 at the end of the first quarter of 2026.

“Net premiums written1 for our commercial lines business segment grew by 0.8% compared to the prior-year quarter, resulting primarily from improved new business production that was mostly offset by lower renewal premium increases and retention levels. As expected, we experienced a continuing decline in our personal lines net premiums written that we expect will gradually taper over the course of 2026 as actions we have taken to slow and eventually reverse the decline take effect. We remain committed to maintaining underwriting and pricing discipline as we pursue new, high-quality accounts and seek to retain existing accounts at adequate pricing levels.

“On the whole, our underwriting results for the second quarter of 2026 were solid, which we primarily attribute to favorable core loss ratios in both our commercial and personal lines segments, lower-than-average weather-related losses and favorable prior-year reserve development, offset partially by a moderate increase in large fire losses. Solid underwriting performance and enhanced investment income allowed us to continue growing our book value in the second quarter.

“While we face a softening phase of the insurance cycle, we have established a strong foundation over the past several years, and we continue to believe that the effective ongoing execution of our strategies will enhance stockholder value over time. For example, we are beginning to realize benefits from our ongoing emphasis on enhanced engagement with our independent agents as a means of attracting profitable growth opportunities.”

Insurance Operations

Donegal Group Inc. is an insurance holding company whose insurance subsidiaries and affiliates offer property and casualty lines of insurance in three Mid-Atlantic states (Delaware, Maryland and Pennsylvania), five Southern states (Georgia, North Carolina, South Carolina, Tennessee and Virginia), eight Midwestern states (Illinois, Indiana, Iowa, Michigan, Nebraska, Ohio, South Dakota and Wisconsin) and five Southwestern states (Arizona, Colorado, New Mexico, Texas and Utah). Donegal Mutual Insurance Company and the insurance subsidiaries of Donegal Group Inc. conduct business together as the Donegal Insurance Group.

Three Months Ended June 30, Six Months Ended June 30,

2026   2025  %

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Donegal Group Inc. Announces First Quarter 2026 Results

MARIETTA, Pa., April 30, 2026 (GLOBE NEWSWIRE) -- Donegal Group Inc. (NASDAQ: DGICA) and (NASDAQ: DGICB) today reported its financial results for the first quarter of 2026.

Significant Items for First Quarter of 2026 (all comparisons to first quarter of 2025):

Net premiums earned decreased 4.9% to $221.4 million Combined ratio of 99.8%, compared to 91.6% Net income of $11.5 million, or $0.31 per diluted Class A share, compared to $25.2 million, or $0.71 per diluted Class A share Annualized return on average equity of 7.1%, compared to 17.8% Book value per share of $17.54 at March 31, 2026, compared to $16.24 at March 31, 2025

Financial Summary

Three Months Ended March 31,

2026   2025  % Change

(dollars in thousands, except per share amounts)

Income Statement Data

Net premiums earned$221,357  $232,702  -4.9%

Investment income, net 14,287   11,984  19.2

Net investment losses (479)  (471) 1.7

Total revenues 235,996   245,174  -3.7

Net income 11,511   25,205  -54.3

Non-GAAP operating income1 11,889   25,577  -53.5

Annualized return on average equity 7.1%  17.8% -10.7 pts

Per Share Data

Net income – Class A (diluted)$0.31  $0.71  -56.3%

Net income – Class B 0.29   0.65  -55.4

Non-GAAP operating income – Class A (diluted) 0.32   0.72  -55.6

Non-GAAP operating income – Class B 0.30   0.66  -54.5

Book value 17.54   16.24  8.0

1 The “Definitions of Non-GAAP Financial Measures” section of this release defines and reconciles data that we prepare on an accounting basis other than U.S. generally accepted accounting principles (“GAAP”).

Management Commentary

Kevin G. Burke, President and Chief Executive Officer of Donegal Group Inc., stated, “Our first quarter of 2026 results reflected solid underlying operating performance despite softening conditions in the insurance markets we serve. At a high level, the past few years have been characterized by generally favorable conditions for our industry, and, as is often the case, a softening market has emerged as the availability of capital has led industry participants to reduce rates to win and retain accounts. Against this challenging backdrop, we remain committed to maintaining underwriting and pricing discipline as we pursue new, high-quality accounts and seek to retain existing accounts at adequate pricing levels.

“Net premiums written1 for our commercial lines business segment grew by 2.2% compared to the prior-year quarter, as we began to gain traction in new business production despite competitive market conditions, supported by solid retention and continued renewal premium increases in lines other than workers’ compensation. We experienced a continued decline in our personal lines net premiums written, which we believe will gradually taper over the course of 2026 as actions we have taken to slow the decline take effect.

“While our underwriting results for the first quarter of 2026 lagged the unusually favorable results we achieved for the prior-year quarter, we primarily attribute the lower profitability to higher-than-average weather-related losses and the impact of several large current-year and prior-year losses. We are pleased that our core loss ratios for both the commercial and personal lines segments improved modestly compared to the first quarter of 2025, reflecting solid underlying performance within our book of business.

“We believe we are well positioned to build value for all of our constituents as we navigate the current market cycle. Coupling excellent service to our independent agents and policyholders with prudent underwriting and advancing operational capabilities, we expect to build upon the strong foundation we have established over the past several years. We believe that the effective ongoing execution of our strategies will enhance stockholder value over time.”

Insurance Operations

Donegal Group is an insurance holding company whose insurance subsidiaries and affiliates offer property and casualty lines of insurance in three Mid-Atlantic states (Delaware, Maryland and Pennsylvania), five Southern states (Georgia, North Carolina, South Carolina, Tennessee and Virginia), eight Midwestern states (Illinois, Indiana, Iowa, Michigan, Nebraska, Ohio, South Dakota and Wisconsin) and five Southwestern states (Arizona, Colorado, New Mexico, Texas and Utah). Donegal Mutual Insurance Company and the insurance subsidiaries of Donegal Group conduct business together as the Donegal Insurance Group.

Three Months Ended March 31,

2026  2025 % Change

(dollars in thousands)

Net Premiums Earned

Commercial lines$138,963 $136,216 2.0%

Personal lines 82,394  96,486 -14.6

Total net premiums earned$221,357 $232,702 -4.9%

Net Premiums Written

Commercial lines:

Automobile$60,780 $56,525 7.5%

Workers' compensation 26,894  28,754 -6.5

Commercial multi-peril 60,626  60,790 -0.3

Other 15,807  14,549 8.6

Total commercia

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Donegal Group Inc. Announces Fourth Quarter and Full Year 2025 Results

MARIETTA, Pa., Feb. 19, 2026 (GLOBE NEWSWIRE) -- Donegal Group Inc. (NASDAQ:DGICA) and (NASDAQ:DGICB) today reported its financial results for the fourth quarter and full year ended December 31, 2025.

Significant items for fourth quarter of 2025 (all comparisons to fourth quarter of 2024):

Net premiums earned decreased 4.1% to $226.9 million Combined ratio of 96.3%, compared to 92.9% Net income of $17.2 million, or 47 cents per diluted Class A share, compared to $24.0 million, or 70 cents per diluted Class A share Net income included net investment losses (after tax) of $1.4 million, or 3 cents per diluted Class A share, compared to net investment gains of $0.2 million, or 1 cent per diluted Class A share Significant items for full year of 2025 (all comparisons to full year of 2024):

Net premiums earned decreased 1.7% to $921.2 million Combined ratio of 95.4%, compared to 98.6% Net income of $79.3 million, or $2.18 per diluted Class A share, compared to $50.9 million, or $1.53 per diluted Class A share Net income included net investment gains (after tax) of $0.5 million, or 1 cent per diluted Class A share, compared to $3.9 million, or 12 cents per diluted Class A share Return on average equity of 13.4%, compared to 9.9% Book value per share of $17.33 at December 31, 2025, compared to $15.36 at year-end 2024 Financial Summary

Three Months Ended December 31, Year Ended December 31,

2025   2024  % Change  2025   2024  % Change

(dollars in thousands, except per share amounts)

Income Statement Data

Net premiums earned$226,885  $236,635  -4.1% $921,184  $936,651  -1.7%

Investment income, net 14,160   12,050  17.5   52,627   44,918  17.2

Net investment (losses) gains (1,726)  256  NM2   619   4,981  -87.6

Total revenues 240,142   249,954  -3.9   978,014   989,605  -1.2

Net income 17,189   24,003  -28.4   79,341   50,862  56.0

Non-GAAP operating income1 18,553   23,801  -22.0   78,851   46,927  68.0

Annualized return on average equity 10.8%  18.1% -7.3 pts   13.4%  9.9% 3.5 pts

Per Share Data

Net income – Class A (diluted)$0.47  $0.70  -32.9% $2.18  $1.53  42.5%

Net income – Class B 0.43   0.64  -32.8   2.01   1.38  45.7

Non-GAAP operating income – Class A (diluted) 0.50   0.69  -27.5   2.17   1.41  53.9

Non-GAAP operating income – Class B 0.46   0.63  -27.0   1.99   1.27  56.7

Book value 17.33   15.36  12.8   17.33   15.36  12.8

1The “Definitions of Non-GAAP Financial Measures” section of this release defines and reconciles data that we prepare on an accounting basis other than U.S. generally accepted accounting principles (“GAAP”).

2Not meaningful.

Management Commentary

Kevin G. Burke, President and Chief Executive Officer of Donegal Group Inc., stated, “We are pleased with our solid operating performance in the fourth quarter and full year of 2025 that reflected the favorable impact of numerous strategic decisions and intentional actions over the past several years. Our focus for 2026 is the pursuit of modest premium growth through our independent agency partners in geographies and classes of business we have identified as attractive. We remain committed to our strategic plan that includes capitalizing on opportunities for profitable growth as a contributor to sustained excellent financial performance.

“In our commercial lines business segment, we achieved solid underlying results for the fourth quarter of 2025, which were masked somewhat by the impact of a few large fires and a late-reported prior-year casualty loss. Due in large part to a refinement in our commercial underwriting appetite, we missed our 2025 business plan target for new business writings. For 2026, we have actively engaged our agents in the development of detailed growth plans and the introduction of new compensation incentives to encourage increased submissions of new quality accounts.

“In our personal lines business segment, we achieved continued excellent profitability and are making good progress on the incremental conversion of remaining legacy policies to our new platform that will be completed in June 2027. We expect the decline in personal lines premiums we experienced during 2025 will subside gradually throughout 2026 as we take measured steps to increase our new business success rate, while striving to maintain a targeted level of profitability in this segment in line with our long-term strategic and financial objectives.

“We believe that we are well positioned as a regional insurance group to provide excellent service to our independent agents and policyholders, as we continue to make prudent investments in talent, systems and capabilities. Building upon the strong foundation laid over the past several years, we are executing strategies that we believe will enhance the value of our stockholders’ investment over time.”

Insurance Operations

Donegal Group is an insurance h

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Donegal Group Inc. Announces Second Quarter and First Half 2025 Results

MARIETTA, Pa., July 24, 2025 (GLOBE NEWSWIRE) -- Donegal Group Inc. (NASDAQ: DGICA) and (NASDAQ: DGICB) today reported its financial results for the second quarter and first half of 2025.

Significant Items for Second Quarter of 2025 (all comparisons to second quarter of 2024):

Net premiums earned decreased 1.1% to $231.8 million Combined ratio of 97.7%, compared to 103.0% Net income of $16.9 million, or 46 cents per diluted Class A share, compared to $4.2 million, or 13 cents per diluted Class A share Net investment gains (after tax) of $1.2 million, or 3 cents per diluted Class A share, compared to $0.6 million, or 2 cents per diluted Class A share, are included in net income Annualized return on average equity of 11.3%, compared to 3.4% Book value per share of $16.62 at June 30, 2025, compared to $14.48 at June 30, 2024 Financial Summary

Three Months Ended June 30, Six Months Ended June 30,

2025   2024  % Change  2025   2024  % Change

(dollars in thousands, except per share amounts)

Income Statement Data

Net premiums earned$231,775  $234,311   -1.1% $464,476  $462,060   0.5%

Investment income, net 12,540   11,068   13.3   24,524   22,041   11.3

Net investment gains 1,544   737   109.5   1,073   2,850   -62.4

Total revenues 247,148   246,773   0.2   491,953   487,913   0.8

Net income 16,866   4,153   306.1   42,071   10,108   316.2

Non-GAAP operating income1 15,647   3,571   338.2   41,224   7,857   424.7

Annualized return on average equity 11.3%  3.4% 7.9 pts  14.6%  4.2% 10.4 pts

Per Share Data

Net income – Class A (diluted)$0.46  $0.13   253.8% $1.17  $0.31   277.4%

Net income – Class B 0.43   0.11   290.9   1.08   0.28   285.7

Non-GAAP operating income – Class A (diluted) 0.43   0.11   290.9   1.14   0.24   375.0

Non-GAAP operating income – Class B 0.40   0.10   300.0   1.06   0.22   381.8

Book value 16.62   14.48   14.8   16.62   14.48   14.8

1The “Definitions of Non-GAAP Financial Measures” section of this release defines and reconciles data that we prepare on an accounting basis other than U.S. generally accepted accounting principles (“GAAP”).

Management Commentary

Kevin G. Burke, President and Chief Executive Officer of Donegal Group Inc., stated, “We are pleased with the progress we have made and the results we delivered for both the second quarter and first half of 2025, which we believe reflect the strength of our strategic execution and underwriting discipline. A meaningful improvement in our core loss ratio for both periods underscores our commitment to disciplined risk management and sustainable profitability. As expected, net premiums written1 declined this quarter, as lower new business writings and planned attrition modestly outpaced ongoing premium rate increases and solid retention levels. As a proactive measure, we intentionally slowed new business writings in our personal lines of business to protect underwriting margins and ensure we remain focused on profitable growth opportunities. We continue to identify and pursue profitable new business opportunities in states and classes that match our objectives.

“We reached a significant milestone in our multi-year systems modernization project with the successful deployment of our final major commercial lines systems release. During the second half of 2025, we will begin to roll out this enhanced platform on a state-by-state basis, enabling us to more effectively target and win key middle market accounts. When the rollout is completed in the first half of 2026, we will be operating on a single modern technology platform for all of our middle market and small business commercial product offerings.

“As we look ahead, we remain focused on disciplined execution, organizational alignment and operational excellence to further strengthen our long-term competitive position and enhance value for our stockholders.”

Insurance Operations

Donegal Group is an insurance holding company whose insurance subsidiaries and affiliates offer property and casualty lines of insurance in three Mid-Atlantic states (Delaware, Maryland and Pennsylvania), five Southern states (Georgia, North Carolina, South Carolina, Tennessee and Virginia), eight Midwestern states (Illinois, Indiana, Iowa, Michigan, Nebraska, Ohio, South Dakota and Wisconsin) and five Southwestern states (Arizona, Colorado, New Mexico, Texas and Utah). Donegal Mutual Insurance Company and the insurance subsidiaries of Donegal Group conduct business together as the Donegal Insurance Group.

Three Months Ended June 30, Six Months Ended June 30,

2025   2024  % Change  2025   2024  % Change

(dollars in thousands)

Net Premiums Earned

Commercial lines$138,527  $134,489   3.0% $274,743  $266,581   3.1%

Personal lines 93,248   99,822   -6.6   189,733   195,479   -2.9

Total net premiums earned$231,775  $234,311   -1.1% $464,476  $462,060   0.5%

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Donegal Group Inc. Announces First Quarter 2025 Results

MARIETTA, Pa., April 24, 2025 (GLOBE NEWSWIRE) -- Donegal Group Inc. (NASDAQ: DGICA) and (NASDAQ: DGICB) today reported its financial results for the first quarter of 2025.

Significant Items for First Quarter of 2025 (all comparisons to first quarter of 2024):

Net premiums earned increased 2.2% to $232.7 million Combined ratio of 91.6%, compared to 102.4% Net income of $25.2 million, or $0.71 per diluted Class A share, compared to $6.0 million, or $0.18 per diluted Class A share Net investment losses (after tax) of $0.4 million, or 1 cent per diluted Class A share, compared to net investment gains (after tax) of $1.7 million, or 5 cents per diluted Class A share, are included in net income Annualized return on average equity of 17.8%, compared to 4.9% Book value per share of $16.24 at March 31, 2025, compared to $14.53 at March 31, 2024 Financial Summary

Three Months Ended March 31,

2025   2024  % Change

(dollars in thousands, except per share amounts)

Income Statement Data

Net premiums earned$232,702  $227,749   2.2%

Investment income, net 11,984   10,972   9.2

Net investment (losses) gains (471)  2,113   NM2

Total revenues 245,174   241,141   1.7

Net income 25,205   5,956   323.2

Non-GAAP operating income1 25,577   4,286   496.8

Annualized return on average equity 17.8%  4.9%  12.9 pts

Per Share Data

Net income – Class A (diluted)$0.71  $0.18   294.4%

Net income – Class B 0.65   0.16   306.3

Non-GAAP operating income – Class A (diluted) 0.72   0.13   453.8

Non-GAAP operating income – Class B 0.66   0.12   450.0

Book value 16.24   14.53   11.8

1The “Definitions of Non-GAAP Financial Measures” section of this release defines and reconciles data that we prepare on an accounting basis other than U.S. generally accepted accounting principles (“GAAP”). 2Not meaningful.

Management Commentary

Kevin G. Burke, President and Chief Executive Officer of Donegal Group Inc., stated, “We are pleased that positive momentum, which began to emerge in the second half of 2024, continued into the first quarter of 2025 with our achievement of record earnings for the second straight quarter. We believe this accomplishment reflects the deliberate actions and strong operational discipline of our team in prioritizing sustained profitability while pursuing targeted premium growth.

“Net premiums earned rose by 2.2% to $232.7 million, while net premiums written1 declined modestly by 1.7% compared to the prior-year quarter, with that decline primarily due to lower new business volume and planned attrition, offset partially by solid premium rate increases and strong retention of desired risks. We achieved a combined ratio of 91.6% for the first quarter of 2025, marking significant improvement over the 102.4% combined ratio for the prior-year quarter. We attribute the improvement to core loss ratio decreases that resulted from the strategic initiatives and profit improvement plans we implemented over the past several years, coupled with lower-than-average weather-related and large fire losses and a higher level of favorable development of reserves related to prior accident years.

“In our commercial lines business, we are actively promoting our small commercial products and capabilities while actively seeking to grow our middle market business segment. In our personal lines business, our strategic focus remains on maintaining profitability through rate adequacy. Our personal lines growth in the first quarter of 2025 was constrained by two intentional strategies. We limited new business volume and continued the non-renewal of a legacy Maryland book of business. We are taking proactive steps to stabilize personal lines premium level as the year progresses, and we will continue to emphasize higher levels of profitable growth in commercial lines that we believe will lead to long-term success.”

Mr. Burke concluded, “We believe we are well positioned to navigate the evolving insurance landscape, as we continue to enhance and refine our systems and operational capabilities. We are confident in our ability to achieve sustainable excellent financial performance and capitalize on future growth opportunities that will further enhance shareholder value over time.”

Insurance Operations

Donegal Group is an insurance holding company whose insurance subsidiaries and affiliates offer property and casualty lines of insurance in three Mid-Atlantic states (Delaware, Maryland and Pennsylvania), five Southern states (Georgia, North Carolina, South Carolina, Tennessee and Virginia), eight Midwestern states (Illinois, Indiana, Iowa, Michigan, Nebraska, Ohio, South Dakota and Wisconsin) and five Southwestern states (Arizona, Colorado, New Mexico, Texas and Utah). Donegal Mutual Insurance Company and the insurance subsidiaries of Donegal Group conduct business together as the Donegal Insurance Group.

Three Months Ende

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Donegal Group Inc. Announces Fourth Quarter and Full Year 2024 Results

MARIETTA, Pa., Feb. 20, 2025 (GLOBE NEWSWIRE) -- Donegal Group Inc. (NASDAQ:DGICA) and (NASDAQ:DGICB) today reported its financial results for the fourth quarter and full year ended December 31, 2024.

Significant items for fourth quarter of 2024 (all comparisons to fourth quarter of 2023):

Net premiums earned increased 4.6% to $236.6 million Combined ratio of 92.9%, compared to 106.8% Net income of $24.0 million, or 70 cents per diluted Class A share, compared to net loss of $2.0 million, or 6 cents per Class A share Net investment gains (after tax) of $0.2 million, or 1 cent per diluted Class A share, compared to $1.8 million, or 5 cents per Class A share, are included in net income (loss) Significant items for full year of 2024 (all comparisons to full year of 2023):

Net premiums earned increased 6.2% to $936.7 million Combined ratio of 98.6%, compared to 104.4% Net income of $50.9 million, or $1.53 per diluted Class A share, compared to $4.4 million, or 14 cents per diluted Class A share Net investment gains (after tax) of $3.9 million, or 12 cents per diluted Class A share, compared to $2.5 million, or 8 cents per diluted Class A share, are included in net income Book value per share of $15.36 at December 31, 2024, compared to $14.39 at year-end 2023

Financial Summary

Three Months Ended December 31,  Year Ended December 31,

2024 2023 % Change  2024 2023 % Change

(dollars in thousands, except per share amounts)

Income Statement Data

Net premiums earned$  236,635 $  226,185 4.6% $  936,651 $  882,071 6.2%

Investment income, net12,050 10,710 12.5  44,918 40,853 10.0

Net investment gains256 2,243 -88.6  4,981 3,173 57.0

Total revenues249,954 239,468 4.4  989,605 927,338 6.7

Net income (loss)24,003 (1,970) NM2  50,862 4,426 NM

Non-GAAP operating income (loss)123,801 (3,742) NM  46,927 1,919 NM

Annualized return on average equity18.1% -1.7% 19.8 pts  9.9% 0.9% 9.0 pts

Per Share Data

Net income (loss) – Class A (diluted)$        0.70 $       (0.06) NM  $        1.53 $        0.14 NM

Net income (loss) – Class B0.64 (0.06) NM  1.38 0.11 NM

Non-GAAP operating income (loss) – Class A (diluted)0.69 (0.11) NM  1.41 0.06 NM

Non-GAAP operating income (loss) – Class B0.63 (0.11) NM  1.27 0.04 NM

Book value15.36 14.39 6.7% 15.36 14.39 6.7%

ˆThe “Definitions of Non-GAAP Financial Measures” section of this release defines and reconciles data that we prepare on an accounting basis other than U.S. generally accepted accounting principles (“GAAP”). ²Not meaningful.

Management Commentary

Kevin G. Burke, President and Chief Executive Officer of Donegal Group Inc., stated, “We concluded 2024 with strong performance in the fourth quarter that we believe reflected our unrelenting focus in recent years on execution, whether on strategic initiatives to broaden our market capabilities or on profit-improvement measures to enhance our operating performance. As we move into 2025, we are striving to further enhance our performance while also pursuing intentional, strategic premium growth.

“For the fourth quarter of 2024, our loss ratio improved substantially compared to the prior-year quarter, as premium rate increases contributed to higher net premiums earned and numerous underwriting initiatives we implemented in recent years resulted in lower claim activity. Our weather-related loss ratio compared favorably to both the prior-year quarter and our previous five-year average for the fourth quarter of the year. Net development of reserves for claims incurred in prior years had virtually no effect on the loss ratio for the fourth quarter of 2024 or 2023.

“We effectively mitigated the higher costs associated with our major systems modernization project and higher underwriting-based incentive costs by implementing targeted expense-reduction strategies across our operations. We remain committed to refining the efficiency of our insurance operations, leveraging our substantial investments in technology, data and analytics, to maintain a sustainable expense ratio.”

Mr. Burke concluded, “As the insurance industry landscape continues to evolve, our dedicated team will maintain focus on the effective execution of the strategies we believe will lead to successful achievement of our long-term objectives. We will continue to implement premium rate increases as needed to maintain rate adequacy and achieve targeted risk-adjusted returns. We are also actively pursuing new business opportunities across our regional footprint, concentrating primarily on high quality new commercial middle market and small business accounts, while also seeking strategic new business growth within our personal lines segment. We have refined our state-specific strategies and action plans to meet current market challenges and opportunities. We believe that the successful execution of those actions will allow us to f

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Donegal Group Inc. Announces Third Quarter and First Nine Months of 2024 Results

MARIETTA, Pa., Oct. 24, 2024 (GLOBE NEWSWIRE) -- Donegal Group Inc. (NASDAQ: DGICA) and (NASDAQ: DGICB) today reported its financial results for the third quarter and first nine months of 2024.

Significant Items for third quarter of 2024 (all comparisons to third quarter of 2023):

Net income of $16.8 million, or 51 cents per diluted Class A share, compared to net loss of $0.8 million, or 2 cents per Class A share Net premiums earned increased 6.0% to $238.0 million Net premiums written1 increased 5.9% to $232.2 million Combined ratio of 96.4%, compared to 104.5% Net income included after-tax net investment gains of $1.5 million, or 5 cents per diluted Class A share, compared to after-tax net investment losses of $1.0 million, or 3 cents per Class A share Book value per share of $15.22 at September 30, 2024, compared to $14.26 Financial Summary

Three Months Ended September 30, Nine Months Ended September 30,

2024   2023  % Change  2024   2023  % Change

(dollars in thousands, except per share amounts)

Income Statement Data

Net premiums earned$237,957  $224,393  6.0% $700,017  $655,886  6.7%

Investment income, net 10,827   10,536  2.8   32,868   30,143  9.0

Net investment gains (losses) 1,876   (1,243) NM2 4,725   930  408.1

Total revenues 251,738   233,928  7.6   739,651   687,870  7.5

Net income (loss) 16,752   (805) NM   26,860   6,396  319.9

Non-GAAP

operating income1 15,270   176  NM   23,127   5,661  308.5

Annualized return on average equity 13.4%  -0.7% 14.1 pts  7.2%  1.8% 5.4 pts

Per Share Data

Net income (loss) – Class A (diluted)$0.51  $(0.02) NM  $0.81  $0.20  305.0%

Net income (loss) – Class B 0.46   (0.02) NM   0.74   0.17  335.3

Non-GAAP

operating income – Class A (diluted) 0.46   0.01  NM   0.70   0.17  311.8

Non-GAAP

operating income – Class B 0.42   -  NM   0.63   0.15  320.0

Book value 15.22   14.26  6.7%  15.22   14.26  6.7

1The “Definitions of Non-GAAP Financial Measures” section of this release defines and reconciles data that we prepare on an accounting basis other than U.S. generally accepted accounting principles (“GAAP”).

2Not meaningful.

Management Commentary

“We are pleased that many of the strategic initiatives we implemented in recent years contributed to significant improvement in our financial results for the third quarter of 2024,” said Kevin G. Burke, President and Chief Executive Officer of Donegal Group Inc.

“With the exit from commercial lines markets in Georgia and Alabama essentially completed at the end of the second quarter of 2024, solid new business writings, rate achievement and retention levels led to a 6.4% increase in commercial lines net premiums written for the third quarter of 2024. Our personal lines net premiums written growth rate for the third quarter was 5.4%, primarily attributable to strong rate increases and policy retention that were partially offset by intentional strategic actions to slow growth and further improve profitability.

“Despite higher-than-average weather-related losses during the quarter, primarily attributable to Hurricane Helene in late September, our combined ratio improved significantly to 96.4%, compared to 104.5% for the prior-year quarter. Our core loss ratios improved across all of our major lines of business. We attribute that improvement to the favorable impact of numerous ongoing underwriting initiatives and higher net premiums earned from renewal rate increases that we implemented over the past two years.”

Mr, Burke concluded, “We have growing confidence that the continuing execution of our strategies will deliver sustained excellent financial performance.”

Insurance Operations

Donegal Group is an insurance holding company whose insurance subsidiaries and affiliates offer property and casualty lines of insurance in three Mid-Atlantic states (Delaware, Maryland and Pennsylvania), five Southern states (Georgia, North Carolina, South Carolina, Tennessee and Virginia), eight Midwestern states (Illinois, Indiana, Iowa, Michigan, Nebraska, Ohio, South Dakota and Wisconsin) and five Southwestern states (Arizona, Colorado, New Mexico, Texas and Utah). Donegal Mutual Insurance Company and the insurance subsidiaries of Donegal Group conduct business together as the Donegal Insurance Group.

Three Months Ended September 30, Nine Months Ended September 30,

2024  2023 % Change  2024  2023 % Change

(dollars in thousands)

Net Premiums Earned

Commercial lines$136,401 $135,432 0.7% $402,982 $399,427 0.9%

Personal lines 101,556  88,961 14.2   297,035  256,460 15.8

Total net premiums earned$237,957 $224,393 6.0% $700,017 $655,887 6.7%

Net Premiums Written

Commercial lines:

Automobile$41,464 $37,535 10.5% $142,067 $134,853 5.3%

Workers' compensation 23,934  24,371 -1.8   82,599  85,315 -3.2

Commercial multi-peril 50,155  44,

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Donegal Group Inc. Announces Second Quarter and First Half 2024 Results

MARIETTA, Pa., July 25, 2024 (GLOBE NEWSWIRE) -- Donegal Group Inc. (NASDAQ: DGICA) and (NASDAQ: DGICB) today reported its financial results for the second quarter and first half of 2024.

Significant Items for Second Quarter of 2024 (all comparisons to second quarter of 2023):

Net income of $4.2 million, or 13 cents per diluted Class A share, compared to $2.0 million, or 6 cents per diluted Class A share Net premiums earned increased 8.3% to $234.3 million Net premiums written1 increased 9.1% to $247.2 million Combined ratio of 103.0%, compared to 104.7% Net income included after-tax net investment gains of $0.6 million, or 2 cents per diluted Class A share, compared to $2.0 million, or 6 cents per diluted Class A share Book value per share of $14.48 at June 30, 2024, compared to $14.68 Financial Summary

Three Months Ended June 30, Six Months Ended June 30,

2024 2023 % Change 2024 2023 % Change

(dollars in thousands, except per share amounts)

Income Statement Data

Net premiums earned$   234,311  $216,260  8.3% $462,06  $431,493  7.1%

Investment income, net11,068  10,157  9.0  22,041  19,607  12.4

Net investment gains737  2,504  -70.6  2,850  2,173  31.2

Total revenues246,773  229,196  7.7  487,913  453,942  7.5

Net income4,153  1,997  108.0  10,108  7,201  40.4

Non-GAAP operating income13,571  19  NM2  7,857  5,484  43.3

Annualized return on average equity 3.4%  1.6% 1.8pts   4.2% 3.0% 1.2 pts

Per Share Data

Net income – Class A (diluted)$         0.13  $       0.06  116.7% $       0.31  $       0.22  40.9%

Net income – Class B0.11  0.05  120.0  0.28  0.20  40.0

Non-GAAP operating income – Class A (diluted)0.11  -  NM  0.24  0.17  41.2

Non-GAAP operating income – Class B0.10  -  NM  0.22  0.15  46.7

Book value14.48  14.68  -1.4  14.48  14.68  -1.4

1The “Definitions of Non-GAAP Financial Measures” section of this release defines and reconciles data that we prepare on an accounting basis other than U.S. generally accepted accounting principles (“GAAP”).

2Not meaningful.

Management Commentary

“We continued to execute successfully on several important objectives during the second quarter of 2024 that we expect will further enhance our financial performance in future periods,” said Kevin G. Burke, President and Chief Executive Officer of Donegal Group Inc.

“During the quarter, we achieved net premiums written growth of 9.1%, reflecting ongoing strong renewal premium rate increases and policy retention. We are actively controlling personal lines new business writings given our strategy to emphasize commercial lines growth. We are executing on various strategic initiatives, including enhancing our small commercial underwriting capabilities, to achieve higher levels of new business within the commercial lines segment. While carefully pursuing profitable top-line growth, we are also actively managing our geographic risk concentrations. This ongoing initiative served us well in mitigating the weather-related loss impact to our results during a quarter marked by severe convective storm activity, including the highest number of tornadoes reported in the first half of the year since 2011.”

Mr. Burke concluded, “Our core loss ratio for the second quarter of 2024 remained constant relative to the prior-year period but improved sequentially by 3.7 percentage points from the first quarter of 2024 as net premiums earned reflected higher impact of recent premium rate increases. Despite peak impact during 2024 from expenses related to our systems modernization project, our expense ratio declined by 2.3 percentage points compared to the prior-year quarter due primarily to ongoing expense reduction initiatives. While we have more work to do, we are confident in our ability to execute our business strategies and create long-term value for our stockholders.”

Insurance Operations

Donegal Group is an insurance holding company whose insurance subsidiaries and affiliates offer property and casualty lines of insurance in three Mid-Atlantic states (Delaware, Maryland and Pennsylvania), two New England states (Maine and New Hampshire), five Southern states (Georgia, North Carolina, South Carolina, Tennessee and Virginia), eight Midwestern states (Illinois, Indiana, Iowa, Michigan, Nebraska, Ohio, South Dakota and Wisconsin) and five Southwestern states (Arizona, Colorado, New Mexico, Texas and Utah). Donegal Mutual Insurance Company and the insurance subsidiaries of Donegal Group conduct business together as the Donegal Insurance Group.

Three Months Ended June 30, Six Months Ended June 30,

2024 2023 % Change 2024 2023 % Change

(dollars in thousands)

Net Premiums Earned

Commercial lines$   134,489 $130,808 2.8% $266,581 $263,995 1.0%

Personal lines99,822 85,452 16.8  195,479 167,498 16.7

Total net premiums earned$   234,311 $216,260 8.3% $462,060 $431,493 7.1%

Net Premi

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Donegal Group Inc. Announces First Quarter 2024 Results

MARIETTA, Pa., April 25, 2024 (GLOBE NEWSWIRE) -- Donegal Group Inc. (NASDAQ: DGICA) and (NASDAQ: DGICB) today reported its financial results for the first quarter of 2024.

Significant Items for First Quarter of 2024 (all comparisons to first quarter of 2023):

Net premiums earned increased 5.8% to $227.7 million Net premiums written1 increased 6.0% to $251.4 million Combined ratio of 102.4%, compared to 101.2% Net income of $6.0 million, or $0.18 per diluted Class A share, compared to $5.2 million, or $0.16 per diluted Class A share Annualized return on average equity of 4.9%, compared to 4.3% Book value per share of $14.53 at March 31, 2024, compared to $15.01 Financial Summary

Three Months Ended March 31,

2024   2023  % Change

(dollars in thousands, except per share amounts)

Income Statement Data

Net premiums earned$227,749  $215,233  5.8%

Investment income, net 10,972   9,449  16.1

Net investment gains (losses) 2,113   (331) NM2

Total revenues 241,141   224,746  7.3

Net income 5,956   5,204  14.5

Non-GAAP operating income1 4,286   5,465  -21.6

Annualized return on average equity 4.9%  4.3% 0.6 pts

Per Share Data

Net income – Class A (diluted)$0.18  $0.16  12.5%

Net income – Class B 0.16   0.15  6.7

Non-GAAP operating income – Class A (diluted) 0.13   0.17  -23.5

Non-GAAP operating income – Class B 0.12   0.15  -20.0

Book value 14.53   15.01  -3.2

1The “Definitions of Non-GAAP Financial Measures” section of this release defines and reconciles data that we prepare on an accounting basis other than U.S. generally accepted accounting principles (“GAAP”).

2Not meaningful.

Management Commentary

“We entered 2024 with a renewed emphasis on executing on clearly defined strategies that include targeted new business growth, multiple initiatives to enhance our underwriting performance and further modernization of our operations for greater effectiveness and efficiency. Additionally, we committed to a multi-year expense management initiative that is strategically designed to mitigate the 2024 peak impact of allocated expenses associated with the technology advancements Donegal Mutual Insurance Company has implemented in recent years,” said Kevin G. Burke, President and Chief Executive Officer.

“Our net premium growth in the first quarter of 2024 was predominantly fueled by ongoing renewal premium increases that were supported by commercial lines new business acquisitions that fit within the framework of our refined underwriting criteria. While the increase in commercial new business writings is notable, it was largely offset by planned attrition from regions earmarked for exit or profit enhancement pursuant to our state-specific strategies.”

He continued, “In the first quarter of 2024, our underwriting profitability reflected the impact of average weather-related losses, higher severity of large fire losses than we experienced in recent quarterly periods and atypical workers’ compensation reserve development related to prior-year losses. We expect that the underwriting enhancements actively underway, in conjunction with an accelerating earned premium impact of rate increases we implemented over the past year will result in further improvement in our underwriting results as the year progresses. We remain steadfast in our commitments to achieve sustained excellent financial performance and to capitalize on opportunities for profitable growth as the means of creating long-term shareholder value.”

Insurance Operations

Donegal Group is an insurance holding company whose insurance subsidiaries and affiliates offer property and casualty lines of insurance in three Mid-Atlantic states (Delaware, Maryland and Pennsylvania), two New England states (Maine and New Hampshire), five Southern states (Georgia, North Carolina, South Carolina, Tennessee and Virginia), eight Midwestern states (Illinois, Indiana, Iowa, Michigan, Nebraska, Ohio, South Dakota and Wisconsin) and five Southwestern states (Arizona, Colorado, New Mexico, Texas and Utah). Donegal Mutual Insurance Company and the insurance subsidiaries of Donegal Group conduct business together as the Donegal Insurance Group.

Three Months Ended March 31,

2024  2023 % Change

(dollars in thousands)

Net Premiums Earned

Commercial lines$132,092 $133,187 -0.8%

Personal lines 95,657  82,046 16.6

Total net premiums earned$227,749 $215,233 5.8%

Net Premiums Written

Commercial lines:

Automobile$53,514 $52,069 2.8%

Workers' compensation 31,074  33,201 -6.4

Commercial multi-peril 57,503  55,850 3.0

Other 13,403  15,213 -11.9

Total commercial lines 155,494  156,333 -0.5

Personal lines:

Automobile 61,381  49,981 22.8

Homeowners 31,759  28,189 12.7

Other 2,808  2,801 0.2

Total personal lines 95,948  80,971 18.5

Total net premiums written$251,442 $237,304 6.0%

Net Premiums Written

The 6.0% increase in net premiums written for

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Donegal Group Inc. Announces Fourth Quarter and Full Year 2023 Results

MARIETTA, Pa., Feb. 22, 2024 (GLOBE NEWSWIRE) -- Donegal Group Inc. (NASDAQ:DGICA) and (NASDAQ:DGICB) today reported its financial results for the fourth quarter and full year ended December 31, 2023.

Significant items for fourth quarter of 2023 (all comparisons to fourth quarter of 2022):

Net premiums earned increased 6.2% to $226.2 million Combined ratio of 106.8%, compared to 102.8% Net loss of $2.0 million, or 6 cents per Class A share, compared to net income of $3.5 million, or 11 cents per diluted Class A share Net investment gains (after tax) of $1.8 million, or 5 cents per Class A share, compared to $0.5 million, or 2 cents per diluted Class A share, are included in net (loss) income Significant items for full year of 2023 (all comparisons to full year of 2022):

Net premiums earned increased 7.2% to $882.1 million Combined ratio of 104.4%, compared to 103.3% Net income of $4.4 million, or 14 cents per diluted Class A share, compared to net loss of $2.0 million, or 6 cents per Class A share Net investment gains (after tax) of $2.5 million, or 8 cents per diluted Class A share, compared to net investment losses (after tax) of $8.0 million, or 26 cents per Class A share, are included in net income (loss) Book value per share of $14.39 at December 31, 2023, compared to $14.79 at year-end 2022

Financial Summary

Three Months Ended December 31, Year Ended December 31,

2023   2022  % Change  2023   2022  % Change

(dollars in thousands, except per share amounts)

Income Statement Data

Net premiums earned$226,185  $212,991  6.2% $882,071  $822,490  7.2%

Investment income, net 10,710   9,385  14.1   40,853   34,016  20.1

Net investment gains (losses) 2,243   626  258.3   3,173   (10,185) NM2

Total revenues 239,468   223,444  7.2   927,338   848,221  9.3

Net (loss) income (1,970)  3,479  NM  4,426   (1,959) NM

Non-GAAP operating (loss) income1 (3,742)  2,985  NM  1,919   6,087  -68.5

Annualized (loss) return on average equity -1.7%  2.9% NM  0.9%  -0.4% NM

Per Share Data

Net (loss) income – Class A (diluted)$(0.06) $0.11  NM $0.14  $(0.06) NM

Net (loss) income – Class B (0.06)  0.09  NM  0.11   (0.07) NM

Non-GAAP operating (loss) income – Class A (diluted) (0.11)  0.09  NM  0.06   0.20  -70.0%

Non-GAAP operating (loss) income – Class B (0.11)  0.08  NM  0.04   0.16  -75.0

Book value 14.39   14.79  -2.7%  14.39   14.79  -2.7

1The “Definitions of Non-GAAP Financial Measures” section of this release defines and reconciles data that we prepare on an accounting basis other than U.S. generally accepted accounting principles (“GAAP”).

2Not meaningful.

Management Commentary

Kevin G. Burke, President and Chief Executive Officer of Donegal Group Inc., stated, “As we closed out 2023 and shifted our focus to 2024, we have continued to execute on our numerous strategic initiatives, particularly focusing on action items related to individual state strategies and profit improvement measures. Our independent agents are responding favorably to our new and modernized small commercial products and agency portal, and we are employing our advanced capabilities to attract growth within that profitable market segment. During the fourth quarter, we saw a continuation of improvement within our commercial lines underwriting results, partly due to the lowest quarterly impact of weather-related losses we have experienced since the first quarter of 2022, coupled with lower-than-average large fire loss severity. Our personal lines underwriting results continued to reflect the impact of increased claim severity and residual inflationary impacts on loss trends. We are implementing various measures to reduce our operating expenses incrementally over the next several years, noting that the expense ratio impact from costs associated with our major systems modernization project will peak in 2024 before beginning to subside gradually.

“Actions related to our strategic decision to non-renew commercial accounts in geographies and classes we targeted for exit or profit improvement continued to progress and contributed to the modest decrease in commercial lines net premiums earned. While attrition from this effort more than offset strong renewal and retention rates, we expect the removal of those underperforming accounts will accelerate our return to target profitability levels in future periods. As planned, we slowed new business growth in our personal lines and implemented significant rate increases for retained policies throughout 2023. We will continue to take significant rate increases through 2024 to achieve and maintain rate adequacy in our personal lines segment. While the insurance landscape continues to evolve, our dedicated team remains keenly focused on execution as we navigate both the current and future environment with the ultimate goal of achieving sustained excellent financial

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Donegal Group Inc. Announces Third Quarter and First Nine Months of 2023 Results

MARIETTA, Pa., Oct. 26, 2023 (GLOBE NEWSWIRE) -- Donegal Group Inc. (NASDAQ:DGICA) and (NASDAQ:DGICB) today reported its financial results for the third quarter and first nine months of 2023.

Significant items for third quarter of 2023 (all comparisons to third quarter of 2022):

Net loss of $0.8 million, or 2 cents per Class A share, compared to net loss of $10.4 million, or 33 cents per Class A share Net premiums earned increased 8.9% to $224.4 million Net premiums written1 increased 6.3% to $219.2 million Combined ratio of 104.5%, compared to 109.6%, due to lower commercial lines losses Net loss included after-tax net investment losses of $1.0 million, or 3 cents per Class A share, compared to $1.9 million, or 6 cents per Class A share Book value per share of $14.26 at September 30, 2023, compared to $14.85 Three Months Ended September 30,  Nine Months Ended September 30,

2023   2022   % Change   2023   2022   % Change

(dollars in thousands, except per share amounts)

Income Statement Data

Net premiums earned$224,393  $206,122   8.9% $655,886  $609,499   7.6%

Investment income, net 10,536   8,569   23.0   30,143   24,631   22.4

Net investment (losses) gains (1,243)  (2,358)  -47.3   930   (10,811)  NM2

Total revenues 233,928   212,838   9.9   687,870   624,776   10.1

Net (loss) income (805)  (10,376)  -92.2   6,396   (5,439)  NM

Non-GAAP operating income (loss)1 176   (8,513)  NM   5,661   3,102   82.5

Annualized (loss) return on average equity -0.7%   -8.4%   7.7 pts   1.8%   -1.4%   3.2 pts

Per Share Data

Net (loss) income – Class A (diluted)$(0.02) $(0.33)  -93.9% $0.20  $(0.17)  NM

Net (loss) income – Class B (0.02)  (0.30)  -93.3   0.17   (0.16)  NM

Non-GAAP operating income (loss) – Class A (diluted) 0.01   (0.27)  NM   0.17   0.10   70.0%

Non-GAAP operating income (loss) – Class B -   (0.25)  NM   0.15   0.08   87.5

Book value 14.26   14.85   -4.0   14.26   14.85   -4.0

1The “Definitions of Non-GAAP Financial Measures” section of this release defines and reconciles data that we prepare on an accounting basis other than U.S. generally accepted accounting principles (“GAAP”).

2Not meaningful.

Management Commentary

Kevin G. Burke, President and Chief Executive Officer of Donegal Group Inc., noted, “We remain focused on the ongoing execution of our strategic plan to build a solid foundation for future growth and consistent profitability, while we continue to navigate significant headwinds impacting the insurance industry. During the third quarter of 2023, we experienced significant improvement in our commercial lines underwriting results compared to the prior-year third quarter. We attribute that improvement in part to a decrease in large commercial property fire losses. On the other hand, our personal lines underwriting results reflected elevated weather-related losses resulting from a substantial increase in the frequency of severe weather events throughout our operating regions that generated the highest quarterly weather-related loss ratio we have recorded in recent years.”

Mr. Burke continued, “During the third quarter of 2023, we completed our deployment of enhanced products and a new agency portal across our 22-state commercial lines geographical footprint as well as additional service capabilities to allow us to compete more effectively for quality small commercial accounts through our independent agents. Conversely, as previously announced, we began to non-renew all commercial policies in Georgia and Alabama. We have also accelerated commercial lines renewal premium increases and other underwriting refinements as part of our ongoing profit improvement initiatives in other regions where we have not achieved targeted profitability levels. Within our personal lines business segment, we continued to implement significant premium rate increases along with other actions to slow the pace of new business writings. We expect to continue to take significant rate increases through the balance of 2023 and into 2024 to ensure that we achieve rate adequacy in this segment. Excluding the markets we are exiting, retention levels in both segments remained consistently high despite the premium rate increases and other underwriting actions we implemented.”

Insurance Operations

Donegal Group is an insurance holding company whose insurance subsidiaries and affiliates offer property and casualty lines of insurance in three Mid-Atlantic states (Delaware, Maryland and Pennsylvania), two New England states (Maine and New Hampshire), five Southern states (Georgia, North Carolina, South Carolina, Tennessee and Virginia), eight Midwestern states (Illinois, Indiana, Iowa, Michigan, Nebraska, Ohio, South Dakota and Wisconsin) and five Southwestern states (Arizona, Colorado, New Mexico, Texas and Utah). Donegal Mutual Insurance Company and the insurance sub

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Donegal Group Inc. Announces Second Quarter and First Half 2023 Results

MARIETTA, Pa., July 27, 2023 (GLOBE NEWSWIRE) -- Donegal Group Inc. (NASDAQ: DGICA) and (NASDAQ: DGICB) today reported its financial results for the second quarter and first half of 2023.

Significant Items for Second Quarter of 2023 (all comparisons to second quarter of 2022):

Net income of $2.0 million, or 6 cents per diluted Class A share, compared to net loss of $8.2 million, or 26 cents per Class A share Net premiums earned increased 5.9% to $216.3 million Net premiums written1 increased 3.7% to $226.5 million Combined ratio of 104.7%, compared to 105.0% Net income included after-tax net investment gains of $2.0 million, or 6 cents per diluted Class A share, compared to after-tax net investment losses of $6.6 million, or 21 cents per Class A share Book value per share of $14.68 at June 30, 2023 Financial Summary

Three Months Ended June 30, Six Months Ended June 30,

2023   2022  % Change  2023   2022  % Change

(dollars in thousands, except per share amounts)

Income Statement Data

Net premiums earned$216,260  $204,128  5.9% $431,493  $403,377  7.0%

Investment income, net 10,157   8,204  23.8   19,607   16,063  22.1

Net investment gains (losses) 2,504   (8,377) NM2  2,173   (8,453) NM

Total revenues 229,196   204,311  12.2   453,942   411,938  10.2

Net income (loss) 1,997   (8,208) NM  7,201   4,937  45.9

Non-GAAP operating income (loss)1 19   (1,590) NM  5,484   11,615  -52.8

Annualized return (loss) on average equity 1.6%  -6.3% NM  3.0%  1.9% 1.1 pts

Per Share Data

Net income (loss) – Class A (diluted)$0.06  $(0.26) NM $0.22  $0.16  37.5%

Net income (loss) – Class B 0.05   (0.24) NM  0.20   0.14  42.9

Non-GAAP operating income (loss) – Class A (diluted) -   (0.05) NM  0.17   0.37  -54.1

Non-GAAP operating income (loss) – Class B -   (0.05) NM  0.15   0.34  -55.9

Book value 14.68   15.87  -7.5%  14.68   15.87  -7.5

1The “Definitions of Non-GAAP Financial Measures” section of this release defines and reconciles data that we prepare on an accounting basis other than U.S. generally accepted accounting principles (“GAAP”).

2Not meaningful.

Management Commentary

“We are continuing to navigate through a challenging time for the insurance industry as we respond to the ongoing effects of elevated loss cost inflation. During the quarter, we intentionally slowed our new business growth in personal lines, a strategic decision due to the ongoing inflationary increases in the cost and duration of automobile and property repairs seen across the industry. Personal lines premium growth of 14.8% was primarily driven by rating actions, with average renewal rate increases of 13.6% for the second quarter. For our commercial lines segment, we have continued the rollout of modernized commercial automobile, umbrella and businessowners products with enhanced straight-through processing capabilities for our agents. After a successful initial rollout in three states in the first quarter of 2023, we have launched the enhanced products and agency portal in the remaining 19 states where we offer commercial lines for policies effective beginning August 1. Commercial premium retention and rate increases remained strong during the second quarter, but they were more than offset by policy attrition in several states we are exiting or have targeted for profit improvement and the effect of reinsurance reinstatement premiums resulting from utilization of reinsurance for several large property losses. Renewal rate increases averaged 10.1% for commercial lines other than workers’ compensation for the second quarter of 2023. We remain confident in our ability to grow our business profitably as we continue to execute numerous strategies over the next few years,” said Kevin G. Burke, President and Chief Executive Officer.

He continued, “We saw modest improvement in profitability, as expected, in the second quarter of 2023. While no large catastrophe weather event impacted the quarterly loss ratio, the frequency of losses from smaller weather-related events across our footprint increased. We remain committed to implementing rate increases across our operating regions and taking specific data-driven underwriting actions to improve our geographic spread of risk in response to the uptick in the frequency of weather events. We are committed to enhancing our operational efficiency, profitability and long-term value creation for the benefit of our policyholders, agents and stockholders.”

Insurance Operations

Donegal Group is an insurance holding company whose insurance subsidiaries and affiliates offer property and casualty lines of insurance in three Mid-Atlantic states (Delaware, Maryland and Pennsylvania), two New England states (Maine and New Hampshire), five Southern states (Georgia, North Carolina, South Carolina, Tennessee and Virginia), eight Midwestern states (Illinois, Indiana, Iowa

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Donegal Group Inc. Announces First Quarter 2023 Results

MARIETTA, Pa., April 27, 2023 (GLOBE NEWSWIRE) -- Donegal Group Inc. (NASDAQ: DGICA) and (NASDAQ: DGICB) today reported its financial results for the first quarter of 2023.

Significant Items for First Quarter of 2023 (all comparisons to first quarter of 2022):

Net premiums earned increased 8.0% to $215.2 million Net premiums written1 increased 8.6% to $237.3 million Combined ratio of 101.2%, compared to 95.8% Net income of $5.2 million, or $0.16 per diluted Class A share, compared to $13.1 million, or $0.43 per diluted Class A share Annualized return on average equity of 4.3%, compared to 10.0% Book value per share of $15.01 at March 31, 2023, compared to $16.72 Financial Summary

Three Months Ended March 31,

2023   2022  % Change

(dollars in thousands, except per share amounts)

Income Statement Data

Net premiums earned$215,233  $199,249  8.0%

Investment income, net 9,449   7,859  20.2

Net investment losses (331)  (76) 335.5

Total revenues 224,746   207,627  8.2

Net income 5,204   13,145  -60.4

Non-GAAP operating income1 5,465   13,205  -58.6

Annualized return on average equity 4.3%  10.0% -5.7 pts

Per Share Data

Net income – Class A (diluted)$0.16  $0.43  -62.8%

Net income – Class B 0.15   0.39  -61.5

Non-GAAP operating income – Class A (diluted) 0.17   0.43  -60.5

Non-GAAP operating income – Class B 0.15   0.39  -61.5

Book value 15.01   16.72  -10.2

1The “Definitions of Non-GAAP and Operating Measures” section of this release defines and reconciles data that we prepare on an accounting basis other than U.S. generally accepted accounting principles (“GAAP”).

Management Commentary

“We believe our solid premium growth in the first quarter of 2023 is a testament to the successful launch of our new personal lines product suite in 2022, solid independent agency relationships and superior claims handling capabilities and reputation. We remain cautious of the current macro-economic environment and ongoing impact of inflation. For our personal lines segment, we are taking actions to moderate our growth until we have better clarity on rate adequacy and stabilization of loss costs. For our commercial lines segment, we successfully deployed the next major release within our systems modernization project, which will add three commercial lines to our modernized operating platform for policies effective beginning in June 2023 in three states. The new lines include a new businessowners product as well as modernized commercial automobile and commercial umbrella products. We expect to roll out these new products in our remaining 21 states in the third quarter of 2023 and further expect that our enhanced capability to compete for small commercial accounts will generate additional premium growth as the year progresses.” said Kevin G. Burke, President and Chief Executive Officer.

He continued, “From a profitability standpoint, weather and large fire losses were elevated when compared to the prior-year quarter, but we experienced incremental improvement from prior consecutive quarters in 2022. While weather conditions within our operating region were close to average for the majority of the first quarter of 2023, claim activity from significant winds on the final day of the quarter pushed the weather impact above our previous five-year first quarter average. To combat ongoing inflationary pressures, we continue to implement substantial premium rate increases in nearly every line of business. We also believe that our ongoing strategic and transformational implementations, which are already yielding positive impact, will gain momentum and enhance long-term shareholder value creation.”

Insurance Operations

Donegal Group is an insurance holding company whose insurance subsidiaries and affiliates offer property and casualty lines of insurance in three Mid-Atlantic states (Delaware, Maryland and Pennsylvania), three New England states (Maine, New Hampshire and Vermont), six Southern states (Alabama, Georgia, North Carolina, South Carolina, Tennessee and Virginia), eight Midwestern states (Illinois, Indiana, Iowa, Michigan, Nebraska, Ohio, South Dakota and Wisconsin) and four Southwestern states (Colorado, New Mexico, Texas and Utah). Donegal Mutual Insurance Company and the insurance subsidiaries of Donegal Group conduct business together as the Donegal Insurance Group.

Three Months Ended March 31,

2023  2022 % Change

(dollars in thousands)

Net Premiums Earned

Commercial lines$130,466 $124,329 4.9%

Personal lines 84,767  74,920 13.1

Total net premiums earned$215,233 $199,249 8.0%

Net Premiums Written

Commercial lines:

Automobile$52,069 $48,628 7.1%

Workers' compensation 33,201  32,897 0.9

Commercial multi-peril 55,850  54,197 3.0

Other 11,890  11,111 7.0

Total commercial lines 153,010  146,833 4.2

Personal lines:

Automobile 49,981  42,240 18.3

Homeowners 28,189  23,515 19.9

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Donegal Group Inc. Announces Fourth Quarter and Full Year 2022 Results

MARIETTA, Pa., Feb. 23, 2023 (GLOBE NEWSWIRE) -- Donegal Group Inc. (NASDAQ:DGICA) and (NASDAQ:DGICB) today reported its financial results for the fourth quarter and full year ended December 31, 2022.

Significant Items for Fourth Quarter of 2022 (all comparisons to fourth quarter of 2021):

Net premiums earned increased 6.5% to $213.0 million Combined ratio of 102.8%, compared to 101.6% Net income of $3.5 million, or 11 cents per diluted Class A share, compared to $5.3 million, or 17 cents per diluted Class A share Net investment gains (after tax) of $0.5 million, or 2 cents per diluted Class A share, compared to $1.1 million, or 3 cents per diluted Class A share, are included in net income Significant Items for Full Year of 2022 (all comparisons to full year of 2021):

Net premiums earned increased 6.0% to $822.5 million Combined ratio of 103.3%, compared to 101.0% Net loss of $2.0 million, or 6 cents per Class A share, compared to net income of $25.3 million, or 83 cents per diluted Class A share Net investment losses (after tax) of $8.0 million, or 26 cents per Class A share, compared to net investment gains (after tax) of $5.1 million, or 17 cents per diluted Class A share, are included in net loss Book value per share of $14.79 at December 31, 2022, compared to $16.95 at year-end 2021

Financial Summary

Three Months Ended December 31, Year Ended December 31,

2022   2021  % Change  2022   2021  % Change

(dollars in thousands, except per share amounts)

Income Statement Data

Net premiums earned$212,991  $200,040   6.5% $822,490  $776,015  6.0%

Investment income, net 9,385   8,199   14.5   34,016   31,126  9.3

Net investment gains (losses) 626   1,338   -53.2   (10,185)  6,477  NM2

Total revenues 223,444   210,244   6.3   848,221   816,466  3.9

Net income (loss) 3,479   5,272   -34.0   (1,959)  25,254  NM

Non-GAAP operating income1 2,985   4,216   -29.2   6,087   20,137  -69.8

Annualized return (loss) on average equity 2.9%  3.9% -1.0 pts  -0.4%  4.8% -5.2 pts

Per Share Data

Net income (loss) – Class A (diluted)$0.11  $0.17   -35.3% $(0.06) $0.83  NM

Net income (loss) – Class B 0.09   0.15   -40.0   (0.07)  0.74  NM

Non-GAAP operating income – Class A (diluted) 0.09   0.14   -35.7   0.20   0.66  -69.7%

Non-GAAP operating income – Class B 0.08   0.12   -33.3   0.16   0.59  -72.9

Book value 14.79   16.95   -12.7   14.79   16.95  -12.7

1The “Definitions of Non-GAAP and Operating Measures” section of this release defines and reconciles data that we prepare on an accounting basis other than U.S. generally accepted accounting principles (“GAAP”).

2Not meaningful.

Management Commentary

Kevin G. Burke, President and Chief Executive Officer of Donegal Group Inc., stated, “We are pleased to have achieved growth in net premiums written1 in the fourth quarter of 2022 in every line of business, led by a return to strong growth in our personal lines business segment. We attribute the personal lines growth to new business writings resulting from the successful launch of new products over the past year, strong renewal retention rates in our legacy products and substantial premium rate increases to combat ongoing inflationary pressures on loss costs. As we continue to closely monitor the effects of economic conditions, we are actively managing new business growth in this segment. We expect to expand our new personal lines products and agency portal to the state of Michigan in the second quarter of 2023, which will complete the ten-state rollout that we began in late 2021.

Net premiums written within our commercial lines segment increased by 6.9% for the fourth quarter of 2022. We continue to execute state-specific strategies that include accelerating growth in states where we see opportunities for profitable growth and reducing exposures in states we have targeted for profit improvement. We are accelerating pricing increases in tandem with tighter underwriting guidelines to improve profit margins within our commercial business segment. We look forward to the introduction of a new businessowners product, coupled with enhanced straight-through-processing capabilities for that product as well as commercial automobile, commercial umbrella and workers’ compensation policies via our new operating platform, beginning in the second quarter of 2023. This third major release of new systems will allow us to more effectively compete for smaller commercial accounts that we expect will begin to drive additional commercial lines growth in the second half of 2023.

Beyond the ongoing strategic transformation of our products and systems, we continue to enhance our pipeline for strategic growth by building and strengthening relationships with our independent agency partners as we strive to achieve targeted new business volumes, retain attractive accounts and restore rate adequacy wher

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Donegal Group Inc. Announces Third Quarter and First Nine Months of 2022 Results

MARIETTA, Pa., Oct. 27, 2022 (GLOBE NEWSWIRE) -- Donegal Group Inc. (NASDAQ:DGICA) and (NASDAQ:DGICB) today reported its financial results for the third quarter and first nine months of 2022.

Significant items for third quarter of 2022 (all comparisons to third quarter of 2021):

Net loss of $10.4 million, or 33 cents per Class A share, compared to $6.7 million, or 22 cents per Class A share Net premiums earned increased 5.0% to $206.1 million Net premiums written1 increased 4.7% to $206.2 million Combined ratio of 109.6%, compared to 107.7%, largely due to elevated weather-related and fire loss activity Net loss included after-tax net investment losses of $1.9 million, or 6 cents per Class A share, compared to $1.2 million, or 4 cents per Class A share Book value per share of $14.85 at September 30, 2022, compared to $17.21

Three Months Ended September 30, Nine Months Ended September 30,

2022   2021  % Change  2022   2021  % Change

(dollars in thousands, except per share amounts)

Income Statement Data

Net premiums earned$206,122  $196,235   5.0% $609,499  $575,975   5.8%

Investment income, net 8,569   7,764   10.4   24,631   22,926   7.4

Net investment (losses) gains (2,358)  (1,570)  50.2   (10,811)  5,140  NM2

Total revenues 212,838   203,106   4.8   624,776   606,222   3.1

Net (loss) income (10,376)  (6,712)  54.6   (5,439)  19,982  NM

Non-GAAP operating (loss) income1 (8,513)  (5,471)  55.6   3,102   15,922   -80.5

Annualized (loss) return on average equity -8.4%  -4.9%  -3.5pts  -1.4%  5.0%  -6.4pts

Per Share Data

Net (loss) income – Class A (diluted)$(0.33) $(0.22)  50.0% $(0.17) $0.66  NM

Net (loss) income – Class B (0.30)  (0.20)  50.0   (0.16)  0.59  NM

Non-GAAP operating (loss) income – Class A (diluted) (0.27)  (0.18)  50.0   0.10   0.52   -80.8%

Non-GAAP operating (loss) income – Class B (0.25)  (0.16)  56.3   0.08   0.47   -83.0

Book value 14.85   17.21   -13.7   14.85   17.21   -13.7

1The “Definitions of Non-GAAP and Financial Measures” section of this release defines data that we prepare on an accounting basis other than U.S. generally accepted accounting principles (“GAAP”) and reconciles GAAP measures to such data.

2Not meaningful.

Management Commentary

Kevin G. Burke, President and Chief Executive Officer of Donegal Group Inc., noted, “We are strategically managing premium growth in the challenging current economic environment and continue to focus on strategies and tactics that we believe will yield long-term profit improvement. Weather-related loss activity for the third quarter of 2022 was in line with our historical run rate for the third quarter. Large fire losses had a significant adverse impact on our commercial segment quarterly results. While we did not identify any commonality among the locations or causes of the large fire losses, the increased average severity of these losses compared to the prior-year quarter reflects in part ongoing inflationary increases in the costs of labor and materials. We and other insurance carriers have experienced higher impact from fire losses in recent years compared to historical norms, and we are increasing our utilization of internal and third-party data to analytically identify underlying or emerging risk characteristics we should be considering in our new business and renewal underwriting decisions.”

Mr. Burke continued, “Overall, we remain encouraged by strong premium retention levels that were bolstered by substantial rate increases we have taken across the majority of our lines of business throughout 2022. In light of ongoing inflation impact on loss trends, we expect to continue implementing premium rate increases in the fourth quarter of 2022 and in 2023. The execution of individual state strategies during 2022 has led to higher-than-average premium growth in well-performing states and reduced exposures in underperforming states. We are refining further our state strategies for 2023 to focus on specific geographies and classes of business we have identified as most promising for profitable future growth. As earned premiums reflect higher premium rates and loss costs stabilize in future periods, we believe the ongoing execution of our strategic plan will lead to improved results. We are also making significant strides in our ongoing modernization initiatives, which we believe are positioning us well to excel in the years ahead.”

Insurance Operations

Donegal Group is an insurance holding company whose insurance subsidiaries and affiliates offer property and casualty lines of insurance in three Mid-Atlantic states (Delaware, Maryland and Pennsylvania), three New England states (Maine, New Hampshire and Vermont), six Southern states (Alabama, Georgia, North Carolina, South Carolina, Tennessee and Virginia), eight Midwestern states (Illinois, Indiana, Iowa, Michigan, Nebrask

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Donegal Group Inc. Announces Release Date for Third Quarter 2022 Results

MARIETTA, Pa., Sept. 28, 2022 (GLOBE NEWSWIRE) -- Donegal Group Inc. (NASDAQ:DGICA) and (NASDAQ:DGICB) announced today that it plans to release its results for third quarter ending September 30, 2022 on Thursday, October 27, 2022, before the opening of regular trading on the NASDAQ Stock Market. The Company will provide a supplemental investor presentation in the Investors section of its website at investors.donegalgroup.com concurrently with its earnings press release.

At approximately 8:30 am ET on Thursday, October 27, 2022, the Company will make available in the Investors section of its website a pre-recorded audio webcast featuring management commentary by Kevin Burke, President and Chief Executive Officer; Jeffrey Miller, Executive Vice President and Chief Financial Officer; Jeffery Hay, Senior Vice President and Chief Underwriting Officer; and Anthony Viozzi, Senior Vice President and Chief Investment Officer. A pre-recorded question and answer session will follow formal remarks by management. Questions for consideration should be submitted via e-mail to investors@donegalgroup.com by 5:00 pm ET on Thursday, October 20, 2022.

About Donegal Group Inc.

Donegal Group Inc. is an insurance holding company whose insurance subsidiaries and affiliates offer commercial and personal property and casualty lines of insurance in 24 Mid-Atlantic, Midwestern, New England, Southern and Southwestern states. Donegal Mutual Insurance Company and its insurance subsidiaries conduct business together with the insurance subsidiaries of Donegal Group Inc. as the Donegal Insurance Group. The Donegal Insurance Group has an A.M. Best rating of A (Excellent).

The Class A common stock and Class B common stock of Donegal Group Inc. trade on the NASDAQ Global Select Market under the symbols DGICA and DGICB, respectively. The Company is focused on several primary strategies, including achieving sustained excellent financial performance, strategically modernizing its operations and processes to transform its business, capitalizing on opportunities to grow profitably and delivering a superior experience to its agents and customers.

Investor Relations Contact

Karin Daly Vice President, The Equity Group Inc. Phone: (212) 836-9623 E-mail: kdaly@equityny.com

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Donegal Group Inc. Announces Second Quarter and First Half 2022 Results

MARIETTA, Pa., July 28, 2022 (GLOBE NEWSWIRE) -- Donegal Group Inc. (NASDAQ: DGICA) and (NASDAQ: DGICB) today reported its financial results for the second quarter and first half of 2022.

Significant Items for Second Quarter of 2022 (all comparisons to second quarter of 2021):

Net loss of $8.2 million, or 26 cents per Class A share, compared to net income of $16.2 million, or 53 cents per diluted Class A share Net premiums earned increased 6.0% to $204.1 million Net premiums written1 increased 4.2% to $218.4 million Combined ratio of 105.0%, compared to 96.1% Net loss included after-tax net investment losses of $6.6 million, or 21 cents per Class A share, compared to after-tax net investment gains of $3.4 million, or 11 cents per diluted Class A share Book value per share of $15.87 at June 30, 2022 Financial Summary

Three Months Ended June 30, Six Months Ended June 30,

2022   2021  % Change  2022   2021  % Change

(dollars in thousands, except per share amounts)

Income Statement Data

Net premiums earned$204,128  $192,489  6.0% $403,377  $379,740  6.2%

Investment income, net 8,204   7,652  7.2   16,063   15,163  5.9

Net investment (losses) gains (8,377)  4,241  NM2   (8,453)  6,710  NM

Total revenues 204,311   205,146  -0.4   411,938   403,116  2.2

Net (loss) income (8,208)  16,164  NM   4,937   26,694  -81.5

Non-GAAP operating (loss) income1 (1,590)  12,814  NM   11,615   21,393  -45.7

Annualized (loss) return on average equity -6.3%  12.0% NM   1.9%  10.0% -8.1 pts

Per Share Data

Net (loss) income – Class A (diluted)$(0.26) $0.53  NM  $0.16  $0.88  -81.8%

Net (loss) income – Class B (0.24)  0.48  NM   0.14   0.80  -82.5

Non-GAAP operating (loss) income – Class A (diluted) (0.05)  0.42  NM   0.37   0.71  -47.9

Non-GAAP operating (loss) income – Class B (0.05)  0.38  NM   0.34   0.64  -46.9

Book value 15.87   17.64  -10.0%  15.87   17.64  -10.0

1The “Definitions of Non-GAAP Financial Measures” section of this release defines data that the Company prepares on an accounting basis other than U.S. generally accepted accounting principles (“GAAP”) and reconciles such data to GAAP measures.

2Not meaningful.

Management Commentary

Kevin G. Burke, President and Chief Executive Officer, stated, “Our second quarter of 2022 results reflected a number of factors, including after-tax investment losses of $6.6 million related to the market-driven decline in the value of our equity investment holdings as well as elevated weather-related and large fire losses during the quarter. The above-average weather-related losses for the second quarter of 2022 resulted primarily from multiple localized wind and hail events, with only one event generating claims that exceeded our insurance subsidiaries’ reinsurance retention amount. While claim frequency levels generally remained consistent with historical trends, inflationary pressures contributed to higher loss costs in our homeowners, commercial multi-peril and automobile lines of business. We expect the premium rate increases we have implemented to date, and plan to implement during the remainder of 2022 and 2023 will lead to improved results as those increases are earned over the terms of the underlying policies. In spite of the elevated loss activity in the second quarter, our underwriting results for the first half of 2022 largely met our expectations. We are making excellent progress on our ongoing strategic and business transformation initiatives. Maintaining a long-term view, we believe that we are well-positioned to enhance our profitability and achieve our operational and financial objectives over time.”

Insurance Operations

Donegal Group is an insurance holding company whose insurance subsidiaries and affiliates offer personal and commercial property and casualty lines of insurance in three Mid-Atlantic states (Delaware, Maryland and Pennsylvania), three New England states (Maine, New Hampshire and Vermont), six Southern states (Alabama, Georgia, North Carolina, South Carolina, Tennessee and Virginia), eight Midwestern states (Illinois, Indiana, Iowa, Michigan, Nebraska, Ohio, South Dakota and Wisconsin) and four Southwestern states (Colorado, New Mexico, Texas and Utah). Donegal Mutual Insurance Company and the insurance subsidiaries of Donegal Group conduct business together as the Donegal Insurance Group.

Three Months Ended June 30, Six Months Ended June 30,

2022   2021  % Change  2022   2021  % Change

(dollars in thousands)

Net Premiums Earned

Commercial lines$126,854  $115,300   10.0% $251,183  $224,525  11.9%

Personal lines 77,274   77,189   0.1   152,194   155,215  -1.9

Total net premiums earned$204,128  $192,489   6.0% $403,377  $379,740  6.2%

Net Premiums Written

Commercial lines:

Automobile$43,588  $42,574   2.4% $92,216  $89,813  2.7%

Workers' compensation 29,343   28,567   2.7   62,240   63,50

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Donegal Group Inc. Announces First Quarter 2022 Results

MARIETTA, Pa., April 28, 2022 (GLOBE NEWSWIRE) -- Donegal Group Inc. (NASDAQ: DGICA) and (NASDAQ: DGICB) today reported its financial results for the first quarter of 2022.

Significant Items for First Quarter of 2022 (all comparisons to first quarter of 2021):

Net income increased 24.8% to $13.1 million, or $0.43 per diluted Class A share Net premiums earned increased 6.4% to $199.2 million Net premiums written1 increased 1.2% to $218.4 million Combined ratio of 95.8%, compared to 98.5% Annualized return on average equity of 10.0%, compared to 8.0% Book value per share of $16.72 at March 31, 2022, compared to $17.29 Financial Summary

Three Months Ended March 31,

2022 2021 % Change

(dollars in thousands, except per share amounts)

Income Statement Data

Net premiums earned$     199,249  $   187,252  6.4%

Investment income, net7,859  7,511  4.6

Net investment (losses) gains(76) 2,469  NM2

Total revenues207,627  197,970  4.9

Net income13,145  10,530  24.8

Non-GAAP operating income113,205  8,579  53.9

Annualized return on average equity10.0% 8.0% 2.0 pts

Per Share Data

Net income – Class A (diluted)$           0.43  $         0.35  22.9%

Net income – Class B0.39  0.32  21.9

Non-GAAP operating income – Class A (diluted)0.43  0.29  48.3

Non-GAAP operating income – Class B0.39  0.26  50.0

Book value16.72  17.29  -3.3

1The “Definitions of Non-GAAP Financial Measures” section of this release defines data that the Company prepares on an accounting basis other than U.S. generally accepted accounting principles (“GAAP”) and reconciles such data to GAAP measures.

2Not meaningful.

Management Commentary

“We achieved strong net earned premium growth in the quarter, which largely reflected an increase in net premiums written throughout 2021. Underwriting results continue to strengthen as we transform our business and migrate our products and processes to modernized technology platforms. We continue to emphasize sustainable profitability in our commercial lines business segment. Considering the challenging economic and inflationary environment, we intentionally moderated new business growth and heightened our attentiveness to appropriate underwriting discipline and rate adequacy,” said Kevin G. Burke, President and Chief Executive Officer. “As we deploy state-specific strategies and introduce new personal lines products in select states, we are confident that our go-forward business plan will increasingly enhance our total financial results.”

Insurance Operations

Donegal Group is an insurance holding company whose insurance subsidiaries and affiliates offer personal and commercial property and casualty lines of insurance in three Mid-Atlantic states (Delaware, Maryland and Pennsylvania), three New England states (Maine, New Hampshire and Vermont), six Southern states (Alabama, Georgia, North Carolina, South Carolina, Tennessee and Virginia), eight Midwestern states (Illinois, Indiana, Iowa, Michigan, Nebraska, Ohio, South Dakota and Wisconsin) and four Southwestern states (Colorado, New Mexico, Texas and Utah). Donegal Mutual Insurance Company and the insurance subsidiaries of Donegal Group conduct business together as the Donegal Insurance Group.

Three Months Ended March 31,

2022 2021 % Change

(dollars in thousands)

Net Premiums Earned

Commercial lines$124,329 $109,226 13.8%

Personal lines74,920 78,026 -4.0

Total net premiums earned$199,249 $187,252 6.4%

Net Premiums Written

Commercial lines:

Automobile$48,628 $47,239 2.9%

Workers' compensation32,897 34,941 -5.8

Commercial multi-peril54,197 51,803 4.6

Other11,111 10,451 6.3

Total commercial lines146,833 144,434 1.7

Personal lines:

Automobile42,240 43,007 -1.8

Homeowners23,515 22,688 3.6

Other5,854 5,733 2.1

Total personal lines71,609 71,428 0.3

Total net premiums written$218,442 $215,862 1.2%

Net Premiums Written

The 1.2% increase in net premiums written for the first quarter of 2022 compared to the first quarter of 2021, as shown in the table above, represents 1.7% growth in commercial lines net premiums written and 0.3% growth in personal lines net premiums written. The $2.6 million increase in net premiums written for the first quarter of 2022 compared to the first quarter of 2021 included:

Commercial Lines: $2.4 million increase that we attribute primarily to modest new business writings, strong premium retention and a continuation of renewal premium increases in lines other than workers’ compensation, offset partially by planned attrition in regions we have targeted for profit improvement. Personal Lines: $0.2 million increase that we attribute to premium rate increases our insurance subsidiaries have implemented over the past four quarters, largely offset by net attrition as a result of underwriting measures our insurance subsidiaries implemented to slow new policy growth and to increase pricing on renew

EX-99.1

2 brhc10034165_ex99-1.htm

EXHIBIT 99.1

Exhibit 99.1

Donegal Group Inc. Announces 2021 Fourth Quarter and Full Year Results

MARIETTA, PA, February 17, 2022 (GLOBE NEWSWIRE) -- Donegal Group Inc. (NASDAQ:DGICA) and (NASDAQ:DGICB) today reported its financial results for the fourth quarter and full year ended December 31, 2021.

Significant Items for Fourth Quarter of 2021 (all comparisons to fourth quarter of 2020):

•

Net premiums earned increased 7.8% to $200.0 million

•

Combined ratio of 101.6%, compared to 96.2%

•

Net income of $5.3 million, or 17 cents per diluted Class A share, compared to $14.6 million, or 49 cents per diluted Class A share

•

Net investment gains (after tax) of $1.1 million, or 3 cents per diluted Class A share, compared to $2.9 million, or 10 cents per diluted Class A share, are included in net income

•

Annualized return on average equity of 3.9%, compared to 11.4%

Significant Items for Full Year of 2021 (all comparisons to full year of 2020):

•

Net premiums earned increased 4.6% to $776.0 million

•

Combined ratio of 101.0%, compared to 96.0%

•

Net income of $25.3 million, or 83 cents per diluted Class A share, compared to $52.8 million, or $1.83 per diluted Class A share

•

Net investment gains (after tax) of $5.1 million, or 17 cents per diluted Class A share, compared to $2.2 million, or 8 cents per diluted Class A share, are included in net income

•

Return on average equity of 4.8%, compared to 10.9%

•

Book value per share of $16.95 at December 31, 2021, compared to $17.13 at year-end 2020

Financial Summary

Three Months Ended December 31,

Year Ended December 31,

2021

2020

% Change

2021

2020

% Change

(dollars in thousands, except per share amounts)

Income Statement Data

Net premiums earned

$

200,040

$

185,488

7.8

%

$

776,015

$

742,040

4.6

%

Investment income, net

8,199

7,553

8.6

31,126

29,504

5.5

Net investment gains

1,338

3,718

-64.0

6,477

2,778

133.2

Total revenues

210,244

197,497

6.5

816,466

777,819

5.0

Net income

5,272

14,568

-63.8

25,254

52,815

-52.2

Non-GAAP operating income1

4,216

11,631

-63.8

20,137

50,782

-60.3

Annualized return on average equity

3.9

%

11.4

%

-7.5 pts

4.8

%

10.9

%

-6.1 pts

Per Share Data

Net income – Class A (diluted)

$

0.17

$

0.49

-65.3

%

$

0.83

$

1.83

-54.6

%

Net income – Class B

0.15

0.44

-65.9

0.74

1.65

-55.2

Non-GAAP operating income – Class A (diluted)

0.14

0.39

-64.1

0.66

1.76

-62.5

Non-GAAP operating income – Class B

0.12

0.35

-65.7

0.59

1.59

-62.9

Book value

16.95

17.13

-1.1

16.95

17.13

-1.1

1The “Definitions of Non-GAAP and Operating Measures” section of this release defines and reconciles data that we prepare on an accounting basis other than U.S. generally accepted accounting principles (“GAAP”).

1

Management Commentary

Overview

Kevin G. Burke, President and Chief Executive Officer of Donegal Group Inc., stated, “We delivered strong top-line growth this quarter and continued to benefit from favorable reserve development from prior accident years related primarily to our automobile lines of business in both commercial and personal lines. While weather-related losses were slightly below our five-year average, our underwriting results for the quarter and full-year ended December 31, 2021 were impacted by higher-than-expected auto claim frequency and severity, coupled with a significant increase in large fire losses.”

Growth Trends

Mr. Burke continued, “Donegal Group achieved net premiums written1 growth of 7.3% for the fourth quarter of 2021, with a 14.6% increase in our commercial lines business segment driven by high premium retention and solid rate increases across most lines of business. We continued to receive steady new business submissions from our agents, and we received an allocation of premiums from four Southwestern states that Donegal Mutual began to include in our underwriting pool during 2021. Within our personal lines segment, we remained diligent in strategically slowing new business while taking renewal rate increases to maintain a profitable book of business. As we look forward to 2022, we expect our personal lines business to stabilize further as we reengage with agents to resume writing new business following the phased introduction of new products and agent portal technology in ten states.”

Underwriting Results

Jeffrey D. Miller, Executive Vice President and Chief Financial Officer, commented, “While we are pleased to report net favorable development of reserves for losses incurred in prior accident years, our fourth quarter and full year of 2021 underwriting results did not meet our expectations. Our combined ratio of 101.6% in the fourth quarter reflected higher automobile claim frequency and severity due to a return to pre-pandemic driving activity levels and inflationary pressures on loss costs. Additionally, an unexpected increase in large fire losses adversely impacted o

EX-99.1

2 exh_991.htm

EXHIBIT 99.1

EdgarFiling

EXHIBIT 99.1

Donegal Group Inc. Announces Third Quarter and First Nine Months of 2021 Results

MARIETTA, Pa., Oct. 27, 2021 (GLOBE NEWSWIRE) -- Donegal Group Inc. (NASDAQ:DGICA) and (NASDAQ:DGICB) today reported its financial results for the third quarter and first nine months of 2021.

Significant items (all comparisons to third quarter of 2020):

Net loss of $6.7 million, or 22 cents per Class A share, compared to net income of $11.8 million, or 41 cents per diluted Class A share Net premiums earned increased 6.1% to $196.2 million Net premiums written1 increased 9.0% to $197.0 million Combined ratio of 107.7%, compared to 98.3%, largely due to elevated weather-related and fire loss activity Net loss included after-tax net investment losses of $1.2 million, or 4 cents per Class A share, compared to after-tax net investment gains of $2.6 million, or 9 cents per diluted Class A share Book value per share of $17.21 at September 30, 2021, compared to $16.96 at September 30, 2020 Three Months Ended September 30, Nine Months Ended September 30,

2021   2020  % Change  2021   2020  % Change

(dollars in thousands, except per share amounts)

Income Statement Data

Net premiums earned$196,235  $184,926   6.1% $575,975  $556,552  3.5%

Investment income, net 7,764   7,403   4.9   22,926   21,952  4.4

Net investment (losses) gains (1,570)  3,268   NM2   5,140   (940) NM

Total revenues 203,106   196,512   3.4   606,222   580,323  4.5

Net (loss) income (6,712)  11,837   NM   19,982   38,247  -47.8

Non-GAAP operating (loss) income1 (5,471)  9,255   NM   15,922   39,151  -59.3

Annualized return on average equity -4.9%  9.5%  NM   5.0%  10.7% -5.7 pts

Per Share Data

Net (loss) income – Class A (diluted)$(0.22) $0.41   NM  $0.66  $1.33  -50.4%

Net (loss) income – Class B (0.20)  0.37   NM   0.59   1.21  -51.2

Non-GAAP operating (loss) income – Class A (diluted) (0.18)  0.32   NM   0.52   1.36  -61.8

Non-GAAP operating (loss) income – Class B (0.16)  0.29   NM   0.47   1.24  -62.1

Book value 17.21   16.96   1.5%  17.21   16.96  1.5

1The “Definitions of Non-GAAP and Operating Measures” section of this release defines and reconciles data that we prepare on an accounting basis other than U.S. generally accepted accounting principles (“GAAP”).

2Not meaningful.

Management Commentary

Overview

Kevin G. Burke, President and Chief Executive Officer of Donegal Group Inc., noted, “We achieved our premium growth objectives for the third quarter of 2021 due in part to excellent premium retention and commercial premium rate increases. However, our quarterly underwriting results were impacted by elevated weather-related, large fire and large workers’ compensation losses. In addition, personal automobile loss frequency returned closer to historical averages, resulting in a higher third quarter of 2021 loss ratio compared to the prior-year quarter. Net favorable development of reserves for losses incurred in prior accident years continued in the third quarter of 2021, related primarily the lower-than-anticipated claim emergence in our personal and commercial automobile lines of business.”

Growth Trends

Mr. Burke continued, “Donegal Group achieved net premiums written growth of 9.0% during the third quarter of 2021, with a 17.6% increase in our commercial lines business segment compared to the prior-year quarter. In addition to new business growth, solid premium retention and renewal premium increases, the quarterly commercial growth reflected the inclusion of $10.4 million of commercial premiums from four Southwestern states. In late August 2021, we successfully deployed the second major release within our ongoing systems modernization project. This release will facilitate the phased roll-out of new personal lines products in ten states over the next year. We expect the new products to begin generating an increase in personal lines new business premium writings in 2022.”

Underwriting Results

Jeffrey D. Miller, Executive Vice President and Chief Financial Officer, commented on the third quarter underwriting results, “Our insurance subsidiaries’ combined ratio increased to 107.7% for the third quarter of 2021, compared to 98.3% for the prior-year quarter in which we experienced lower claim frequency due in large part to pandemic conditions. While weather-related losses were elevated for the third quarter of 2021, the loss ratio impact was consistent with our historical third-quarter average. As economic activity increased compared to the prior-year quarter, we incurred large fire losses that exceeded our historical quarterly average, including $6.0 million from three individual losses that exceeded our per-risk reinsurance retention amount. We also experienced higher loss severity in our workers’ compensation line of business, primarily due to a handful of unrelated severe injury claims. Our expense ratio for the third quarter of 2021 declined slightly compared to the pri