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