Financial Performance - Net premiums written for the three months ended March 31, 2025, totaled $247,092,000, compared to $251,442,000 for the same period in 2024, reflecting a decrease of approximately 1.4%[104][105] - Net premiums earned for Q1 2025 were $232.7 million, an increase of $5.0 million, or 2.2%, compared to $227.7 million in Q1 2024[110] - Net premiums written for Q1 2025 were $247.1 million, a decrease of $4.4 million, or 1.7%, from $251.4 million in Q1 2024[111] - Net investment income increased to $12.0 million in Q1 2025, up $1.0 million, or 9.2%, from $11.0 million in Q1 2024[112] - Net income for Q1 2025 was $25.2 million, or $0.71 per share, compared to $6.0 million, or $0.18 per share, in Q1 2024[119] - Net cash flows provided by operating activities were $25.7 million in Q1 2025, significantly higher than $4.8 million in Q1 2024[121] Loss and Expense Management - Total liabilities for losses and loss expenses as of March 31, 2025, amounted to $1,092,624,000, a decrease from $1,120,985,000 as of December 31, 2024[98] - The loss ratio for Q1 2025 was 56.7%, down from 66.3% in Q1 2024, attributed to decreased core losses and large fire losses[114] - The core loss ratio for Q1 2025 was 54.2%, compared to 58.7% in Q1 2024, reflecting ongoing premium rate increases[114] - The expense ratio for Q1 2025 was 34.6%, a decrease from 35.7% in Q1 2024, due to effective expense management initiatives[116] - The combined ratio improved to 91.6% in Q1 2025 from 102.4% in Q1 2024, primarily due to a decrease in the loss ratio[117] Claims and Reserves - The average claim amount has gradually increased over the past several years due to rising property and automobile repair costs, as well as increased medical loss costs[95] - The company has noted stable amounts in the number of claims incurred and outstanding relative to their premium base, excluding severe weather events and the COVID-19 pandemic[95] - For every 1% change in loss and loss expense reserves, the effect on pre-tax results of operations would be approximately $7,000,000[93] - The company’s insurance subsidiaries maintain liabilities for both reported and unreported claims, with a focus on covering ultimate costs including investigation and litigation[91] Capital and Dividends - The total amount available for distribution as dividends from insurance subsidiaries without prior approval in 2025 is approximately $53.3 million, comprising $40.7 million from Atlantic States, $7.8 million from MICO, and $4.7 million from Peninsula[125] - Atlantic States did not purchase any shares of its Class A common stock under the share repurchase program during the three months ended March 31, 2025, with a total of 57,658 shares purchased since the program's inception[124] - The insurance subsidiaries did not pay any dividends to Atlantic States during the first three months of 2025[125] Debt and Borrowing - As of March 31, 2025, Atlantic States had no outstanding borrowings under its line of credit with M&T, with the ability to borrow up to $20.0 million at interest rates equal to the current Term SOFR rate plus 2.11%[122] - Atlantic States had a $35.0 million outstanding advance with the FHLB of Pittsburgh at a fixed interest rate of 3.806%, due in September 2026[122] Risk Management - The company is monitoring the impact of tariffs and inflationary factors, which may lead to future increases in loss costs[93] - Atlantic States' insurance subsidiaries maintain reinsurance agreements with Donegal Mutual and other major unaffiliated authorized reinsurers, indicating a strategy to manage credit risk[130] - There have been no material changes to Atlantic States' quantitative or qualitative market risk exposure from December 31, 2024, through March 31, 2025[133] - The company manages interest rate risk by maintaining an appropriate relationship between the average duration of its investment portfolio and the duration of its liabilities[132] Business Operations - The total commercial lines liabilities as of March 31, 2025, were $556,596,000, slightly down from $558,175,000 as of December 31, 2024[98] - The total personal lines liabilities decreased from $146,189,000 as of December 31, 2024, to $139,601,000 as of March 31, 2025[98] - Atlantic States' insurance subsidiaries provide property and casualty insurance coverages primarily through independent insurance agencies, billing the majority of this business directly to the insured[129]

Karin Daly Good morning and thank you for joining us today. This morning Donegal Group issued its First Quarter 2025 Earnings Release Outlining its Results. The release and a supplemental investor presentation are available in the Investor Relations section of Donegal's website at www.donegalgroup.com. Please be advised that today's conference was prerecorded and all participants are in listen-only mode. Speaking today will be President and Chief Executive Officer, Kevin Burke; Chief Financial Officer, Jeff ...

First Quarter 2025 Investor Presentation April 24, 2025 Kevin G. Burke President and Chief Executive Officer Jeffrey D. Miller Executive Vice President and Chief Financial Officer www.donegalgroup.com Safe Harbor www.donegalgroup.com 3 We base all statements contained in this release that are not historic facts on our current expectations. Such statements are forward-looking in nature (as defined in the Private Securities Litigation Reform Act of 1995) and necessarily involve risks and uncertainties. Forwar ...

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 | NM | | Total revenues | | 245,174 | | 241,141 | 1.7 | | Net income | | 25,205 | | 5,956 | 323.2 | | Non-GAAP oper ...

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 millionCombined 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 shareNet investment losses (after ta ...

MARIETTA, Pa., April 02, 2025 (GLOBE NEWSWIRE) -- Donegal Group Inc. (NASDAQ:DGICA) and (NASDAQ:DGICB) announced today that it plans to release its results for first quarter ended March 31, 2025, on Thursday, April 24, 2025, 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, A ...

Ownership and Structure - Donegal Mutual held approximately 44% of the outstanding Class A common stock and 84% of the outstanding Class B common stock as of December 31, 2024, providing it with about 70% of the combined voting power[230]. - The pooling agreement between Donegal Mutual and Atlantic States allocates 80% of the pooled business to Atlantic States, allowing both companies to share underwriting results proportionately[231]. - In 2024, Donegal Mutual purchased 1,057,282 shares of Class A common stock, while no shares of Class B common stock were purchased during 2024 or 2023[234]. - Donegal Mutual has 100% quota-share reinsurance agreements with Southern Mutual Insurance Company and Mountain States insurance subsidiaries, placing their assumed business into the underwriting pool[339]. - The underwriting pool allows Donegal Mutual and Atlantic States to share underwriting results in proportion to their participation, significantly impacting total consolidated revenues[340]. Financial Performance - Net income for 2024 was $50.9 million, or $1.53 per share, compared to $4.4 million, or $0.14 per share, in 2023[276]. - Net premiums written increased from $895,697,000 in 2023 to $942,281,000 in 2024, representing a growth of approximately 5.2%[256]. - The combined ratio improved from 104.4% in 2023 to 98.6% in 2024, indicating a significant enhancement in underwriting profitability[256]. - Net investment income rose from $40,853,000 in 2023 to $44,918,000 in 2024, an increase of about 10.1%[256]. - Total revenues for 2024 were $989,605,050, a 6.7% increase from $927,337,984 in 2023[326]. - Net income for 2024 reached $50,862,252, a significant increase from $4,425,504 in 2023 and a recovery from a net loss of $1,959,405 in 2022[332]. Claims and Losses - The insurance subsidiaries recognized a decrease in their liability for losses and loss expenses of $15.0 million in 2024, representing 2.2% of the December 31, 2023 net carried reserves[243]. - The average claim outstanding has gradually increased due to rising property and automobile repair costs, medical loss costs, and increased litigation trends[244]. - The establishment of liabilities for losses and loss expenses is inherently uncertain, and the ultimate liability may exceed the recorded reserves[242]. - The total liability for losses and loss expenses decreased slightly from $1,126,157,000 in 2023 to $1,120,985,000 in 2024, reflecting a reduction of approximately 0.5%[247]. - The number of claims pending at the end of the period decreased from 3,144 in 2023 to 2,832 in 2024, a decline of approximately 9.9%[252]. - The total expected development on reported claims for 2024 is $153,403 thousand, indicating anticipated future claims costs[427]. Investment and Assets - Total investments increased to $1.4 billion at December 31, 2024, from $1.3 billion in 2023, representing 61.6% of total assets[298]. - The company’s total assets at the end of 2024 were significantly impacted by the cumulative effect of adopting updated guidance for credit losses, resulting in a reduction of $1,895,902[329]. - The company recorded gross realized gains of $403.5 million in 2024, compared to $3.7 billion in 2023, indicating a significant decrease in investment performance[401]. - The total available for sale securities had an amortized cost of $652.6 billion and an estimated fair value of $617.9 billion as of December 31, 2024[398]. - The company’s investment expenses increased to $3.9 million in 2024 from $2.9 million in 2023, indicating rising costs associated with investment management[401]. Tax and Regulatory - The effective tax rate increased to 18.4% in 2024 from 12.6% in 2023, with income tax expense rising to $11.5 million[275]. - The company utilizes the asset and liability method for income tax accounting, establishing deferred tax assets and liabilities for temporary differences[363]. - In 2024, the company realized $370,644 in tax benefits upon the exercise of stock options, compared to $139,135 in 2023 and $360,452 in 2022, indicating a significant increase in tax benefits year-over-year[371]. Equity and Dividends - Book value per share increased to $15.36 at December 31, 2024, up from $14.39 a year earlier[277]. - Cash dividends declared totaled $23.2 million in 2024, up from $22.2 million in 2023 and $20.9 million in 2022[296]. - Stockholders' equity increased to $545,776,131 in 2024, compared to $479,745,354 in 2023, reflecting a growth of approximately 13.8%[323]. Actuarial and Reserving Practices - The actuaries for the insurance subsidiaries prepare initial estimates for ultimate losses by multiplying earned premium by an expected loss ratio, which is based on historical experience and various trends[419]. - The actuaries utilize methods such as paid loss development and incurred loss development to estimate ultimate costs, selecting point estimates through judgmental weighting of these methods[420]. - Claims are recognized at the claimant level, with one count for each claim event, and the methods for summarizing claim counts have remained consistent over time[423]. - The company continues to monitor trends in claims development to adjust their actuarial estimates and reserves accordingly[424].

Financial Data and Key Metrics Changes - The fourth quarter 2024 net income of $24 million represents the highest quarterly earnings in the company's history [8] - Net premiums earned increased by 4.6% to $236.6 million in Q4 2024 [15] - The combined ratio for Q4 2024 improved to 92.9%, compared to 106.8% for the prior-year quarter [16] - The full year 2024 loss ratio was 64.5%, an improvement from 69.1% in 2023 [22] - The expense ratio for Q4 2024 decreased to 32.8% from 34.1% in the prior-year quarter [92] Business Line Data and Key Metrics Changes - Net premiums written decreased by 0.6%, with a 5% decrease in personal lines premiums offset by a 2.8% growth in commercial lines [16] - The core loss ratio improved by 9.5 percentage points in Q4 2024, with a 4.4 percentage-point decrease in commercial lines and a 16.7 percentage-point decrease in personal lines [17] - For the full year 2024, the commercial lines statutory combined ratio was 98.2%, compared to 101.6% for 2023 [41] Market Data and Key Metrics Changes - Weather-related losses for the full year 2024 were $67.7 million, or 7.2 percentage points of the loss ratio, down from $72.9 million, or 8.3 percentage points in 2023 [23] - The company experienced a nominal level of net development of reserves for losses incurred in prior accident years, with minimal impact on the loss ratio for Q4 2024 [91] Company Strategy and Development Direction - The company aims for high-single-digit percentage growth in commercial lines while expecting a modest decline in personal lines for 2025 [13] - A major commercial systems release is scheduled for deployment in Q3 2025, which will modernize mid-market commercial products [10] - The company is focused on completing its major systems transformation project and executing ongoing profit-focused initiatives [14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence that the strategies implemented will result in sustained excellent financial performance [12] - The company is monitoring recent volatility in weather patterns and industry-specific inflation, particularly social inflation driven by increasing litigation trends [60] - Management highlighted the importance of independent agents as a differentiator in a rapidly changing environment [61] Other Important Information - The company achieved a net investment income growth of 12.5% in Q4 2024, totaling $12.1 million [65] - The average tax-equivalent yield for Q4 2024 was 3.58%, up from 3.34% in the prior-year quarter [66] - The company added $25 million to the top-end limit of its property catastrophe reinsurance coverage for 2025 [97] Q&A Session Summary Question: What are the expectations for growth in commercial lines? - The company plans to achieve high-single-digit percentage growth in commercial lines, targeting profitable small and mid-market accounts in specific geographical regions [13] Question: How is the company addressing personal lines performance? - The company expects a modest decline in personal lines for 2025 but aims to stabilize premium writings by gradually increasing new business levels [14] Question: What is the outlook for investment income? - The company achieved a 10% growth in net investment income year-over-year, totaling $44.9 million for the full year 2024, the highest annual net investment income in its history [65]

Company Overview Fourth Quarter 2024 Investor Presentation February 20, 2025 Kevin G. Burke President and Chief Executive Officer Jeffrey D. Miller Executive Vice President and Chief Financial Officer www.donegalgroup.com Safe Harbor We base all statements contained in this release that are not historic facts on our current expectations. Such statements are forward-looking in nature (as defined in the Private Securities Litigation Reform Act of 1995) and necessarily involve risks and uncertainties. Forward- ...

Group 1: Earnings Performance - Donegal Group reported quarterly earnings of $0.69 per share, significantly exceeding the Zacks Consensus Estimate of $0.20 per share, and compared to a loss of $0.11 per share a year ago, representing an earnings surprise of 245% [1] - Over the last four quarters, Donegal has surpassed consensus EPS estimates three times, with revenues for the quarter ended December 2024 at $249.7 million, slightly missing the Zacks Consensus Estimate by 0.68% [2] Group 2: Stock Performance and Outlook - Donegal shares have declined approximately 1.9% since the beginning of the year, while the S&P 500 has gained 4.5% [3] - The company's earnings outlook is crucial for investors, with current consensus EPS estimates at $0.31 for the coming quarter and $1.20 for the current fiscal year, with revenues expected to be $255.8 million and $1.05 billion respectively [7] Group 3: Industry Context - The Insurance - Property and Casualty industry, to which Donegal belongs, is currently ranked in the top 26% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom 50% [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors or through tools like the Zacks Rank [5][6]