UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2025 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to . Commission file number 0-15341 Donegal Group Inc. (Exact name of registrant as specified in its charter) Delaware 23-2424711 (State or other jurisdiction ...

EXHIBIT 99.1 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): Financial Summary | | | Three Months Ended June 30, | | | | | | Six Months Ended June 30, | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | ...

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): Financial Summary | | | | | Three Months Ended June 30, | | | | | Six Months Ended June 30, | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | 2025 | | 2024 | % Change | | 2025 | | 2024 | % Change | | | | | ...

Group 1 - Donegal Group Inc. plans to release its second quarter results for the period ended June 30, 2025, on July 24, 2025, before the NASDAQ market opens [1] - A supplemental investor presentation will be available on the company's website concurrently with the earnings press release [1] - A pre-recorded audio webcast featuring management commentary will be available on the company's website at approximately 8:30 am ET on July 24, 2025 [2] Group 2 - Donegal Group Inc. is an insurance holding company offering property and casualty insurance in 21 states across the Mid-Atlantic, Midwestern, Southern, and Southwestern regions [3] - The Donegal Insurance Group, which includes Donegal Mutual Insurance Company and its subsidiaries, holds an A.M. Best rating of A (Excellent) [3] - The company's Class A and Class B common stocks trade on the NASDAQ Global Select Market under the symbols DGICA and DGICB, respectively [4] Group 3 - The company focuses on achieving sustained excellent financial performance, modernizing operations, capitalizing on growth opportunities, and providing superior experiences to agents, customers, and employees [4]

Group 1 - The property and casualty insurance industry is experiencing increasing demand, reflected by an 8% compound annual growth rate (CAGR) over the past five years [1] - Insurers are responding to this surging demand with margin growth strategies [1] Group 2 - The article highlights the author's self-taught background in equity analysis and the use of data analytics to identify investment opportunities in the stock market [1] - The author's investment style focuses on value, high quality, and long/short mid and small-cap companies [1]

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]

Financial Data and Key Metrics Changes - For Q1 2025, net premiums earned increased by 2.2% to $232.7 million, while net premiums written decreased by 1.7% due to lower new business volume and planned attrition [11][12] - The combined ratio improved significantly to 91.6% from 102.4% in the prior year quarter, with a core loss ratio decrease of 4.5 percentage points [12][17] - After-tax net income rose to $25.2 million, a substantial increase from $6 million in Q1 2024 [17] Business Line Data and Key Metrics Changes - Personal lines net premiums written decreased by 9.9%, while commercial lines saw a growth of 3.3% [11][12] - The commercial lines segment combined ratio improved to 94.7%, with a core loss ratio improvement of 0.7 percentage points [21][22] - The personal lines combined ratio improved by 16.7 percentage points to 83.6%, driven by a reduction in large fire losses and improved underwriting performance [34][35] Market Data and Key Metrics Changes - The average in-force policy premium across all commercial lines increased by 6% to $7,500 [21] - The real retention rate for personal lines, excluding the impact of non-renewals in Maryland, was a healthy 86.7% [33] - The company experienced a decrease in weather-related losses, with total weather claims impact lower than the previous five-year average for Q1 [14] Company Strategy and Development Direction - The company is focusing on strengthening underwriting practices and maintaining pricing discipline in a competitive market [19][20] - Ongoing systems modernization efforts are expected to enhance operational efficiency and competitive advantage [7][9] - The company is refining its technology roadmap to leverage data analytics for future success [9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate economic uncertainties and inflationary pressures [6][41] - The company is prepared to respond to potential increases in claims costs with data-driven actions [6][7] - Management highlighted the importance of maintaining a balance between growth and profitability in the current market environment [5][39] Other Important Information - The company announced an increase in its quarterly cash dividend, reflecting confidence in its business strategies [56] - The investment strategy remains conservative, focusing on high credit quality and attractive spread products [49][50] Q&A Session Summary Question: What are the expectations for future premium growth? - The company is implementing strategies to stabilize personal lines premiums while emphasizing growth in commercial lines [33] Question: How is the company addressing inflationary pressures? - Management is closely monitoring economic inflation and its potential impacts on claims costs, ensuring disciplined pricing strategies [41][42]

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 & Operational Highlights](index=1&type=section&id=Donegal%20Group%20Inc.%20Announces%20First%20Quarter%202025%20Results) Donegal Group Inc. announced strong first quarter 2025 results, driven by significant improvements in underwriting and investment performance [Q1 2025 Financial Performance Summary](index=1&type=section&id=Financial%20Summary) Donegal Group reported record Q1 2025 earnings with net income surging 323.2% to $25.2 million and a combined ratio improving to 91.6% Q1 2025 Financial Performance | Financial Metric | Q1 2025 | Q1 2024 | % Change | | :--- | :--- | :--- | :--- | | Net Premiums Earned | $232.7M | $227.7M | 2.2% | | Total Revenues | $245.2M | $241.1M | 1.7% | | Net Income | $25.2M | $6.0M | 323.2% | | Non-GAAP Operating Income | $25.6M | $4.3M | 496.8% | | Net Income per Class A Share (diluted) | $0.71 | $0.18 | 294.4% | | Book Value per Share | $16.24 | $14.53 | 11.8% | - The combined ratio significantly improved to **91.6%** in Q1 2025, compared to **102.4%** in Q1 2024, indicating enhanced underwriting profitability[3](index=3&type=chunk) - The annualized return on average equity rose sharply to **17.8%** from **4.9%** in the prior-year quarter[3](index=3&type=chunk) [Management Commentary](index=1&type=section&id=Management%20Commentary) Management attributed record earnings to strategic initiatives and operational discipline, focusing on sustained profitability and commercial growth - The company achieved record earnings for the second consecutive quarter, reflecting deliberate actions to prioritize sustained profitability[2](index=2&type=chunk) - The strategic focus in commercial lines is on growing the middle market segment, while personal lines strategy involves limiting new business and non-renewing a legacy Maryland book to maintain profitability[5](index=5&type=chunk) - Management expressed confidence in navigating the evolving insurance landscape and capitalizing on future growth opportunities to enhance shareholder value[5](index=5&type=chunk) [Insurance Operations Analysis](index=2&type=section&id=Insurance%20Operations) The company's insurance operations demonstrated improved underwriting profitability driven by a lower combined ratio and strategic premium adjustments [Premiums Analysis](index=2&type=section&id=Net%20Premiums%20Written) Net premiums earned increased by 2.2% to $232.7 million, while net premiums written decreased by 1.7% due to strategic shifts in personal lines Premiums (Q1 2025 vs Q1 2024) | Premiums (Q1 2025 vs Q1 2024) | Commercial Lines | Personal Lines | Total | | :--- | :--- | :--- | :--- | | Net Premiums Earned | $136.2M (+3.1%) | $96.5M (+0.9%) | $232.7M (+2.2%) | | Net Premiums Written | $160.6M (+3.3%) | $86.5M (-9.9%) | $247.1M (-1.7%) | - The decline in net premiums written was primarily due to a **$9.5 million** decrease in personal lines, attributed to planned attrition and lower new business writings[9](index=9&type=chunk) - Commercial lines net premiums written grew by **$5.1 million**, mainly from solid retention and renewal premium increases, partially offset by lower new business[9](index=9&type=chunk) [Underwriting Performance](index=3&type=section&id=Underwriting%20Performance) Underwriting profitability dramatically improved with the GAAP combined ratio falling to 91.6%, driven by lower loss ratios and favorable reserve development GAAP Combined Ratio Components | GAAP Combined Ratio Components | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Core Loss Ratio | 54.4% | 58.7% | | Weather-related Loss Ratio | 3.7% | 4.7% | | Large Fire Loss Ratio | 3.1% | 6.6% | | Net Prior-Year Reserve Development | -4.5% | -3.7% | | **Total Loss Ratio** | **56.7%** | **66.3%** | | Expense Ratio | 34.6% | 35.7% | | **Combined Ratio** | **91.6%** | **102.4%** | - Large fire losses decreased significantly to **$7.7 million** from **$15.0 million** in the prior-year quarter, primarily due to lower loss frequency and severity[12](index=12&type=chunk) - Net favorable development of prior-year reserves reduced the loss ratio by **4.5 percentage points**, an increase from the **3.7 percentage point** reduction in Q1 2024[13](index=13&type=chunk) - The expense ratio decreased to **34.6%** from **35.7%**, reflecting successful expense management initiatives[14](index=14&type=chunk) [Investment Operations](index=4&type=section&id=Investment%20Operations) The company's investment operations generated increased net investment income from a high-quality fixed-maturity portfolio, despite minor equity losses [Investment Portfolio and Strategy](index=4&type=section&id=Investment%20Portfolio) The investment strategy focuses on generating after-tax income from a $1.41 billion portfolio primarily composed of high-quality fixed-maturity securities - The investment strategy focuses on generating income from a high-quality securities portfolio, minimizing credit risk[15](index=15&type=chunk) Investment Portfolio Composition | Investment Type | % of Portfolio (Mar 31, 2025) | | :--- | :--- | | Corporate securities | 31.4% | | Obligations of states and political subdivisions | 29.3% | | Mortgage-backed securities | 22.5% | | U.S. Treasury and government agencies | 12.5% | | Equity securities | 2.9% | | Short-term investments | 1.5% | [Investment Results](index=5&type=section&id=Investment%20Results) Net investment income increased 9.2% to $12.0 million, though the company recorded net investment losses due to equity market value declines - Net investment income grew **9.2%** to **$12.0 million**, driven by an increase in average investment yield and higher average invested assets[17](index=17&type=chunk) - The company recorded net investment losses of **$0.5 million**, compared to net investment gains of **$2.1 million** in Q1 2024, due to market value declines in equity holdings[18](index=18&type=chunk) [Shareholder Information](index=5&type=section&id=Shareholder%20Information) Book value per share increased to $16.24, driven by strong net income and unrealized gains, alongside declared quarterly cash dividends [Book Value and Dividends](index=5&type=section&id=Book%20Value%20and%20Dividends) Book value per share increased to $16.24 due to strong net income and unrealized gains, with regular quarterly cash dividends declared - Book value per share rose to **$16.24** at March 31, 2025, from **$15.36** at December 31, 2024, an increase of **$0.88** per share[19](index=19&type=chunk) - On April 17, 2025, the company declared quarterly cash dividends of **$0.1825** per Class A share and **$0.165** per Class B share[25](index=25&type=chunk) [Non-GAAP Financial Measures](index=5&type=section&id=Definitions%20of%20Non-GAAP%20Financial%20Measures) This section defines and reconciles key non-GAAP measures, including operating income and net premiums written, providing additional performance insights - The company utilizes non-GAAP measures such as net premiums written, operating income or loss, and statutory combined ratio, which are common in the insurance industry, to provide additional perspective on performance[20](index=20&type=chunk)[21](index=21&type=chunk) Reconciliation of Net Income to Operating Income (in thousands) | Reconciliation (in thousands) | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | **Net Income to Operating Income** | | | | Net income | $25,205 | $5,956 | | Investment (losses) gains (after tax) | $372 | $(1,670) | | **Non-GAAP operating income** | **$25,577** | **$4,286** | Reconciliation of Net Premiums Earned to Written (in thousands) | Reconciliation (in thousands) | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | **Net Premiums Earned to Written** | | | | Net premiums earned | $232,702 | $227,749 | | Change in net unearned premiums | $14,390 | $23,693 | | **Net premiums written** | **$247,092** | **$251,442** | [Financial Statements](index=7&type=section&id=Financial%20Supplement) This section presents the unaudited Consolidated Statements of Income and Balance Sheets, detailing the company's financial performance and position - The Consolidated Statements of Income detail the components of revenue and expenses for the quarters ended March 31, 2025 and 2024[32](index=32&type=chunk)[33](index=33&type=chunk)[34](index=34&type=chunk) - The Consolidated Balance Sheets present the company's financial position as of March 31, 2025, compared to December 31, 2024[35](index=35&type=chunk)[36](index=36&type=chunk)

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 ...