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]

Financial Performance - Net premiums earned increased by 4.6% to $236.6 million in Q4 2024, and by 6.2% to $936.7 million for the full year 2024[1][2] - Net income for Q4 2024 was $24.0 million, or $0.70 per diluted Class A share, compared to a net loss of $2.0 million, or $0.06 per Class A share in Q4 2023[1][2] - Net income for the year 2024 was $50,862,000, significantly higher than $4,426,000 in 2023, marking an increase of 1,149%[42] - Total revenues for the year ended December 31, 2024, reached $989,605,000, up from $927,338,000 in 2023, reflecting a growth of 6.7%[42] Underwriting Performance - The combined ratio improved to 92.9% in Q4 2024 from 106.8% in Q4 2023, and to 98.6% for the full year 2024 from 104.4% in 2023[1][12] - The core loss ratio for Q4 2024 decreased to 52.3% from 61.8% in Q4 2023, indicating improved underwriting performance[1][13] - The full year 2024 loss ratio decreased to 64.5%, compared to 69.1% for 2023, with the core loss ratio improving to 54.0% from 57.5%[18] - The statutory loss ratio improved to 60.5% in 2024 from 61.2% in 2023, indicating better loss management[38] Investment Performance - Net investment income increased by 12.5% to $12.1 million in Q4 2024, and by 10.0% to $44.9 million for the full year 2024[1][2] - Net investment gains for 2024 were $4,981,000, compared to $3,173,000 in 2023, representing a growth of 56.8%[42] Expense Management - The expense ratio for Q4 2024 was 32.8%, down from 34.1% in Q4 2023, reflecting various expense reduction initiatives[22] - The company effectively mitigated higher costs associated with major systems modernization through targeted expense-reduction strategies[6] - Total expenses for the year 2024 were $927,266,000, slightly higher than $922,274,000 in 2023, reflecting a marginal increase of 0.5%[42] Shareholder Value - Book value per share rose to $15.36 at December 31, 2024, compared to $14.39 at year-end 2023, reflecting a 6.7% increase[1][2] - Regular quarterly cash dividends of $0.1725 per share for Class A and $0.155 per share for Class B were declared on December 19, 2024[33] - The weighted-average number of Class A shares outstanding increased to 28,155,276 in 2024 from 27,469,250 in 2023[42] Strategic Focus - The company plans to pursue strategic premium growth and enhance underwriting performance through targeted initiatives and premium rate increases[4][6] - The company is focusing on high-quality new commercial middle market and small business accounts, as well as personal lines segment growth[6] Losses - Weather-related losses for Q4 2024 were $7.7 million, or 3.3 percentage points of the loss ratio, down from $13.4 million, or 5.9 percentage points in Q4 2023[14] - Large fire losses in Q4 2024 were $9.5 million, or 4.0 percentage points of the loss ratio, compared to $10.8 million, or 4.8 percentage points in Q4 2023[15] - For the full year 2024, weather-related losses totaled $67.7 million, or 7.2 percentage points of the loss ratio, down from $72.9 million, or 8.3 percentage points in 2023[19] Assets - Total assets as of December 31, 2024, were $2,336,032,000, an increase from $2,266,294,000 in 2023, reflecting a growth of 3.1%[44]

Financial Performance - For the fourth quarter of 2024, net premiums earned increased by 4.6% to $236.6 million compared to $226.2 million in the same quarter of 2023 [1][3] - Total revenues for the fourth quarter of 2024 were $250.0 million, a 4.4% increase from $239.5 million in the fourth quarter of 2023 [1][3] - The company reported a net income of $24.0 million for the fourth quarter of 2024, compared to a net loss of $2.0 million in the fourth quarter of 2023 [1][3] - For the full year 2024, net premiums earned rose by 6.2% to $936.7 million from $882.1 million in 2023 [1][3] - The full year net income was $50.9 million, significantly up from $4.4 million in 2023 [1][3] Underwriting Performance - The combined ratio for the fourth quarter of 2024 improved to 92.9% from 106.8% in the fourth quarter of 2023 [1][3] - The loss ratio for the fourth quarter of 2024 decreased to 59.8%, down from 72.1% in the same quarter of 2023 [14][19] - The core loss ratio for the fourth quarter of 2024 was 52.3%, compared to 61.8% in the fourth quarter of 2023 [14][19] Investment Operations - Net investment income for the fourth quarter of 2024 was $12.1 million, a 12.5% increase from $10.7 million in the fourth quarter of 2023 [1][26] - For the full year 2024, net investment income increased by 10.0% to $44.9 million compared to $40.9 million in 2023 [1][26] - Net investment gains for the full year 2024 were $5.0 million, up from $3.2 million in 2023 [1][27] Book Value and Share Performance - The book value per share at December 31, 2024, was $15.36, an increase of 6.7% from $14.39 at the end of 2023 [1][28] - The diluted net income per share for Class A was $0.70 for the fourth quarter of 2024, compared to a loss of $0.06 in the same quarter of 2023 [1][3] Management Commentary - The CEO emphasized the company's focus on strategic initiatives and profit-improvement measures to enhance operating performance as they move into 2025 [4][6] - The company plans to continue implementing premium rate increases to maintain rate adequacy and pursue new business opportunities, particularly in the commercial middle market and small business accounts [6][4]

Core Viewpoint - Donegal Group Inc. is set to release its fourth quarter and full-year results for 2024 on February 20, 2025, before the market opens, accompanied by a supplemental investor presentation [1] Group 1: Earnings Release Information - The earnings results will be available on February 20, 2025, before regular trading hours on NASDAQ [1] - A pre-recorded audio webcast featuring management commentary will be available at approximately 8:30 am ET on the same day [2] - Questions for the management team can be submitted via email until February 13, 2025 [2] Group 2: Company Overview - Donegal Group Inc. operates as an insurance holding company with subsidiaries offering property and casualty insurance across 21 states in the U.S. [3] - The Donegal Insurance Group, which includes Donegal Mutual Insurance Company, holds an A.M. Best rating of A (Excellent) [3] Group 3: Stock Information and Company Strategy - The Class A and Class B common stocks of Donegal Group Inc. trade on NASDAQ under the symbols DGICA and DGICB, respectively [4] - The company focuses on achieving sustained excellent financial performance, modernizing operations, growing profitably, and enhancing experiences for agents, customers, and employees [4]

Core Viewpoint - Donegal Group Inc. is set to release its fourth quarter and full-year results for 2024 on February 20, 2025, before the market opens, accompanied by a supplemental investor presentation [1] Group 1: Earnings Release Information - The earnings results will be available on February 20, 2025, before regular trading hours on NASDAQ [1] - A pre-recorded audio webcast featuring management commentary will be available at approximately 8:30 am ET on the same day [2] - Questions for the management Q&A session must be submitted by February 13, 2025 [2] Group 2: Company Overview - Donegal Group Inc. operates as an insurance holding company with subsidiaries offering property and casualty insurance across 21 states in the U.S. [3] - The Donegal Insurance Group, which includes Donegal Mutual Insurance Company, holds an A.M. Best rating of A (Excellent) [3] Group 3: Stock Information and Strategic Focus - The Class A and Class B common stocks of Donegal Group Inc. trade on NASDAQ under the symbols DGICA and DGICB [4] - The company focuses on achieving sustained excellent financial performance, modernizing operations, growing profitably, and enhancing experiences for agents, customers, and employees [4]

Core Insights - Five stocks have been added to the Zacks Rank 1 (Strong Buy) List, indicating strong potential for investment Group 1: Company Earnings Estimates - Donegal Group Inc. (DGICA) has seen a 100% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [1] - Scholastic Corporation (SCHL) has experienced a 14.6% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [1] - Powell Industries, Inc. (POWL) has seen a 13% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [2] - West Bancorporation, Inc. (WTBA) has experienced a 7.7% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [2] - Xperi Inc. (XPER) has seen a 61.1% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [3]

Group 1 - Donegal Group Inc. (DGICA) has seen a 100% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [1] - West Bancorporation, Inc. (WTBA) has experienced a 7.7% increase in the Zacks Consensus Estimate for its current year earnings in the last 60 days [2] - Premier, Inc. (PINC) has had a 5.7% increase in the Zacks Consensus Estimate for its current year earnings over the past 60 days [3] Group 2 - Donegal Group Inc. offers a dividend yield of 4.3%, significantly higher than the industry average of 0.3% [2] - West Bancorporation, Inc. provides a dividend yield of 4.1%, compared to the industry average of 3.0% [3] - Premier, Inc. has a dividend yield of 3.7%, while the industry average is 0.0% [4]

Here are three stocks with buy rank and strong value characteristics for investors to consider today, November 25:Premier, Inc. (PINC) : This healthcare services company carries a Zacks Rank #1, and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 5.7% over the last 60 days.Premier has a price-to-earnings ratio (P/E) of 17.70 compared with 24.87 for the S&P. The company possesses a Value Scoreof B.Scholastic Corporation (SCHL) : This children's publishing company carries a ...