www.donegalgroup.com 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-looking statements we make may be identified by our use of words such as "will," "expect," "intend," "plan," "anticipate," "believe," "seek," "estimate" and similar expressions. Our actual results could vary mater ...

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 written 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 cen ...

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. Financial Summary 2Not meaningful. "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 o ...

MARIETTA, Pa., July 18, 2024 (GLOBE NEWSWIRE) -- Donegal Group Inc. (NASDAQ:DGICA) and (NASDAQ:DGICB) reported today that its board of directors declared a regular quarterly cash dividend of $0.1725 per share of the Company's Class A common stock and $0.155 per share of the Company's Class B common stock. The dividends are payable on August 15, 2024 to stockholders of record as of the close of business on August 1, 2024. The Class A common stock and Class B common stock of Donegal Group Inc. trade on the NA ...

[PART I FINANCIAL INFORMATION](index=4&type=section&id=PART%20I%20FINANCIAL%20INFORMATION) [Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) The company's financial position strengthened in Q1 2024 with increased assets, higher net income, and improved operating cash flow [Consolidated Balance Sheets](index=4&type=section&id=Consolidated%20Balance%20Sheets) Total assets, liabilities, and stockholders' equity all increased in Q1 2024, reflecting growth in premiums receivable and unearned premiums Consolidated Balance Sheet Highlights (Unaudited) | Account | March 31, 2024 | December 31, 2023 | | :--- | :--- | :--- | | **Assets** | | | | Total investments | $1,331,903,625 | $1,327,053,645 | | Total assets | $2,294,308,053 | $2,266,293,888 | | **Liabilities & Equity** | | | | Losses and loss expenses | $1,124,452,191 | $1,126,156,838 | | Unearned premiums | $634,136,621 | $599,411,468 | | Total liabilities | $1,809,221,579 | $1,786,548,534 | | Total stockholders' equity | $485,086,474 | $479,745,354 | [Consolidated Statements of Income](index=5&type=section&id=Consolidated%20Statements%20of%20Income) Net income increased in Q1 2024, primarily due to growth in net premiums earned and investment income, which outpaced the rise in total expenses Consolidated Income Statement Highlights (Unaudited) | Account | Three Months Ended March 31, 2024 | Three Months Ended March 31, 2023 | | :--- | :--- | :--- | | Net premiums earned | $227,748,679 | $215,233,160 | | Investment income, net | $10,972,327 | $9,449,078 | | Total revenues | $241,140,869 | $224,745,771 | | Net losses and loss expenses | $150,896,415 | $138,105,889 | | Total expenses | $233,892,473 | $218,449,338 | | Net income | $5,955,551 | $5,203,596 | | Class A EPS (basic and diluted) | $0.18 | $0.16 | | Class B EPS (basic and diluted) | $0.16 | $0.15 | [Consolidated Statements of Cash Flows](index=7&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Operating activities generated positive cash flow in Q1 2024, a significant improvement from the prior year, while investing and financing activities used cash Consolidated Cash Flow Highlights (Unaudited) | Activity | Three Months Ended March 31, 2024 | Three Months Ended March 31, 2023 | | :--- | :--- | :--- | | Net cash provided by (used in) operating activities | $4,818,144 | ($680,734) | | Net cash (used in) provided by investing activities | ($3,817,413) | $1,408,999 | | Net cash used in financing activities | ($4,987,964) | ($3,015,553) | | Net decrease in cash | ($3,987,233) | ($2,287,288) | | Cash at end of period | $19,805,040 | $22,836,044 | [Notes to Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) The notes provide details on the company's structure, accounting policies, investment portfolio, and loss reserve methodology, highlighting its reinsurance pooling agreement and operating segments - The company operates through a pooling agreement where its largest subsidiary, Atlantic States, pools premiums and losses with Donegal Mutual, retaining **80%** of the pooled business, which homogenizes risk and represents a significant portion of consolidated revenues[26](index=26&type=chunk)[28](index=28&type=chunk) - The company's 2024 reinsurance program includes property coverage of **$36.0 million** over a **$4.0 million** retention, liability coverage of **$72.0 million** over a **$3.0 million** retention, and workers' compensation coverage of **$17.0 million** over a **$3.0 million** retention[35](index=35&type=chunk) - At March 31, 2024, the investment portfolio held **893 debt securities** in an unrealized loss position, with total gross unrealized losses of **$119.2 million** (**$117.6 million** held for more than 12 months), which management considered temporary[48](index=48&type=chunk)[49](index=49&type=chunk) - For Q1 2024, the company recognized an **$8.4 million** decrease in prior-year liabilities for losses and loss expenses, primarily from lower-than-expected loss emergence in commercial multi-peril, commercial auto, and homeowners lines[69](index=69&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=23&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Q1 2024 performance, highlighting increased net premiums written, a higher GAAP combined ratio due to loss trends, improved net income from investment income, and strong liquidity [Critical Accounting Policies and Estimates](index=23&type=section&id=Critical%20Accounting%20Policies%20and%20Estimates) The liability for property and casualty insurance losses is the most critical accounting estimate, subject to inherent uncertainties and significant impact from reserve changes - The liability for losses and loss expenses is the company's most critical accounting estimate, based on assumptions about future trends, claims severity, and other factors[90](index=90&type=chunk)[91](index=91&type=chunk) - A **1%** change in the company's net loss and loss expense reserves would affect pre-tax operating results by approximately **$6.9 million** as of March 31, 2024[94](index=94&type=chunk) Sensitivity of Net Loss Reserves and Stockholders' Equity (March 31, 2024) | Percentage Change in Net Loss Reserves | Percentage Change in Stockholders' Equity (Net of Tax) | | :--- | :--- | | (10.0)% | 11.3% | | (5.0)% | 5.7% | | Base | — | | 5.0% | (5.7)% | | 10.0% | (11.3)% | [Results of Operations](index=29&type=section&id=Results%20of%20Operations) Q1 2024 saw increased net income and premiums written, though the GAAP combined ratio deteriorated due to a higher loss ratio from increased core and large fire losses - Net premiums written increased **6.0%** year-over-year to **$251.4 million**, driven by **18.5%** growth in personal lines, while commercial lines decreased **0.5%** due to planned attrition[114](index=114&type=chunk) - Net investment income increased **16.1%** year-over-year to **$11.0 million**, attributed to a higher average investment yield[115](index=115&type=chunk) GAAP Combined Ratio Breakdown | Component | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Loss ratio | 66.3% | 64.2% | | Expense ratio | 35.7% | 36.4% | | Dividend ratio | 0.4% | 0.6% | | **Combined ratio** | **102.4%** | **101.2%** | - The loss ratio increased to **66.3%** from **64.2%** year-over-year, driven by a higher core loss ratio (**58.7%** vs **56.5%**) and more large fire losses (**6.6%** vs **5.1%**), partially offset by lower weather-related losses (**4.7%** vs **6.5%**)[117](index=117&type=chunk) - Net income rose to **$6.0 million** (**$0.18**/share Class A) in Q1 2024, compared to **$5.2 million** (**$0.16**/share Class A) in Q1 2023[122](index=122&type=chunk) [Liquidity and Capital Resources](index=30&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintains strong liquidity through operating cash flows, investment activities, and available credit facilities, supporting ongoing operations and dividend payments - Operating activities provided net cash flow of **$4.8 million** in Q1 2024, compared to a use of **$0.7 million** in Q1 2023[124](index=124&type=chunk) - At March 31, 2024, the company had a **$20.0 million** unused line of credit with M&T and a **$35.0 million** outstanding advance with the FHLB of Pittsburgh[125](index=125&type=chunk) - In April 2024, the board declared quarterly dividends of **$0.1725** per Class A share and **$0.155** per Class B share, with approximately **$39.6 million** available for distribution from insurance subsidiaries without prior regulatory approval[130](index=130&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=32&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company's primary market risks are equity price, interest rate, and credit risk within its investment portfolio, with no material changes reported since year-end 2023 - The company's main market risks are equity price risk, interest rate risk, and credit risk within its investment portfolio[132](index=132&type=chunk)[133](index=133&type=chunk)[137](index=137&type=chunk) - There have been no material changes to the company's quantitative or qualitative market risk exposure from December 31, 2023, through March 31, 2024[138](index=138&type=chunk) [Controls and Procedures](index=32&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of March 31, 2024, with no material changes to internal control over financial reporting during the quarter - The CEO and CFO concluded that as of March 31, 2024, the company's disclosure controls and procedures were effective[139](index=139&type=chunk) - No changes occurred in internal control over financial reporting during the first quarter of 2024 that materially affected or are likely to materially affect internal controls[140](index=140&type=chunk) [PART II OTHER INFORMATION](index=33&type=section&id=PART%20II%20OTHER%20INFORMATION) [Legal Proceedings](index=33&type=section&id=Item%201.%20Legal%20Proceedings) The company reported no material legal proceedings during the period - None[143](index=143&type=chunk) [Risk Factors](index=33&type=section&id=Item%201A.%20Risk%20Factors) No material changes were reported in the company's risk factors since the 2023 Annual Report on Form 10-K - There have been no material changes in the risk factors disclosed in the 2023 Form 10-K Report during the three months ended March 31, 2024[144](index=144&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=33&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company reported no unregistered sales of equity securities or use of proceeds during the period - None[145](index=145&type=chunk) [Exhibits](index=34&type=section&id=Item%206.%20Exhibits) The filing includes required certifications, statements, XBRL data, and incorporates by reference the 2024 Equity Incentive Plans - Exhibits filed include CEO and CFO certifications (**31.1**, **31.2**), statements under **18 U.S.C. Section 1350** (**32.1**, **32.2**), and various XBRL documents[151](index=151&type=chunk) - The Donegal Group Inc. **2024 Equity Incentive Plans** for Employees and Directors are incorporated by reference[151](index=151&type=chunk)

Donegal Group Inc. (NASDAQ:DGICA) Q1 2024 Earnings Conference Call April 25, 2024 8:30 AM ET Company Participants Karin Daly - IR, The Equity Group Kevin Burke - President and CEO Jeffrey Miller - CFO Jeffery Hay - Chief Underwriting Officer Anthony Viozzi - Chief Investment Officer Daniel DeLamater - COO Conference Call Participants Karin Daly Good morning, and thank you for joining us today. This morning, Donegal Group issued its first quarter 2024 earnings release outlining its results. The release and a ...

Donegal Group (DGICA) came out with quarterly earnings of $0.13 per share, missing the Zacks Consensus Estimate of $0.20 per share. This compares to earnings of $0.17 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -35%. A quarter ago, it was expected that this insurance holding company would post earnings of $0.23 per share when it actually produced a loss of $0.11, delivering a surprise of -147.83%.Over the last four quarter ...

EXHIBIT 99.1 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): Financial Summary | | | | Three Months Ended March 31, | | | | --- | --- | --- | --- | --- | --- | | | 2024 | | 2023 | | % Change | | | | | (dollars in thousands, except per share am ...

MARIETTA, Pa., April 18, 2024 (GLOBE NEWSWIRE) -- Donegal Group Inc. (NASDAQ:DGICA) and (NASDAQ:DGICB) reported today that its board of directors declared a regular quarterly cash dividend of $0.1725 per share of the Company's Class A common stock and $0.155 per share of the Company's Class B common stock. The dividends are payable on May 22, 2024 to stockholders of record as of the close of business on May 8, 2024. These dividends represent percentage increases of 1.5% for the Company's Class A common stoc ...

MARIETTA, Pa., April 02, 2024 (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, 2024 on Thursday, April 25, 2024, 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, Ap ...