Donegal Group, Inc. (NASDAQ:DGICA) Q2 2020 Results Earnings Conference Call July 28, 2020 11:00 AM ET Company Participants Kevin Burke - President and Chief Executive Officer Jeffrey Miller - Chief Financial Officer Conference Call Participants Sean Reitenbach - KBW Bob Farnam - Boenning and Scattergood Jamie Inglis - Philo Smith Douglas Eden - ECM Operator Ladies and gentlemen, thank you for standing by, and welcome to the Donegal Group Inc. Second Quarter 2020 Earnings Conference Call. At this time, all p ...

Table of Contents Title of Each ClassTrading SymbolsName of Each Exchange on Which Registered Class A Common Stock, $.01 par value DGICA The NASDAQ Global Select Market Class B Common Stock, $.01 par value DGICB The NASDAQ Global Select Market 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 March 31, 2020 OR ☐ TRANSITION REPORT PURSUANT TO SECT ...

Donegal Group, Inc. (NASDAQ:DGICA) Q1 2020 Earnings Conference Call April 29, 2020 11:00 AM ET Company Participants Kevin Burke - President and Chief Executive Officer Jeff Miller - Chief Financial Officer Conference Call Participants Bob Farnam - Boenning and Scattergood Douglas Eden - ECM Meyer Shields - KBW Operator Ladies and gentlemen, thank you for standing by, and welcome to the Donegal Group Inc. First Quarter 2020 Earnings Conference Call. At this time, all participants are in a listen-only mode. ...

Table of Contents Title of Each ClassTrading SymbolsName of Each Exchange on Which Registered Class A Common Stock, $.01 par value DGICA The NASDAQ Global Select Market Class B Common Stock, $.01 par value DGICB The NASDAQ Global Select Market UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2019 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) ...

Donegal Group Inc. (NASDAQ:DGICA) Q4 2019 Results Earnings Conference Call February 25, 2020 11:00 AM ET Company Participants Jeff Miller - CFO Kevin Burke - President and CEO Conference Call Participants Bob Farnam - Boenning and Scattergood Meyer Shields - KBW Douglas Eden - ECM Jamie Inglis - Philo Smith Operator Ladies and gentlemen thank you for standing by and welcome to the Donegal Group Q4 and Year End 2019 Earnings Conference Call. [Operator Instructions] Please be advised that today’s conference i ...

PART I FINANCIAL INFORMATION [Item 1. Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) This section presents Donegal Group Inc.'s unaudited consolidated financial statements and detailed notes for the periods ended September 30, 2019, and December 31, 2018 [Consolidated Balance Sheets](index=4&type=section&id=Consolidated%20Balance%20Sheets) | Metric | Sep 30, 2019 (Unaudited) | Dec 31, 2018 | | :--------------------------------------- | :----------------------- | :------------- | | **Assets** | | | | Total investments | $1,078,714,962 | $1,030,798,566 | | Cash | $55,268,760 | $52,594,461 | | Premiums receivable | $173,749,759 | $156,702,250 | | Reinsurance receivable | $362,366,588 | $343,369,065 | | Total assets | $1,921,085,211 | $1,832,078,267 | | **Liabilities** | | | | Unpaid losses and loss expenses | $864,534,338 | $814,665,224 | | Unearned premiums | $528,037,212 | $506,528,606 | | Borrowings under lines of credit | $35,000,000 | $60,000,000 | | Total liabilities | $1,478,533,606 | $1,433,208,366 | | **Stockholders' Equity** | | | | Total stockholders' equity | $442,551,605 | $398,869,901 | | Total liabilities and stockholders' equity | $1,921,085,211 | $1,832,078,267 | - Total assets increased by **$89.0 million (4.9%)** from December 31, 2018, to September 30, 2019, primarily driven by increases in total investments, premiums receivable, and reinsurance receivable[15](index=15&type=chunk) - Total liabilities increased by **$45.3 million (3.2%)** over the same period, mainly due to higher unpaid losses and loss expenses and unearned premiums, partially offset by a decrease in borrowings under lines of credit[15](index=15&type=chunk) - Total stockholders' equity increased by **$43.7 million (11.0%)** from December 31, 2018, to September 30, 2019[15](index=15&type=chunk) [Consolidated Statements of Income (Unaudited)](index=5&type=section&id=Consolidated%20Statements%20of%20Income%20(Unaudited)) | Metric | Three Months Ended Sep 30, 2019 | Three Months Ended Sep 30, 2018 | | :--------------------------------------- | :------------------------------ | :------------------------------ | | Net premiums earned | $189,821,058 | $187,661,705 | | Total revenues | $198,009,900 | $199,904,180 | | Net losses and loss expenses | $130,743,395 | $140,726,106 | | Total expenses | $191,705,016 | $198,627,194 | | Income before income tax expense | $6,304,884 | $1,276,986 | | Net income | $5,186,379 | $1,206,356 | | Class A common stock - basic EPS | $0.19 | $0.04 | | Class A common stock - diluted EPS | $0.18 | $0.04 | | Class B common stock - basic and diluted EPS | $0.16 | $0.04 | - Net income for the three months ended September 30, 2019, significantly increased to **$5.2 million** from **$1.2 million** in the prior year period, driven by higher income before income tax expense[17](index=17&type=chunk) - Net premiums earned saw a slight increase of **1.2% YoY**, while net losses and loss expenses decreased by **7.1% YoY**[17](index=17&type=chunk) [Consolidated Statements of Comprehensive Income (Loss) (Unaudited)](index=5&type=section&id=Consolidated%20Statements%20of%20Comprehensive%20Income%20(Loss)%20(Unaudited)) | Metric | Three Months Ended Sep 30, 2019 | Three Months Ended Sep 30, 2018 | | :--------------------------------------- | :------------------------------ | :------------------------------ | | Net income | $5,186,379 | $1,206,356 | | Other comprehensive income (loss) | $2,255,773 | $(2,276,950) | | Comprehensive income (loss) | $7,442,152 | $(1,070,594) | - Comprehensive income significantly improved to **$7.4 million** in Q3 2019 from a loss of **$1.1 million** in Q3 2018, primarily due to a positive shift in other comprehensive income (unrealized gains on securities)[19](index=19&type=chunk) [Consolidated Statements of Income (Loss) (Unaudited) (Nine Months)](index=6&type=section&id=Consolidated%20Statements%20of%20Income%20(Loss)%20(Unaudited)%20(Nine%20Months)) | Metric | Nine Months Ended Sep 30, 2019 | Nine Months Ended Sep 30, 2018 | | :--------------------------------------- | :----------------------------- | :----------------------------- | | Net premiums earned | $566,657,613 | $555,140,395 | | Total revenues | $611,512,728 | $585,022,486 | | Net losses and loss expenses | $385,361,331 | $433,063,019 | | Total expenses | $572,825,289 | $613,613,717 | | Income (loss) before income tax expense (benefit) | $38,687,439 | $(28,591,231) | | Net income (loss) | $32,997,997 | $(17,761,577) | | Class A common stock - basic EPS | $1.18 | $(0.64) | | Class A common stock - diluted EPS | $1.17 | $(0.64) | | Class B common stock - basic and diluted EPS | $1.06 | $(0.59) | - The company reported a significant turnaround, moving from a net loss of **$17.8 million** in the first nine months of 2018 to a net income of **$33.0 million** in the same period of 2019[22](index=22&type=chunk) - Total revenues increased by **4.5% YoY**, while net losses and loss expenses decreased by **11.0% YoY**, contributing to the improved profitability[22](index=22&type=chunk) [Consolidated Statements of Comprehensive Income (Loss) (Unaudited) (Nine Months)](index=6&type=section&id=Consolidated%20Statements%20of%20Comprehensive%20Income%20(Loss)%20(Unaudited)%20(Nine%20Months)) | Metric | Nine Months Ended Sep 30, 2019 | Nine Months Ended Sep 30, 2018 | | :--------------------------------------- | :----------------------------- | :----------------------------- | | Net income (loss) | $32,997,997 | $(17,761,577) | | Other comprehensive income (loss) | $14,646,453 | $(11,340,980) | | Comprehensive income (loss) | $47,644,450 | $(29,102,557) | - Comprehensive income for the first nine months of 2019 was **$47.6 million**, a substantial improvement from a comprehensive loss of **$29.1 million** in the prior year, primarily due to net income and positive other comprehensive income[24](index=24&type=chunk) [Consolidated Statement of Stockholders' Equity (Unaudited)](index=7&type=section&id=Consolidated%20Statement%20of%20Stockholders'%20Equity%20(Unaudited)) | Metric | Dec 31, 2018 | Sep 30, 2019 | | :--------------------------------------- | :----------- | :----------- | | Total Stockholders' Equity | $398,869,901 | $442,551,605 | | Net income (nine months) | $192,751,208 (Retained Earnings) | $217,362,373 (Retained Earnings) | | Other comprehensive income (loss) | $(14,228,059) | $418,394 | - Total stockholders' equity increased by **$43.7 million** from December 31, 2018, to September 30, 2019, primarily driven by net income and a positive shift in accumulated other comprehensive income[29](index=29&type=chunk) - The company issued common stock under stock compensation plans, contributing to additional paid-in capital[29](index=29&type=chunk) [Consolidated Statements of Cash Flows (Unaudited)](index=9&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows%20(Unaudited)) | Metric | Nine Months Ended Sep 30, 2019 | Nine Months Ended Sep 30, 2018 | | :--------------------------------------- | :----------------------------- | :----------------------------- | | Net cash provided by operating activities | $48,438,450 | $59,855,104 | | Net cash used in investing activities | $(11,547,502) | $(33,873,052) | | Net cash used in financing activities | $(34,216,649) | $(8,556,831) | | Net increase in cash | $2,674,299 | $17,425,221 | | Cash at end of period | $55,268,760 | $55,258,656 | - Net cash provided by operating activities decreased by **$11.4 million YoY**, while net cash used in investing activities significantly decreased by **$22.3 million YoY**[37](index=37&type=chunk) - Net cash used in financing activities increased substantially by **$25.7 million YoY**, primarily due to higher payments on lines of credit[37](index=37&type=chunk) [Notes to Consolidated Financial Statements (Unaudited)](index=10&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements%20(Unaudited)) [1 - Organization](index=10&type=section&id=1%20-%20Organization) - Donegal Group Inc. is an insurance holding company with subsidiaries writing property and casualty insurance through independent agents in Mid-Atlantic, Midwestern, New England, and Southern states[39](index=39&type=chunk) - The company operates in three segments: investment, personal lines (homeowners, private passenger auto), and commercial lines (commercial auto, commercial multi-peril, workers' compensation)[40](index=40&type=chunk) - Donegal Mutual Insurance Company holds approximately **43%** of Class A common stock and **84%** of Class B common stock, giving it about **72%** of total voting power[40](index=40&type=chunk) - Atlantic States, the largest subsidiary, participates in a pooling agreement with Donegal Mutual, sharing **80%** of pooled business results[41](index=41&type=chunk) - The company sold its **48.2%** stake in Donegal Financial Services Corporation (DFSC) on March 8, 2019, for approximately **$85.8 million** in cash and stock, recognizing a **$12.7 million** gain[44](index=44&type=chunk)[46](index=46&type=chunk) [2 - Basis of Presentation](index=11&type=section&id=2%20-%20Basis%20of%20Presentation) - Interim financial information is unaudited and includes normal recurring adjustments necessary for fair presentation[48](index=48&type=chunk) - Results for the nine months ended September 30, 2019, are not necessarily indicative of the full year's results[48](index=48&type=chunk) [3 - Earnings Per Share](index=11&type=section&id=3%20-%20Earnings%20Per%20Share) - The company uses the two-class method for EPS calculation due to different dividend rates for Class A and Class B common stock (Class A dividend rate is at least **10%** greater than Class B)[50](index=50&type=chunk) Basic Earnings Per Share (Three Months Ended September 30) | Class | 2019 | 2018 | | :---- | :--- | :--- | | Class A | $0.19 | $0.04 | | Class B | $0.16 | $0.04 | Diluted Earnings Per Share (Three Months Ended September 30) | Class | 2019 | 2018 | | :---- | :--- | :--- | | Class A | $0.18 | $0.04 | | Class B | $0.16 | $0.04 | Basic Earnings (Loss) Per Share (Nine Months Ended September 30) | Class | 2019 | 2018 | | :---- | :--- | :--- | | Class A | $1.18 | $(0.64) | | Class B | $1.06 | $(0.59) | Diluted Earnings (Loss) Per Share (Nine Months Ended September 30) | Class | 2019 | 2018 | | :---- | :--- | :--- | | Class A | $1.17 | $(0.64) | | Class B | $1.06 | $(0.59) | - Outstanding options to purchase **5,330,525 shares** (three months) and **5,531,561 shares** (nine months) of Class A common stock were excluded from diluted EPS for 2019 because their exercise price exceeded the average market price[54](index=54&type=chunk) [4 - Reinsurance](index=13&type=section&id=4%20-%20Reinsurance) - Atlantic States and Donegal Mutual participate in a pooling agreement, with Atlantic States holding an **80%** share of underwriting results[56](index=56&type=chunk) - A combined third-party reinsurance program was implemented effective January 1, 2019, including excess of loss reinsurance (retention of **$1.0 million** for property, **$2.0 million** for casualty) and catastrophe reinsurance (retention of **$10.0 million**, annual aggregate deductible of **$1.2 million** up to **$190.0 million** per occurrence)[57](index=57&type=chunk) - An additional catastrophe reinsurance agreement with Donegal Mutual provides coverage over a **$2.0 million** retention up to **$8.0 million** per occurrence for individual subsidiaries, and a combined retention of **$5.0 million** for multiple subsidiaries[58](index=58&type=chunk) [5 - Investments](index=13&type=section&id=5%20-%20Investments) Fixed Maturities at September 30, 2019 (in thousands) | Category | Amortized Cost | Estimated Fair Value | | :--------------------------------------- | :------------- | :------------------- | | Held to Maturity | $458,889 | $484,742 | | Available for Sale | $550,792 | $559,101 | Equity Securities at September 30, 2019 (in thousands) | Category | Cost | Estimated Fair Value | | :--------------------------------------- | :--- | :------------------- | | Equity securities | $43,407 | $52,099 | Net Investment (Losses) Gains (in thousands) | Period | 2019 | 2018 | | :--------------------------------------- | :--- | :--- | | Three Months Ended Sep 30 | $(369) | $3,464 | | Nine Months Ended Sep 30 | $19,294 | $4,062 | - Net investment gains for the nine months ended September 30, 2019, included **$12.7 million** from the sale of DFSC and **$5.5 million** from unrealized gains in the equity securities portfolio[146](index=146&type=chunk) - The company held **131 debt securities** with unrealized losses considered temporary at September 30, 2019, based on market conditions and underlying factors[70](index=70&type=chunk) [6 - Segment Information](index=17&type=section&id=6%20-%20Segment%20Information) - Segment performance for personal and commercial lines is evaluated using Statutory Accounting Principles (SAP) underwriting results, which are considered non-GAAP financial measures[73](index=73&type=chunk) Premiums Earned (in thousands) | Segment | Three Months Ended Sep 30, 2019 | Three Months Ended Sep 30, 2018 | | :--------------------------------------- | :------------------------------ | :------------------------------ | | Commercial lines | $98,324 | $84,251 | | Personal lines | $91,497 | $103,410 | | Total premiums earned | $189,821 | $187,661 | Underwriting Income (Loss) (in thousands) | Segment | Three Months Ended Sep 30, 2019 | Three Months Ended Sep 30, 2018 | | :--------------------------------------- | :------------------------------ | :------------------------------ | | Commercial lines | $2,521 | $2,125 | | Personal lines | $(3,312) | $(12,210) | | GAAP underwriting loss | $(1,190) | $(9,753) | Premiums Earned (in thousands) | Segment | Nine Months Ended Sep 30, 2019 | Nine Months Ended Sep 30, 2018 | | :--------------------------------------- | :----------------------------- | :----------------------------- | | Commercial lines | $284,593 | $251,029 | | Personal lines | $282,065 | $304,111 | | Total premiums earned | $566,658 | $555,140 | Underwriting Income (Loss) (in thousands) | Segment | Nine Months Ended Sep 30, 2019 | Nine Months Ended Sep 30, 2018 | | :--------------------------------------- | :----------------------------- | :----------------------------- | | Commercial lines | $4,946 | $(17,935) | | Personal lines | $(10,077) | $(42,358) | | GAAP underwriting loss | $(3,700) | $(55,187) | [7 - Borrowings](index=19&type=section&id=7%20-%20Borrowings) - In March 2019, the company entered into a new **$30.0 million** unsecured revolving line of credit with M&T, expiring July 2020, with no outstanding borrowings reported at September 30, 2019[78](index=78&type=chunk) - Atlantic States repaid a **$35.0 million** variable-rate cash advance and issued a new **$35.0 million** fixed-rate cash advance (**1.74%** interest, due August 2024) with the FHLB of Pittsburgh in August 2019, incurring a **$176,000** prepayment penalty[79](index=79&type=chunk) - Donegal Mutual holds a **$5.0 million** surplus note from MICO with a **5.00%** interest rate, requiring prior approval from the Michigan Department of Insurance and Financial Services for repayment[81](index=81&type=chunk) [8 - Share–Based Compensation](index=20&type=section&id=8%20-%20Share%E2%80%93Based%20Compensation) - Compensation expense related to stock compensation plans was **$247,301** for Q3 2019 (vs. **$317,526** in Q3 2018) and **$1.1 million** for the first nine months of 2019 (vs. **$1.4 million** in 2018)[83](index=83&type=chunk) - As of September 30, 2019, **$1.3 million** of unrecognized compensation expense related to nonvested share-based compensation is expected to be recognized over approximately **1.5 years**[83](index=83&type=chunk) [9 - Fair Value Measurements](index=20&type=section&id=9%20-%20Fair%20Value%20Measurements) - Financial assets are classified into a three-level hierarchy based on input reliability: Level 1 (quoted prices in active markets), Level 2 (observable inputs other than Level 1), and Level 3 (unobservable inputs)[85](index=85&type=chunk) - Publicly-traded equity securities are classified as Level 1, while fixed maturity investments (U.S. Treasury, state/political subdivisions, corporate, mortgage-backed securities) are classified as Level 2[86](index=86&type=chunk) Fair Value Measurements at September 30, 2019 (in thousands) | Category | Fair Value | Level 1 | Level 2 | Level 3 | | :--------------------------------------- | :--------- | :------ | :------ | :------ | | U.S. Treasury securities and obligations of U.S. government corporations and agencies | $19,446 | — | $19,446 | — | | Obligations of states and political subdivisions | $59,165 | — | $59,165 | — | | Corporate securities | $150,781 | — | $150,781 | — | | Mortgage-backed securities | $329,709 | — | $329,709 | — | | Equity securities | $52,099 | $49,746 | $2,353 | — | | Total investments in the fair value hierarchy | $611,200 | $49,746 | $561,454 | — | [10 - Income Taxes](index=22&type=section&id=10%20-%20Income%20Taxes) - No material unrecognized tax benefits or accrued interest and penalties were reported at September 30, 2019, or December 31, 2018[92](index=92&type=chunk) - A valuation allowance of **$264,467** was established for a portion of Le Mars' net operating loss carryforward and **$8.1 million** for the net state operating loss carryforward[92](index=92&type=chunk) - Deferred tax assets of **$25.2 million** (Sep 30, 2019) and **$32.4 million** (Dec 31, 2018) are expected to be realized[92](index=92&type=chunk) [11 - Liability for Losses and Loss Expenses](index=22&type=section&id=11%20-%20Liability%20for%20Losses%20and%20Loss%20Expenses) - The establishment of loss and loss expense liabilities is an inherently uncertain process, with ultimate liabilities potentially differing from estimates[94](index=94&type=chunk) Activity in Liability for Losses and Loss Expenses (in thousands) | Metric | Nine Months Ended Sep 30, 2019 | Nine Months Ended Sep 30, 2018 | | :--------------------------------------- | :----------------------------- | :----------------------------- | | Balance at January 1 | $814,665 | $676,672 | | Net balance at January 1 | $475,398 | $383,401 | | Total incurred | $385,361 | $433,063 | | Total paid | $354,925 | $355,631 | | Net balance at end of period | $505,834 | $460,833 | | Balance at end of period | $864,534 | $779,980 | - The company recognized a decrease of **$7.9 million** in prior-year loss and loss expenses for the nine months ended September 30, 2019, primarily due to lower-than-expected severity in workers' compensation, mainly in Michigan[95](index=95&type=chunk)[97](index=97&type=chunk) - In contrast, the prior year (2018) saw an increase of **$28.9 million**, mainly from higher-than-expected severity in personal and commercial automobile lines, attributed to worsening litigation trends and reporting delays[95](index=95&type=chunk)[97](index=97&type=chunk) [12 - Impact of New Accounting Standards](index=24&type=section&id=12%20-%20Impact%20of%20New%20Accounting%20Standards) - Adoption of new lease accounting guidance (effective January 1, 2019) did not significantly impact financial position, results, or cash flows[106](index=106&type=chunk) - The company is evaluating the impact of new guidance on impairment of financial instruments (effective after December 15, 2019), which requires recognizing expected credit losses as an allowance[107](index=107&type=chunk) - New guidance simplifying goodwill impairment testing (effective after December 15, 2019) is not expected to have a significant impact[108](index=108&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=24&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section provides management's perspective on the company's financial condition and operational results, highlighting critical accounting policies and segment performance [Critical Accounting Policies and Estimates](index=24&type=section&id=Critical%20Accounting%20Policies%20and%20Estimates) - The most significant estimates relate to reserves for property and casualty insurance unpaid losses and loss expenses, which are inherently uncertain and can significantly affect financial statements[112](index=112&type=chunk) - Estimates are based on assumptions about future loss trends, claims severity, judicial theories of liability, and other factors, and are regularly reviewed and adjusted[113](index=113&type=chunk) [Liability for Unpaid Losses and Loss Expenses](index=25&type=section&id=Liability%20for%20Unpaid%20Losses%20and%20Loss%20Expenses) - Liabilities for reported losses are based on case-by-case evaluations, while unreported claims are estimated using historical information by line of insurance[115](index=115&type=chunk) - Reserve estimates can change due to unexpected shifts in external factors (e.g., tort law, medical costs, inflation) and internal operations (e.g., claims recording, rate changes)[116](index=116&type=chunk) - A **1%** change in net loss and loss expense reserves would impact pre-tax results by approximately **$5.1 million**[116](index=116&type=chunk) - The average claim outstanding has gradually increased over several years due to rising medical loss costs and increased litigation trends, alongside a general slowing of settlement rates in litigated claims[118](index=118&type=chunk) Unpaid Liability for Losses and Loss Expenses by Major Line of Business (in thousands) | Line of Business | Sep 30, 2019 | Dec 31, 2018 | | :--------------------------------------- | :----------- | :----------- | | **Commercial lines:** | | | | Automobile | $120,902 | $106,734 | | Workers' compensation | $112,322 | $109,512 | | Commercial multi-peril | $97,587 | $85,937 | | Other | $9,398 | $5,207 | | Total commercial lines | $340,209 | $307,390 | | **Personal lines:** | | | | Automobile | $137,897 | $144,788 | | Homeowners | $22,886 | $18,374 | | Other | $4,842 | $4,846 | | Total personal lines | $165,625 | $168,008 | | Total commercial and personal lines | $505,834 | $475,398 | | Plus reinsurance recoverable | $358,700 | $339,267 | | Total liability for unpaid losses and loss expenses | $864,534 | $814,665 | [Non-GAAP Information](index=27&type=section&id=Non-GAAP%20Information) - The company uses SAP financial measures (net premiums written and statutory combined ratio) to evaluate segment performance, as GAAP financial statements are not prepared for insurance subsidiaries[126](index=126&type=chunk) [Net Premiums Written](index=27&type=section&id=Net%20Premiums%20Written) - Net premiums written are defined as full-term premiums recorded for policies less premiums ceded to reinsurers[127](index=127&type=chunk) Net Premiums Written (in thousands) | Period | 2019 | 2018 | | :--------------------------------------- | :--- | :--- | | Three Months Ended Sep 30 | $183,870 | $184,518 | | Nine Months Ended Sep 30 | $581,588 | $575,723 | [Statutory Combined Ratio](index=28&type=section&id=Statutory%20Combined%20Ratio) - The statutory combined ratio is a standard measure of underwriting profitability, calculated as the sum of the statutory loss ratio, expense ratio, and dividend ratio, with a ratio below **100%** indicating underwriting profitability[129](index=129&type=chunk)[130](index=130&type=chunk) - Differences between GAAP and statutory combined ratios arise from installment payment fees, expense ratio basis (net premiums earned vs. written), and salvage/subrogation recoveries[131](index=131&type=chunk) [Combined Ratios](index=28&type=section&id=Combined%20Ratios) GAAP Combined Ratios (Total Lines) | Metric | Three Months Ended Sep 30, 2019 | Three Months Ended Sep 30, 2018 | | :--------------------------------------- | :------------------------------ | :------------------------------ | | Loss ratio (non-weather) | 61.6% | 63.7% | | Loss ratio (weather-related) | 7.3% | 11.3% | | Expense ratio | 30.5% | 29.6% | | Dividend ratio | 1.2% | 0.6% | | Combined ratio | 100.6% | 105.2% | Statutory Combined Ratios (Total Commercial and Personal Lines) | Metric | Three Months Ended Sep 30, 2019 | Three Months Ended Sep 30, 2018 | | :--------------------------------------- | :------------------------------ | :------------------------------ | | Total commercial lines | 97.9% | 97.6% | | Total personal lines | 103.9% | 111.5% | | Total commercial and personal lines | 100.8% | 105.2% | GAAP Combined Ratios (Total Lines) | Metric | Nine Months Ended Sep 30, 2019 | Nine Months Ended Sep 30, 2018 | | :--------------------------------------- | :----------------------------- | :----------------------------- | | Loss ratio (non-weather) | 60.8% | 68.5% | | Loss ratio (weather-related) | 7.2% | 9.5% | | Expense ratio | 31.5% | 31.3% | | Dividend ratio | 1.2% | 0.6% | | Combined ratio | 100.7% | 109.9% | Statutory Combined Ratios (Total Commercial and Personal Lines) | Metric | Nine Months Ended Sep 30, 2019 | Nine Months Ended Sep 30, 2018 | | :--------------------------------------- | :----------------------------- | :----------------------------- | | Total commercial lines | 95.8% | 104.5% | | Total personal lines | 103.3% | 113.0% | | Total commercial and personal lines | 99.5% | 109.0% | [Results of Operations - Three Months Ended September 30, 2019 Compared to Three Months Ended September 30, 2018](index=28&type=section&id=Results%20of%20Operations%20-%20Three%20Months%20Ended%20September%2030%2C%202019%20Compared%20to%20Three%20Months%20Ended%20September%2030%2C%202018) - Net premiums earned increased by **1.2%** to **$189.8 million**, while net premiums written decreased by **0.4%** to **$183.9 million**[133](index=133&type=chunk)[134](index=134&type=chunk) - Commercial lines net premiums written increased by **13.2%** due to rate increases, new accounts, and lower reinsurance premiums, while personal lines decreased by **11.6%** due to underwriting measures and non-renewal of unprofitable business[134](index=134&type=chunk) - Net investment income increased to **$7.4 million** (from **$6.6 million**), but net investment losses of **$369,041** were recorded (compared to gains of **$3.5 million** in 2018) due to unrealized losses in equity securities[135](index=135&type=chunk)[136](index=136&type=chunk) - The loss ratio decreased to **68.9%** (from **75.0%**), with weather-related losses contributing **7.3 percentage points** (down from **11.3 points**), and favorable loss reserve development of **$1.0 million** was experienced[137](index=137&type=chunk) - The expense ratio increased to **30.5%** (from **29.6%**) due to higher underwriting-based incentive costs, and policyholder dividends increased due to growth and profitability in workers' compensation[138](index=138&type=chunk)[139](index=139&type=chunk) - The combined ratio decreased to **100.6%** (from **105.2%**), primarily due to the lower loss ratio[139](index=139&type=chunk) - Net income rose to **$5.2 million** (EPS Class A diluted **$0.18**) from **$1.2 million** (EPS Class A diluted **$0.04**)[142](index=142&type=chunk) [Results of Operations - Nine Months Ended September 30, 2019 Compared to Nine Months Ended September 30, 2018](index=30&type=section&id=Results%20of%20Operations%20-%20Nine%20Months%20Ended%20September%2030%2C%202019%20Compared%20to%20Nine%20Months%20Ended%20September%2030%2C%202018) - Net premiums earned increased by **2.1%** to **$566.7 million**, and net premiums written increased by **1.0%** to **$581.6 million**[143](index=143&type=chunk)[144](index=144&type=chunk) - Commercial lines net premiums written increased by **13.1%**, while personal lines decreased by **10.1%** due to similar factors as the three-month period[144](index=144&type=chunk) - Net investment income increased to **$21.7 million** (from **$19.3 million**), with net investment gains of **$19.3 million** (up from **$4.1 million**) including **$12.7 million** from the DFSC sale and **$5.5 million** from equity securities' unrealized gains[145](index=145&type=chunk)[146](index=146&type=chunk) - The loss ratio decreased to **68.0%** (from **78.0%**), with weather-related losses contributing **7.2 percentage points** (down from **9.5 points**), and favorable loss reserve development of **$7.9 million** was experienced (compared to adverse development of **$28.9 million** in 2018)[147](index=147&type=chunk) - The expense ratio slightly increased to **31.5%** (from **31.3%**), and policyholder dividends increased due to workers' compensation growth and profitability[148](index=148&type=chunk)[149](index=149&type=chunk) - The combined ratio decreased to **100.7%** (from **109.9%**), primarily due to the lower loss ratio[149](index=149&type=chunk) - The company reported net income of **$33.0 million** (EPS Class A diluted **$1.17**) compared to a net loss of **$17.8 million** (EPS Class A diluted **$(0.64)**) in the prior year[153](index=153&type=chunk) [Liquidity and Capital Resources](index=31&type=section&id=Liquidity%20and%20Capital%20Resources) - Major funding sources include net cash flows from underwriting, investment income, and investment maturities, with operations historically generating sufficient positive cash flow[154](index=154&type=chunk)[155](index=155&type=chunk) - Net cash provided by operating activities was **$48.4 million** for the first nine months of 2019 (vs. **$59.9 million** in 2018)[155](index=155&type=chunk) - At September 30, 2019, there were no outstanding borrowings on the **$30.0 million** M&T line of credit, and Atlantic States had **$35.0 million** in outstanding FHLB advances at **1.74%** interest[156](index=156&type=chunk) Expected Payments for Contractual Obligations at September 30, 2019 (in thousands) | Obligation | Total | Less than 1 year | 1-3 years | 4-5 years | After 5 years | | :--------------------------------------- | :---- | :--------------- | :-------- | :-------- | :------------ | | Net liability for unpaid losses and loss expenses of our insurance subsidiaries | $505,834 | $234,446 | $237,036 | $18,341 | $16,011 | | Subordinated debentures | $5,000 | — | — | — | $5,000 | | Borrowings under lines of credit | $35,000 | — | — | $35,000 | — | | Total contractual obligations | $545,834 | $234,446 | $237,036 | $53,341 | $21,011 | - The board declared quarterly cash dividends of **14.5 cents** per Class A share and **12.75 cents** per Class B share, payable November 15, 2019[162](index=162&type=chunk) - Available dividends from insurance subsidiaries without prior approval for 2019 total approximately **$30.9 million**[162](index=162&type=chunk) [Equity Price Risk](index=32&type=section&id=Equity%20Price%20Risk) - The marketable equity securities portfolio is exposed to the risk of loss from adverse price changes, managed through investment personnel analysis and regular portfolio reviews[164](index=164&type=chunk) [Credit Risk](index=32&type=section&id=Credit%20Risk) - The fixed-maturity and short-term investment portfolios are subject to credit risk, managed by investment analysis, regular reviews, and limiting investment concentration in any single issuer[165](index=165&type=chunk) - Atlantic States faces credit risk from business ceded to Donegal Mutual under the pooling agreement, mitigated by reinsurance agreements with Donegal Mutual and other unaffiliated reinsurers[168](index=168&type=chunk) [Impact of Inflation](index=33&type=section&id=Impact%20of%20Inflation) - Property and casualty insurance premium rates are established with an anticipation of inflation's potential impact on future losses and expenses[169](index=169&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=34&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) This section addresses the company's exposure to market risk, primarily from its investment portfolio's sensitivity to price and interest rate fluctuations - Market risk stems from potential changes in the fair value of investment securities due to price and interest rate fluctuations[171](index=171&type=chunk) - Interest rate risk is managed by maintaining an appropriate relationship between the average duration of the investment portfolio and the approximate duration of liabilities[171](index=171&type=chunk) - No material changes in quantitative or qualitative market risk exposure occurred from December 31, 2018, through September 30, 2019[172](index=172&type=chunk) [Item 4. Controls and Procedures](index=34&type=section&id=Item%204.%20Controls%20and%20Procedures) This section confirms the effectiveness of the company's disclosure controls and procedures and reports no material changes in internal control over financial reporting during the quarter - Management, including the CEO and CFO, concluded that disclosure controls and procedures were effective as of September 30, 2019, for timely and accurate reporting[173](index=173&type=chunk) - No material changes in internal control over financial reporting occurred during the quarter[174](index=174&type=chunk) [Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995](index=34&type=section&id=Safe%20Harbor%20Statement%20Under%20the%20Private%20Securities%20Litigation%20Reform%20Act%20of%201995) This statement clarifies that all forward-looking statements in the report are based on current expectations and involve inherent risks and uncertainties - All forward-looking statements are based on current expectations and involve risks and uncertainties[175](index=175&type=chunk) - Factors that could cause actual results to vary include adverse weather, profitability, adequacy of loss reserves, IT system availability, economic conditions, interest rates, competition, terrorism, reinsurance costs, legal developments, regulatory changes, and A.M. Best rating changes[175](index=175&type=chunk) - The company disclaims any obligation to publicly update forward-looking statements[175](index=175&type=chunk) Part II. Other Information [Item 1. Legal Proceedings](index=35&type=section&id=Item%201.%20Legal%20Proceedings) This section states that there are no legal proceedings to report - No legal proceedings to report[178](index=178&type=chunk) [Item 1A. Risk Factors](index=35&type=section&id=Item%201A.%20Risk%20Factors) This section refers to the risk factors detailed in the company's 2018 Annual Report on Form 10-K, noting no material changes during the nine months ended September 30, 2019 - No material changes in risk factors from those disclosed in the 2018 Annual Report on Form 10-K[179](index=179&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=35&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) This section indicates that there were no unregistered sales of equity securities or use of proceeds to report - No unregistered sales of equity securities or use of proceeds to report[180](index=180&type=chunk) [Item 3. Defaults upon Senior Securities](index=35&type=section&id=Item%203.%20Defaults%20upon%20Senior%20Securities) This section states that there were no defaults upon senior securities - No defaults upon senior securities to report[181](index=181&type=chunk) [Item 4. Removed and Reserved](index=35&type=section&id=Item%204.%20Removed%20and%20Reserved) This item is removed and reserved [Item 5. Other Information](index=35&type=section&id=Item%205.%20Other%20Information) This section indicates that there is no other information to report - No other information to report[183](index=183&type=chunk) [Item 6. Exhibits](index=36&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q report, including certifications from the Chief Executive Officer and Chief Financial Officer, and XBRL-related documents | Exhibit No. | Description | | :------------ | :----------------------------------------------------------------------------------------------------------------------------------- | | Exhibit 31.1 | Certification of Chief Executive Officer | | Exhibit 31.2 | Certification of Chief Financial Officer | | Exhibit 32.1 | Statement of Chief Executive Officer pursuant to 18 U.S.C. Section 1350 of Title 18 of the United States Code | | Exhibit 32.2 | Statement of Chief Financial Officer pursuant to 18 U.S.C. Section 1350 of Title 18 of the United States Code | | Exhibit 101.INS | XBRL Instance Document | | Exhibit 101.SCH | XBRL Taxonomy Extension Schema Document | | Exhibit 101.PRE | XBRL Taxonomy Presentation Linkbase Document | | Exhibit 101.CAL | XBRL Taxonomy Calculation Linkbase Document | | Exhibit 101.LAB | XBRL Taxonomy Label Linkbase Document | | Exhibit 101.DEF | XBRL Taxonomy Extension Definition Linkbase Document | [Signatures](index=37&type=section&id=Signatures) This section contains the signatures of the authorized officers, Kevin G. Burke (President and Chief Executive Officer) and Jeffrey D. Miller (Executive Vice President and Chief Financial Officer), certifying the report on November 8, 2019 - The report is signed by Kevin G. Burke, President and Chief Executive Officer, and Jeffrey D. Miller, Executive Vice President and Chief Financial Officer, on November 8, 2019[190](index=190&type=chunk)

Financial Data and Key Metrics Changes - Net income for Q3 2019 was $5.2 million or $0.18 per diluted Class A share, compared to $1.2 million or $0.04 per Class A share in Q3 2018 [39] - Overall net premiums written decreased by 0.4% to $183.9 million, while net premiums earned grew by 1.2% to $189.8 million for Q3 2019 [20] - The combined ratio for Q3 2019 was 100.6%, an improvement from 105.2% in the prior year quarter [36] Business Line Data and Key Metrics Changes - Commercial lines net premiums written increased by 13.2%, representing approximately 51% of total writings for the quarter, up from 45% in the prior year [20][21] - Personal lines net written premiums declined by 11.6% to approximately $89.4 million, with about 4% of that decline due to exiting unprofitable markets in 7 states [15][23] - The commercial lines segment generated a solid underwriting profit with a combined ratio of 97.9% for Q3 2019, significantly improved from 104.5% in the prior year [11] Market Data and Key Metrics Changes - Commercial renewal pricing increases averaged 1.8% for the quarter, with an 8.4% average rate increase in commercial auto, offset by a 5.1% average decrease in Workers' compensation rates [22] - Weather-related losses for Q3 2019 were $13.9 million, significantly lower than $21.2 million in Q3 2018 [24] Company Strategy and Development Direction - The company aims to develop a solid foundation for consistent underwriting profitability and book value growth over time, focusing on profitable growth in specific geographical markets [6][8] - A high-priority project is underway to design and implement new personal auto and homeowners products utilizing enhanced data analytics and modern technology tools, expected to launch in early 2021 [18] Management's Comments on Operating Environment and Future Outlook - Management expressed satisfaction with the incremental progress in Q3 results and emphasized the importance of executing key strategies to enhance operational efficiency and financial performance [40] - The company remains cautious about the impact of social inflation on claims and is taking conservative actions regarding reserves [44] Other Important Information - The expense ratio for Q3 2019 was 30.5%, up from 29.6% in Q3 2018, attributed to higher underwriting-based incentive costs [36] - Net investment income increased by 11.6% to $7.4 million, primarily due to an increase in average invested assets [37] Q&A Session Summary Question: How much did reserve releases contribute to this quarter's results versus last year's? - Reserve development contributed an 8-point reduction in the loss ratio for Q3 2019, compared to 9.8% in Q3 2018 [42] Question: Are you seeing any pressure from social inflation in auto casualty or commercial property? - Management noted elevation in average paid claims on both personal and commercial auto sides, reflecting actions taken in previous years [43][44] Question: Any unusual items driving the underwriting loss in homeowners? - Unusual claims not related to weather or fires, such as liability claims and water damage, contributed to the underwriting loss [45] Question: Update on Mountain States and plans for pooling arrangement? - Mountain States is making solid progress, but the company will not include it in the pooling arrangement for now, planning to revisit in 6 to 12 months [46] Question: Can you break out reserve development by line? - Favorable development of about $2.3 million in Workers' comp, with unfavorable development in CMP and commercial auto [49] Question: Are rate increases exceeding the loss trend in commercial auto? - Rate increases are significant, but ultimate losses are projected at levels reflecting high large loss activity [51] Question: How have retention rates been affected by rate increases? - Commercial lines retention is steady around 84%, while personal lines retention has dropped to about 79% due to exiting unprofitable states [57]

PART I FINANCIAL INFORMATION [Item 1. Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) The company presents its unaudited consolidated financial statements for the three and six months ended June 30, 2019 [Consolidated Balance Sheets](index=4&type=section&id=Consolidated%20Balance%20Sheets) Total assets grew to $1.90 billion, driven by investments, with stockholders' equity increasing to $437.9 million Consolidated Balance Sheet Highlights (in thousands) | Account | June 30, 2019 (Unaudited) | December 31, 2018 | | :--- | :--- | :--- | | **Total Assets** | **$1,901,282** | **$1,832,078** | | Total Investments | $1,075,428 | $1,030,798 | | Cash | $35,946 | $52,594 | | **Total Liabilities** | **$1,463,429** | **$1,433,208** | | Unpaid losses and loss expenses | $845,282 | $814,665 | | Unearned premiums | $535,999 | $506,529 | | **Total Stockholders' Equity** | **$437,854** | **$398,870** | [Consolidated Statements of Income (Loss)](index=5&type=section&id=Consolidated%20Statements%20of%20Income%20(Loss)) The company achieved a significant turnaround to a net income of $27.8 million for the six-month period Three Months Ended June 30 (in thousands, except per share data) | Metric | 2019 | 2018 | | :--- | :--- | :--- | | Total Revenues | $198,789 | $195,790 | | Total Expenses | $193,251 | $197,123 | | Income (Loss) Before Tax | $5,538 | $(1,333) | | **Net Income (Loss)** | **$4,788** | **$(790)** | | Diluted EPS (Class A) | $0.17 | $(0.03) | Six Months Ended June 30 (in thousands, except per share data) | Metric | 2019 | 2018 | | :--- | :--- | :--- | | Total Revenues | $413,503 | $385,118 | | Total Expenses | $381,120 | $414,987 | | Income (Loss) Before Tax | $32,383 | $(29,868) | | **Net Income (Loss)** | **$27,812** | **$(18,968)** | | Diluted EPS (Class A) | $0.99 | $(0.68) | [Consolidated Statements of Cash Flows](index=9&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Net cash from operations was $21.2 million for the first half of 2019, with an overall decrease in cash of $16.6 million Cash Flow Summary - Six Months Ended June 30 (in thousands) | Cash Flow Activity | 2019 | 2018 | | :--- | :--- | :--- | | Net Cash from Operating Activities | $21,191 | $36,132 | | Net Cash from Investing Activities | $(6,615) | $(15,152) | | Net Cash from Financing Activities | $(31,225) | $(5,161) | | **Net (Decrease) Increase in Cash** | **$(16,649)** | **$15,819** | [Notes to Consolidated Financial Statements](index=10&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) Key disclosures include the $12.7 million gain from the DFSC sale and favorable loss reserve development - On March 8, 2019, the company sold its 48.2% stake in Donegal Financial Services Corporation (DFSC), resulting in a **pre-tax gain of $12.7 million** in the first quarter of 2019[40](index=40&type=chunk)[42](index=42&type=chunk) - The company's insurance subsidiaries and Donegal Mutual implemented a combined third-party reinsurance program effective January 1, 2019, with key retentions of **$1.0 million for property** and **$2.0 million for casualty losses**[55](index=55&type=chunk) - For the first six months of 2019, the company recognized a **$6.9 million decrease (favorable development)** in its liability for losses and loss expenses from prior years, a sharp contrast to the **$26.2 million increase (adverse development)** in H1 2018[91](index=91&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=24&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management attributes the improved financial results to a lower loss ratio and the gain from the DFSC sale [Critical Accounting Policies and Estimates](index=24&type=section&id=Critical%20Accounting%20Policies%20and%20Estimates) The liability for unpaid losses and loss expenses is identified as the most significant accounting estimate - The liability for unpaid losses and loss expenses is the company's most critical accounting estimate, where a **1% change** in these net reserves would affect pre-tax operating results by approximately **$4.9 million**[107](index=107&type=chunk)[111](index=111&type=chunk) [Results of Operations](index=28&type=section&id=Results%20of%20Operations) Net income reached $27.8 million in H1 2019, with the combined ratio improving significantly to 100.7% GAAP Combined Ratios | Period | 2019 | 2018 | Change (bps) | | :--- | :--- | :--- | :--- | | **Three Months Ended June 30** | **102.0%** | **105.6%** | **-360** | | Loss ratio | 69.7% | 73.1% | -340 | | Expense ratio | 31.3% | 31.8% | -50 | | **Six Months Ended June 30** | **100.7%** | **112.4%** | **-1170** | | Loss ratio | 67.6% | 79.6% | -1200 | | Expense ratio | 32.0% | 32.1% | -10 | - For the first half of 2019, net premiums written increased **1.7% to $397.7 million**, driven by a **13.1% increase in commercial lines** offset by a **9.3% decrease in personal lines**[139](index=139&type=chunk)[141](index=141&type=chunk) - Net income for H1 2019 was **$27.8 million**, or $0.99 per Class A share, a significant improvement from a net loss of **$19.0 million**, or ($0.68) per Class A share, in H1 2018, positively impacted by a **$12.7 million gain** on the sale of DFSC[143](index=143&type=chunk)[149](index=149&type=chunk) [Liquidity and Capital Resources](index=31&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintains strong liquidity through operating cash flows and access to a $30.0 million credit facility - Operating activities provided net cash flow of **$21.2 million** in the first six months of 2019, and the company has access to an undrawn **$30.0 million line of credit**[152](index=152&type=chunk)[153](index=153&type=chunk) - The board declared quarterly cash dividends of **14.5 cents per Class A share** and **12.75 cents per Class B share**, with **$30.9 million** available for further distribution from insurance subsidiaries in 2019 without prior regulatory approval[159](index=159&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=33&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company reports no material changes to its market risk exposure from year-end 2018 - There have been **no material changes** to the company's quantitative or qualitative market risk exposure between December 31, 2018, and June 30, 2019[168](index=168&type=chunk) [Item 4. Controls and Procedures](index=33&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of June 30, 2019 - Management, including the CEO and CFO, concluded that as of June 30, 2019, the company's disclosure controls and procedures were **effective**[169](index=169&type=chunk) - **No changes** in internal control over financial reporting occurred during the quarter that have materially affected, or are reasonably likely to materially affect, these controls[170](index=170&type=chunk) PART II OTHER INFORMATION [Item 1. Legal Proceedings](index=34&type=section&id=Item%201.%20Legal%20Proceedings) The company reports no material legal proceedings during the period - None[174](index=174&type=chunk) [Item 1A. Risk Factors](index=34&type=section&id=Item%201A.%20Risk%20Factors) No material changes to risk factors from the 2018 Annual Report on Form 10-K are reported - There have been **no material changes** in risk factors from those disclosed in the 2018 Annual Report on Form 10-K[175](index=175&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=34&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company reports no unregistered sales of equity securities or related use of proceeds - None[176](index=176&type=chunk) [Item 6. Exhibits](index=35&type=section&id=Item%206.%20Exhibits) This section lists all exhibits filed with the Form 10-Q, including required certifications

Donegal Group, Inc. (NASDAQ:DGICA) Q2 2019 Earnings Conference Call July 30, 2019 11:00 AM ET Company Participants Jeff Miller - Chief Financial Officer Kevin Burke - President and Chief Executive Officer Conference Call Participants Christopher Campbell - KBW Bob Farnam - Boenning and Scattergood Operator Good morning. My name is Cheryl and I will be your conference operator today. At this time, I would like to welcome everyone to the Donegal Group Inc. Q2 2019 Earnings Conference Call. [Operator Instructi ...

Table of Contents 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 March 31, 2019 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | --- | --- | |-----------------------------------------------------------------------------------------------------------------------------------|------------------------ ...