Financial Performance - Net income for Q3 2025 was $20.1 million, or $0.55 per share, compared to $16.8 million, or $0.51 per share, in Q3 2024[131] - Net income for the first nine months of 2025 was $62.2 million, or $1.72 per share, compared to $26.9 million, or $0.81 per share, in 2024[140] - Net cash flows from operating activities were $60.2 million for the first nine months of 2025, up from $39.2 million in 2024[143] Premiums and Underwriting - Net premiums written for the three months ended September 30, 2025, totaled $219,615,000, compared to $232,208,000 for the same period in 2024, indicating a decrease of about 5.4%[116] - Net premiums earned for Q3 2025 were $229.8 million, a decrease of $8.2 million, or 3.4%, compared to Q3 2024[123] - Net premiums written for Q3 2025 were $219.6 million, a decrease of $12.6 million, or 5.4%, from Q3 2024[124] - Net premiums earned for the first nine months of 2025 were $694.3 million, a decrease of $5.7 million, or 0.8%, compared to the same period in 2024[132] - Net premiums written for the first nine months of 2025 were $700.5 million, a decrease of $30.3 million, or 4.1%, from the same period in 2024[133] Loss Ratios and Reserves - The loss ratio for Q3 2025 was 62.1%, an increase from 61.5% in Q3 2024[127] - The loss ratio for the insurance subsidiaries was 61.3% for the first nine months of 2025, down from 66.1% in the same period of 2024[136] - The core loss ratio, excluding weather-related losses, was 51.8% for the first nine months of 2025, compared to 54.5% for the same period in 2024[136] - Weather-related losses were $48.7 million, contributing 7.0 percentage points to the loss ratio for the first nine months of 2025, down from $60.0 million and 8.6 percentage points in 2024[136] - Large fire losses for the first nine months of 2025 were $29.8 million, or 4.3 percentage points of the loss ratio, compared to $36.2 million and 5.2 percentage points in 2024[136] Expense Ratios - The expense ratio for Q3 2025 was 33.5%, down from 34.5% in Q3 2024[128] - The expense ratio decreased to 33.4% for the first nine months of 2025 from 34.0% in 2024, reflecting expense management initiatives[137] Combined Ratios - The combined ratio for Q3 2025 was 95.9%, compared to 96.4% in Q3 2024[129] - The combined ratio improved to 95.1% for the first nine months of 2025, down from 100.6% in 2024, primarily due to a decrease in the loss ratio[138] Investment Income - Net investment income for Q3 2025 was $13.9 million, an increase of $3.1 million, or 28.8%, compared to Q3 2024[125] - Net investment income for the first nine months of 2025 was $38.5 million, an increase of $5.6 million, or 17.0%, compared to the same period in 2024[134] Liabilities - Total liabilities for losses and loss expenses as of September 30, 2025, amounted to $1,114,302,000, a slight decrease from $1,120,985,000 on December 31, 2024[111] - The total commercial lines liabilities increased to $578,479,000 as of September 30, 2025, compared to $558,175,000 at the end of 2024, reflecting a growth of approximately 3.8%[111] - The liabilities for personal lines decreased to $136,567,000 as of September 30, 2025, from $146,189,000 at the end of 2024, reflecting a decline of approximately 6.6%[111] Reserves and Claims - The company has established a base reserve of $715,046,000 for losses and loss expenses as of September 30, 2025[112] - The average claim outstanding has gradually increased due to rising property and automobile repair costs, with significant impacts from inflation and litigation trends[109] - The company’s insurance subsidiaries have noted stable claims incurred relative to their premium base, excluding severe weather events and the COVID-19 pandemic[109] Other Financial Metrics - For every 1% change in loss and loss expense reserves, the pre-tax results of operations would be affected by approximately $7.2 million[107] - The change in net unearned premiums for the nine months ended September 30, 2025, was an increase of $6,222,000, indicating a positive trend in premium collection[116] - The insurance subsidiaries paid $10.0 million in dividends to the company during the first nine months of 2025[147] - The company had no outstanding borrowings under its line of credit as of September 30, 2025, with the ability to borrow up to $20.0 million[144]

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 | | | | | | | (dollars in thousands, except per share amounts) | | | | | | Income Statement Data | | | | | | | | | | | Net premiums earned | $ 231,775 | $ | 234,311 | -1.1% | $ | 464,476 | $ | 462,060 | 0.5% ...

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 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, compared to $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 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] - The company has experienced a general slowing of settlement rates in litigated claims, indicating potential future adjustments to estimates[95] - The establishment of appropriate liabilities is inherently uncertain, and the company cannot assure that ultimate liabilities will not exceed reserves[94] - 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 pooling agreement with Donegal Mutual represents a substantial portion of Atlantic States' insurance subsidiaries' gross liabilities for losses and loss expenses[123] Ratios and Profitability - The statutory combined ratio for the three months ended March 31, 2025, is a key indicator of underwriting profitability, with a ratio of less than 100% indicating profitability[106] - 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 the decrease in the loss ratio[117] 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' insurance subsidiaries did not pay any dividends to the company during the first three months of 2025[125] - No shares of Class A common stock were purchased under the share repurchase program during the three months ended March 31, 2025, with a total of 57,658 shares repurchased since the program's inception[124] Risk Management - The company manages equity price risk by conducting analyses of prospective investments and regular portfolio reviews[127] - Credit risk is managed by limiting the percentage and amount of total investments in any one issuer and performing regular reviews of fixed-maturity securities[128] - There have been no material changes to the company's quantitative or qualitative market risk exposure from December 31, 2024, through March 31, 2025[133] Borrowings and Commitments - 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] - There were no material commitments for capital expenditures as of March 31, 2025[126]

EXHIBIT 99.1 Donegal Group Inc. Announces First Quarter 2025 Results 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): Financial Summary | | Three Months Ended March 31, | | | | | | --- | --- | --- | --- | --- | --- | | | 2025 | | | 2024 | % Change | | | (dollars in thousands, except per share amount ...

Core Viewpoint - Donegal Group Inc. is set to release its first-quarter results for the period ending March 31, 2025, on April 24, 2025, before the market opens, along with a supplemental investor presentation [1][2]. Company Overview - Donegal Group Inc. operates as an insurance holding company, providing property and casualty insurance across 21 states in the Mid-Atlantic, Midwestern, Southern, and Southwestern regions of the United States [3]. - The Donegal Insurance Group, which includes Donegal Mutual Insurance Company and its subsidiaries, holds an A.M. Best rating of A (Excellent) [3]. Stock Information - The Class A and Class B common stocks of Donegal Group Inc. are traded on the NASDAQ Global Select Market under the symbols DGICA and DGICB, respectively [4]. Strategic Focus - The company aims to achieve sustained excellent financial performance, modernize its operations, capitalize on profitable growth opportunities, and enhance experiences for agents, customers, and employees [4]. Investor Relations - Investor inquiries can be directed to Karin Daly, Vice President at The Equity Group Inc., via phone or email [5].

Ownership and Structure - Donegal Mutual held approximately 44% of the outstanding Class A common stock and 84% of the outstanding Class B common stock as of December 31, 2024, providing it with about 70% of the combined voting power[230]. - The pooling agreement between Donegal Mutual and Atlantic States allocates 80% of the pooled business to Atlantic States, allowing both companies to share underwriting results proportionately[231]. - In 2024, Donegal Mutual purchased 1,057,282 shares of Class A common stock, while no shares of Class B common stock were purchased during 2024 or 2023[234]. - Donegal Mutual has 100% quota-share reinsurance agreements with Southern Mutual Insurance Company and Mountain States insurance subsidiaries, placing assumed business into the underwriting pool[339]. - The underwriting pool homogenizes risk characteristics, with a significant percentage of total consolidated revenues derived from Atlantic States' business[340]. Financial Performance - Net premiums written increased from $895,697,000 in 2023 to $942,281,000 in 2024, representing a growth of approximately 5.2%[256]. - The combined ratio improved from 104.4% in 2023 to 98.6% in 2024, indicating enhanced underwriting profitability[256]. - The loss ratio decreased from 69.1% in 2023 to 64.5% in 2024, reflecting better loss management[256]. - Net income for 2024 was $50.9 million, or $1.53 per share for Class A common stock, compared to $4.4 million, or $0.14 per share in 2023[276]. - Total revenues for 2024 amounted to $989,605,050, up from $927,337,984 in 2023, indicating a growth of approximately 6.7%[326]. - Net income for 2024 reached $50,862,252, a significant increase from $4,425,504 in 2023 and a recovery from a net loss of $1,959,405 in 2022[332]. Claims and Loss Management - The insurance subsidiaries recognized a decrease in their liability for losses and loss expenses of $15.0 million in 2024, representing 2.2% of the December 31, 2023 net carried reserves[243]. - The average claim outstanding has gradually increased due to rising property and automobile repair costs, medical loss costs, and increased litigation trends[244]. - The establishment of liabilities for losses and loss expenses is inherently uncertain, and the ultimate liability may exceed the recorded reserves[242]. - The 2024 development in loss expenses was primarily due to lower-than-expected loss emergence in commercial multi-peril, personal automobile, and homeowner lines of business[243]. - The total liability for losses and loss expenses decreased slightly from $1,126,157,000 in 2023 to $1,120,985,000 in 2024, reflecting a reduction of approximately 0.5%[247]. - The company reported a liability for losses and loss expenses of $297,955,741 in 2024, slightly down from $299,947,390 in 2023[381]. Investment Performance - Net investment income rose from $40,853,000 in 2023 to $44,918,000 in 2024, an increase of approximately 10.1%[256]. - The company reported net realized gains of $20.2 million in 2024, a recovery from a loss of $311.4 million in 2023[401]. - The company recorded gross realized gains of $403.5 million in 2024, compared to $3.7 billion in 2023, indicating a significant decrease in investment performance[401]. - The total investments in special revenue bonds represented 44% in education bonds and 37% in water and sewer utility bonds based on carrying values as of December 31, 2024[394]. Assets and Equity - Total assets increased to $2,336,031,983 in 2024, up from $2,266,293,888 in 2023, representing a growth of approximately 3.1%[323]. - Stockholders' equity increased by $66.0 million in 2024, raising book value per share to $15.36 from $14.39 a year earlier[277]. - The company’s total investments reached $1,384,972,332 in 2024, up from $1,327,053,645 in 2023, reflecting a growth of about 4.3%[323]. - Cash and cash equivalents increased to $52,925,931 in 2024, significantly higher than $23,792,273 in 2023, representing a growth of about 122.3%[323]. Tax and Expenses - The effective tax rate for 2024 was 18.4%, up from 12.6% in 2023, with income tax expense increasing to $11.5 million[275]. - The expense ratio decreased to 33.7% in 2024 from 34.7% in 2023, due to various expense reduction initiatives[271]. - The company incurred $619,089,646 related to current year losses in 2024, while total incurred losses for the year were $604,117,716[415]. Actuarial and Claims Development - The actuaries for the insurance subsidiaries prepare initial estimates for ultimate losses by multiplying earned premium by an expected loss ratio, which is based on historical experience and various trends[419]. - The company continues to monitor and adjust its actuarial methods to ensure accurate predictions of future liabilities and claims expenses[420]. - The cumulative number of reported claims for 2024 is 29,466, indicating a significant volume of claims being processed[427]. - The total IBNR reserves plus expected development on reported claims for 2024 is $153,403 thousand, reflecting the company's ongoing liability management[427].

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%, down from 69.1% in 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] Premiums and Business Growth - The total net premiums written decreased by 0.6% in Q4 2024, driven by a 5.0% decrease in personal lines, while commercial lines grew by 2.8%[1][10] - Net premiums written for the full year 2024 were $942.3 million, a 5.2% increase from $895.7 million in 2023[31] - The company is actively pursuing new business opportunities, focusing on high-quality commercial middle market and small business accounts[1][6] Investment Performance - Net investment gains for Q4 2024 were $0.2 million, down from $1.8 million in Q4 2023, reflecting a significant decline[1][2] - Net investment income for Q4 2024 was $12.1 million, a 12.5% increase from $10.7 million in Q4 2023, while full year net investment income rose to $44.9 million, a 10.0% increase[25] - Net investment gains for 2024 were $4,981,000, up from $3,173,000 in 2023, representing a growth of 57%[42] Operational Efficiency - The company remains committed to refining the efficiency of its insurance operations through technology and data analytics investments[1][6] - The company aims to modernize operations and processes to enhance profitability and improve agent and policyholder experiences[36] Losses and Expenses - 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, compared to $72.9 million, or 8.3 percentage points in 2023[19] - The expense ratio for Q4 2024 was 32.8%, down from 34.1% in Q4 2023, and for the full year 2024, it was 33.7%, down from 34.7% in 2023[22] Shareholder Returns - Book value per share increased by 6.7% to $15.36 at December 31, 2024, compared to $14.39 at year-end 2023[1][2] - The company declared quarterly cash dividends of $0.1725 per share for Class A and $0.155 per share for Class B 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]

Financial Performance - Net premiums written for the three months ended September 30, 2024, were $232,208 thousand, compared to $219,186 thousand for the same period in 2023, indicating an increase of approximately 5.8%[101] - Net premiums earned for Q3 2024 were $238.0 million, a 6.0% increase from $224.4 million in Q3 2023[106] - Net premiums written for Q3 2024 were $232.2 million, up 5.9% from $219.2 million in Q3 2023, with commercial lines increasing by 6.4% and personal lines by 5.4%[107] - For the first nine months of 2024, net premiums earned were $700.0 million, a 6.7% increase from $655.9 million in the same period of 2023[116] - Net income for Q3 2024 was $16.8 million, or $0.51 per share, compared to a net loss of $805,301, or $0.02 per share, in Q3 2023[115] - Net income for the first nine months of 2024 was $26.9 million, or $0.81 per share for Class A common stock, compared to $6.4 million, or $0.20 per share in 2023[125] Loss and Expense Ratios - The loss ratio for Q3 2024 was 61.5%, down from 69.8% in Q3 2023, primarily due to decreased core losses[110] - The core loss ratio for Q3 2024 was 50.1%, compared to 56.7% in Q3 2023, reflecting improved performance in both commercial and personal lines[110] - The combined ratio for Q3 2024 was 96.4%, significantly improved from 104.5% in Q3 2023, driven by a reduction in the loss ratio[113] - The combined ratio for the first nine months of 2024 was 100.6%, a decrease from 103.5% in 2023, primarily due to lower loss and expense ratios[123] Liabilities and Reserves - Total liabilities for losses and loss expenses as of September 30, 2024, amounted to $1,134,852 thousand, an increase from $1,126,157 thousand on December 31, 2023[94] - The total commercial lines liabilities were $545,015 thousand as of September 30, 2024, compared to $535,681 thousand at the end of 2023, reflecting a growth of approximately 1.25%[94] - Personal lines liabilities increased to $160,927 thousand as of September 30, 2024, up from $153,462 thousand at December 31, 2023, representing a growth of about 4.5%[94] - The establishment of liabilities for losses and loss expenses is inherently uncertain, with potential adjustments based on changes in external and internal assumptions[90] - For every 1% change in loss and loss expense reserves, the effect on pre-tax results of operations would be approximately $7.1 million[89] Claims and Settlements - The average claim amount has gradually increased due to rising inflation and increased litigation trends, impacting future loss settlements[91] - The company has noted stable amounts in the number of claims incurred relative to their premium base, excluding severe weather events and the COVID-19 pandemic[91] - The company’s insurance subsidiaries have experienced an increase in claims severity and lengthening of claim settlement periods, particularly for bodily injury claims[89] Investment Income - Net investment income for Q3 2024 was $10.8 million, a 2.8% increase from $10.5 million in Q3 2023[108] - Net investment gains for Q3 2024 were $1.9 million, compared to net investment losses of $1.2 million in Q3 2023[109] Operating Activities and Cash Flow - Operating activities generated net cash flows of $39.2 million in the first nine months of 2024, compared to $26.0 million in 2023[128] - The insurance subsidiaries paid $10.0 million in dividends to the company during the first nine months of 2024, with an additional $29.6 million available for distribution without prior approval[134] - At September 30, 2024, the company had no outstanding borrowings under its line of credit and could borrow up to $20.0 million[129] - The company maintained significant liquidity in its investment portfolio, structured to provide even cash flows from investment income and principal maturities[128] Tax and Expenses - Income tax expense for the first nine months of 2024 was $5.8 million, with an effective tax rate of 17.8%, up from $1.1 million and 15.2% in 2023[124] - The expense ratio for Q3 2024 was 34.5%, slightly up from 34.1% in Q3 2023, attributed to higher technology costs[112] Corporate Governance - There were no material changes in the company's internal control over financial reporting during the quarter[142] - The company has authorized a share repurchase program but did not purchase any shares during the nine months ended September 30, 2024[132]

Financial Performance - Net income for Q3 2024 was $16.8 million, or $0.51 per diluted Class A share, compared to a net loss of $0.8 million, or $0.02 per Class A share in Q3 2023[1]. - Non-GAAP operating income for Q3 2024 was $15.3 million, significantly up from $0.2 million in Q3 2023, indicating a 7,485% increase[2]. - Total revenues for the quarter ended September 30, 2024, increased to $251,738 thousand, up from $233,928 thousand in the same quarter of 2023, representing an increase of approximately 7.6%[25]. - Net income for the quarter was $16,752 thousand, compared to a net loss of $805 thousand in the same quarter of 2023, indicating a significant turnaround[26]. - Class A basic earnings per share for the nine months ended September 30, 2024, was $0.82, compared to $0.20 in the same period of 2023, showing a substantial increase[28]. Premiums and Underwriting - Net premiums earned increased by 6.0% to $238.0 million in Q3 2024, while net premiums written rose by 5.9% to $232.2 million[2]. - Commercial lines net premiums written grew by 6.4% in Q3 2024, driven by new business writings and strong premium retention[7]. - Personal lines net premiums written increased by 5.4% in Q3 2024, primarily due to renewal premium rate increases and strong policy retention[7]. - Net premiums written for the three months ended September 30, 2024, were $232.2 million, reflecting a decrease in net unearned premiums[18]. - Net premiums earned for the nine months ended September 30, 2024, were $700,017 thousand, an increase of 6.7% from $655,886 thousand in the same period of 2023[27]. - The company reported net premiums written of $730,839 thousand for the nine months ended September 30, 2024, up from $683,003 thousand in the same period of 2023, marking an increase of 7.0%[28]. Loss Ratios and Expenses - The combined ratio improved to 96.4% in Q3 2024 from 104.5% in Q3 2023, reflecting better underwriting performance despite higher weather-related losses[5]. - The loss ratio for Q3 2024 decreased to 61.5% from 69.8% in Q3 2023, with core loss ratios improving across major lines of business[9]. - Weather-related losses for Q3 2024 were $24.4 million, representing 10.3 percentage points of the loss ratio, compared to $25.7 million and 11.5 percentage points in Q3 2023[10]. - Large fire losses in Q3 2024 amounted to $8.8 million, or 3.7 percentage points of the loss ratio, down from $11.0 million and 4.9 percentage points in Q3 2023[10]. - The expense ratio for Q3 2024 was 34.5%, slightly up from 34.1% in Q3 2023, primarily due to increased underwriting-based incentive costs and technology expenses[12]. Investment Performance - Investment income, net, rose by 2.8% to $10.8 million in Q3 2024, while net investment gains turned positive at $1.9 million compared to losses in the prior year[2]. - Net investment income for Q3 2024 was $10.8 million, a modest increase from $10.5 million in Q3 2023, driven by a rise in average investment yield[14]. - Investment income, net of expenses, rose to $32,868 thousand for the nine months ended September 30, 2024, compared to $30,143 thousand in 2023, reflecting a growth of 9.0%[27]. Book Value and Equity - Book value per share increased to $15.22 at September 30, 2024, compared to $14.26 a year earlier, representing a 6.7% growth[2]. - The book value per common share at the end of the period was $15.22, compared to $14.26 at the end of September 30, 2023, showing an increase of 6.8%[28]. - The annualized return on average equity improved to 13.4% in Q3 2024, up from -0.7% in Q3 2023, reflecting enhanced financial performance[2]. Assets and Liabilities - Total assets as of September 30, 2024, were $2,346,126 thousand, up from $2,266,294 thousand at the end of December 31, 2023, representing a growth of approximately 3.5%[29]. - Total liabilities increased to $1,832,756 thousand as of September 30, 2024, compared to $1,786,549 thousand at the end of December 31, 2023, reflecting a rise of about 2.6%[29]. Dividends - A quarterly cash dividend of $0.1725 per share for Class A common stock and $0.155 per share for Class B common stock was declared, payable on November 15, 2024[21]. Investment Portfolio - The investment portfolio was composed of 96.2% in diversified, highly rated fixed-maturity securities as of September 30, 2024[13].

Financial Performance - The net premiums written for the three months ended June 30, 2024, were $247,189 thousand, compared to $226,512 thousand for the same period in 2023, representing an increase of about 9.1%[100] - Net premiums earned for Q2 2024 were $234.3 million, an increase of $18.0 million, or 8.3%, compared to Q2 2023[106] - Net premiums written for Q2 2024 were $247.2 million, an increase of $20.7 million, or 9.1%, from Q2 2023[107] - Net premiums earned for the first half of 2024 were $462.1 million, an increase of $30.6 million, or 7.1%, compared to the first half of 2023[114] - Net income for Q2 2024 was $4.2 million, or $0.13 per share, compared to $2.0 million, or $0.06 per share, in Q2 2023[113] - Net income for H1 2024 was $10.1 million, or $0.31 per share for Class A common stock, compared to $7.2 million, or $0.22 per share for Class A in H1 2023[121] Loss Ratios and Claims - The loss ratio for Q2 2024 was 70.6%, up from 69.9% in Q2 2023, primarily due to increased weather-related losses[109] - The core loss ratio for Q2 2024 was 55.0%, unchanged from Q2 2023[109] - The loss ratio for the first half of 2024 was 68.4%, up from 67.1% in the first half of 2023[118] - The company’s insurance subsidiaries have experienced an increase in claims severity and lengthening of claim settlement periods, particularly for bodily injury claims, over the past several years[88] - The average claim outstanding has gradually increased over the past several years due to rising inflation and increased litigation trends, contributing to greater uncertainty in future loss settlements[90] Ratios and Profitability - The statutory combined ratio, a measure of underwriting profitability, is calculated based on net incurred losses and loss expenses to net premiums earned, with a ratio of less than 100% indicating profitability[101] - The expense ratio for Q2 2024 decreased to 31.9% from 34.2% in Q2 2023, reflecting expense reduction initiatives[110] - The combined ratio for Q2 2024 was 103.0%, down from 104.7% in Q2 2023, attributed to the decrease in the expense ratio[112] - The expense ratio for the insurance subsidiaries decreased to 33.8% in H1 2024 from 35.3% in H1 2023, primarily due to expense reduction initiatives[119] - The combined ratio improved to 102.7% in H1 2024 from 103.0% in H1 2023, attributed to the decrease in the expense ratio[120] Liabilities and Reserves - Total liabilities for losses and loss expenses as of June 30, 2024, amounted to $1,147,419 thousand, an increase from $1,126,157 thousand as of December 31, 2023, reflecting a growth of approximately 1.9%[93] - The total commercial lines liabilities as of June 30, 2024, were $554,505 thousand, up from $535,681 thousand at the end of 2023, indicating an increase of approximately 3.5%[93] - The total personal lines liabilities increased to $155,513 thousand as of June 30, 2024, from $153,462 thousand at the end of 2023, reflecting a growth of about 1.3%[93] - For every 1% change in loss and loss expense reserves, the effect on pre-tax results of operations would be approximately $7.1 million[88] Cash Flow and Liquidity - Operating activities generated net cash flows of $26.5 million in H1 2024, up from $13.1 million in H1 2023[124] - The company had no outstanding borrowings under its line of credit and could borrow up to $20.0 million at a rate of Term SOFR plus 2.11% as of June 30, 2024[125] - Dividends paid from insurance subsidiaries to the company totaled $5.0 million in H1 2024, with an additional $34.6 million available for distribution without prior approval[128] - The company maintains significant liquidity with a portfolio of readily marketable fixed maturities, equity securities, and short-term investments[124] Tax and Market Risk - The effective tax rate increased to 17.6% in H1 2024 from 15.8% in H1 2023, with income tax expense recorded at $2.2 million for H1 2024[120] - There have been no material changes to market risk exposure from December 31, 2023, to June 30, 2024[133] - The company has not experienced unusual variations in the timing of claim payments associated with loss reserves[124] Premiums and Unearned Premiums - The change in net unearned premiums for the six months ended June 30, 2024, was $36,571 thousand, compared to $32,323 thousand for the same period in 2023, indicating an increase of approximately 13.9%[100] - The company has noted stable amounts in the number of claims incurred relative to their premium base across most lines of business, excluding severe weather events and the COVID-19 pandemic[90]