Core Viewpoint - Donegal Group reported quarterly earnings of $0.11 per share, exceeding the Zacks Consensus Estimate of $0.07 per share, compared to break-even earnings per share a year ago [5] - The company posted revenues of $246.04 million for the quarter, surpassing the Zacks Consensus Estimate by 1.25% and showing an increase from $226.69 million year-over-year [6] Group 1: Earnings Performance - The earnings surprise for Donegal Group was 57.14%, contrasting with a previous quarter's surprise of -35% when actual earnings were $0.13 per share against an expectation of $0.20 [1][3] - The current consensus EPS estimate for the upcoming quarter is $0.06 on revenues of $247.7 million, and for the current fiscal year, it is $0.35 on revenues of $981.4 million [14] Group 2: Market Position and Comparisons - Donegal has underperformed the market with a gain of about 0.3% since the beginning of the year, while the S&P 500 has gained 13.8% [12] - The Zacks Industry Rank for Insurance - Property and Casualty is in the top 28% of over 250 Zacks industries, indicating a favorable outlook for the sector [9] Group 3: Future Outlook - The sustainability of Donegal's stock price movement will depend on management's commentary during the earnings call [2] - The estimate revisions trend for Donegal is currently mixed, leading to a Zacks Rank 3 (Hold), suggesting shares are expected to perform in line with the market in the near future [3]

Financial Performance - Net premiums earned for Q2 2024 were $234.3 million, an increase of 8.3% compared to $216.3 million in Q2 2023[2] - Net income for Q2 2024 reached $4.2 million, representing a 108.0% increase from $2.0 million in Q2 2023[2] - Total revenues for the first half of 2024 were $487.9 million, up 7.5% from $453.9 million in the first half of 2023[2] - Net income for Q2 2024 was $4.2 million, or 13 cents per diluted Class A share, compared to $2.0 million, or 6 cents per diluted Class A share in Q2 2023[36] - Total revenues for Q2 2024 reached $246,773,000, up from $229,196,000 in Q2 2023, marking a growth of 7.7%[59] Premiums and Underwriting - The company reported a 9.1% growth in net premiums written for Q2 2024, driven by a 7.1% increase in commercial lines and a 12.1% increase in personal lines[4] - Net premiums written for Q2 2024 were $247,189,000, a 9.1% increase from $226,512,000 in Q2 2023[60] - The company attributed a $9.4 million increase in commercial lines premiums to new business writings and strong premium retention[41] Investment Performance - Total investments reached $1,343.8 million as of June 30, 2024, with an average investment yield of 3.3%[47] - The company experienced a net investment gain of $0.7 million in Q2 2024, compared to $2.5 million in Q2 2023[47] - Investment income, net of expenses, for Q2 2024 was $11,068,000, compared to $10,157,000 in Q2 2023, reflecting a positive trend[59] - The company reported a significant decrease in investment gains (after tax) for Q2 2024, totaling $(582,000) compared to $(1,978,000) in Q2 2023, a decline of 70.6%[51] Operational Efficiency - Non-GAAP operating income for Q2 2024 was $3.6 million, a significant increase from $19, indicating a notable improvement in operational efficiency[2] - Non-GAAP operating income for Q2 2024 was $3,571,000, significantly up from $19,000 in Q2 2023, indicating a substantial improvement[51] - The combined ratio improved to 103.0% in Q2 2024 from 104.7% in Q2 2023, reflecting a decrease in the expense ratio to 31.9% from 34.2%[42][45] Loss Ratios - Weather-related losses amounted to $24.7 million in Q2 2024, contributing 10.6 percentage points to the loss ratio, compared to $19.7 million and 9.1 percentage points in Q2 2023[7] - The core loss ratio for commercial lines was 54.8% in Q2 2024, slightly up from 54.0% in Q2 2023, while the personal lines core loss ratio decreased to 55.3% from 56.5%[43] Shareholder Returns - The company declared a quarterly cash dividend of $0.1725 per share for Class A common stock and $0.155 per share for Class B common stock, payable on August 15, 2024[25] - The book value per share was $14.48 as of June 30, 2024, compared to $14.39 at the end of 2023, reflecting a slight increase[21] - Book value per common share at the end of Q2 2024 was $14.48, slightly down from $14.68 at the end of Q2 2023[60] Future Outlook - The company is focusing on enhancing small commercial underwriting capabilities to drive growth in the commercial lines segment[4] - Future outlook includes continued focus on market expansion and potential new product development strategies[51] - The expense ratio is expected to peak at approximately 1.3 percentage points due to ongoing systems modernization costs in 2024[45]

Financial Performance - The company reported net income of $4.2 million, or $0.13 per diluted Class A share, compared to $2.0 million, or $0.06 per diluted Class A share in the same quarter of the previous year, reflecting a 108% increase [15][63] - Net premiums earned increased by 8.3% to $234.3 million for the second quarter of 2024, while net premiums written rose by 9.1% to $247.2 million [15][48] - The combined ratio improved to 103.0% from 104.7% year-over-year, indicating better underwriting performance [15][21] Investment Operations - Net investment gains for the second quarter of 2024 were $0.7 million, primarily from unrealized gains in equity securities, compared to $2.5 million in the same quarter of 2023 [4][33] - Net investment income increased by 9.0% to $11.1 million, attributed to a rise in average investment yield [33][54] Underwriting Performance - The loss ratio for the second quarter of 2024 increased to 70.6% from 69.9% in the prior year, with a core loss ratio of 55.0% for commercial lines [21][29] - Weather-related losses amounted to $24.7 million, contributing 10.6 percentage points to the loss ratio, compared to $19.7 million and 9.1 percentage points in the previous year [50] Dividend Information - The company declared a regular quarterly cash dividend of $0.1725 per share for Class A common stock and $0.155 per share for Class B common stock, payable on August 15, 2024 [8] Strategic Initiatives - The company is focusing on enhancing small commercial underwriting capabilities and managing geographic risk concentrations to mitigate weather-related loss impacts [46][25]

Core Points - Donegal Group Inc. declared a quarterly cash dividend of $0.1725 per share for Class A common stock and $0.155 per share for Class B common stock, payable on August 15, 2024 [1] - The company focuses on achieving sustained excellent financial performance, modernizing operations, growing profitably, and enhancing customer experience [2] - Donegal Group Inc. operates as an insurance holding company, providing property and casualty insurance in 23 states, with an A.M. Best rating of A (Excellent) [3]

Core Viewpoint - Donegal Group Inc. is an insurance holding company with a focus on commercial and personal property and casualty insurance across multiple states, maintaining a strong financial performance and operational modernization strategy [1][3]. Group 1: Company Overview - Donegal Group Inc. operates through its subsidiaries, offering insurance services in 23 states across the Mid-Atlantic, Midwest, New England, South, and Southwest regions [1]. - The company is rated A (Excellent) by A.M. Best, indicating strong financial health and operational stability [1]. Group 2: Upcoming Events - The company plans to release its second-quarter results for the period ending June 30, 2024, on July 25, 2024, before the market opens [4]. - A pre-recorded audio webcast featuring management commentary will be available on the company's website, followed by a question and answer session [2][4]. Group 3: Stock Information - Donegal Group Inc.'s Class A and Class B common stocks are traded on the NASDAQ under the symbols DGICA and DGICB, respectively [3]. - The company is focused on achieving sustained excellent financial performance, modernizing operations, and enhancing customer and agent experiences [3].

Financial Performance - Net premiums written for the three months ended March 31, 2024, were $251,442,000, compared to $237,304,000 for the same period in 2023, reflecting an increase of approximately 5.0%[106] - Net premiums earned for Q1 2024 were $227.7 million, a 5.8% increase from $215.2 million in Q1 2023[113] - Net premiums written for Q1 2024 were $251.4 million, up 6.0% from $237.3 million in Q1 2023, with personal lines increasing by 18.5%[114] - Net investment income rose to $11.0 million in Q1 2024, a 16.1% increase from $9.4 million in Q1 2023[115] - Net income for Q1 2024 was $6.0 million, or $0.18 per share, compared to $5.2 million, or $0.16 per share, in Q1 2023[122] Loss Ratios and Underwriting Profitability - The GAAP combined ratio for the three months ended March 31, 2024, was 102.4%, up from 101.2% in 2023, indicating a decline in underwriting profitability[111] - The statutory combined ratio for commercial lines was 101.6% for the three months ended March 31, 2024, compared to 99.8% in 2023, showing a deterioration in performance[111] - The loss ratio for core losses increased to 58.7% in Q1 2024 from 56.5% in Q1 2023, indicating rising claims costs[111] - The loss ratio increased to 66.3% in Q1 2024 from 64.2% in Q1 2023, attributed to higher core losses and large fire losses[117] - The combined ratio for Q1 2024 was 102.4%, up from 101.2% in Q1 2023, primarily due to the increase in the loss ratio[120] Expense Management - The statutory expense ratio for the three months ended March 31, 2024, was 35.7%, slightly improved from 36.4% in 2023, indicating better expense management[111] - The expense ratio decreased to 35.7% in Q1 2024 from 36.4% in Q1 2023, reflecting early impacts of expense reduction initiatives[118] Liabilities and Reserves - Total liabilities for losses and loss expenses as of March 31, 2024, amounted to $1,124,452,000, a slight decrease from $1,126,157,000 on December 31, 2023[99] - The total commercial lines liabilities as of March 31, 2024, were $543,323,000, an increase from $535,681,000 at the end of 2023[99] - For every 1% change in loss and loss expense reserves, the effect on pre-tax results of operations would be approximately $6.9 million[94] Claims and Litigation Trends - The average claim outstanding has gradually increased over the past several years due to inflation and increased litigation trends, contributing to greater uncertainty in future loss settlements[96] - 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[96] Liquidity and Dividends - Liquidity remains strong with net cash flows from operations of $4.8 million in Q1 2024, compared to a negative cash flow of $680,734 in Q1 2023[124] - The company declared quarterly cash dividends of $0.1725 per share for Class A and $0.155 per share for Class B, payable on May 22, 2024[130] - At March 31, 2024, the company had no outstanding borrowings under its line of credit and the ability to borrow up to $20.0 million[125]

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 ...

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, 2023 OR DONEGAL GROUP INC. ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _________________ to _________________ (Exact name of registrant as specified in its charter) Delaware 23-2424711 Commission file number 0-15341 (State or ...

Financial Summary EXHIBIT 99.1 Donegal Group Inc. Announces Fourth Quarter and Full Year 2023 Results MARIETTA, Pa., Feb. 22, 2024 (GLOBE NEWSWIRE) -- Donegal Group Inc. (NASDAQ:DGICA) and (NASDAQ:DGICB) today reported its financial results for the fourth quarter and full year ended December 31, 2023. Significant items for fourth quarter of 2023 (all comparisons to fourth quarter of 2022): Significant items for full year of 2023 (all comparisons to full year of 2022): | | | Three Months Ended December | | | ...

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 September 30, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to . Commission file number 0-15341 Donegal Group Inc. (Exact name of registrant as specified in its charter) Delaware 23-2424711 (State or other jurisdic ...