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].
Donegal (DGICB) - 2024 Q3 - Quarterly Results