Donegal Group Inc. Announces Third Quarter and First Nine Months of 2025 Results

Financial Performance - Donegal Group Inc. reported a net income of $20.1 million for Q3 2025, a 19.9% increase from $16.8 million in Q3 2024 [1][3] - Total revenues decreased by 2.3% to $245.9 million in Q3 2025 compared to $251.7 million in Q3 2024 [1][3] - Net premiums earned fell by 3.4% to $229.8 million in Q3 2025, while for the first nine months, it decreased by 0.8% to $694.3 million [1][3][7] Investment Income - Investment income increased by 28.8% to $13.9 million in Q3 2025, compared to $10.8 million in Q3 2024 [1][15] - Net investment gains for Q3 2025 were $1.3 million, down from $1.9 million in Q3 2024, primarily due to unrealized gains in equity securities [1][18] Underwriting Performance - The combined ratio improved to 95.9% in Q3 2025 from 96.4% in Q3 2024, indicating better underwriting profitability [1][8] - The core loss ratio for commercial lines increased to 54.0% in Q3 2025 from 48.5% in Q3 2024, attributed to higher casualty loss severity [10] - Personal lines core loss ratio decreased to 46.6% in Q3 2025 from 52.5% in Q3 2024, benefiting from premium rate increases [10] Premiums and Business Segments - Commercial lines net premiums earned increased by 2.9% to $140.3 million in Q3 2025, while personal lines decreased by 11.8% to $89.5 million [7][8] - The company experienced a 5.4% decrease in net premiums written in Q3 2025, driven by a 15.9% decline in personal lines [8][9] Book Value and Equity - Book value per share rose to $17.14 at September 30, 2025, compared to $15.22 at the end of 2024, reflecting net income and unrealized gains [1][19] - The annualized return on average equity was 13.0% for Q3 2025, slightly down from 13.4% in Q3 2024 [1][3] Strategic Initiatives - The company is focused on enhancing its underwriting approach and has completed a major systems transformation project to improve service capabilities [4][5] - Management expressed confidence in the company's strategic execution and disciplined underwriting to sustain financial performance [2][6]