Donegal Group Inc. Announces Fourth Quarter and Full Year 2025 Results

Financial Performance Summary - Donegal Group Inc. reported a net income of $17.2 million for Q4 2025, a decrease of 28.4% compared to $24.0 million in Q4 2024, with diluted Class A earnings per share falling to $0.47 from $0.70 [2][3][43] - For the full year 2025, net income increased to $79.3 million, up 56.0% from $50.9 million in 2024, with diluted Class A earnings per share rising to $2.18 from $1.53 [2][3][45] - Total revenues for Q4 2025 were $240.1 million, down 3.9% from $250.0 million in Q4 2024, while full-year revenues decreased by 1.2% to $978.0 million from $989.6 million [2][3][45] Premiums and Underwriting - Net premiums earned decreased by 4.1% to $226.9 million in Q4 2025, and by 1.7% to $921.2 million for the full year [2][3][45] - The combined ratio for Q4 2025 was 96.3%, up from 92.9% in Q4 2024, while the full-year combined ratio improved to 95.4% from 98.6% [3][12] - The loss ratio for Q4 2025 increased to 61.1% from 59.8% in Q4 2024, while the full-year loss ratio decreased to 61.3% from 64.5% [15][19] Investment Performance - Investment income for Q4 2025 was $14.2 million, a 17.5% increase from $12.1 million in Q4 2024, and for the full year, it rose to $52.6 million from $44.9 million [2][26] - Net investment losses for Q4 2025 were $1.7 million, compared to minimal gains in Q4 2024, attributed to realized losses on strategic sales of fixed-maturity securities [27][28] Strategic Focus and Outlook - The company aims for modest premium growth in 2026 through independent agency partners in identified attractive geographies and business classes [5] - Management emphasized the importance of strategic decisions made over the past years that contributed to solid operating performance [5][6] Book Value and Shareholder Returns - Book value per share increased to $17.33 at the end of 2025, up from $15.36 at the end of 2024, driven by net income and unrealized gains in the investment portfolio [29][45] - The company declared quarterly cash dividends of $0.1825 per share for Class A and $0.165 per share for Class B, paid on February 17, 2026 [35]