Donegal Group Inc. Announces 2020 Fourth Quarter and Full Year Results
Donegal Group reported its financial results for Q4 and full year 2020, showing net income of $14.6 million for Q4, an increase from $14.2 million in Q4 2019. For the full year, net income rose to $52.8 million from $47.2 million. The combined ratio was 96.2% for Q4 and 96.0% for the year, reflecting strong performance. However, there was a 2.1% decline in net premiums earned for Q4 and 1.9% for the year. The book value per share increased 9.3% to $17.13 as of December 31, 2020.
- Net income for Q4 2020 increased by 2.9% to $14.6 million.
- Full year net income increased by 12.0% to $52.8 million.
- Commercial net premiums written grew by 5.2% in Q4.
- Combined ratio remained strong at 96.2% in Q4 and 96.0% for the year.
- Book value per share rose by 9.3% to $17.13.
- Net premiums earned decreased by 2.1% in Q4 and 1.9% for the full year.
- Net investment gains for 2020 decreased significantly from $19.0 million to $2.2 million.
- Annualized return on average equity decreased from 12.7% in Q4 2019 to 11.4% in Q4 2020.
MARIETTA, Pa., Feb. 23, 2021 (GLOBE NEWSWIRE) -- Donegal Group Inc. (NASDAQ:DGICA) and (NASDAQ:DGICB) today reported its financial results for the fourth quarter and full year of 2020.
Highlights for Fourth Quarter of 2020 (all comparisons to fourth quarter of 2019):
- Net income of
$14.6 million , or 49 cents per diluted Class A share, compared to$14.2 million , or 50 cents per diluted Class A share - Combined ratio of
96.2% , compared to96.1% - Net income included after-tax net investment gains of
$2.9 million , or 10 cents per diluted Class A share, compared to$2.1 million , or 8 cents per diluted Class A share - Annualized return on average equity of
11.4% , compared to12.7%
Highlights for Full Year of 2020 (all comparisons to full year of 2019):
- Net income of
$52.8 million , or$1.83 per diluted Class A share, compared to$47.2 million , or$1.67 per diluted Class A share - Combined ratio of
96.0% , compared to99.5% - Net income included after-tax net investment gains of
$2.2 million , or 8 cents per diluted Class A share, compared to$19.0 million , or 67 cents per diluted Class A share, that included$11.6 million from the March 2019 sale of Donegal Financial Services Corporation - Return on average equity of
10.9% , compared to11.1% - Book value per share of
$17.13 at December 31, 2020, compared to$15.67 at year-end 2019
Summary of Fourth Quarter and Full Year Results
| Three Months Ended December 31, | Year Ended December 31, | ||||||||||||||||||||
| 2020 | 2019 | % Change | 2020 | 2019 | % Change | ||||||||||||||||
| (dollars in thousands, except per share amounts) | |||||||||||||||||||||
| Income Statement Data | |||||||||||||||||||||
| Net premiums earned | $ | 185,488 | $ | 189,421 | -2.1 | % | $ | 742,040 | $ | 756,078 | -1.9 | % | |||||||||
| Investment income, net | 7,553 | 7,787 | -3.0 | 29,504 | 29,515 | 0.0 | |||||||||||||||
| Net investment gains | 3,718 | 2,690 | 38.2 | 2,778 | 21,985 | -87.4 | |||||||||||||||
| Total revenues | 197,497 | 200,939 | -1.7 | 777,819 | 812,451 | -4.3 | |||||||||||||||
| Net income | 14,568 | 14,154 | 2.9 | 52,815 | 47,152 | 12.0 | |||||||||||||||
| Non-GAAP operating income1 | 11,631 | 12,050 | -3.5 | 50,782 | 28,406 | 78.8 | |||||||||||||||
| Annualized return on average equity | -1.3 pts | -0.2 pts | |||||||||||||||||||
| Per Share Data | |||||||||||||||||||||
| Net income – Class A (diluted) | $ | 0.49 | $ | 0.50 | -2.0 | % | $ | 1.83 | $ | 1.67 | 9.6 | % | |||||||||
| Net income – Class B | 0.44 | 0.45 | -2.2 | 1.65 | 1.51 | 9.3 | |||||||||||||||
| Non-GAAP operating income – Class A (diluted) | 0.39 | 0.42 | -7.1 | 1.76 | 1.01 | 74.3 | |||||||||||||||
| Non-GAAP operating income – Class B | 0.35 | 0.38 | -7.9 | 1.59 | 0.91 | 74.7 | |||||||||||||||
| Book value | 17.13 | 15.67 | 9.3 | 17.13 | 15.67 | 9.3 | |||||||||||||||
1See the “Definitions of Non-GAAP Financial Measures” section of this release, which defines data that the Company prepares on an accounting basis other than U.S. generally accepted accounting principles (“GAAP”) and reconciles such data to GAAP measures.
Management Commentary
Overview
Kevin G. Burke, President and Chief Executive Officer of Donegal Group Inc., stated, “We are pleased with the solid underwriting performance of our book of business during the fourth quarter of 2020, and continue to see tangible results of changes we implemented throughout our organization over the past several years. The underwriting results of our insurance subsidiaries were profitable throughout 2020, with a
Growth Trends
Mr. Burke continued, “We were pleased to achieve strong commercial new business growth throughout 2020, contributing to a
Underwriting Results
Jeffrey D. Miller, Executive Vice President and Chief Financial Officer, commented, “Donegal Group’s
Operations and Outlook
Mr. Burke concluded, “The year 2020 will be remembered for the COVID-19 pandemic, and we are pleased that Donegal Insurance Group was able to quickly adapt to proactively address all the challenges our employees, agents and policyholders faced throughout the year. We made no changes during the fourth quarter of 2020 to our ultimate loss expectations related to COVID-19 with minimal losses incurred to date. While we cannot predict the long-term impact of the pandemic on the economy as a whole and our organization in particular, we feel that Donegal Group is well-positioned to meet changing insurance market needs and demands. In 2021, we expect to continue to leverage our strong agency relationships, substantial investments in technology and expanded talent base to build on the substantial improvements we have realized in the past two years.”
Insurance Operations
Donegal Group is an insurance holding company whose insurance subsidiaries offer personal and commercial property and casualty lines of insurance in three Mid-Atlantic states (Delaware, Maryland and Pennsylvania), three New England states (Maine, New Hampshire and Vermont), six Southern states (Alabama, Georgia, North Carolina, South Carolina, Tennessee and Virginia) and eight Midwestern states (Illinois, Indiana, Iowa, Michigan, Nebraska, Ohio, South Dakota and Wisconsin). Donegal Mutual Insurance Company and the insurance subsidiaries of Donegal Group conduct business together as the Donegal Insurance Group.
Donegal Mutual and its insurance subsidiaries have also marketed commercial products as the Mountain States Insurance Group in four Southwestern states (Colorado, New Mexico, Texas and Utah) since Donegal Mutual’s May 2017 acquisition of that group of companies. In 2021 and future periods, Donegal Group’s results will reflect the inclusion of this business in the pooling agreement between Donegal Mutual and our Atlantic States Insurance Company subsidiary as we describe that agreement in the periodic reports we file with the Securities and Exchange Commission.
| Three Months Ended December 31, | Year Ended December 31, | ||||||||||||||||
| 2020 | 2019 | % Change | 2020 | 2019 | % Change | ||||||||||||
| (dollars in thousands) | |||||||||||||||||
| Net Premiums Earned | |||||||||||||||||
| Commercial lines | $ | 105,797 | $ | 100,873 | 4.9 | % | $ | 412,877 | $ | 385,465 | 7.1 | % | |||||
| Personal lines | 79,691 | 88,548 | -10.0 | 329,163 | 370,613 | -11.2 | |||||||||||
| Total net premiums earned | $ | 185,488 | $ | 189,421 | -2.1 | % | $ | 742,040 | $ | 756,078 | -1.9 | % | |||||
| Net Premiums Written | |||||||||||||||||
| Commercial lines: | |||||||||||||||||
| Automobile | $ | 31,211 | $ | 27,893 | 11.9 | % | $ | 135,294 | $ | 122,142 | 10.8 | % | |||||
| Workers' compensation | 23,631 | 25,393 | -6.9 | 109,960 | 113,684 | -3.3 | |||||||||||
| Commercial multi-peril | 35,532 | 32,748 | 8.5 | 147,993 | 138,750 | 6.7 | |||||||||||
| Other | 7,732 | 7,213 | 7.2 | 32,739 | 30,303 | 8.0 | |||||||||||
| Total commercial lines | 98,106 | 93,247 | 5.2 | 425,986 | 404,879 | 5.2 | |||||||||||
| Personal lines: | |||||||||||||||||
| Automobile | 40,992 | 46,293 | -11.5 | 184,602 | 210,507 | -12.3 | |||||||||||
| Homeowners | 25,911 | 26,944 | -3.8 | 111,886 | 117,118 | -4.5 | |||||||||||
| Other | 4,411 | 4,529 | -2.6 | 19,666 | 20,097 | -2.1 | |||||||||||
| Total personal lines | 71,314 | 77,766 | -8.3 | 316,154 | 347,722 | -9.1 | |||||||||||
| Total net premiums written | $ | 169,420 | $ | 171,013 | -0.9 | % | $ | 742,140 | $ | 752,601 | -1.4 | % | |||||
Net Premiums Written
The
- Commercial Lines:
$4.9 million growth that we attribute primarily to new commercial accounts our insurance subsidiaries have written throughout their operating regions and a continuation of renewal premium increases. - Personal Lines:
$6.5 million decline that we attribute to net attrition as a result of underwriting measures our insurance subsidiaries implemented to slow new policy growth and to increased pricing on renewal policies, partially offset by modest premium rate increases our insurance subsidiaries have implemented over the past four quarters.
For the full year of 2020, net premiums written decreased
Underwriting Performance
We evaluate the performance of our commercial lines and personal lines segments primarily based upon the underwriting results of our insurance subsidiaries as determined under statutory accounting practices. The following table presents comparative details with respect to the GAAP and statutory combined ratios1 for the three months and full years ended December 31, 2020 and 2019:
| Three Months Ended | Year Ended | ||||||||||
| December 31, | December 31, | ||||||||||
| 2020 | 2019 | 2020 | 2019 | ||||||||
| GAAP Combined Ratios (Total Lines) | |||||||||||
| Loss ratio (non-weather) | 57.9 | % | 61.0 | % | 55.1 | % | 60.9 | % | |||
| Loss ratio (weather-related) | 4.8 | 2.9 | 6.9 | 6.1 | |||||||
| Expense ratio | 32.4 | 31.0 | 33.0 | 31.3 | |||||||
| Dividend ratio | 1.1 | 1.2 | 1.0 | 1.2 | |||||||
| Combined ratio | 96.2 | % | 96.1 | % | 96.0 | % | 99.5 | % | |||
| Statutory Combined Ratios | |||||||||||
| Commercial lines: | |||||||||||
| Automobile | 119.1 | % | 125.9 | % | 112.7 | % | 117.4 | % | |||
| Workers' compensation | 87.4 | 68.2 | 86.3 | 78.5 | |||||||
| Commercial multi-peril | 99.3 | 91.8 | 98.4 | 93.7 | |||||||
| Other | 58.0 | 55.5 | 74.0 | 72.6 | |||||||
| Total commercial lines | 99.5 | 92.7 | 97.8 | 95.0 | |||||||
| Personal lines: | |||||||||||
| Automobile | 100.2 | 111.6 | 91.3 | 105.7 | |||||||
| Homeowners | 90.7 | 86.5 | 97.2 | 101.2 | |||||||
| Other | 70.4 | 60.6 | 74.9 | 73.2 | |||||||
| Total personal lines | 95.1 | 100.3 | 92.4 | 102.6 | |||||||
| Total lines | 97.6 | % | 95.4 | % | 98.7 | % | |||||
Loss Ratio – Fourth Quarter
For the fourth quarter of 2020, the loss ratio decreased to
Large fire losses, which we define as individual fire losses in excess of
Net favorable development of reserves for losses incurred in prior accident years of
Loss Ratio – Full Year
For the full year of 2020, the loss ratio decreased to
Large fire losses were
Net favorable development of reserves for losses incurred in prior accident years of
Expense Ratio
The expense ratio was
The expense ratio was
Investment Operations
Donegal Group’s investment strategy is to generate an appropriate amount of after-tax income on its invested assets while minimizing credit risk through investment in high-quality securities. As a result, we had invested
| December 31, 2020 | December 31, 2019 | ||||||||||||
| Amount | % | Amount | % | ||||||||||
| (dollars in thousands) | |||||||||||||
| Fixed maturities, at carrying value: | |||||||||||||
| U.S. Treasury securities and obligations of U.S. | |||||||||||||
| government corporations and agencies | $ | 125,250 | 10.3 | % | $ | 102,281 | 9.2 | % | |||||
| Obligations of states and political subdivisions | 381,284 | 31.2 | 261,431 | 23.5 | |||||||||
| Corporate securities | 385,978 | 31.6 | 315,641 | 28.4 | |||||||||
| Mortgage-backed securities | 249,233 | 20.4 | 361,693 | 32.6 | |||||||||
| Total fixed maturities | 1,141,745 | 93.5 | 1,041,046 | 93.7 | |||||||||
| Equity securities, at fair value | 58,556 | 4.8 | 55,477 | 5.0 | |||||||||
| Short-term investments, at cost | 20,900 | 1.7 | 14,030 | 1.3 | |||||||||
| Total investments | $ | 1,221,201 | 100.0 | % | $ | 1,110,553 | 100.0 | % | |||||
| Average investment yield | 2.5 | % | 2.8 | % | |||||||||
| Average tax-equivalent investment yield | 2.7 | % | 2.9 | % | |||||||||
| Average fixed-maturity duration (years) | 4.2 | 4.2 | |||||||||||
Total investments at December 31, 2020 increased by
Net investment income of
Net investment gains were
Net investment gains of
Definitions of Non-GAAP Financial Measures
We prepare our consolidated financial statements on the basis of GAAP. Our insurance subsidiaries also prepare financial statements based on statutory accounting principles state insurance regulators prescribe or permit (“SAP”). In addition to using GAAP-based performance measurements, we also utilize certain non-GAAP financial measures that we believe provide value in managing our business and for comparison to the financial results of our peers. These non-GAAP measures are net premiums written, operating income or loss and statutory combined ratio.
Net premiums written and operating income or loss are non-GAAP financial measures investors in insurance companies commonly use. We define net premiums written as the amount of full-term premiums our insurance subsidiaries record for policies effective within a given period less premiums our insurance subsidiaries cede to reinsurers. We define operating income or loss as net income or loss excluding after-tax net investment gains or losses, after-tax restructuring charges and other significant non-recurring items. Because our calculation of operating income or loss may differ from similar measures other companies use, investors should exercise caution when comparing our measure of operating income or loss to the measure of other companies.
The following table provides a reconciliation of net premiums earned to net premiums written for the periods indicated:
| Three Months Ended December 31, | Year Ended December 31, | ||||||||||||||||||||
| 2020 | 2019 | % Change | 2020 | 2019 | % Change | ||||||||||||||||
| (dollars in thousands) | |||||||||||||||||||||
| Reconciliation of Net Premiums | |||||||||||||||||||||
| Earned to Net Premiums Written | |||||||||||||||||||||
| Net premiums earned | $ | 185,488 | $ | 189,421 | -2.1 | % | $ | 742,040 | $ | 756,078 | -1.9 | % | |||||||||
| Change in net unearned premiums | (16,068 | ) | (18,408 | ) | -12.7 | 100 | (3,477 | ) | NM2 | ||||||||||||
| Net premiums written | $ | 169,420 | $ | 171,013 | -0.9 | % | $ | 742,140 | $ | 752,601 | -1.4 | % | |||||||||
2Not meaningful.
The following table provides a reconciliation of net income to operating income for the periods indicated:
| Three Months Ended December 31, | Year Ended December 31, | ||||||||||||||||||||
| 2020 | 2019 | % Change | 2020 | 2019 | % Change | ||||||||||||||||
| (dollars in thousands, except per share amounts) | |||||||||||||||||||||
| Reconciliation of Net Income | |||||||||||||||||||||
| to Non-GAAP Operating Income | |||||||||||||||||||||
| Net income | $ | 14,568 | $ | 14,154 | 2.9 | % | $ | 52,815 | $ | 47,152 | 12.0 | % | |||||||||
| Investment gains (after tax) | (2,937 | ) | (2,125 | ) | 38.2 | (2,194 | ) | (18,998 | ) | -88.5 | |||||||||||
| Other, net | - | 21 | -100.0 | 161 | 252 | -36.1 | |||||||||||||||
| Non-GAAP operating income | $ | 11,631 | $ | 12,050 | -3.5 | % | $ | 50,782 | $ | 28,406 | 78.8 | % | |||||||||
| Per Share Reconciliation of Net Income | |||||||||||||||||||||
| to Non-GAAP Operating Income | |||||||||||||||||||||
| Net income – Class A (diluted) | $ | 0.49 | $ | 0.50 | -2.0 | % | $ | 1.83 | $ | 1.67 | 9.6 | % | |||||||||
| Investment gains (after tax) | (0.10 | ) | (0.08 | ) | 25.0 | (0.08 | ) | (0.67 | ) | -88.1 | |||||||||||
| Other, net | - | - | - | 0.01 | 0.01 | - | |||||||||||||||
| Non-GAAP operating income – Class A | $ | 0.39 | $ | 0.42 | -7.1 | % | $ | 1.76 | $ | 1.01 | 74.3 | % | |||||||||
| Net income – Class B | $ | 0.44 | $ | 0.45 | -2.2 | % | $ | 1.65 | $ | 1.51 | 9.3 | % | |||||||||
| Investment gains (after tax) | (0.09 | ) | (0.07 | ) | 28.6 | (0.07 | ) | (0.61 | ) | -88.5 | |||||||||||
| Other, net | - | - | - | 0.01 | 0.01 | - | |||||||||||||||
| Non-GAAP operating income – Class B | $ | 0.35 | $ | 0.38 | -7.9 | % | $ | 1.59 | $ | 0.91 | 74.7 | % | |||||||||
The statutory combined ratio is a standard non-GAAP measurement of underwriting profitability that is based upon amounts determined under SAP. The statutory combined ratio is the sum of:
- the statutory loss ratio, which is the ratio of calendar-year incurred losses and loss expenses to premiums earned;
- the statutory expense ratio, which is the ratio of expenses incurred for net commissions, premium taxes and underwriting expenses to premiums written; and
- the statutory dividend ratio, which is the ratio of dividends to holders of workers’ compensation policies to premiums earned.
The statutory combined ratio does not reflect investment income, federal income taxes or other non-operating income or expense. A statutory combined ratio of less than
Dividend Information
On December 17, 2020, we declared a regular quarterly cash dividend of
Conference Call and Webcast
We will hold a conference call and webcast on Wednesday, February 24, 2021 at 11:00AM Eastern Time. You may listen to the webcast of this conference call by accessing the webcast link on our website at http://investors.donegalgroup.com. A supplemental investor presentation and a replay of the conference call will also be available via our website.
About the Company
Donegal Group Inc. is an insurance holding company whose insurance subsidiaries and affiliates offer personal and commercial property and casualty lines of insurance in 24 Mid-Atlantic, Midwestern, New England, Southern and Southwestern states. Donegal Mutual Insurance Company and the insurance subsidiaries of Donegal Group Inc. conduct business together as the Donegal Insurance Group. The Donegal Insurance Group has an A.M. Best rating of A (Excellent).
The Class A common stock and Class B common stock of Donegal Group Inc. trade on the NASDAQ Global Select Market under the symbols DGICA and DGICB, respectively. We are focused on several primary strategies, including achieving sustained excellent financial performance, strategically modernizing our operations and processes to transform our business, capitalizing on opportunities to grow profitably and delivering a superior experience to our agents and customers.
Safe Harbor
We base all statements contained in this release that are not historic facts on our current expectations. These statements are forward-looking in nature (as defined in the Private Securities Litigation Reform Act of 1995) and involve a number of risks and uncertainties. Actual results could vary materially. Factors that could cause actual results to vary materially include: our ability to attract new business, retain existing business and collect balances due to us as a result of the prolonged economic challenges resulting from the COVID-19 pandemic, adverse and catastrophic weather events, our ability to maintain profitable operations, the adequacy of the loss and loss expense reserves of our insurance subsidiaries, business and economic conditions in the areas in which our insurance subsidiaries operate, interest rates, competition from various insurance and other financial businesses, terrorism, the availability and cost of reinsurance, legal and judicial developments including those related to COVID-19 business interruption coverage and exclusions, changes in regulatory requirements and other risks we describe in the periodic reports we file with the Securities and Exchange Commission. You should not place undue reliance on any such forward-looking statements. We disclaim any obligation to update such statements or to announce publicly the results of any revisions that we may make to any forward-looking statements to reflect the occurrence of anticipated or unanticipated events or circumstances after the date of such statements.
For Further Information:
Jeffrey D. Miller, Executive Vice President & Chief Financial Officer
Phone: (717) 426-1931
E-mail: investors@donegalgroup.com
Adam Prior, Senior Vice President, The Equity Group Inc.
Phone: (212) 836-9606
E-mail: aprior@equityny.com
| Donegal Group Inc. | |||||||
| Consolidated Statements of Income | |||||||
| (unaudited; in thousands, except share data) | |||||||
| Quarter Ended December 31, | |||||||
| 2020 | 2019 | ||||||
| Net premiums earned | $ | 185,488 | $ | 189,421 | |||
| Investment income, net of expenses | 7,553 | 7,787 | |||||
| Net investment gains | 3,718 | 2,690 | |||||
| Lease income | 108 | 110 | |||||
| Installment payment fees | 630 | 931 | |||||
| Total revenues | 197,497 | 200,939 | |||||
| Net losses and loss expenses | 116,288 | 121,026 | |||||
| Amortization of deferred acquisition costs | 29,896 | 29,622 | |||||
| Other underwriting expenses | 30,217 | 29,152 | |||||
| Policyholder dividends | 2,058 | 2,213 | |||||
| Interest | 325 | 267 | |||||
| Other expenses, net | 264 | 266 | |||||
| Total expenses | 179,048 | 182,546 | |||||
| Income before income tax expense | 18,449 | 18,393 | |||||
| Income tax expense | 3,881 | 4,239 | |||||
| Net income | $ | 14,568 | $ | 14,154 | |||
| Net income per common share: | |||||||
| Class A - basic | $ | 0.50 | $ | 0.50 | |||
| Class A - diluted | $ | 0.49 | $ | 0.50 | |||
| Class B - basic and diluted | $ | 0.44 | $ | 0.45 | |||
| Supplementary Financial Analysts' Data | |||||||
| Weighted-average number of shares | |||||||
| outstanding: | |||||||
| Class A - basic | 24,344,122 | 23,143,603 | |||||
| Class A - diluted | 24,506,067 | 23,437,873 | |||||
| Class B - basic and diluted | 5,576,775 | 5,576,775 | |||||
| Net premiums written | $ | 169,420 | $ | 171,013 | |||
| Book value per common share | |||||||
| at end of period | $ | 17.13 | $ | 15.67 | |||
| Donegal Group Inc. | |||||||
| Consolidated Statements of Income | |||||||
| (unaudited; in thousands, except share data) | |||||||
| Year Ended December 31, | |||||||
| 2020 | 2019 | ||||||
| Net premiums earned | $ | 742,040 | $ | 756,078 | |||
| Investment income, net of expenses | 29,504 | 29,515 | |||||
| Net investment gains | 2,778 | 21,985 | |||||
| Lease income | 434 | 444 | |||||
| Installment payment fees | 3,063 | 4,134 | |||||
| Equity in earnings of DFSC | - | 295 | |||||
| Total revenues | 777,819 | 812,451 | |||||
| Net losses and loss expenses | 459,764 | 506,388 | |||||
| Amortization of deferred acquisition costs | 119,072 | 122,443 | |||||
| Other underwriting expenses | 125,863 | 114,562 | |||||
| Policyholder dividends | 7,394 | 8,978 | |||||
| Interest | 1,196 | 1,579 | |||||
| Other expenses, net | 1,258 | 1,420 | |||||
| Total expenses | 714,547 | 755,370 | |||||
| Income before income tax expense | 63,272 | 57,081 | |||||
| Income tax expense | 10,457 | 9,929 | |||||
| Net income | $ | 52,815 | $ | 47,152 | |||
| Net income per common share: | |||||||
| Class A - basic | $ | 1.84 | $ | 1.68 | |||
| Class A - diluted | $ | 1.83 | $ | 1.67 | |||
| Class B - basic and diluted | $ | 1.65 | $ | 1.51 | |||
| Supplementary Financial Analysts' Data | |||||||
| Weighted-average number of shares | |||||||
| outstanding: | |||||||
| Class A - basic | 23,707,448 | 22,986,292 | |||||
| Class A - diluted | 23,887,114 | 23,196,738 | |||||
| Class B - basic and diluted | 5,576,775 | 5,576,775 | |||||
| Net premiums written | $ | 742,140 | $ | 752,601 | |||
| Book value per common share | |||||||
| at end of period | $ | 17.13 | $ | 15.67 | |||
| Donegal Group Inc. | |||||||||
| Consolidated Balance Sheets | |||||||||
| (in thousands) | |||||||||
| December 31, | December 31, | ||||||||
| 2020 | 2019 | ||||||||
| (unaudited) | |||||||||
| ASSETS | |||||||||
| Investments: | |||||||||
| Fixed maturities: | |||||||||
| Held to maturity, at amortized cost | $ | 586,609 | $ | 476,094 | |||||
| Available for sale, at fair value | 555,136 | 564,952 | |||||||
| Equity securities, at fair value | 58,556 | 55,477 | |||||||
| Short-term investments, at cost | 20,900 | 14,030 | |||||||
| Total investments | 1,221,201 | 1,110,553 | |||||||
| Cash | 103,094 | 49,319 | |||||||
| Premiums receivable | 169,596 | 165,733 | |||||||
| Reinsurance receivable | 408,909 | 367,021 | |||||||
| Deferred policy acquisition costs | 59,157 | 59,285 | |||||||
| Prepaid reinsurance premiums | 169,418 | 142,476 | |||||||
| Other assets | 29,145 | 28,774 | |||||||
| Total assets | $ | 2,160,520 | $ | 1,923,161 | |||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||||
| Liabilities: | |||||||||
| Losses and loss expenses | $ | 962,007 | $ | 869,674 | |||||
| Unearned premiums | 537,190 | 510,147 | |||||||
| Accrued expenses | 29,115 | 28,454 | |||||||
| Borrowings under lines of credit | 85,000 | 35,000 | |||||||
| Subordinated debentures | 5,000 | 5,000 | |||||||
| Other liabilities | 24,434 | 23,870 | |||||||
| Total liabilities | 1,642,746 | 1,472,145 | |||||||
| Stockholders' equity: | |||||||||
| Class A common stock | 277 | 262 | |||||||
| Class B common stock | 56 | 56 | |||||||
| Additional paid-in capital | 289,150 | 268,152 | |||||||
| Accumulated other comprehensive income | 11,131 | 504 | |||||||
| Retained earnings | 258,386 | 223,268 | |||||||
| Treasury stock | (41,226 | ) | (41,226 | ) | |||||
| Total stockholders' equity | 517,774 | 451,016 | |||||||
| Total liabilities and stockholders' equity | $ | 2,160,520 | $ | 1,923,161 | |||||
FAQ
What were Donegal Group's financial results for Q4 2020?
How did Donegal Group perform in 2020 overall?
What was the combined ratio for Donegal Group in Q4 2020?
Did Donegal Group increase its book value per share in 2020?
What were the changes in net premiums earned for Donegal Group in 2020?
