Donegal Group Inc. Announces Fourth Quarter and Full Year 2022 Results
Donegal Group reported its Q4 and full-year 2022 financial results, highlighting a 6.5% increase in net premiums earned to $213.0 million for Q4, despite a net income drop to $3.5 million from $5.3 million year-over-year.
The full-year net premiums earned rose 6.0% to $822.5 million, but the company faced a net loss of $2.0 million compared to $25.3 million profit in 2021. The combined ratio deteriorated to 102.8% for Q4 and 103.3% for 2022, reflecting elevated weather-related losses and inflationary pressures.
Book value per share decreased to $14.79 from $16.95.
- Net premiums written increased by 10.2% for Q4 2022, driven by strong growth in personal lines.
- Personal lines net premiums written grew 15.6% for Q4, attributed to new business and effective product strategies.
- Investment income rose 14.5% to $9.4 million in Q4 2022, indicating better asset management.
- Net income for Q4 decreased by 34% to $3.5 million, and a net loss of $2.0 million was reported for the full year of 2022.
- Combined ratio increased to 102.8% in Q4 and 103.3% for the full year, indicating worsening profitability.
- Net investment losses reached $10.2 million for 2022, compared to gains of $6.5 million in 2021.
MARIETTA, Pa., Feb. 23, 2023 (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, 2022.
Significant Items for Fourth Quarter of 2022 (all comparisons to fourth quarter of 2021):
- Net premiums earned increased
6.5% to$213.0 million - Combined ratio of
102.8% , compared to101.6% - Net income of
$3.5 million , or 11 cents per diluted Class A share, compared to$5.3 million , or 17 cents per diluted Class A share - Net investment gains (after tax) of
$0.5 million , or 2 cents per diluted Class A share, compared to$1.1 million , or 3 cents per diluted Class A share, are included in net income
Significant Items for Full Year of 2022 (all comparisons to full year of 2021):
- Net premiums earned increased
6.0% to$822.5 million - Combined ratio of
103.3% , compared to101.0% - Net loss of
$2.0 million , or 6 cents per Class A share, compared to net income of$25.3 million , or 83 cents per diluted Class A share - Net investment losses (after tax) of
$8.0 million , or 26 cents per Class A share, compared to net investment gains (after tax) of$5.1 million , or 17 cents per diluted Class A share, are included in net loss - Book value per share of
$14.79 at December 31, 2022, compared to$16.95 at year-end 2021
Financial Summary
| Three Months Ended December 31, | Year Ended December 31, | ||||||||||||||||||||||
| 2022 | 2021 | % Change | 2022 | 2021 | % Change | ||||||||||||||||||
| (dollars in thousands, except per share amounts) | |||||||||||||||||||||||
| Income Statement Data | |||||||||||||||||||||||
| Net premiums earned | $ | 212,991 | $ | 200,040 | 6.5 | % | $ | 822,490 | $ | 776,015 | 6.0 | % | |||||||||||
| Investment income, net | 9,385 | 8,199 | 14.5 | 34,016 | 31,126 | 9.3 | |||||||||||||||||
| Net investment gains (losses) | 626 | 1,338 | -53.2 | (10,185 | ) | 6,477 | NM2 | ||||||||||||||||
| Total revenues | 223,444 | 210,244 | 6.3 | 848,221 | 816,466 | 3.9 | |||||||||||||||||
| Net income (loss) | 3,479 | 5,272 | -34.0 | (1,959 | ) | 25,254 | NM | ||||||||||||||||
| Non-GAAP operating income1 | 2,985 | 4,216 | -29.2 | 6,087 | 20,137 | -69.8 | |||||||||||||||||
| Annualized return (loss) on average equity | 2.9 | % | 3.9 | % | -1.0 pts | -0.4 | % | 4.8 | % | -5.2 pts | |||||||||||||
| Per Share Data | |||||||||||||||||||||||
| Net income (loss) – Class A (diluted) | $ | 0.11 | $ | 0.17 | -35.3 | % | $ | (0.06 | ) | $ | 0.83 | NM | |||||||||||
| Net income (loss) – Class B | 0.09 | 0.15 | -40.0 | (0.07 | ) | 0.74 | NM | ||||||||||||||||
| Non-GAAP operating income – Class A (diluted) | 0.09 | 0.14 | -35.7 | 0.20 | 0.66 | -69.7 | % | ||||||||||||||||
| Non-GAAP operating income – Class B | 0.08 | 0.12 | -33.3 | 0.16 | 0.59 | -72.9 | |||||||||||||||||
| Book value | 14.79 | 16.95 | -12.7 | 14.79 | 16.95 | -12.7 | |||||||||||||||||
1The “Definitions of Non-GAAP and Operating Measures” section of this release defines and reconciles data that we prepare on an accounting basis other than U.S. generally accepted accounting principles (“GAAP”).
2Not meaningful.
Management Commentary
Kevin G. Burke, President and Chief Executive Officer of Donegal Group Inc., stated, “We are pleased to have achieved growth in net premiums written1 in the fourth quarter of 2022 in every line of business, led by a return to strong growth in our personal lines business segment. We attribute the personal lines growth to new business writings resulting from the successful launch of new products over the past year, strong renewal retention rates in our legacy products and substantial premium rate increases to combat ongoing inflationary pressures on loss costs. As we continue to closely monitor the effects of economic conditions, we are actively managing new business growth in this segment. We expect to expand our new personal lines products and agency portal to the state of Michigan in the second quarter of 2023, which will complete the ten-state rollout that we began in late 2021.
Net premiums written within our commercial lines segment increased by
Beyond the ongoing strategic transformation of our products and systems, we continue to enhance our pipeline for strategic growth by building and strengthening relationships with our independent agency partners as we strive to achieve targeted new business volumes, retain attractive accounts and restore rate adequacy where necessary.”
Jeffrey D. Miller, Executive Vice President and Chief Financial Officer, added, “From an underwriting perspective, our fourth quarter of 2022 results continued to benefit from net favorable development of reserves for losses incurred in prior accident years, which reflected our conservative reserving practices. The overall combined ratio of
Mr. Burke concluded, “On behalf of the entire Donegal leadership team, we would like to recognize the tireless efforts and hard work of our dedicated team of employees and independent agents over the past year. We are confident in our ability to stabilize our underwriting performance and expect profitable growth that will enable us to enhance long-term shareholder value in the years to come.”
Insurance Operations
Donegal Group is an insurance holding company whose insurance subsidiaries and affiliates offer 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), eight Midwestern states (Illinois, Indiana, Iowa, Michigan, Nebraska, Ohio, South Dakota and Wisconsin) and four Southwestern states (Colorado, New Mexico, Texas and Utah). Donegal Mutual Insurance Company and the insurance subsidiaries of Donegal Group conduct business together as the Donegal Insurance Group.
| Three Months Ended December 31, | Year Ended December 31, | ||||||||||||||||||||||
| 2022 | 2021 | % Change | 2022 | 2021 | % Change | ||||||||||||||||||
| (dollars in thousands) | |||||||||||||||||||||||
| Net Premiums Earned | |||||||||||||||||||||||
| Commercial lines | $ | 131,473 | $ | 124,199 | 5.9 | % | $ | 510,153 | $ | 468,433 | 8.9 | % | |||||||||||
| Personal lines | 81,518 | 75,841 | 7.5 | 312,337 | 307,582 | 1.5 | |||||||||||||||||
| Total net premiums earned | $ | 212,991 | $ | 200,040 | 6.5 | % | $ | 822,490 | $ | 776,015 | 6.0 | % | |||||||||||
| Net Premiums Written | |||||||||||||||||||||||
| Commercial lines: | |||||||||||||||||||||||
| Automobile | $ | 38,228 | $ | 35,530 | 7.6 | % | $ | 167,774 | $ | 161,947 | 3.6 | % | |||||||||||
| Workers' compensation | 25,019 | 23,483 | 6.5 | 111,892 | 113,256 | -1.2 | |||||||||||||||||
| Commercial multi-peril | 47,867 | 44,658 | 7.2 | 200,045 | 188,242 | 6.3 | |||||||||||||||||
| Other | 9,122 | 8,762 | 4.1 | 40,086 | 38,340 | 4.6 | |||||||||||||||||
| Total commercial lines | 120,236 | 112,433 | 6.9 | 519,797 | 501,785 | 3.6 | |||||||||||||||||
| Personal lines: | |||||||||||||||||||||||
| Automobile | 45,429 | 38,564 | 17.8 | 181,129 | 170,578 | 6.2 | |||||||||||||||||
| Homeowners | 29,705 | 25,939 | 14.5 | 120,087 | 109,974 | 9.2 | |||||||||||||||||
| Other | 5,043 | 4,849 | 4.0 | 22,517 | 21,930 | 2.7 | |||||||||||||||||
| Total personal lines | 80,177 | 69,352 | 15.6 | 323,733 | 302,482 | 7.0 | |||||||||||||||||
| Total net premiums written | $ | 200,413 | $ | 181,785 | 10.2 | % | $ | 843,530 | $ | 804,267 | 4.9 | % | |||||||||||
Net Premiums Written
The
- Commercial Lines:
$7.8 million increase that we attribute primarily to modest new business writings, strong premium retention and a continuation of renewal premium increases in lines other than workers’ compensation, offset partially by planned attrition in regions we have targeted for profit improvement. - Personal Lines:
$10.8 million increase that we attribute to premium rate increases our insurance subsidiaries have implemented over the past four quarters, strong policy retention and new business writings in certain states where we have introduced an updated suite of products.
The
- Commercial Lines:
$18.0 million increase that we attribute primarily to modest new business writings, strong premium retention and a continuation of renewal premium increases in lines other than workers’ compensation, offset partially by planned attrition in regions we have targeted for profit improvement. - Personal Lines:
$21.3 million increase that we attribute to premium rate increases our insurance subsidiaries have implemented over the past four quarters, strong policy retention and new business writings in certain states where we have introduced an updated suite of products.
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, 2022 and 2021:
| Three Months Ended | Year Ended | |||||||||||||||
| December 31, | December 31, | |||||||||||||||
| 2022 | 2021 | 2022 | 2021 | |||||||||||||
| GAAP Combined Ratios (Total Lines) | ||||||||||||||||
| Loss ratio - core losses | 62.7 | % | 62.6 | % | 59.8 | % | 59.4 | % | ||||||||
| Loss ratio - weather-related losses | 7.7 | 4.3 | 7.7 | 5.8 | ||||||||||||
| Loss ratio - large fire losses | 6.2 | 5.5 | 6.5 | 5.9 | ||||||||||||
| Loss ratio - net prior-year reserve development | -6.7 | -2.7 | -5.4 | -4.0 | ||||||||||||
| Loss ratio | 69.9 | 69.7 | 68.6 | 67.1 | ||||||||||||
| Expense ratio | 32.3 | 31.4 | 34.1 | 33.3 | ||||||||||||
| Dividend ratio | 0.6 | 0.5 | 0.6 | 0.6 | ||||||||||||
| Combined ratio | 102.8 | % | 101.6 | % | 103.3 | % | 101.0 | % | ||||||||
| Statutory Combined Ratios | ||||||||||||||||
| Commercial lines: | ||||||||||||||||
| Automobile | 96.0 | % | 120.6 | % | 98.0 | % | 108.6 | % | ||||||||
| Workers' compensation | 107.0 | 82.5 | 97.3 | 94.6 | ||||||||||||
| Commercial multi-peril | 122.5 | 115.4 | 116.9 | 114.1 | ||||||||||||
| Other | 77.9 | 94.5 | 80.8 | 77.5 | ||||||||||||
| Total commercial lines | 107.4 | 108.1 | 103.7 | 104.9 | ||||||||||||
| Personal lines: | ||||||||||||||||
| Automobile | 114.0 | 109.3 | 103.8 | 94.4 | ||||||||||||
| Homeowners | 88.7 | 88.6 | 111.0 | 102.9 | ||||||||||||
| Other | 58.7 | 20.8 | 52.1 | 49.3 | ||||||||||||
| Total personal lines | 101.2 | 95.6 | 102.8 | 94.4 | ||||||||||||
| Total lines | 104.9 | % | 103.3 | % | 103.3 | % | 100.8 | % | ||||||||
Loss Ratio – Fourth Quarter
For the fourth quarter of 2022, the loss ratio increased slightly to
The fourth quarter of 2022 loss ratio for workers’ compensation was elevated due to several large workers’ compensation losses related to severe work-related injuries that occurred during the quarter. The commercial automobile core loss ratio decreased by 10.8 percentage points compared to the prior-year quarter, reflecting the benefit of significant premium rate increases and reduced exposures in underperforming states over the past several years.
Weather-related losses of
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 2022, the loss ratio increased to
Weather-related losses for the full year of 2022 of
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, 2022 | December 31, 2021 | |||||||||||||||
| Amount | % | Amount | % | |||||||||||||
| (dollars in thousands) | ||||||||||||||||
| Fixed maturities, at carrying value: | ||||||||||||||||
| U.S. Treasury securities and obligations of U.S. government corporations and agencies | $ | 166,883 | 12.8 | % | $ | 121,453 | 9.5 | % | ||||||||
| Obligations of states and political subdivisions | 422,253 | 32.4 | 428,814 | 33.6 | ||||||||||||
| Corporate securities | 393,787 | 30.2 | 412,758 | 32.3 | ||||||||||||
| Mortgage-backed securities | 229,308 | 17.5 | 237,709 | 18.6 | ||||||||||||
| Total fixed maturities | 1,212,231 | 92.9 | 1,200,734 | 94.0 | ||||||||||||
| Equity securities, at fair value | 35,105 | 2.7 | 63,420 | 5.0 | ||||||||||||
| Short-term investments, at cost | 57,321 | 4.4 | 12,692 | 1.0 | ||||||||||||
| Total investments | $ | 1,304,657 | 100.0 | % | $ | 1,276,846 | 100.0 | % | ||||||||
| Average investment yield | 2.6 | % | 2.5 | % | ||||||||||||
| Average tax-equivalent investment yield | 2.7 | % | 2.6 | % | ||||||||||||
| Average fixed-maturity duration (years) | 5.9 | 4.7 | ||||||||||||||
Total investments at December 31, 2022 increased by
Net investment income of
Net investment gains were
Net investment losses were
Our book value per share was
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, | ||||||||||||||||||||||
| 2022 | 2021 | % Change | 2022 | 2021 | % Change | ||||||||||||||||||
| (dollars in thousands) | |||||||||||||||||||||||
| Reconciliation of Net Premiums | |||||||||||||||||||||||
| Earned to Net Premiums Written | |||||||||||||||||||||||
| Net premiums earned | $ | 212,991 | $ | 200,040 | 6.5 | % | $ | 822,490 | $ | 776,015 | 6.0 | % | |||||||||||
| Change in net unearned premiums | (12,578 | ) | (18,255 | ) | -31.1 | 21,040 | 28,252 | -25.5 | |||||||||||||||
| Net premiums written | $ | 200,413 | $ | 181,785 | 10.2 | % | $ | 843,530 | $ | 804,267 | 4.9 | % | |||||||||||
The following table provides a reconciliation of net income (loss) to operating income for the periods indicated:
| Three Months Ended December 31, | Year Ended December 31, | ||||||||||||||||||||||
| 2022 | 2021 | % Change | 2022 | 2021 | % Change | ||||||||||||||||||
| (dollars in thousands, except per share amounts) | |||||||||||||||||||||||
| Reconciliation of Net Income (Loss) | |||||||||||||||||||||||
| to Non-GAAP Operating Income | |||||||||||||||||||||||
| Net income (loss) | $ | 3,479 | $ | 5,272 | -34.0 | % | $ | (1,959 | ) | $ | 25,254 | NM | |||||||||||
| Investment (gains) losses (after tax) | (494 | ) | (1,056 | ) | -53.2 | 8,046 | (5,117 | ) | NM | ||||||||||||||
| Non-GAAP operating income | $ | 2,985 | $ | 4,216 | -29.2 | % | $ | 6,087 | $ | 20,137 | -69.8 | % | |||||||||||
| Per Share Reconciliation of Net Income (Loss) | |||||||||||||||||||||||
| to Non-GAAP Operating Income | |||||||||||||||||||||||
| Net income (loss) – Class A (diluted) | $ | 0.11 | $ | 0.17 | -35.3 | % | $ | (0.06 | ) | $ | 0.83 | NM | |||||||||||
| Investment (gains) losses (after tax) | (0.02 | ) | (0.03 | ) | -33.3 | 0.26 | (0.17 | ) | NM | ||||||||||||||
| Non-GAAP operating income – Class A | $ | 0.09 | $ | 0.14 | -35.7 | % | $ | 0.20 | $ | 0.66 | -69.7 | % | |||||||||||
| Net income (loss) – Class B | $ | 0.09 | $ | 0.15 | -40.0 | % | $ | (0.07 | ) | $ | 0.74 | NM | |||||||||||
| Investment (gains) losses (after tax) | (0.01 | ) | (0.03 | ) | -66.7 | 0.23 | (0.15 | ) | NM | ||||||||||||||
| Non-GAAP operating income – Class B | $ | 0.08 | $ | 0.12 | -33.3 | % | $ | 0.16 | $ | 0.59 | -72.9 | % | |||||||||||
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 15, 2022, we declared regular quarterly cash dividends of
Pre-Recorded Webcast
At approximately 8:30 am EDT on Thursday, February 23, 2023, we will make available in the Investors section of our website a pre-recorded audio webcast featuring management commentary and a question and answer session. You may listen to the pre-recorded webcast by accessing the link on our website at http://investors.donegalgroup.com. A supplemental investor presentation is also available via our website.
About the Company
Donegal Group Inc. is an insurance holding company whose insurance subsidiaries and affiliates offer 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 policyholders.
Safe Harbor
We base all statements contained in this release that are not historic facts on our current expectations. Such statements are forward-looking in nature (as defined in the Private Securities Litigation Reform Act of 1995) and necessarily involve risks and uncertainties. Forward-looking statements we make may be identified by our use of words such as “will,” “expect,” “intend,” “plan,” “anticipate,” “believe,” “seek,” “estimate” and similar expressions. Our actual results could vary materially from our forward-looking statements. The factors that could cause our actual results to vary materially from the forward-looking statements we have previously made include, but are not limited to, prolonged economic challenges resulting from the COVID-19 pandemic, adverse litigation and other trends that could increase our loss costs (including labor shortages and escalating medical, automobile and property repair costs), adverse and catastrophic weather events, our ability to maintain profitable operations (including our ability to underwrite risks effectively and charge adequate premium rates), the adequacy of the loss and loss expense reserves of our insurance subsidiaries, the availability and successful operation of the information technology systems our insurance subsidiaries utilize, the successful development of new information technology systems to allow our insurance subsidiaries to compete effectively, business and economic conditions in the areas in which we and 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 exclusions, changes in regulatory requirements, our ability to attract and retain independent insurance agents, changes in our A.M. Best rating and the other risks that we describe from time to time in our filings with the Securities and Exchange Commission. 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.
Investor Relations Contacts
Karin Daly, Vice President, The Equity Group Inc.
Phone: (212) 836-9623
E-mail: kdaly@equityny.com
Jeffrey D. Miller, Executive Vice President & Chief Financial Officer
Phone: (717) 426-1931
E-mail: investors@donegalgroup.com
Financial Supplement
| Donegal Group Inc. | ||||||||
| Consolidated Statements of Income | ||||||||
| (unaudited; in thousands, except share data) | ||||||||
| Quarter Ended December 31, | ||||||||
| 2022 | 2021 | |||||||
| Net premiums earned | $ | 212,991 | $ | 200,040 | ||||
| Investment income, net of expenses | 9,385 | 8,199 | ||||||
| Net investment gains | 626 | 1,338 | ||||||
| Lease income | 89 | 107 | ||||||
| Installment payment fees | 353 | 560 | ||||||
| Total revenues | 223,444 | 210,244 | ||||||
| Net losses and loss expenses | 148,833 | 139,391 | ||||||
| Amortization of deferred acquisition costs | 37,563 | 33,673 | ||||||
| Other underwriting expenses | 31,171 | 29,254 | ||||||
| Policyholder dividends | 1,384 | 988 | ||||||
| Interest | 156 | 156 | ||||||
| Other expenses, net | 253 | 261 | ||||||
| Total expenses | 219,360 | 203,723 | ||||||
| Income before income tax expense | 4,084 | 6,521 | ||||||
| Income tax expense | 605 | 1,249 | ||||||
| Net income | $ | 3,479 | $ | 5,272 | ||||
| Income per common share: | ||||||||
| Class A - basic and diluted | $ | 0.11 | $ | 0.17 | ||||
| Class B - basic and diluted | $ | 0.09 | $ | 0.15 | ||||
| Supplementary Financial Analysts' Data | ||||||||
| Weighted-average number of shares outstanding: | ||||||||
| Class A - basic | 26,982,221 | 25,752,639 | ||||||
| Class A - diluted | 27,052,204 | 25,800,003 | ||||||
| Class B - basic and diluted | 5,576,775 | 5,576,775 | ||||||
| Net premiums written | $ | 200,413 | $ | 181,785 | ||||
| Book value per common share at end of period | $ | 14.79 | $ | 16.95 | ||||
| Donegal Group Inc. | |||||||
| Consolidated Statements of (Loss) Income | |||||||
| (unaudited; in thousands, except share data) | |||||||
| Year Ended December 31, | |||||||
| 2022 | 2021 | ||||||
| Net premiums earned | $ | 822,490 | $ | 776,015 | |||
| Investment income, net of expenses | 34,016 | 31,126 | |||||
| Net investment (losses) gains | (10,185 | ) | 6,477 | ||||
| Lease income | 384 | 431 | |||||
| Installment payment fees | 1,516 | 2,417 | |||||
| Total revenues | 848,221 | 816,466 | |||||
| Net losses and loss expenses | 564,079 | 520,710 | |||||
| Amortization of deferred acquisition costs | 142,430 | 128,733 | |||||
| Other underwriting expenses | 137,924 | 129,368 | |||||
| Policyholder dividends | 5,560 | 5,199 | |||||
| Interest | 621 | 896 | |||||
| Other expenses, net | 1,245 | 1,222 | |||||
| Total expenses | 851,859 | 786,128 | |||||
| (Loss) income before income tax (benefit) expense | (3,638 | ) | 30,338 | ||||
| Income tax (benefit) expense | (1,679 | ) | 5,084 | ||||
| Net (loss) income | $ | (1,959 | ) | $ | 25,254 | ||
| Net (loss) income per common share: | |||||||
| Class A - basic and diluted | $ | (0.06 | ) | $ | 0.83 | ||
| Class B - basic and diluted | $ | (0.07 | ) | $ | 0.74 | ||
| Supplementary Financial Analysts' Data | |||||||
| Weighted-average number of shares outstanding: | |||||||
| Class A - basic | 26,409,290 | 25,388,246 | |||||
| Class A - diluted | 26,536,668 | 25,533,935 | |||||
| Class B - basic and diluted | 5,576,775 | 5,576,775 | |||||
| Net premiums written | $ | 843,530 | $ | 804,267 | |||
| Book value per common share at end of period | $ | 14.79 | $ | 16.95 | |||
| Donegal Group Inc. | |||||||
| Consolidated Balance Sheets | |||||||
| (in thousands) | |||||||
| December 31, | December 31, | ||||||
| 2022 | 2021 | ||||||
| (unaudited) | |||||||
| ASSETS | |||||||
| Investments: | |||||||
| Fixed maturities: | |||||||
| Held to maturity, at amortized cost | $ | 688,439 | $ | 668,105 | |||
| Available for sale, at fair value | 523,792 | 532,629 | |||||
| Equity securities, at fair value | 35,105 | 63,420 | |||||
| Short-term investments, at cost | 57,321 | 12,692 | |||||
| Total investments | 1,304,657 | 1,276,846 | |||||
| Cash | 25,123 | 57,709 | |||||
| Premiums receivable | 173,846 | 168,863 | |||||
| Reinsurance receivable | 456,522 | 455,411 | |||||
| Deferred policy acquisition costs | 73,170 | 68,028 | |||||
| Prepaid reinsurance premiums | 160,591 | 176,936 | |||||
| Receivable from Michigan Catastrophic Claims Association | - | 18,113 | |||||
| Other assets | 49,440 | 33,269 | |||||
| Total assets | $ | 2,243,349 | $ | 2,255,175 | |||
| LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||
| Liabilities: | |||||||
| Losses and loss expenses | $ | 1,121,046 | $ | 1,077,620 | |||
| Unearned premiums | 577,653 | 572,958 | |||||
| Accrued expenses | 4,226 | 4,029 | |||||
| Borrowings under lines of credit | 35,000 | 35,000 | |||||
| Cash refunds due to Michigan policyholders | - | 18,113 | |||||
| Other liabilities | 21,831 | 16,419 | |||||
| Total liabilities | 1,759,756 | 1,724,139 | |||||
| Stockholders' equity: | |||||||
| Class A common stock | 301 | 288 | |||||
| Class B common stock | 56 | 56 | |||||
| Additional paid-in capital | 325,602 | 304,889 | |||||
| Accumulated other comprehensive (loss) income | (41,704 | ) | 3,284 | ||||
| Retained earnings | 240,564 | 263,745 | |||||
| Treasury stock | (41,226 | ) | (41,226 | ) | |||
| Total stockholders' equity | 483,593 | 531,036 | |||||
| Total liabilities and stockholders' equity | $ | 2,243,349 | $ | 2,255,175 | |||
FAQ
What were Donegal Group's net premiums earned for Q4 2022?
What was the combined ratio for Donegal Group in 2022?
How did Donegal Group's net income change in Q4 2022?
What was the book value per share for Donegal Group at year-end 2022?
