Donegal Group Inc. Announces Second Quarter and First Half 2024 Results
Donegal Group Inc. (NASDAQ: DGICA) reported its Q2 and H1 2024 financial results. Key highlights include:
- Net income of $4.2 million ($0.13 per diluted Class A share) in Q2 2024, up from $2.0 million ($0.06 per share) in Q2 2023
- Net premiums earned increased 8.3% to $234.3 million
- Net premiums written grew 9.1% to $247.2 million
- Combined ratio improved to 103.0% from 104.7%
- Book value per share of $14.48 as of June 30, 2024
The company achieved strong growth in both commercial and personal lines, with net premiums written increasing 7.1% and 12.1% respectively. Weather-related losses were higher than average, but expense reduction initiatives helped improve the expense ratio. Donegal Group continues to focus on profitable growth and executing strategic initiatives to enhance financial performance.
Donegal Group Inc. (NASDAQ: DGICA) ha riportato i risultati finanziari del Q2 e H1 2024. I punti salienti includono:
- Reddito netto di $4,2 milioni ($0,13 per azione Class A diluita) nel Q2 2024, in aumento rispetto a $2,0 milioni ($0,06 per azione) nel Q2 2023
- I premi netti guadagnati sono aumentati dell'8,3% a $234,3 milioni
- I premi netti scritti sono cresciuti del 9,1% a $247,2 milioni
- Il rapporto combinato è migliorato al 103,0% rispetto al 104,7%
- Valore contabile per azione di $14,48 al 30 giugno 2024
L'azienda ha ottenuto una forte crescita sia nei segmenti commerciali che in quelli personali, con un aumento dei premi netti scritti del 7,1% e del 12,1% rispettivamente. Le perdite legate al clima sono state superiori alla media, ma le iniziative di riduzione dei costi hanno contribuito a migliorare il rapporto spese. Donegal Group continua a concentrarsi sulla crescita redditizia e sull'esecuzione di iniziative strategiche per migliorare le performance finanziarie.
Donegal Group Inc. (NASDAQ: DGICA) reportó sus resultados financieros del Q2 y H1 2024. Los aspectos más destacados incluyen:
- Ingreso neto de $4.2 millones ($0.13 por acción Clase A diluida) en Q2 2024, un aumento desde $2.0 millones ($0.06 por acción) en Q2 2023
- Las primas netas ganadas aumentaron un 8.3% a $234.3 millones
- Las primas netas escritas crecieron un 9.1% a $247.2 millones
- El ratio combinado mejoró al 103.0% desde el 104.7%
- Valor contable por acción de $14.48 al 30 de junio de 2024
La compañía logró un sólido crecimiento en las líneas comerciales y personales, con un aumento en las primas netas escritas del 7.1% y del 12.1% respectivamente. Las pérdidas por clima fueron superiores a la media, pero las iniciativas de reducción de gastos ayudaron a mejorar la relación de gastos. Donegal Group continúa enfocándose en el crecimiento rentable y en la ejecución de iniciativas estratégicas para mejorar el rendimiento financiero.
돈갈 그룹 주식회사(Donegal Group Inc.)(NASDAQ: DGICA)는 2024년 2분기와 상반기(H1) 재무 결과를 발표했습니다. 주요 하이라이트는 다음과 같습니다:
- 2024년 2분기 순이익이 $4.2백만($0.13의 희석된 A주당)으로, 2023년 2분기의 $2.0백만($0.06의 주당)에서 증가했습니다.
- 순보험료 수입이 8.3% 증가하여 $234.3 백만이 되었습니다.
- 순보험료 청구가 9.1% 증가하여 $247.2 백만이 되었습니다.
- 종합 비율이 104.7%에서 103.0%로 개선되었습니다.
- 2024년 6월 30일 기준 주당 장부가치가 $14.48입니다.
회사는 상업 및 개인보험 라인 모두에서 강력한 성장을 이루어냈으며, 순보험료 청구가 각각 7.1% 및 12.1% 증가했습니다. 날씨 관련 손실은 평균보다 높았지만, 비용 절감 노력이 비용 비율을 개선하는 데 도움이 되었습니다. 돈갈 그룹은 지속적으로 수익성 있는 성장과 재무 성과를 향상시키기 위한 전략적 이니셔티브 실행에 집중하고 있습니다.
Donegal Group Inc. (NASDAQ: DGICA) a publié ses résultats financiers pour le Q2 et H1 2024. Les principaux points forts incluent:
- Revenu net de 4,2 millions de dollars (0,13 $ par action Class A diluée) au Q2 2024, en hausse par rapport à 2,0 millions de dollars (0,06 $ par action) au Q2 2023
- Les primes nettes gagnées ont augmenté de 8,3 % pour atteindre 234,3 millions de dollars
- Les primes nettes souscrites ont crû de 9,1 % pour atteindre 247,2 millions de dollars
- Le ratio combiné s'est amélioré à 103,0 % contre 104,7 %
- Valeur comptable par action de 14,48 $ au 30 juin 2024
L'entreprise a connu une forte croissance tant dans les lignes commerciales que personnelles, avec une augmentation des primes nettes souscrites de 7,1 % et 12,1 % respectivement. Les pertes liées aux conditions climatiques étaient supérieures à la moyenne, mais les initiatives de réduction des coûts ont contribué à améliorer le ratio des dépenses. Donegal Group continue de se concentrer sur une croissance rentable et sur l'exécution d'initiatives stratégiques pour améliorer ses performances financières.
Die Donegal Group Inc. (NASDAQ: DGICA) hat ihre Finanzzahlen für das Q2 und H1 2024 veröffentlicht. Wichtige Highlights sind:
- Nettoertrag von $4,2 Millionen ($0,13 pro verwässerter Class-A-Aktie) im Q2 2024, im Vergleich zu $2,0 Millionen ($0,06 pro Aktie) im Q2 2023
- Die verdienten Netto-Prämien stiegen um 8,3% auf $234,3 Millionen
- Die schriftlichen Netto-Prämien wuchsen um 9,1% auf $247,2 Millionen
- Der kombinierte Anteil verbesserte sich auf 103,0% von 104,7%
- Buchwert pro Aktie von $14,48 zum 30. Juni 2024
Das Unternehmen verzeichnete ein starkes Wachstum sowohl im kommerziellen als auch im persönlichen Bereich, wobei die schriftlichen Netto-Prämien um 7,1% und 12,1% ebenfalls zunahmen. Wetterbedingte Verluste waren höher als der Durchschnitt, aber Einsparungsmaßnahmen trugen zur Verbesserung des Kostenverhältnisses bei. Die Donegal Group konzentriert sich weiterhin auf rentables Wachstum und die Umsetzung strategischer Initiativen zur Verbesserung der finanziellen Leistung.
- Net income increased 108% year-over-year to $4.2 million in Q2 2024
- Net premiums earned grew 8.3% to $234.3 million
- Net premiums written increased 9.1% to $247.2 million
- Combined ratio improved to 103.0% from 104.7% in Q2 2023
- Expense ratio decreased to 31.9% from 34.2% due to cost reduction initiatives
- Weather-related losses were $24.7 million, higher than the five-year average of $17.3 million
- Workers' compensation line experienced adverse reserve development
- Book value per share decreased slightly to $14.48 from $14.68 in Q2 2023
Insights
Donegal Group Inc.'s Q2 2024 results show a mixed performance with some positive trends and ongoing challenges. The company reported a significant increase in net income, rising to
The combined ratio improved slightly to
On the revenue side, net premiums earned increased by
However, the company faced challenges with weather-related losses, which were
The slight decrease in book value per share to
Overall, while Donegal shows some positive trends in premium growth and expense management, the persistent above-100% combined ratio and weather-related challenges suggest the company still has work to do to achieve consistent profitability.
Donegal Group's Q2 2024 results reveal several key trends in the property and casualty insurance sector. The 9.1% increase in net premiums written is a strong performance, outpacing industry averages. This growth, driven by both commercial (
The company's focus on commercial lines growth, particularly in small commercial underwriting, aligns with broader industry trends. Many insurers are targeting this segment due to its typically higher margins and lower volatility compared to personal lines.
The improvement in the expense ratio from
However, the weather-related losses of
The slight increase in the loss ratio to
Donegal's investment strategy, with
In conclusion, while Donegal shows strengths in premium growth and expense management, its combined ratio above 100% indicates ongoing profitability challenges that are common in the current insurance market environment.
MARIETTA, Pa., July 25, 2024 (GLOBE NEWSWIRE) -- Donegal Group Inc. (NASDAQ: DGICA) and (NASDAQ: DGICB) today reported its financial results for the second quarter and first half of 2024.
Significant Items for Second Quarter of 2024 (all comparisons to second quarter of 2023):
- Net income of
$4.2 million , or 13 cents per diluted Class A share, compared to$2.0 million , or 6 cents per diluted Class A share - Net premiums earned increased
8.3% to$234.3 million - Net premiums written1 increased
9.1% to$247.2 million - Combined ratio of
103.0% , compared to104.7% - Net income included after-tax net investment gains of
$0.6 million , or 2 cents per diluted Class A share, compared to$2.0 million , or 6 cents per diluted Class A share - Book value per share of
$14.48 at June 30, 2024, compared to$14.68
Financial Summary
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||
| 2024 | 2023 | % Change | 2024 | 2023 | % Change | ||||||||||||||||
| (dollars in thousands, except per share amounts) | |||||||||||||||||||||
| Income Statement Data | |||||||||||||||||||||
| Net premiums earned | $ | 234,311 | $ | 216,260 | 8.3 | % | $ | 462,06 | $ | 431,493 | 7.1 | % | |||||||||
| Investment income, net | 11,068 | 10,157 | 9.0 | 22,041 | 19,607 | 12.4 | |||||||||||||||
| Net investment gains | 737 | 2,504 | -70.6 | 2,850 | 2,173 | 31.2 | |||||||||||||||
| Total revenues | 246,773 | 229,196 | 7.7 | 487,913 | 453,942 | 7.5 | |||||||||||||||
| Net income | 4,153 | 1,997 | 108.0 | 10,108 | 7,201 | 40.4 | |||||||||||||||
| Non-GAAP operating income1 | 3,571 | 19 | NM2 | 7,857 | 5,484 | 43.3 | |||||||||||||||
| Annualized return on average equity | 3.4 | % | 1.6 | % | 1.8 | pts | 4.2 | % | 3.0 | % | 1.2 | pts | |||||||||
| Per Share Data | |||||||||||||||||||||
| Net income – Class A (diluted) | $ | 0.13 | $ | 0.06 | 116.7 | % | $ | 0.31 | $ | 0.22 | 40.9 | % | |||||||||
| Net income – Class B | 0.11 | 0.05 | 120.0 | 0.28 | 0.20 | 40.0 | |||||||||||||||
| Non-GAAP operating income – Class A (diluted) | 0.11 | - | NM | 0.24 | 0.17 | 41.2 | |||||||||||||||
| Non-GAAP operating income – Class B | 0.10 | - | NM | 0.22 | 0.15 | 46.7 | |||||||||||||||
| Book value | 14.48 | 14.68 | -1.4 | 14.48 | 14.68 | -1.4 | |||||||||||||||
1The “Definitions of Non-GAAP Financial 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
“We continued to execute successfully on several important objectives during the second quarter of 2024 that we expect will further enhance our financial performance in future periods,” said Kevin G. Burke, President and Chief Executive Officer of Donegal Group Inc.
“During the quarter, we achieved net premiums written growth of
Mr. Burke concluded, “Our core loss ratio for the second quarter of 2024 remained constant relative to the prior-year period but improved sequentially by 3.7 percentage points from the first quarter of 2024 as net premiums earned reflected higher impact of recent premium rate increases. Despite peak impact during 2024 from expenses related to our systems modernization project, our expense ratio declined by 2.3 percentage points compared to the prior-year quarter due primarily to ongoing expense reduction initiatives. While we have more work to do, we are confident in our ability to execute our business strategies and create long-term value for our stockholders.”
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), two New England states (Maine and New Hampshire), five Southern states (Georgia, North Carolina, South Carolina, Tennessee and Virginia), eight Midwestern states (Illinois, Indiana, Iowa, Michigan, Nebraska, Ohio, South Dakota and Wisconsin) and five Southwestern states (Arizona, 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 June 30, | Six Months Ended June 30, | ||||||||||||||||
| 2024 | 2023 | % Change | 2024 | 2023 | % Change | ||||||||||||
| (dollars in thousands) | |||||||||||||||||
| Net Premiums Earned | |||||||||||||||||
| Commercial lines | $ | 134,489 | $ | 130,808 | 2.8 | % | $ | 266,581 | $ | 263,995 | 1.0 | % | |||||
| Personal lines | 99,822 | 85,452 | 16.8 | 195,479 | 167,498 | 16.7 | |||||||||||
| Total net premiums earned | $ | 234,311 | $ | 216,260 | 8.3 | % | $ | 462,060 | $ | 431,493 | 7.1 | % | |||||
| Net Premiums Written | |||||||||||||||||
| Commercial lines: | |||||||||||||||||
| Automobile | $ | 47,089 | $ | 45,249 | 4.1 | % | $ | 100,603 | $ | 97,318 | 3.4 | % | |||||
| Workers' compensation | 27,591 | 27,743 | -0.5 | 58,665 | 60,944 | -3.7 | |||||||||||
| Commercial multi-peril | 55,870 | 46,823 | 19.3 | 113,373 | 102,673 | 10.4 | |||||||||||
| Other | 11,698 | 13,061 | -10.4 | 25,101 | 28,274 | -11.2 | |||||||||||
| Total commercial lines | 142,248 | 132,876 | 7.1 | 297,742 | 289,209 | 3.0 | |||||||||||
| Personal lines: | |||||||||||||||||
| Automobile | 62,427 | 53,329 | 17.1 | 123,808 | 103,310 | 19.8 | |||||||||||
| Homeowners | 39,608 | 37,213 | 6.4 | 71,367 | 65,402 | 9.1 | |||||||||||
| Other | 2,906 | 3,094 | -6.1 | 5,714 | 5,895 | -3.1 | |||||||||||
| Total personal lines | 104,941 | 93,636 | 12.1 | 200,889 | 174,607 | 15.1 | |||||||||||
| Total net premiums written | $ | 247,189 | $ | 226,512 | 9.1 | % | $ | 498,631 | $ | 463,816 | 7.5 | % | |||||
Net Premiums Written
The
- Commercial Lines:
$9.4 million increase that we attribute primarily to 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 states we are exiting or executing ongoing profit improvement initiatives as part of our state-specific strategies. - Personal Lines:
$11.3 million increase that we attribute primarily to a continuation of renewal premium rate increases and strong policy retention.
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 and six months ended June 30, 2024 and 2023:
| Three Months Ended | Six Months Ended | ||||||||||
| June 30, | June 30, | ||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||
| GAAP Combined Ratios (Total Lines) | |||||||||||
| Loss ratio - core losses | 55.0 | % | 55.0 | % | 56.8 | % | 55.8 | % | |||
| Loss ratio - weather-related losses | 10.6 | 9.1 | 7.7 | 7.8 | |||||||
| Loss ratio - large fire losses | 5.3 | 5.9 | 5.9 | 5.5 | |||||||
| Loss ratio - net prior-year reserve development | -0.3 | -0.1 | -2.0 | -2.0 | |||||||
| Loss ratio | 70.6 | 69.9 | 68.4 | 67.1 | |||||||
| Expense ratio | 31.9 | 34.2 | 33.8 | 35.3 | |||||||
| Dividend ratio | 0.5 | 0.6 | 0.5 | 0.6 | |||||||
| Combined ratio | 103.0 | % | 104.7 | % | 102.7 | % | 103.0 | % | |||
| Statutory Combined Ratios | |||||||||||
| Commercial lines: | |||||||||||
| Automobile | 93.5 | % | 101.9 | % | 96.6 | % | 99.1 | % | |||
| Workers' compensation | 117.0 | 95.7 | 114.2 | 91.0 | |||||||
| Commercial multi-peril | 110.6 | 111.8 | 106.7 | 113.3 | |||||||
| Other | 94.3 | 95.7 | 88.3 | 88.2 | |||||||
| Total commercial lines | 104.9 | 103.6 | 103.3 | 101.8 | |||||||
| Personal lines: | |||||||||||
| Automobile | 95.6 | 104.4 | 97.7 | 104.1 | |||||||
| Homeowners | 103.1 | 103.4 | 102.7 | 101.8 | |||||||
| Other | 104.7 | 105.9 | 94.8 | 77.4 | |||||||
| Total personal lines | 98.6 | 104.3 | 99.4 | 101.6 | |||||||
| Total lines | 102.2 | % | 103.8 | % | 101.7 | % | 101.7 | % | |||
Loss Ratio
For the second quarter of 2024, the loss ratio increased modestly to
Weather-related losses were
Large fire losses, which we define as individual fire losses in excess of
Modest net favorable development of reserves for losses incurred in prior accident years had virtually no impact for the second quarter of 2024 or 2023. Our insurance subsidiaries experienced favorable development primarily in the commercial automobile line of business, largely offset by adverse development in workers’ compensation that we primarily attribute to higher-than-anticipated case reserve development.
Expense Ratio
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
| June 30, 2024 | December 31, 2023 | ||||||||||||
| Amount | % | Amount | % | ||||||||||
| (dollars in thousands) | |||||||||||||
| Fixed maturities, at carrying value: | |||||||||||||
| U.S. Treasury securities and obligations of U.S. | |||||||||||||
| government corporations and agencies | $ | 183,978 | 13.7 | % | $ | 176,991 | 13.3 | % | |||||
| Obligations of states and political subdivisions | 414,435 | 30.9 | 415,280 | 31.3 | |||||||||
| Corporate securities | 403,540 | 30.0 | 399,640 | 30.1 | |||||||||
| Mortgage-backed securities | 294,149 | 21.9 | 278,260 | 21.0 | |||||||||
| Allowance for expected credit losses | (1,354) | -0.1 | (1,326) | -0.1 | |||||||||
| Total fixed maturities | 1,294,748 | 96.4 | 1,268,845 | 95.6 | |||||||||
| Equity securities, at fair value | 32,456 | 2.4 | 25,903 | 2.0 | |||||||||
| Short-term investments, at cost | 16,571 | 1.2 | 32,306 | 2.4 | |||||||||
| Total investments | $ | 1,343,775 | 100.0 | % | $ | 1,327,054 | 100.0 | % | |||||
| Average investment yield | 3.3 | % | 3.1 | % | |||||||||
| Average tax-equivalent investment yield | 3.4 | % | 3.2 | % | |||||||||
| Average fixed-maturity duration (years) | 5.2 | 4.3 | |||||||||||
Net investment income of
Net investment gains of
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 June 30, | Six Months Ended June 30, | ||||||||||||||||
| 2024 | 2023 | % Change | 2024 | 2023 | % Change | ||||||||||||
| (dollars in thousands) | |||||||||||||||||
| Reconciliation of Net Premiums | |||||||||||||||||
| Earned to Net Premiums Written | |||||||||||||||||
| Net premiums earned | $ | 234,311 | $ | 216,260 | 8.3 | % | $ | 462,060 | $ | 431,493 | 7.1 | % | |||||
| Change in net unearned premiums | 12,878 | 10,252 | 25.6 | 36,571 | 32,323 | 13.1 | |||||||||||
| Net premiums written | $ | 247,189 | $ | 226,512 | 9.1 | % | $ | 498,631 | $ | 463,816 | 7.5 | % | |||||
The following table provides a reconciliation of net income to operating income for the periods indicated:
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||
| 2024 | 2023 | % Change | 2024 | 2023 | % Change | ||||||||||||
| (dollars in thousands, except per share amounts) | |||||||||||||||||
| Reconciliation of Net Income | |||||||||||||||||
| to Non-GAAP Operating Income | |||||||||||||||||
| Net income | $ | 4,153 | $ | 1,997 | 108.0 | % | $ | 10,108 | $ | 7,201 | 40.4 | % | |||||
| Investment gains (after tax) | (582) | (1,978) | -70.6 | (2,251) | (1,717) | 31.1 | |||||||||||
| Non-GAAP operating income | $ | 3,571 | $ | 19 | NM | $ | 7,857 | $ | 5,484 | 43.3 | % | ||||||
| Per Share Reconciliation of Net Income | |||||||||||||||||
| to Non-GAAP Operating Income | |||||||||||||||||
| Net income – Class A (diluted) | $ | 0.13 | $ | 0.06 | 116.7 | % | $ | 0.31 | $ | 0.22 | 40.9 | % | |||||
| Investment gains (after tax) | (0.02) | (0.06) | -66.7 | (0.07) | (0.05) | 40.0 | |||||||||||
| Non-GAAP operating income – Class A | $ | 0.11 | $ | - | NM | $ | 0.24 | $ | 0.17 | 41.2 | % | ||||||
| Net income – Class B | $ | 0.11 | $ | 0.05 | 120.0 | % | $ | 0.28 | $ | 0.20 | 40.0 | % | |||||
| Investment gains (after tax) | (0.01) | (0.05) | -80.0 | (0.06) | (0.05) | 20.0 | |||||||||||
| Non-GAAP operating income – Class B | $ | 0.10 | $ | - | NM | $ | 0.22 | $ | 0.15 | 46.7 | % | ||||||
The statutory combined ratio is a non-GAAP standard 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, excluding anticipated salvage and subrogation recoveries, 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 July 18, 2024, we declared a regular quarterly cash dividend of
Pre-Recorded Webcast
At approximately 8:30 am ET on Thursday, July 25, 2024, we will make available in the Investors section of our website a pre-recorded audio webcast featuring management commentary on our quarterly results and general business updates. 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 certain 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. 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, adverse litigation and other trends that could increase our loss costs (including social inflation, labor shortages and escalating medical, automobile and property repair costs), adverse and catastrophic weather events (including from changing climate conditions), 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 June 30, | |||||||
| 2024 | 2023 | ||||||
| Net premiums earned | $ | 234,311 | $ | 216,260 | |||
| Investment income, net of expenses | 11,068 | 10,157 | |||||
| Net investment gains | 737 | 2,504 | |||||
| Lease income | 78 | 87 | |||||
| Installment payment fees | 579 | 188 | |||||
| Total revenues | 246,773 | 229,196 | |||||
| Net losses and loss expenses | 165,360 | 151,235 | |||||
| Amortization of deferred acquisition costs | 40,656 | 37,935 | |||||
| Other underwriting expenses | 34,037 | 35,948 | |||||
| Policyholder dividends | 1,187 | 1,346 | |||||
| Interest | 155 | 155 | |||||
| Other expenses, net | 365 | 324 | |||||
| Total expenses | 241,760 | 226,943 | |||||
| Income before income tax expense | 5,013 | 2,253 | |||||
| Income tax expense | 860 | 256 | |||||
| Net income | $ | 4,153 | $ | 1,997 | |||
| Net income per common share: | |||||||
| Class A - basic and diluted | $ | 0.13 | $ | 0.06 | |||
| Class B - basic and diluted | $ | 0.11 | $ | 0.05 | |||
| Supplementary Financial Analysts' Data | |||||||
| Weighted-average number of shares | |||||||
| outstanding: | |||||||
| Class A - basic | 27,844,811 | 27,382,442 | |||||
| Class A - diluted | 27,844,903 | 27,489,338 | |||||
| Class B - basic and diluted | 5,576,775 | 5,576,775 | |||||
| Net premiums written | $ | 247,189 | $ | 226,512 | |||
| Book value per common share | |||||||
| at end of period | $ | 14.48 | $ | 14.68 | |||
| Donegal Group Inc. | |||||||
| Consolidated Statements of Income | |||||||
| (unaudited; in thousands, except share data) | |||||||
| Six Months Ended June 30, | |||||||
| 2024 | 2023 | ||||||
| Net premiums earned | $ | 462,060 | $ | 431,493 | |||
| Investment income, net of expenses | 22,041 | 19,607 | |||||
| Net investment gains | 2,850 | 2,173 | |||||
| Lease income | 159 | 176 | |||||
| Installment payment fees | 803 | 493 | |||||
| Total revenues | 487,913 | 453,942 | |||||
| Net losses and loss expenses | 316,257 | 289,341 | |||||
| Amortization of deferred acquisition costs | 80,258 | 75,733 | |||||
| Other underwriting expenses | 75,777 | 76,560 | |||||
| Policyholder dividends | 2,241 | 2,689 | |||||
| Interest | 309 | 308 | |||||
| Other expenses, net | 810 | 761 | |||||
| Total expenses | 475,652 | 445,392 | |||||
| Income before income tax expense | 12,261 | 8,550 | |||||
| Income tax expense | 2,153 | 1,349 | |||||
| Net income | $ | 10,108 | $ | 7,201 | |||
| Net income per common share: | |||||||
| Class A - basic and diluted | $ | 0.31 | $ | 0.22 | |||
| Class B - basic and diluted | $ | 0.28 | $ | 0.20 | |||
| Supplementary Financial Analysts' Data | |||||||
| Weighted-average number of shares | |||||||
| outstanding: | |||||||
| Class A - basic | 27,828,062 | 27,287,717 | |||||
| Class A - diluted | 27,845,608 | 27,427,848 | |||||
| Class B - basic and diluted | 5,576,775 | 5,576,775 | |||||
| Net premiums written | $ | 498,631 | $ | 463,816 | |||
| Book value per common share | |||||||
| at end of period | $ | 14.48 | $ | 14.68 | |||
| Donegal Group Inc. | |||||||||
| Consolidated Balance Sheets | |||||||||
| (in thousands) | |||||||||
| June 30, | December 31, | ||||||||
| 2024 | 2023 | ||||||||
| (unaudited) | |||||||||
| ASSETS | |||||||||
| Investments: | |||||||||
| Fixed maturities: | |||||||||
| Held to maturity, at amortized cost | $ | 690,580 | $ | 679,497 | |||||
| Available for sale, at fair value | 604,168 | 589,348 | |||||||
| Equity securities, at fair value | 32,456 | 25,903 | |||||||
| Short-term investments, at cost | 16,571 | 32,306 | |||||||
| Total investments | 1,343,775 | 1,327,054 | |||||||
| Cash | 24,226 | 23,792 | |||||||
| Premiums receivable | 203,814 | 179,592 | |||||||
| Reinsurance receivable | 440,858 | 441,431 | |||||||
| Deferred policy acquisition costs | 80,926 | 75,043 | |||||||
| Prepaid reinsurance premiums | 186,323 | 168,724 | |||||||
| Other assets | 55,331 | 50,658 | |||||||
| Total assets | $ | 2,335,253 | $ | 2,266,294 | |||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||||
| Liabilities: | |||||||||
| Losses and loss expenses | $ | 1,147,419 | $ | 1,126,157 | |||||
| Unearned premiums | 653,579 | 599,411 | |||||||
| Accrued expenses | 3,511 | 3,947 | |||||||
| Borrowings under lines of credit | 35,000 | 35,000 | |||||||
| Other liabilities | 11,668 | 22,034 | |||||||
| Total liabilities | 1,851,177 | 1,786,549 | |||||||
| Stockholders' equity: | |||||||||
| Class A common stock | 309 | 308 | |||||||
| Class B common stock | 56 | 56 | |||||||
| Additional paid-in capital | 337,773 | 335,694 | |||||||
| Accumulated other comprehensive loss | (34,860 | ) | (32,882 | ) | |||||
| Retained earnings | 222,024 | 217,795 | |||||||
| Treasury stock | (41,226 | ) | (41,226 | ) | |||||
| Total stockholders' equity | 484,076 | 479,745 | |||||||
| Total liabilities and stockholders' equity | $ | 2,335,253 | $ | 2,266,294 | |||||
FAQ
What was Donegal Group's net income for Q2 2024?
How much did Donegal Group's net premiums written grow in Q2 2024?
What was Donegal Group's combined ratio for Q2 2024?
How did weather-related losses impact Donegal Group in Q2 2024?
