Donegal Group Inc. Announces Third Quarter and First Nine Months of 2022 Results
Donegal Group reported a net loss of $10.4 million for Q3 2022, translating to a 33-cent loss per Class A share, a 54.6% increase from a loss of $6.7 million in Q3 2021. Net premiums earned rose by 5.0% to $206.1 million, while net premiums written increased 4.7%. The combined ratio deteriorated to 109.6% from 107.7% due to heightened weather-related and fire loss activity. Investment losses totaled $2.4 million, impacting overall results. Book value per share decreased to $14.85, down 13.7% from the prior year, reflecting unrealized losses in fixed-maturity securities.
- Net premiums earned rose 5.0% to $206.1 million.
- Investment income increased 10.4% from $7.8 million to $8.6 million.
- Premium retention levels remained strong, supported by substantial rate increases.
- Commercial lines saw a 6.5% increase in net premiums earned.
- Net loss increased 54.6% year-over-year, reaching $10.4 million.
- The combined ratio worsened to 109.6% due to elevated weather-related losses.
- Book value per share dropped 13.7%, from $17.21 to $14.85.
- Non-GAAP operating loss income decreased by 80.5% compared to the previous year.
MARIETTA, Pa., Oct. 27, 2022 (GLOBE NEWSWIRE) -- Donegal Group Inc. (NASDAQ:DGICA) and (NASDAQ:DGICB) today reported its financial results for the third quarter and first nine months of 2022.
Significant items for third quarter of 2022 (all comparisons to third quarter of 2021):
- Net loss of
$10.4 million , or 33 cents per Class A share, compared to$6.7 million , or 22 cents per Class A share - Net premiums earned increased
5.0% to$206.1 million - Net premiums written1 increased
4.7% to$206.2 million - Combined ratio of
109.6% , compared to107.7% , largely due to elevated weather-related and fire loss activity - Net loss included after-tax net investment losses of
$1.9 million , or 6 cents per Class A share, compared to$1.2 million , or 4 cents per Class A share - Book value per share of
$14.85 at September 30, 2022, compared to$17.21
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
| 2022 | 2021 | % Change | 2022 | 2021 | % Change | ||||||||||||||||||
| (dollars in thousands, except per share amounts) | |||||||||||||||||||||||
| Income Statement Data | |||||||||||||||||||||||
| Net premiums earned | $ | 206,122 | $ | 196,235 | 5.0 | % | $ | 609,499 | $ | 575,975 | 5.8 | % | |||||||||||
| Investment income, net | 8,569 | 7,764 | 10.4 | 24,631 | 22,926 | 7.4 | |||||||||||||||||
| Net investment (losses) gains | (2,358 | ) | (1,570 | ) | 50.2 | (10,811 | ) | 5,140 | NM2 | ||||||||||||||
| Total revenues | 212,838 | 203,106 | 4.8 | 624,776 | 606,222 | 3.1 | |||||||||||||||||
| Net (loss) income | (10,376 | ) | (6,712 | ) | 54.6 | (5,439 | ) | 19,982 | NM | ||||||||||||||
| Non-GAAP operating (loss) income1 | (8,513 | ) | (5,471 | ) | 55.6 | 3,102 | 15,922 | -80.5 | |||||||||||||||
| Annualized (loss) return on average equity | -8.4 | % | -4.9 | % | -3.5 | pts | -1.4 | % | 5.0 | % | -6.4 | pts | |||||||||||
| Per Share Data | |||||||||||||||||||||||
| Net (loss) income – Class A (diluted) | $ | (0.33 | ) | $ | (0.22 | ) | 50.0 | % | $ | (0.17 | ) | $ | 0.66 | NM | |||||||||
| Net (loss) income – Class B | (0.30 | ) | (0.20 | ) | 50.0 | (0.16 | ) | 0.59 | NM | ||||||||||||||
| Non-GAAP operating (loss) income – Class A (diluted) | (0.27 | ) | (0.18 | ) | 50.0 | 0.10 | 0.52 | -80.8 | % | ||||||||||||||
| Non-GAAP operating (loss) income – Class B | (0.25 | ) | (0.16 | ) | 56.3 | 0.08 | 0.47 | -83.0 | |||||||||||||||
| Book value | 14.85 | 17.21 | -13.7 | 14.85 | 17.21 | -13.7 | |||||||||||||||||
1The “Definitions of Non-GAAP and Financial Measures” section of this release defines data that we prepare on an accounting basis other than U.S. generally accepted accounting principles (“GAAP”) and reconciles GAAP measures to such data.
2Not meaningful.
Management Commentary
Kevin G. Burke, President and Chief Executive Officer of Donegal Group Inc., noted, “We are strategically managing premium growth in the challenging current economic environment and continue to focus on strategies and tactics that we believe will yield long-term profit improvement. Weather-related loss activity for the third quarter of 2022 was in line with our historical run rate for the third quarter. Large fire losses had a significant adverse impact on our commercial segment quarterly results. While we did not identify any commonality among the locations or causes of the large fire losses, the increased average severity of these losses compared to the prior-year quarter reflects in part ongoing inflationary increases in the costs of labor and materials. We and other insurance carriers have experienced higher impact from fire losses in recent years compared to historical norms, and we are increasing our utilization of internal and third-party data to analytically identify underlying or emerging risk characteristics we should be considering in our new business and renewal underwriting decisions.”
Mr. Burke continued, “Overall, we remain encouraged by strong premium retention levels that were bolstered by substantial rate increases we have taken across the majority of our lines of business throughout 2022. In light of ongoing inflation impact on loss trends, we expect to continue implementing premium rate increases in the fourth quarter of 2022 and in 2023. The execution of individual state strategies during 2022 has led to higher-than-average premium growth in well-performing states and reduced exposures in underperforming states. We are refining further our state strategies for 2023 to focus on specific geographies and classes of business we have identified as most promising for profitable future growth. As earned premiums reflect higher premium rates and loss costs stabilize in future periods, we believe the ongoing execution of our strategic plan will lead to improved results. We are also making significant strides in our ongoing modernization initiatives, which we believe are positioning us well to excel in the years ahead.”
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 September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
| 2022 | 2021 | % Change | 2022 | 2021 | % Change | ||||||||||||||||||
| (dollars in thousands) | |||||||||||||||||||||||
| Net Premiums Earned | |||||||||||||||||||||||
| Commercial lines | $ | 127,497 | $ | 119,709 | 6.5 | % | $ | 378,680 | $ | 344,234 | 10.0 | % | |||||||||||
| Personal lines | 78,625 | 76,526 | 2.7 | 230,819 | 231,741 | -0.4 | |||||||||||||||||
| Total net premiums earned | $ | 206,122 | $ | 196,235 | 5.0 | % | $ | 609,499 | $ | 575,975 | 5.8 | % | |||||||||||
| Net Premiums Written | |||||||||||||||||||||||
| Commercial lines: | |||||||||||||||||||||||
| Automobile | $ | 37,330 | $ | 36,604 | 2.0 | % | $ | 129,546 | $ | 126,417 | 2.5 | % | |||||||||||
| Workers' compensation | 24,633 | 26,265 | -6.2 | 86,873 | 89,773 | -3.2 | |||||||||||||||||
| Commercial multi-peril | 46,864 | 43,869 | 6.8 | 152,178 | 143,584 | 6.0 | |||||||||||||||||
| Other | 9,357 | 9,157 | 2.2 | 30,964 | 29,578 | 4.7 | |||||||||||||||||
| Total commercial lines | 118,184 | 115,895 | 2.0 | 399,561 | 389,352 | 2.6 | |||||||||||||||||
| Personal lines: | |||||||||||||||||||||||
| Automobile | 48,472 | 44,711 | 8.4 | 135,700 | 132,014 | 2.8 | |||||||||||||||||
| Homeowners | 34,082 | 30,978 | 10.0 | 90,382 | 84,035 | 7.6 | |||||||||||||||||
| Other | 5,491 | 5,431 | 1.1 | 17,474 | 17,081 | 2.3 | |||||||||||||||||
| Total personal lines | 88,045 | 81,120 | 8.5 | 243,556 | 233,130 | 4.5 | |||||||||||||||||
| Total net premiums written | $ | 206,229 | $ | 197,015 | 4.7 | % | $ | 643,117 | $ | 622,482 | 3.3 | % | |||||||||||
Net Premiums Written
The
- Commercial Lines:
$2.3 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:
$6.9 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 and nine months ended September 30, 2022 and 2021:
| Three Months Ended | Nine Months Ended | ||||||||||
| September 30, | September 30, | ||||||||||
| 2022 | 2021 | 2022 | 2021 | ||||||||
| GAAP Combined Ratios (Total Lines) | |||||||||||
| Loss ratio (non-weather) | 66.2 | % | 66.3 | % | 60.4 | % | 59.8 | % | |||
| Loss ratio (weather-related) | 9.4 | 9.2 | 7.7 | 6.4 | |||||||
| Expense ratio | 33.4 | 31.5 | 34.7 | 33.9 | |||||||
| Dividend ratio | 0.6 | 0.7 | 0.7 | 0.7 | |||||||
| Combined ratio | 109.6 | % | 107.7 | % | 103.5 | % | 100.8 | % | |||
| Statutory Combined Ratios | |||||||||||
| Commercial lines: | |||||||||||
| Automobile | 107.0 | % | 111.9 | % | 98.7 | % | 106.7 | % | |||
| Workers' compensation | 105.9 | 109.0 | 93.9 | 96.0 | |||||||
| Commercial multi-peril | 125.0 | 116.9 | 114.9 | 106.5 | |||||||
| Other | 85.9 | 64.0 | 81.9 | 67.2 | |||||||
| Total commercial lines | 112.1 | 109.4 | 102.4 | 101.1 | |||||||
| Personal lines: | |||||||||||
| Automobile | 103.1 | 102.0 | 100.2 | 95.4 | |||||||
| Homeowners | 125.0 | 117.5 | 118.8 | 107.4 | |||||||
| Other | 54.6 | 65.4 | 49.9 | 72.2 | |||||||
| Total personal lines | 107.8 | 105.2 | 103.4 | 98.2 | |||||||
| Total lines | 110.1 | % | 107.7 | % | 102.8 | % | 100.0 | % | |||
Loss Ratio
For the third quarter of 2022, the loss ratio increased 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
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
| September 30, 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 | $ | 146,782 | 11.5 | % | $ | 121,453 | 9.5 | % | |||||
| Obligations of states and political subdivisions | 433,740 | 33.9 | 428,814 | 33.6 | |||||||||
| Corporate securities | 400,811 | 31.3 | 412,758 | 32.3 | |||||||||
| Mortgage-backed securities | 215,955 | 16.8 | 237,709 | 18.6 | |||||||||
| Total fixed maturities | 1,197,288 | 93.5 | 1,200,734 | 94.0 | |||||||||
| Equity securities, at fair value | 46,776 | 3.6 | 63,420 | 5.0 | |||||||||
| Short-term investments, at cost | 36,660 | 2.9 | 12,692 | 1.0 | |||||||||
| Total investments | $ | 1,280,724 | 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) | 6.1 | 4.7 | |||||||||||
Total investments at September 30, 2022 increased by
Net investment income of
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 September 30, | Nine Months Ended September 30, | ||||||||||||||||
| 2022 | 2021 | % Change | 2022 | 2021 | % Change | ||||||||||||
| (dollars in thousands) | |||||||||||||||||
| Reconciliation of Net Premiums | |||||||||||||||||
| Earned to Net Premiums Written | |||||||||||||||||
| Net premiums earned | $ | 206,122 | $ | 196,235 | 5.0 | % | $ | 609,499 | $ | 575,975 | 5.8 | % | |||||
| Change in net unearned premiums | 107 | 780 | -86.3 | 33,618 | 46,507 | -27.7 | |||||||||||
| Net premiums written | $ | 206,229 | $ | 197,015 | 4.7 | % | $ | 643,117 | $ | 622,482 | 3.3 | % | |||||
The following table provides a reconciliation of net (loss) income to operating (loss) income for the periods indicated:
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||
| 2022 | 2021 | % Change | 2022 | 2021 | % Change | ||||||||||||||
| (dollars in thousands, except per share amounts) | |||||||||||||||||||
| Reconciliation of Net (Loss) Income | |||||||||||||||||||
| to Non-GAAP Operating (Loss) Income | |||||||||||||||||||
| Net (loss) income | $ | (10,376 | ) | $ | (6,712 | ) | 54.6 | % | $ | (5,439 | ) | $ | 19,982 | NM | |||||
| Investment losses (gains) (after tax) | 1,863 | 1,241 | 50.1 | 8,541 | (4,060 | ) | NM | ||||||||||||
| Non-GAAP operating (loss) income | $ | (8,513 | ) | $ | (5,471 | ) | 55.6 | % | $ | 3,102 | $ | 15,922 | - | ||||||
| Per Share Reconciliation of Net (loss) Income | |||||||||||||||||||
| to Non-GAAP Operating (Loss) Income | |||||||||||||||||||
| Net (loss) income – Class A (diluted) | $ | (0.33 | ) | $ | (0.22 | ) | 50.0 | % | $ | (0.17 | ) | $ | 0.66 | NM | |||||
| Investment losses (gains) (after tax) | 0.06 | 0.04 | 50.0 | 0.27 | (0.14 | ) | NM | ||||||||||||
| Non-GAAP operating (loss) income – Class A | $ | (0.27 | ) | $ | (0.18 | ) | 50.0 | % | $ | 0.10 | $ | 0.52 | - | ||||||
| Net (loss) income – Class B | $ | (0.30 | ) | $ | (0.20 | ) | 50.0 | % | $ | (0.16 | ) | $ | 0.59 | NM | |||||
| Investment losses (gains) (after tax) | 0.05 | 0.04 | 25.0 | 0.24 | (0.12 | ) | NM | ||||||||||||
| Non-GAAP operating (loss) income – Class B | $ | (0.25 | ) | $ | (0.16 | ) | 56.3 | % | $ | 0.08 | $ | 0.47 | - | ||||||
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 October 20, 2022, we declared a regular quarterly cash dividend of
Pre-Recorded Webcast
At approximately 8:30 am EDT on Thursday, October 27, 2022, 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 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, 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 Loss | |||||||||
| (unaudited; in thousands, except share data) | |||||||||
| Quarter Ended September 30, | |||||||||
| 2022 | 2021 | ||||||||
| Net premiums earned | $ | 206,122 | $ | 196,235 | |||||
| Investment income, net of expenses | 8,569 | 7,764 | |||||||
| Net investment losses | (2,358 | ) | (1,570 | ) | |||||
| Lease income | 92 | 108 | |||||||
| Installment payment fees | 414 | 569 | |||||||
| Total revenues | 212,839 | 203,106 | |||||||
| Net losses and loss expenses | 155,754 | 148,142 | |||||||
| Amortization of deferred acquisition costs | 35,513 | 31,778 | |||||||
| Other underwriting expenses | 33,412 | 30,102 | |||||||
| Policyholder dividends | 1,239 | 1,287 | |||||||
| Interest | 71 | 210 | |||||||
| Other expenses, net | 219 | 217 | |||||||
| Total expenses | 226,208 | 211,736 | |||||||
| Loss before income tax benefit | (13,369 | ) | (8,630 | ) | |||||
| Income tax benefit | (2,993 | ) | (1,918 | ) | |||||
| Net loss | $ | (10,376 | ) | $ | (6,712 | ) | |||
| Loss per common share: | |||||||||
| Class A - basic and diluted | $ | (0.33 | ) | $ | (0.22 | ) | |||
| Class B - basic and diluted | $ | (0.30 | ) | $ | (0.20 | ) | |||
| Supplementary Financial Analysts' Data | |||||||||
| Weighted-average number of shares | |||||||||
| outstanding: | |||||||||
| Class A - basic | 26,781,374 | 25,676,313 | |||||||
| Class A - diluted | 26,974,506 | 25,831,343 | |||||||
| Class B - basic and diluted | 5,576,775 | 5,576,775 | |||||||
| Net premiums written | $ | 206,229 | $ | 197,015 | |||||
| Book value per common share at end of period | $ | 14.85 | $ | 17.21 | |||||
| Donegal Group Inc. | |||||||
| Consolidated Statements of (Loss) Income | |||||||
| (unaudited; in thousands, except share data) | |||||||
| Nine Months Ended September 30, | |||||||
| 2022 | 2021 | ||||||
| Net premiums earned | $ | 609,499 | $ | 575,975 | |||
| Investment income, net of expenses | 24,631 | 22,926 | |||||
| Net investment (losses) gains | (10,811 | ) | 5,140 | ||||
| Lease income | 295 | 324 | |||||
| Installment payment fees | 1,162 | 1,857 | |||||
| Total revenues | 624,776 | 606,222 | |||||
| Net losses and loss expenses | 415,246 | 381,319 | |||||
| Amortization of deferred acquisition costs | 104,867 | 95,060 | |||||
| Other underwriting expenses | 106,753 | 100,113 | |||||
| Policyholder dividends | 4,177 | 4,211 | |||||
| Interest | 464 | 739 | |||||
| Other expenses, net | 991 | 962 | |||||
| Total expenses | 632,498 | 582,404 | |||||
| (Loss) income before income tax (benefit) expense | (7,722 | ) | 23,818 | ||||
| Income tax (benefit) expense | (2,283 | ) | 3,836 | ||||
| Net (loss) income | $ | (5,439 | ) | $ | 19,982 | ||
| Net (loss) income per common share: | |||||||
| Class A - basic and diluted | $ | (0.17 | ) | $ | 0.66 | ||
| Class B - basic and diluted | $ | (0.16 | ) | $ | 0.59 | ||
| Supplementary Financial Analysts' Data | |||||||
| Weighted-average number of shares outstanding: | |||||||
| Class A - basic | 26,216,215 | 25,265,448 | |||||
| Class A - diluted | 26,362,723 | 25,443,911 | |||||
| Class B - basic and diluted | 5,576,775 | 5,576,775 | |||||
| Net premiums written | $ | 643,117 | $ | 622,482 | |||
| Book value per common share at end of period | $ | 14.85 | $ | 17.21 | |||
| Donegal Group Inc. | |||||||||
| Consolidated Balance Sheets | |||||||||
| (in thousands) | |||||||||
| September 30, | December 31, | ||||||||
| 2022 | 2021 | ||||||||
| (unaudited) | |||||||||
| ASSETS | |||||||||
| Investments: | |||||||||
| Fixed maturities: | |||||||||
| Held to maturity, at amortized cost | $ | 696,392 | $ | 668,105 | |||||
| Available for sale, at fair value | 500,896 | 532,629 | |||||||
| Equity securities, at fair value | 46,776 | 63,420 | |||||||
| Short-term investments, at cost | 36,660 | 12,692 | |||||||
| Total investments | 1,280,724 | 1,276,846 | |||||||
| Cash | 26,661 | 57,709 | |||||||
| Premiums receivable | 181,745 | 168,863 | |||||||
| Reinsurance receivable | 451,847 | 455,411 | |||||||
| Deferred policy acquisition costs | 74,384 | 68,028 | |||||||
| Prepaid reinsurance premiums | 165,713 | 176,936 | |||||||
| Receivable from Michigan Catastrophic Claims Association | - | 18,113 | |||||||
| Other assets | 55,778 | 33,269 | |||||||
| Total assets | $ | 2,236,852 | $ | 2,255,175 | |||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||||
| Liabilities: | |||||||||
| Losses and loss expenses | $ | 1,108,126 | $ | 1,077,620 | |||||
| Unearned premiums | 595,353 | 572,958 | |||||||
| Accrued expenses | 4,311 | 4,029 | |||||||
| Borrowings under lines of credit | 35,000 | 35,000 | |||||||
| Cash refunds due to Michigan policyholders | - | 18,113 | |||||||
| Other liabilities | 12,859 | 16,419 | |||||||
| Total liabilities | 1,755,649 | 1,724,139 | |||||||
| Stockholders' equity: | |||||||||
| Class A common stock | 298 | 288 | |||||||
| Class B common stock | 56 | 56 | |||||||
| Additional paid-in capital | 321,364 | 304,889 | |||||||
| Accumulated other comprehensive (loss) income | (46,971 | ) | 3,284 | ||||||
| Retained earnings | 247,682 | 263,745 | |||||||
| Treasury stock | (41,226 | ) | (41,226 | ) | |||||
| Total stockholders' equity | 481,203 | 531,036 | |||||||
| Total liabilities and stockholders' equity | $ | 2,236,852 | $ | 2,255,175 | |||||
FAQ
What were Donegal Group's financial results for Q3 2022?
How did Donegal Group's net loss compare to Q3 2021?
What is the current book value per share for Donegal Group?
What is the combined ratio for Donegal Group in Q3 2022?
How much did Donegal Group increase its premiums written in Q3 2022?
