Donegal Group Inc. Announces Third Quarter and First Nine Months of 2024 Results
Donegal Group Inc. (DGICA) reported strong financial results for Q3 2024, with net income of $16.8 million ($0.51 per diluted Class A share), compared to a net loss in Q3 2023. The company achieved a 6.0% increase in net premiums earned to $238.0 million and improved its combined ratio to 96.4% from 104.5%. Key highlights include a 6.4% growth in commercial lines and 5.4% growth in personal lines net premiums written. Despite higher-than-average weather-related losses from Hurricane Helene, core loss ratios improved across all major business lines, reflecting successful underwriting initiatives and rate increases.
Donegal Group Inc. (DGICA) ha riportato risultati finanziari solidi per il terzo trimestre del 2024, con un utile netto di 16,8 milioni di dollari (0,51 dollari per azione di Classe A diluita), rispetto a una perdita netta nel terzo trimestre del 2023. L'azienda ha registrato un aumento del 6,0% dei premi netti guadagnati, raggiungendo 238,0 milioni di dollari, e ha migliorato il proprio rapporto combinato al 96,4% rispetto al 104,5% dell'anno precedente. Tra i principali risultati si segnalano una crescita del 6,4% nelle linee commerciali e una crescita del 5,4% nelle linee personali dei premi netti scritti. Nonostante le perdite legate al maltempo superiori alla media causate dall'uragano Helene, i rapporti di perdita core sono migliorati in tutte le principali linee di business, riflettendo iniziative di sottoscrizione di successo e aumenti di prezzo.
Donegal Group Inc. (DGICA) reportó resultados financieros sólidos para el tercer trimestre de 2024, con un ingreso neto de 16.8 millones de dólares (0.51 dólares por acción diluida de Clase A), en comparación con una pérdida neta en el tercer trimestre de 2023. La compañía logró un aumento del 6.0% en las primas netas ganadas, alcanzando 238.0 millones de dólares, y mejoró su ratio combinado a 96.4% desde 104.5%. Los puntos más destacados incluyen un crecimiento del 6.4% en líneas comerciales y un crecimiento del 5.4% en líneas personales de primas netas escritas. A pesar de las pérdidas relacionadas con el clima por el Huracán Helene, los ratios de pérdida central mejoraron en todas las principales líneas de negocio, reflejando iniciativas de suscripción exitosas y aumentos de tarifas.
돈갈 그룹 주식회사 (DGICA)는 2024년 3분기 강력한 재무 결과를 발표했습니다. 순이익 1,680만 달러 (희석된 A 클래스 주식당 0.51달러)를 기록하며 2023년 3분기의 순손실과 비교됩니다. 회사는 순보험료 수익이 6.0% 증가하여 2억 3,800만 달러에 도달했으며, 결합 비율을 104.5%에서 96.4%로 개선했습니다. 주요 하이라이트로는 상업라인에서 6.4% 성장과 개인라인에서 5.4% 성장한 순보험료가 있습니다. 헬렌 허리케인으로 인한 기상 관련 손실이 평균보다 높았음에도 불구하고, 모든 주요 사업 부문에서 핵심 손실 비율이 개선되어 성공적인 인수 심사 및 요율 인상을 반영했습니다.
Donegal Group Inc. (DGICA) a rapporté de solides résultats financiers pour le troisième trimestre 2024, avec un revenu net de 16,8 millions de dollars (0,51 dollar par action ordinaire diluée de Classe A), par rapport à une perte nette au troisième trimestre 2023. L'entreprise a enregistré une augmentation de 6,0 % des primes nettes gagnées, atteignant 238,0 millions de dollars, et a amélioré son ratio combiné à 96,4 % par rapport à 104,5 %. Parmi les principaux points forts, on note une croissance de 6,4 % dans les lignes commerciales et une croissance de 5,4 % dans les lignes personnelles des primes nettes souscrites. Malgré des pertes liées aux intempéries supérieures à la moyenne en raison de l'ouragan Helene, les ratios de perte de base se sont améliorés dans toutes les principales lignes d'activité, reflétant des initiatives de souscription réussies et des hausses de tarifs.
Donegal Group Inc. (DGICA) berichtete über starke Finanzergebnisse für das 3. Quartal 2024 mit einem Nettoergebnis von 16,8 Millionen US-Dollar (0,51 US-Dollar pro verwässerter Klasse A-Aktie), im Vergleich zu einem Nettoverlust im 3. Quartal 2023. Das Unternehmen verzeichnete einen Wachstum von 6,0% bei den verdienten Netto-Prämien, die 238,0 Millionen US-Dollar erreichten, und verbesserte sein kombinierter Verhältnis von 104,5% auf 96,4%. Zu den wichtigsten Höhepunkten gehören ein Wachstum von 6,4% in den gewerblichen Linien und ein Wachstum von 5,4% in den privaten Linien der geschriebenen Netto-Prämien. Trotz überdurchschnittlicher wetterbedingter Verluste durch den Hurrikan Helene verbesserten sich die Kernverlustquoten in allen wichtigen Geschäftsbereichen, was auf erfolgreiche Underwriting-Initiativen und Preissteigerungen zurückzuführen ist.
- Net income increased to $16.8 million vs net loss of $0.8 million in Q3 2023
- Combined ratio improved to 96.4% from 104.5% year-over-year
- Net premiums earned increased 6.0% to $238.0 million
- Commercial lines net premiums written grew 6.4%
- Personal lines net premiums written increased 5.4%
- Book value per share increased to $15.22 from $14.26
- Higher-than-average weather-related losses of $24.4 million, including $6.0 million from Hurricane Helene
- Expense ratio increased to 34.5% from 34.1%
- Workers' compensation premiums decreased 1.8%
Insights
Strong Q3 2024 results show significant operational improvements for Donegal Group. Net income increased to
Premium growth remains solid with net premiums written up
Investment performance strengthened with net investment income of
MARIETTA, Pa., Oct. 24, 2024 (GLOBE NEWSWIRE) -- Donegal Group Inc. (NASDAQ: DGICA) and (NASDAQ: DGICB) today reported its financial results for the third quarter and first nine months of 2024.
Significant Items for third quarter of 2024 (all comparisons to third quarter of 2023):
- Net income of
$16.8 million , or 51 cents per diluted Class A share, compared to net loss of$0.8 million , or 2 cents per Class A share - Net premiums earned increased
6.0% to$238.0 million - Net premiums written1 increased
5.9% to$232.2 million - Combined ratio of
96.4% , compared to104.5% - Net income included after-tax net investment gains of
$1.5 million , or 5 cents per diluted Class A share, compared to after-tax net investment losses of$1.0 million , or 3 cents per Class A share - Book value per share of
$15.22 at September 30, 2024, compared to$14.26
Financial Summary
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||
2024 | 2023 | % Change | 2024 | 2023 | % Change | ||||||||||||||||
(dollars in thousands, except per share amounts) | |||||||||||||||||||||
Income Statement Data | |||||||||||||||||||||
Net premiums earned | $ | 237,957 | $ | 224,393 | 6.0 | % | $ | 700,017 | $ | 655,886 | 6.7 | % | |||||||||
Investment income, net | 10,827 | 10,536 | 2.8 | 32,868 | 30,143 | 9.0 | |||||||||||||||
Net investment gains (losses) | 1,876 | (1,243 | ) | NM2 | 4,725 | 930 | 408.1 | ||||||||||||||
Total revenues | 251,738 | 233,928 | 7.6 | 739,651 | 687,870 | 7.5 | |||||||||||||||
Net income (loss) | 16,752 | (805 | ) | NM | 26,860 | 6,396 | 319.9 | ||||||||||||||
Non-GAAP operating income1 | 15,270 | 176 | NM | 23,127 | 5,661 | 308.5 | |||||||||||||||
Annualized return on average equity | 13.4 | % | -0.7 | % | 14.1 pts | 7.2 | % | 1.8 | % | 5.4 pts | |||||||||||
Per Share Data | |||||||||||||||||||||
Net income (loss) – Class A (diluted) | $ | 0.51 | $ | (0.02 | ) | NM | $ | 0.81 | $ | 0.20 | 305.0 | % | |||||||||
Net income (loss) – Class B | 0.46 | (0.02 | ) | NM | 0.74 | 0.17 | 335.3 | ||||||||||||||
Non-GAAP operating income – Class A (diluted) | 0.46 | 0.01 | NM | 0.70 | 0.17 | 311.8 | |||||||||||||||
Non-GAAP operating income – Class B | 0.42 | - | NM | 0.63 | 0.15 | 320.0 | |||||||||||||||
Book value | 15.22 | 14.26 | 6.7 | % | 15.22 | 14.26 | 6.7 | ||||||||||||||
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 are pleased that many of the strategic initiatives we implemented in recent years contributed to significant improvement in our financial results for the third quarter of 2024,” said Kevin G. Burke, President and Chief Executive Officer of Donegal Group Inc.
“With the exit from commercial lines markets in Georgia and Alabama essentially completed at the end of the second quarter of 2024, solid new business writings, rate achievement and retention levels led to a
“Despite higher-than-average weather-related losses during the quarter, primarily attributable to Hurricane Helene in late September, our combined ratio improved significantly to
Mr, Burke concluded, “We have growing confidence that the continuing execution of our strategies will deliver sustained excellent financial performance.”
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), 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 September 30, | Nine Months Ended September 30, | ||||||||||||||||
2024 | 2023 | % Change | 2024 | 2023 | % Change | ||||||||||||
(dollars in thousands) | |||||||||||||||||
Net Premiums Earned | |||||||||||||||||
Commercial lines | $ | 136,401 | $ | 135,432 | 0.7 | % | $ | 402,982 | $ | 399,427 | 0.9 | % | |||||
Personal lines | 101,556 | 88,961 | 14.2 | 297,035 | 256,460 | 15.8 | |||||||||||
Total net premiums earned | $ | 237,957 | $ | 224,393 | 6.0 | % | $ | 700,017 | $ | 655,887 | 6.7 | % | |||||
Net Premiums Written | |||||||||||||||||
Commercial lines: | |||||||||||||||||
Automobile | $ | 41,464 | $ | 37,535 | 10.5 | % | $ | 142,067 | $ | 134,853 | 5.3 | % | |||||
Workers' compensation | 23,934 | 24,371 | -1.8 | 82,599 | 85,315 | -3.2 | |||||||||||
Commercial multi-peril | 50,155 | 44,949 | 11.6 | 163,528 | 147,622 | 10.8 | |||||||||||
Other | 10,548 | 11,639 | -9.4 | 35,649 | 39,913 | -10.7 | |||||||||||
Total commercial lines | 126,101 | 118,494 | 6.4 | 423,843 | 407,703 | 4.0 | |||||||||||
Personal lines: | |||||||||||||||||
Automobile | 65,150 | 58,038 | 12.3 | 188,958 | 161,348 | 17.1 | |||||||||||
Homeowners | 38,288 | 39,633 | -3.4 | 109,655 | 105,035 | 4.4 | |||||||||||
Other | 2,669 | 3,021 | -11.7 | 8,383 | 8,917 | -6.0 | |||||||||||
Total personal lines | 106,107 | 100,692 | 5.4 | 306,996 | 275,300 | 11.5 | |||||||||||
Total net premiums written | $ | 232,208 | $ | 219,186 | 5.9 | % | $ | 730,839 | $ | 683,003 | 7.0 | % | |||||
Net Premiums Written
The
- Commercial Lines:
$7.6 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 in which we are executing ongoing profit improvement initiatives as part of our state-specific strategies. - Personal Lines:
$5.4 million increase that we attribute primarily to a continuation of renewal premium rate increases and strong policy retention, offset partially by planned attrition due to non-renewal actions.
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, 2024 and 2023:
Three Months Ended | Nine Months Ended | ||||||||||
September 30, | September 30, | ||||||||||
2024 | 2023 | 2024 | 2023 | ||||||||
GAAP Combined Ratios (Total Lines) | |||||||||||
Loss ratio - core losses | 50.1 | % | 56.7 | % | 54.5 | % | 56.0 | % | |||
Loss ratio - weather-related losses | 10.3 | 11.5 | 8.6 | 9.1 | |||||||
Loss ratio - large fire losses | 3.7 | 4.9 | 5.2 | 5.3 | |||||||
Loss ratio - net prior-year reserve development | -2.6 | -3.3 | -2.2 | -2.4 | |||||||
Loss ratio | 61.5 | 69.8 | 66.1 | 68.0 | |||||||
Expense ratio | 34.5 | 34.1 | 34.0 | 34.9 | |||||||
Dividend ratio | 0.4 | 0.6 | 0.5 | 0.6 | |||||||
Combined ratio | 96.4 | % | 104.5 | % | 100.6 | % | 103.5 | % | |||
Statutory Combined Ratios | |||||||||||
Commercial lines: | |||||||||||
Automobile | 101.5 | % | 86.5 | % | 98.2 | % | 94.8 | % | |||
Workers' compensation | 84.7 | 97.7 | 104.1 | 93.1 | |||||||
Commercial multi-peril | 88.4 | 114.8 | 100.4 | 113.8 | |||||||
Other | 59.4 | 76.2 | 78.4 | 82.7 | |||||||
Total commercial lines | 89.8 | 97.5 | 98.6 | 100.2 | |||||||
Personal lines: | |||||||||||
Automobile | 97.8 | 109.8 | 97.8 | 106.1 | |||||||
Homeowners | 116.8 | 128.9 | 107.5 | 111.2 | |||||||
Other | 102.2 | 46.4 | 97.2 | 81.3 | |||||||
Total personal lines | 104.7 | 119.4 | 101.2 | 107.2 | |||||||
Total lines | 96.0 | % | 105.2 | % | 99.7 | % | 102.9 | % | |||
Loss Ratio
For the third quarter of 2024, the loss ratio decreased to
Weather-related losses were
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, 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 | $ | 173,663 | 12.7 | % | $ | 176,991 | 13.3 | % | |||||
Obligations of states and political subdivisions | 413,040 | 30.1 | 415,280 | 31.3 | |||||||||
Corporate securities | 427,372 | 31.2 | 399,640 | 30.1 | |||||||||
Mortgage-backed securities | 304,911 | 22.3 | 278,260 | 21.0 | |||||||||
Allowance for expected credit losses | (1,483 | ) | -0.1 | (1,326 | ) | -0.1 | |||||||
Total fixed maturities | 1,317,503 | 96.2 | 1,268,845 | 95.6 | |||||||||
Equity securities, at fair value | 35,957 | 2.6 | 25,903 | 2.0 | |||||||||
Short-term investments, at cost | 15,805 | 1.2 | 32,306 | 2.4 | |||||||||
Total investments | $ | 1,369,265 | 100.0 | % | $ | 1,327,054 | 100.0 | % | |||||
Average investment yield | 3.3 | % | 3.1 | % | |||||||||
Average tax-equivalent investment yield | 3.3 | % | 3.2 | % | |||||||||
Average fixed-maturity duration (years) | 5.1 | 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 September 30, | Nine Months Ended September 30, | ||||||||||||||||||
2024 | 2023 | % Change | 2024 | 2023 | % Change | ||||||||||||||
(dollars in thousands) | |||||||||||||||||||
Reconciliation of Net Premiums | |||||||||||||||||||
Earned to Net Premiums Written | |||||||||||||||||||
Net premiums earned | $ | 237,957 | $ | 224,393 | 6.0 | % | $ | 700,017 | $ | 655,886 | 6.7 | % | |||||||
Change in net unearned premiums | (5,749 | ) | (5,207 | ) | 10.4 | 30,822 | 27,117 | 13.7 | |||||||||||
Net premiums written | $ | 232,208 | $ | 219,186 | 5.9 | % | $ | 730,839 | $ | 683,003 | 7.0 | % | |||||||
The following table provides a reconciliation of net income (loss) to operating income for the periods indicated:
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||
2024 | 2023 | % Change | 2024 | 2023 | % Change | |||||||||||||||
(dollars in thousands, except per share amounts) | ||||||||||||||||||||
Reconciliation of Net Income (Loss) | ||||||||||||||||||||
to Non-GAAP Operating Income | ||||||||||||||||||||
Net income (loss) | $ | 16,752 | $ | (805 | ) | NM | $ | 26,860 | $ | 6,396 | 319.9 | % | ||||||||
Investment (gains) losses (after tax) | (1,482 | ) | 981 | NM | (3,733 | ) | (735 | ) | 407.9 | |||||||||||
Non-GAAP operating income | $ | 15,270 | $ | 176 | NM | $ | 23,127 | $ | 5,661 | 308.5 | % | |||||||||
Per Share Reconciliation of Net Income (Loss) | ||||||||||||||||||||
to Non-GAAP Operating Income | ||||||||||||||||||||
Net income (loss) – Class A (diluted) | $ | 0.51 | $ | (0.02 | ) | NM | $ | 0.81 | $ | 0.20 | 305.0 | % | ||||||||
Investment (gains) losses (after tax) | (0.05 | ) | 0.03 | NM | (0.11 | ) | (0.03 | ) | 266.7 | |||||||||||
Non-GAAP operating income – Class A | $ | 0.46 | $ | 0.01 | NM | $ | 0.70 | $ | 0.17 | 311.8 | % | |||||||||
Net income (loss) – Class B | $ | 0.46 | $ | (0.02 | ) | NM | $ | 0.74 | $ | 0.17 | 335.3 | % | ||||||||
Investment (gains) losses (after tax) | (0.04 | ) | 0.02 | NM | (0.11 | ) | (0.02 | ) | 450.0 | |||||||||||
Non-GAAP operating income – Class B | $ | 0.42 | $ | - | NM | $ | 0.63 | $ | 0.15 | 320.0 | % | |||||||||
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 17, 2024, we declared a regular quarterly cash dividend of
Pre-Recorded Webcast
At approximately 8:30 am ET on Thursday, October 24, 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, 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 (Loss) | ||||||||
(unaudited; in thousands, except share data) | ||||||||
Quarter Ended September 30, | ||||||||
2024 | 2023 | |||||||
Net premiums earned | $ | 237,957 | $ | 224,393 | ||||
Investment income, net of expenses | 10,827 | 10,536 | ||||||
Net investment gains (losses) | 1,876 | (1,243 | ) | |||||
Lease income | 77 | 86 | ||||||
Installment payment fees | 1,001 | 156 | ||||||
Total revenues | 251,738 | 233,928 | ||||||
Net losses and loss expenses | 146,426 | 156,683 | ||||||
Amortization of deferred acquisition costs | 40,200 | 39,332 | ||||||
Other underwriting expenses | 41,827 | 37,155 | ||||||
Policyholder dividends | 1,007 | 1,399 | ||||||
Interest | 367 | 156 | ||||||
Other expenses, net | 1,499 | 208 | ||||||
Total expenses | 231,326 | 234,933 | ||||||
Income (loss) before income tax expense (benefit) | 20,412 | (1,005 | ) | |||||
Income tax expense (benefit) | 3,660 | (200 | ) | |||||
Net income (loss) | $ | 16,752 | $ | (805 | ) | |||
Net income (loss) per common share: | ||||||||
Class A - basic and diluted | $ | 0.51 | $ | (0.02 | ) | |||
Class B - basic and diluted | $ | 0.46 | $ | (0.02 | ) | |||
Supplementary Financial Analysts' Data | ||||||||
Weighted-average number of shares | ||||||||
outstanding: | ||||||||
Class A - basic | 27,978,435 | 27,594,973 | ||||||
Class A - diluted | 28,058,399 | 27,665,293 | ||||||
Class B - basic and diluted | 5,576,775 | 5,576,775 | ||||||
Net premiums written | $ | 232,208 | $ | 219,186 | ||||
Book value per common share | ||||||||
at end of period | $ | 15.22 | $ | 14.26 | ||||
Donegal Group Inc. | |||||||
Consolidated Statements of Income | |||||||
(unaudited; in thousands, except share data) | |||||||
Nine Months Ended September 30, | |||||||
2024 | 2023 | ||||||
Net premiums earned | $ | 700,017 | $ | 655,886 | |||
Investment income, net of expenses | 32,868 | 30,143 | |||||
Net investment gains | 4,725 | 930 | |||||
Lease income | 237 | 262 | |||||
Installment payment fees | 1,804 | 649 | |||||
Total revenues | 739,651 | 687,870 | |||||
Net losses and loss expenses | 462,683 | 446,024 | |||||
Amortization of deferred acquisition costs | 120,458 | 115,065 | |||||
Other underwriting expenses | 117,604 | 113,715 | |||||
Policyholder dividends | 3,248 | 4,088 | |||||
Interest | 677 | 464 | |||||
Other expenses, net | 2,309 | 969 | |||||
Total expenses | 706,979 | 680,325 | |||||
Income before income tax expense | 32,672 | 7,545 | |||||
Income tax expense | 5,812 | 1,149 | |||||
Net income | $ | 26,860 | $ | 6,396 | |||
Net income per common share: | |||||||
Class A - basic | $ | 0.82 | $ | 0.20 | |||
Class A - diluted | $ | 0.81 | $ | 0.20 | |||
Class B - basic and diluted | $ | 0.74 | $ | 0.17 | |||
Supplementary Financial Analysts' Data | |||||||
Weighted-average number of shares outstanding: | |||||||
Class A - basic | 27,878,552 | 27,390,883 | |||||
Class A - diluted | 27,916,904 | 27,507,706 | |||||
Class B - basic and diluted | 5,576,775 | 5,576,775 | |||||
Net premiums written | $ | 730,839 | $ | 683,003 | |||
Book value per common share | |||||||
at end of period | $ | 15.22 | $ | 14.26 |
Donegal Group Inc. | |||||||||
Consolidated Balance Sheets | |||||||||
(in thousands) | |||||||||
September 30, | December 31, | ||||||||
2024 | 2023 | ||||||||
(unaudited) | |||||||||
ASSETS | |||||||||
Investments: | |||||||||
Fixed maturities: | |||||||||
Held to maturity, at amortized cost | $ | 694,663 | $ | 679,497 | |||||
Available for sale, at fair value | 622,840 | 589,348 | |||||||
Equity securities, at fair value | 35,957 | 25,903 | |||||||
Short-term investments, at cost | 15,805 | 32,306 | |||||||
Total investments | 1,369,265 | 1,327,054 | |||||||
Cash | 28,651 | 23,792 | |||||||
Premiums receivable | 194,254 | 179,592 | |||||||
Reinsurance receivable | 434,078 | 441,431 | |||||||
Deferred policy acquisition costs | 78,484 | 75,043 | |||||||
Prepaid reinsurance premiums | 185,364 | 168,724 | |||||||
Other assets | 56,030 | 50,658 | |||||||
Total assets | $ | 2,346,126 | $ | 2,266,294 | |||||
LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||||
Liabilities: | |||||||||
Losses and loss expenses | $ | 1,134,853 | $ | 1,126,157 | |||||
Unearned premiums | 646,870 | 599,411 | |||||||
Accrued expenses | 2,987 | 3,947 | |||||||
Borrowings under lines of credit | 35,000 | 35,000 | |||||||
Other liabilities | 13,046 | 22,034 | |||||||
Total liabilities | 1,832,756 | 1,786,549 | |||||||
Stockholders' equity: | |||||||||
Class A common stock | 312 | 308 | |||||||
Class B common stock | 56 | 56 | |||||||
Additional paid-in capital | 342,186 | 335,694 | |||||||
Accumulated other comprehensive loss | (20,951 | ) | (32,882 | ) | |||||
Retained earnings | 232,993 | 217,795 | |||||||
Treasury stock | (41,226 | ) | (41,226 | ) | |||||
Total stockholders' equity | 513,370 | 479,745 | |||||||
Total liabilities and stockholders' equity | $ | 2,346,126 | $ | 2,266,294 | |||||
FAQ
What was Donegal Group's (DGICA) net income in Q3 2024?
How much did DGICA's net premiums earned increase in Q3 2024?
What was DGICA's combined ratio in Q3 2024?