Donegal Group Inc. Announces Fourth Quarter and Full Year 2024 Results
Rhea-AI Summary
Donegal Group Inc. (NASDAQ:DGICA) reported strong financial results for Q4 and full year 2024. In Q4, net premiums earned increased 4.6% to $236.6 million, with a combined ratio of 92.9% compared to 106.8% in Q4 2023. Net income reached $24.0 million ($0.70 per diluted Class A share), versus a net loss of $2.0 million in Q4 2023.
For full year 2024, net premiums earned grew 6.2% to $936.7 million, with a combined ratio of 98.6% versus 104.4% in 2023. Annual net income was $50.9 million ($1.53 per diluted Class A share), up from $4.4 million in 2023. Book value per share increased to $15.36 from $14.39 at year-end 2023.
The company's loss ratio improved significantly in Q4 2024 to 59.8% from 72.1% in Q4 2023, while weather-related losses decreased to $7.7 million from $13.4 million year-over-year. Net investment income grew 12.5% to $12.1 million in Q4 2024.
Positive
- Net income increased significantly to $24.0M in Q4 2024 from -$2.0M in Q4 2023
- Combined ratio improved to 92.9% from 106.8% year-over-year in Q4
- Net premiums earned grew 6.2% to $936.7M for full year 2024
- Book value per share increased to $15.36 from $14.39
- Net investment income rose 12.5% to $12.1M in Q4 2024
- Loss ratio improved to 59.8% from 72.1% in Q4 2023
- Weather-related losses decreased to $7.7M from $13.4M in Q4
Negative
- Commercial lines net premiums written decreased in targeted business classes
- Personal lines net premiums written declined 5.0% in Q4 2024
- Overall net premiums written decreased 0.6% in Q4 2024
Insights
Donegal Group's Q4 2024 results reveal a remarkable turnaround in profitability, with several key metrics suggesting sustainable operational improvements. The combined ratio of 92.9% represents a dramatic 13.9 percentage point improvement, placing it well within the profitable underwriting territory and significantly better than industry averages.
The core loss ratio improvement to 52.3% from 61.8% is particularly noteworthy as it excludes weather-related losses and prior year development, indicating fundamental improvements in underwriting quality. This enhancement stems from strategic initiatives including:
- Targeted premium rate increases across most lines
- Reduced exposure in underperforming markets
- Enhanced risk selection in commercial middle market
- Disciplined personal lines portfolio management
The expense ratio reduction to 32.8% demonstrates effective cost management despite significant technology investments. The systems modernization project, while currently adding approximately 1.3 percentage points to the expense ratio, positions the company for improved operational efficiency in future years.
The investment portfolio strategy remains conservative with 95.6% allocated to high-quality fixed-maturity securities, while achieving a 12.5% increase in investment income. This balanced approach provides stable income while maintaining strong liquidity.
Book value per share growth to
MARIETTA, Pa., Feb. 20, 2025 (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, 2024.
Significant items for fourth quarter of 2024 (all comparisons to fourth quarter of 2023):
- Net premiums earned increased
4.6% to$236.6 million - Combined ratio of
92.9% , compared to106.8% - Net income of
$24.0 million , or 70 cents per diluted Class A share, compared to net loss of$2.0 million , or 6 cents per Class A share - Net investment gains (after tax) of
$0.2 million , or 1 cent per diluted Class A share, compared to$1.8 million , or 5 cents per Class A share, are included in net income (loss)
Significant items for full year of 2024 (all comparisons to full year of 2023):
- Net premiums earned increased
6.2% to$936.7 million - Combined ratio of
98.6% , compared to104.4% - Net income of
$50.9 million , or$1.53 per diluted Class A share, compared to$4.4 million , or 14 cents per diluted Class A share - Net investment gains (after tax) of
$3.9 million , or 12 cents per diluted Class A share, compared to$2.5 million , or 8 cents per diluted Class A share, are included in net income - Book value per share of
$15.36 at December 31, 2024, compared to$14.39 at year-end 2023
Financial Summary
| Three Months Ended December 31, | Year Ended December 31, | ||||||||||||||||
| 2024 | 2023 | % Change | 2024 | 2023 | % Change | ||||||||||||
| (dollars in thousands, except per share amounts) | |||||||||||||||||
| Income Statement Data | |||||||||||||||||
| Net premiums earned | $ | 236,635 | $ | 226,185 | 4.6 | % | $ | 936,651 | $ | 882,071 | 6.2 | % | |||||
| Investment income, net | 12,050 | 10,710 | 12.5 | 44,918 | 40,853 | 10.0 | |||||||||||
| Net investment gains | 256 | 2,243 | -88.6 | 4,981 | 3,173 | 57.0 | |||||||||||
| Total revenues | 249,954 | 239,468 | 4.4 | 989,605 | 927,338 | 6.7 | |||||||||||
| Net income (loss) | 24,003 | (1,970) | NM2 | 50,862 | 4,426 | NM | |||||||||||
| Non-GAAP operating income (loss)1 | 23,801 | (3,742) | NM | 46,927 | 1,919 | NM | |||||||||||
| Annualized return on average equity | - | 19.8 pts | 9.0 pts | ||||||||||||||
| Per Share Data | |||||||||||||||||
| Net income (loss) – Class A (diluted) | $ | 0.70 | $ | (0.06) | NM | $ | 1.53 | $ | 0.14 | NM | |||||||
| Net income (loss) – Class B | 0.64 | (0.06) | NM | 1.38 | 0.11 | NM | |||||||||||
| Non-GAAP operating income (loss) – Class A (diluted) | 0.69 | (0.11) | NM | 1.41 | 0.06 | NM | |||||||||||
| Non-GAAP operating income (loss) – Class B | 0.63 | (0.11) | NM | 1.27 | 0.04 | NM | |||||||||||
| Book value | 15.36 | 14.39 | 6.7 | % | 15.36 | 14.39 | 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
Kevin G. Burke, President and Chief Executive Officer of Donegal Group Inc., stated, “We concluded 2024 with strong performance in the fourth quarter that we believe reflected our unrelenting focus in recent years on execution, whether on strategic initiatives to broaden our market capabilities or on profit-improvement measures to enhance our operating performance. As we move into 2025, we are striving to further enhance our performance while also pursuing intentional, strategic premium growth.
“For the fourth quarter of 2024, our loss ratio improved substantially compared to the prior-year quarter, as premium rate increases contributed to higher net premiums earned and numerous underwriting initiatives we implemented in recent years resulted in lower claim activity. Our weather-related loss ratio compared favorably to both the prior-year quarter and our previous five-year average for the fourth quarter of the year. Net development of reserves for claims incurred in prior years had virtually no effect on the loss ratio for the fourth quarter of 2024 or 2023.
“We effectively mitigated the higher costs associated with our major systems modernization project and higher underwriting-based incentive costs by implementing targeted expense-reduction strategies across our operations. We remain committed to refining the efficiency of our insurance operations, leveraging our substantial investments in technology, data and analytics, to maintain a sustainable expense ratio.”
Mr. Burke concluded, “As the insurance industry landscape continues to evolve, our dedicated team will maintain focus on the effective execution of the strategies we believe will lead to successful achievement of our long-term objectives. We will continue to implement premium rate increases as needed to maintain rate adequacy and achieve targeted risk-adjusted returns. We are also actively pursuing new business opportunities across our regional footprint, concentrating primarily on high quality new commercial middle market and small business accounts, while also seeking strategic new business growth within our personal lines segment. We have refined our state-specific strategies and action plans to meet current market challenges and opportunities. We believe that the successful execution of those actions will allow us to further enhance underwriting performance, drive sustainable measured growth and strengthen our competitive position with our independent agents, ultimately increasing the value of our stockholders’ investment in Donegal Group Inc.”
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 December 31, | Year Ended December 31, | ||||||||||||||||
| 2024 | 2023 | % Change | 2024 | 2023 | % Change | ||||||||||||
| (dollars in thousands) | |||||||||||||||||
| Net Premiums Earned | |||||||||||||||||
| Commercial lines | $ | 136,701 | $ | 133,602 | 2.3 | % | $ | 539,683 | $ | 533,029 | 1.2 | % | |||||
| Personal lines | 99,934 | 92,583 | 7.9 | 396,968 | 349,042 | 13.7 | |||||||||||
| Total net premiums earned | $ | 236,635 | $ | 226,185 | 4.6 | % | $ | 936,651 | $ | 882,071 | 6.2 | % | |||||
| Net Premiums Written | |||||||||||||||||
| Commercial lines: | |||||||||||||||||
| Automobile | $ | 42,922 | $ | 39,888 | 7.6 | % | $ | 184,989 | $ | 174,741 | 5.9 | % | |||||
| Workers' compensation | 20,934 | 22,283 | -6.1 | 103,533 | 107,598 | -3.8 | |||||||||||
| Commercial multi-peril | 50,431 | 48,010 | 5.0 | 213,959 | 195,632 | 9.4 | |||||||||||
| Other | 9,790 | 10,544 | -7.2 | 45,439 | 50,458 | -9.9 | |||||||||||
| Total commercial lines | 124,077 | 120,725 | 2.8 | 547,920 | 528,429 | 3.7 | |||||||||||
| Personal lines: | |||||||||||||||||
| Automobile | 54,078 | 54,609 | -1.0 | 243,036 | 215,957 | 12.5 | |||||||||||
| Homeowners | 30,958 | 34,653 | -10.7 | 140,613 | 139,688 | 0.7 | |||||||||||
| Other | 2,329 | 2,706 | -13.9 | 10,712 | 11,623 | -7.8 | |||||||||||
| Total personal lines | 87,365 | 91,968 | -5.0 | 394,361 | 367,268 | 7.4 | |||||||||||
| Total net premiums written | $ | 211,442 | $ | 212,693 | - | $ | 942,281 | $ | 895,697 | 5.2 | % | ||||||
Net Premiums Written
The
- Commercial Lines:
$3.3 million increase that we attribute primarily to solid premium retention and a continuation of renewal premium increases in lines other than workers’ compensation, offset partially by planned attrition in classes of business we have targeted for profit improvement. - Personal Lines:
$4.6 million decrease that we attribute primarily to planned attrition due to non-renewal actions and lower new business writings, offset partially by a continuation of renewal premium rate increases and solid policy retention.
The
- Commercial Lines:
$19.5 million increase that we attribute primarily to strong premium retention and a continuation of renewal premium increases in lines other than workers’ compensation, offset partially by planned attrition in states we exited or classes of business we have targeted for profit improvement. - Personal Lines:
$27.1 million increase that we attribute primarily to a continuation of renewal premium rate increases and solid policy retention, offset partially by planned attrition due to non-renewal actions and lower new business writings.
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, 2024 and 2023:
| Three Months Ended | Year Ended | ||||||||||
| December 31, | December 31, | ||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||
| GAAP Combined Ratios (Total Lines) | |||||||||||
| Loss ratio - core losses | 52.3 | % | 61.8 | % | 54.0 | % | 57.5 | % | |||
| Loss ratio - weather-related losses | 3.3 | 5.9 | 7.2 | 8.3 | |||||||
| Loss ratio - large fire losses | 4.0 | 4.8 | 4.9 | 5.2 | |||||||
| Loss ratio - net prior-year reserve development | -0.2 | -0.4 | -1.6 | -1.9 | |||||||
| Loss ratio | 59.8 | 72.1 | 64.5 | 69.1 | |||||||
| Expense ratio | 32.8 | 34.1 | 33.7 | 34.7 | |||||||
| Dividend ratio | 0.3 | 0.6 | 0.4 | 0.6 | |||||||
| Combined ratio | 92.9 | % | 106.8 | % | 98.6 | % | 104.4 | % | |||
| Statutory Combined Ratios | |||||||||||
| Commercial lines: | |||||||||||
| Automobile | 115.7 | % | 104.8 | % | 102.6 | % | 97.3 | % | |||
| Workers' compensation | 105.6 | 107.9 | 104.4 | 96.6 | |||||||
| Commercial multi-peril | 79.4 | 107.8 | 95.0 | 112.3 | |||||||
| Other | 84.7 | 95.0 | 80.0 | 85.5 | |||||||
| Total commercial lines | 97.3 | 105.8 | 98.2 | 101.6 | |||||||
| Personal lines: | |||||||||||
| Automobile | 96.5 | 119.7 | 97.4 | 109.7 | |||||||
| Homeowners | 76.2 | 101.3 | 99.6 | 108.6 | |||||||
| Other | 106.3 | 59.2 | 99.5 | 75.8 | |||||||
| Total personal lines | 89.5 | 111.1 | 98.3 | 108.2 | |||||||
| Total lines | 94.0 | % | 107.8 | % | 98.3 | % | 104.2 | % | |||
Loss Ratio – Fourth Quarter
For the fourth quarter of 2024, the loss ratio decreased to
Weather-related losses of
Large fire losses, which we define as individual fire losses in excess of
Net development of reserves for losses incurred in prior accident years had virtually no impact to the loss ratio for the fourth quarter of 2024 or 2023. For the fourth quarter of 2024, our insurance subsidiaries experienced unfavorable development primarily in personal automobile and commercial automobile losses that was offset by favorable development in commercial multi-peril losses and other lines of business. For the fourth quarter of 2023, our insurance subsidiaries experienced favorable development in personal automobile, workers’ compensation, homeowners and commercial automobile losses, offset partially by unfavorable development in commercial multi-peril and other commercial losses.
Loss Ratio – Full Year
For the full year of 2024, the loss ratio decreased to
Weather-related losses for the full year of 2024 were
Large fire losses were
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
| December 31, 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 | $ | 170,423 | 12.3 | % | $ | 176,991 | 13.3 | % | |||
| Obligations of states and political subdivisions | 409,560 | 29.5 | 415,280 | 31.3 | |||||||
| Corporate securities | 440,552 | 31.8 | 399,640 | 30.1 | |||||||
| Mortgage-backed securities | 304,459 | 22.0 | 278,260 | 21.0 | |||||||
| Allowance for expected credit losses | (1,388 | ) | -0.1 | (1,326 | ) | -0.1 | |||||
| Total fixed maturities | 1,323,606 | 95.5 | 1,268,845 | 95.6 | |||||||
| Equity securities, at fair value | 36,808 | 2.7 | 25,903 | 2.0 | |||||||
| Short-term investments, at cost | 24,558 | 1.8 | 32,306 | 2.4 | |||||||
| Total investments | $ | 1,384,972 | 100.0 | % | $ | 1,327,054 | 100.0 | % | |||
| Average investment yield | |||||||||||
| Average tax-equivalent investment yield | |||||||||||
| Average fixed-maturity duration (years) | 5.2 | 4.3 | |||||||||
Net investment income of
Net investment gains were minimal for the fourth quarter of 2024, compared to
Net investment gains 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, | ||||||||||||||||
| 2024 | 2023 | % Change | 2024 | 2023 | % Change | ||||||||||||
| (dollars in thousands) | |||||||||||||||||
| Reconciliation of Net Premiums | |||||||||||||||||
| Earned to Net Premiums Written | |||||||||||||||||
| Net premiums earned | $ | 236,635 | $ | 226,185 | 4.6 | % | $ | 936,651 | $ | 882,071 | 6.2 | % | |||||
| Change in net unearned premiums | (25,193 | ) | (13,492 | ) | 86.7 | 5,630 | 13,626 | -58.7 | |||||||||
| Net premiums written | $ | 211,442 | $ | 212,693 | -0.6 | % | $ | 942,281 | $ | 895,697 | 5.2 | % | |||||
The following table provides a reconciliation of net income (loss) to operating income (loss) for the periods indicated:
| Three Months Ended December 31, | Year Ended December 31, | |||||||||||||||||
| 2024 | 2023 | % Change | 2024 | 2023 | % Change | |||||||||||||
| (dollars in thousands, except per share amounts) | ||||||||||||||||||
| Reconciliation of Net Income (Loss) | ||||||||||||||||||
| to Non-GAAP Operating Income (Loss) | ||||||||||||||||||
| Net income (loss) | $ | 24,003 | $ | (1,970 | ) | NM | $ | 50,862 | $ | 4,426 | NM | |||||||
| Investment gains (after tax) | (202 | ) | (1,772 | ) | -88.6 | % | (3,935 | ) | (2,507 | ) | 57.0 | % | ||||||
| Non-GAAP operating income (loss) | $ | 23,801 | $ | (3,742 | ) | NM | $ | 46,927 | $ | 1,919 | NM | |||||||
| Per Share Reconciliation of Net Income (Loss) | ||||||||||||||||||
| to Non-GAAP Operating Income (Loss) | ||||||||||||||||||
| Net income (loss) – Class A (diluted) | $ | 0.70 | $ | (0.06 | ) | NM | $ | 1.53 | $ | 0.14 | NM | |||||||
| Investment gains (after tax) | (0.01 | ) | (0.05 | ) | -80.0 | % | (0.12 | ) | (0.08 | ) | 50.0 | % | ||||||
| Non-GAAP operating income (loss) – Class A | $ | 0.69 | $ | (0.11 | ) | NM | $ | 1.41 | $ | 0.06 | NM | |||||||
| Net income (loss) – Class B | $ | 0.64 | $ | (0.06 | ) | NM | $ | 1.38 | $ | 0.11 | NM | |||||||
| Investment gains (after tax) | (0.01 | ) | (0.05 | ) | -80.0 | % | (0.11 | ) | (0.07 | ) | 57.1 | % | ||||||
| Non-GAAP operating income (loss) – Class B | $ | 0.63 | $ | (0.11 | ) | NM | $ | 1.27 | $ | 0.04 | NM | |||||||
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, 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 December 19, 2024, we declared regular quarterly cash dividends of
Pre-Recorded Webcast
At approximately 8:30 am EDT on Thursday, February 20, 2025, we will make available in the Investors section of our website a pre-recorded audio webcast featuring management commentary on our quarterly and annual 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 providing superior experiences to our agents, policyholders and employees.
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 December 31, | ||||||
| 2024 | 2023 | |||||
| Net premiums earned | $ | 236,635 | $ | 226,185 | ||
| Investment income, net of expenses | 12,050 | 10,710 | ||||
| Net investment gains | 256 | 2,243 | ||||
| Lease income | 77 | 85 | ||||
| Installment payment fees | 936 | 245 | ||||
| Total revenues | 249,954 | 239,468 | ||||
| Net losses and loss expenses | 141,435 | 163,154 | ||||
| Amortization of deferred acquisition costs | 39,853 | 39,149 | ||||
| Other underwriting expenses | 37,649 | 38,032 | ||||
| Policyholder dividends | 826 | 1,225 | ||||
| Interest | 269 | 156 | ||||
| Other expenses, net | 255 | 233 | ||||
| Total expenses | 220,287 | 241,949 | ||||
| Income (loss) before income tax expense (benefit) | 29,667 | (2,481 | ) | |||
| Income tax expense (benefit) | 5,664 | (511 | ) | |||
| Net income (loss) | $ | 24,003 | $ | (1,970 | ) | |
| Net income (loss) per common share: | ||||||
| Class A - basic | $ | 0.71 | $ | (0.06 | ) | |
| Class A - diluted | $ | 0.70 | $ | (0.24 | ) | |
| Class B - basic and diluted | $ | 0.64 | $ | (0.06 | ) | |
| Supplementary Financial Analysts' Data | ||||||
| Weighted-average number of shares | ||||||
| outstanding: | ||||||
| Class A - basic | 28,979,432 | 27,702,646 | ||||
| Class A - diluted | 29,224,696 | 27,726,318 | ||||
| Class B - basic and diluted | 5,576,775 | 5,576,775 | ||||
| Net premiums written | $ | 211,442 | $ | 212,693 | ||
| Book value per common share | ||||||
| at end of period | $ | 15.36 | $ | 14.39 | ||
| Donegal Group Inc. | |||||
| Consolidated Statements of Income | |||||
| (unaudited; in thousands, except share data) | |||||
| Year Ended December 31, | |||||
| 2024 | 2023 | ||||
| Net premiums earned | $ | 936,651 | $ | 882,071 | |
| Investment income, net of expenses | 44,918 | 40,853 | |||
| Net investment gains | 4,981 | 3,173 | |||
| Lease income | 314 | 347 | |||
| Installment payment fees | 2,741 | 894 | |||
| Total revenues | 989,605 | 927,338 | |||
| Net losses and loss expenses | 604,118 | 609,178 | |||
| Amortization of deferred acquisition costs | 160,311 | 154,214 | |||
| Other underwriting expenses | 155,254 | 151,748 | |||
| Policyholder dividends | 4,073 | 5,313 | |||
| Interest | 946 | 620 | |||
| Other expenses, net | 2,564 | 1,201 | |||
| Total expenses | 927,266 | 922,274 | |||
| Income before income tax expense | 62,339 | 5,064 | |||
| Income tax expense | 11,477 | 638 | |||
| Net income | $ | 50,862 | $ | 4,426 | |
| Net income per common share: | |||||
| Class A - basic and diluted | $ | 1.53 | $ | 0.14 | |
| Class B - basic and diluted | $ | 1.38 | $ | 0.11 | |
| Supplementary Financial Analysts' Data | |||||
| Weighted-average number of shares | |||||
| outstanding: | |||||
| Class A - basic | 28,155,276 | 27,469,250 | |||
| Class A - diluted | 28,245,356 | 27,562,785 | |||
| Class B - basic and diluted | 5,576,775 | 5,576,775 | |||
| Net premiums written | $ | 942,281 | $ | 895,697 | |
| Book value per common share | |||||
| at end of period | $ | 15.36 | $ | 14.39 | |
| Donegal Group Inc. | |||||||
| Consolidated Balance Sheets | |||||||
| (in thousands) | |||||||
| December 31, | December 31, | ||||||
| 2024 | 2023 | ||||||
| (unaudited) | |||||||
| ASSETS | |||||||
| Investments: | |||||||
| Fixed maturities: | |||||||
| Held to maturity, at amortized cost | $ | 705,714 | $ | 679,497 | |||
| Available for sale, at fair value | 617,892 | 589,348 | |||||
| Equity securities, at fair value | 36,808 | 25,903 | |||||
| Short-term investments, at cost | 24,558 | 32,306 | |||||
| Total investments | 1,384,972 | 1,327,054 | |||||
| Cash | 52,926 | 23,792 | |||||
| Premiums receivable | 181,107 | 179,592 | |||||
| Reinsurance receivable | 420,742 | 441,431 | |||||
| Deferred policy acquisition costs | 73,347 | 75,043 | |||||
| Prepaid reinsurance premiums | 176,162 | 168,724 | |||||
| Other assets | 46,776 | 50,658 | |||||
| Total assets | $ | 2,336,032 | $ | 2,266,294 | |||
| LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||
| Liabilities: | |||||||
| Losses and loss expenses | $ | 1,120,985 | $ | 1,126,157 | |||
| Unearned premiums | 612,476 | 599,411 | |||||
| Accrued expenses | 2,917 | 3,947 | |||||
| Borrowings under lines of credit | 35,000 | 35,000 | |||||
| Other liabilities | 18,878 | 22,034 | |||||
| Total liabilities | 1,790,256 | 1,786,549 | |||||
| Stockholders' equity: | |||||||
| Class A common stock | 329 | 308 | |||||
| Class B common stock | 56 | 56 | |||||
| Additional paid-in capital | 369,680 | 335,694 | |||||
| Accumulated other comprehensive loss | (28,200) | (32,882) | |||||
| Retained earnings | 245,137 | 217,795 | |||||
| Treasury stock | (41,226) | (41,226) | |||||
| Total stockholders' equity | 545,776 | 479,745 | |||||
| Total liabilities and stockholders' equity | $ | 2,336,032 | $ | 2,266,294 | |||
FAQ
What was DGICA's net income for Q4 2024?
How much did DGICA's net premiums earned increase in 2024?
What was DGICA's combined ratio in Q4 2024?
How did DGICA's weather-related losses change in Q4 2024?
What was DGICA's book value per share at the end of 2024?
