Donegal Group Inc. Announces Second Quarter and First Half 2026 Results
Rhea-AI Summary
Donegal Group (NASDAQ: DGICA, DGICB) reported second-quarter 2026 net premiums earned of $222.6 million, down 4.0% year over year, and total revenues of $241.1 million, down 2.4%. Net income rose 32.3% to $22.3 million, or $0.60 per diluted Class A share, including $2.6 million (after tax) of net investment gains.
The GAAP combined ratio improved to 95.6% from 97.7%, as the loss ratio fell to 59.5% versus 65.1%, helped by lower weather-related losses and favorable prior-year reserve development, partly offset by higher large fire losses and a higher expense ratio of 35.8%. Net investment income grew 15.6% to $14.5 million, supported by a higher average investment yield of 3.8%. Book value per share increased to $17.98 at June 30, 2026 from $16.62 a year earlier and $17.33 at year-end 2025, despite $3.3 million of after-tax unrealized losses in available-for-sale fixed maturities.
Positive
- Net income Q2 2026 $22.3 million, up 32.3% year over year
- GAAP combined ratio improved to 95.6% from 97.7% in Q2 2025
- Net investment income $14.5 million in Q2 2026, up 15.6%
- Net investment gains $3.3 million in Q2 2026 vs. $1.5 million
- Book value per share $17.98 at June 30, 2026, up 8.2% year over year
- Weather-related losses $11.9 million in Q2 2026, well below prior-year $25.8 million and five-year average
Negative
- Net premiums earned down 4.0% in Q2 2026 and 4.4% for first half
- Personal lines net premiums written declined 9.7% in Q2 2026
- Expense ratio increased to 35.8% from 32.2% in Q2 2025
- Large fire losses rose to $15.0 million vs. $12.1 million year over year
- First-half 2026 net income $33.8 million, down 19.6% year over year
- First-half non-GAAP operating income $31.6 million, down 23.4% vs. first half 2025
News Explained
Premium volume shifted toward commercial lines while personal lines contracted; book value reached $17.98 per share at June 30, 2026.
For the reported second quarter, Donegal Group had book value of
Its net premiums written measure is full-term premiums on policies effective during a period less premiums ceded to reinsurers, and the release distinguishes it from net premiums earned in a separate reconciliation.
In that measure, commercial lines rose
The investment portfolio was
Management expects personal-lines net premiums written to taper gradually over 2026; subsequent quarterly results are the specific check on whether that line item has stabilized.
Key Figures
Historical Context
| Date | Event | Sentiment | 24h Move | Catalyst |
|---|---|---|---|---|
| Jul 16 | Dividend announcement | Positive | -11.8% | Regular quarterly cash dividend declared for Class A and Class B shares. |
| Jul 07 | Earnings release date | Neutral | -0.2% | Second-quarter results release date and management webcast schedule announced. |
| Apr 30 | Q1 earnings | Negative | -2.5% | Lower net income and weaker underwriting results were reported for first quarter. |
| Apr 16 | Dividend increase | Positive | +2.6% | Quarterly Class A and Class B cash dividends were increased. |
| Mar 11 | Technology initiatives | Positive | -3.8% | Guidewire Cloud migration and generative AI initiatives were announced. |
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Recent reactions diverged from positive dividend and technology announcements but aligned with the negative first-quarter earnings release.
Key Terms
combined ratio technical
statutory accounting principles financial
GAAP financial
AI-generated analysis. How Rhea-AI works. Not financial advice.
MARIETTA, Pa., July 30, 2026 (GLOBE NEWSWIRE) -- Donegal Group Inc. (NASDAQ: DGICA) and (NASDAQ: DGICB) today reported its financial results for the second quarter and first half of 2026.
Significant Items for Second Quarter of 2026 (all comparisons to second quarter of 2025):
- Net premiums earned decreased
4.0% to$222.6 million - Combined ratio of
95.6% , compared to97.7% - Net income of
$22.3 million , or 60 cents per diluted Class A share, compared to$16.9 million , or 46 cents per diluted Class A share - Net investment gains (after tax) of
$2.6 million , or 7 cents per diluted Class A share, compared to$1.2 million , or 3 cents per diluted Class A share, are included in net income - Annualized return on average equity of
13.6% , compared to11.3% - Book value per share of
$17.98 at June 30, 2026, compared to$16.62 at June 30, 2025
Financial Summary
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||
| 2026 | 2025 | % Change | 2026 | 2025 | % Change | ||||||||||||||||
| (dollars in thousands, except per share amounts) | |||||||||||||||||||||
| Income Statement Data | |||||||||||||||||||||
| Net premiums earned | $ | 222,574 | $ | 231,775 | -4.0 | % | $ | 443,932 | $ | 464,476 | -4.4 | % | |||||||||
| Investment income, net | 14,491 | 12,540 | 15.6 | 28,778 | 24,524 | 17.3 | |||||||||||||||
| Net investment gains | 3,267 | 1,544 | 111.6 | 2,788 | 1,073 | 159.8 | |||||||||||||||
| Total revenues | 241,119 | 247,148 | -2.4 | 477,115 | 491,953 | -3.0 | |||||||||||||||
| Net income | 22,306 | 16,866 | 32.3 | 33,816 | 42,071 | -19.6 | |||||||||||||||
| Non-GAAP operating income1 | 19,697 | 15,647 | 25.9 | 31,587 | 41,224 | -23.4 | |||||||||||||||
| Annualized return on average equity | 13.6 | % | 11.3 | % | 2.3 pts | 10.4 | % | 14.6 | % | -4.2 pts | |||||||||||
| Per Share Data | |||||||||||||||||||||
| Net income – Class A (diluted) | $ | 0.60 | $ | 0.46 | 30.4 | % | $ | 0.91 | $ | 1.17 | -22.2 | % | |||||||||
| Net income – Class B | 0.55 | 0.43 | 27.9 | 0.84 | 1.08 | -22.2 | |||||||||||||||
| Non-GAAP operating income – Class A (diluted) | 0.53 | 0.43 | 23.3 | 0.85 | 1.14 | -25.4 | |||||||||||||||
| Non-GAAP operating income – Class B | 0.49 | 0.40 | 22.5 | 0.79 | 1.06 | -25.5 | |||||||||||||||
| Book value | 17.98 | 16.62 | 8.2 | 17.98 | 16.62 | 8.2 | |||||||||||||||
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”).
Management Commentary
Kevin G. Burke, President and Chief Executive Officer of Donegal Group Inc., stated, “Our net premiums earned for the second quarter of 2026 reflected a continuation of challenging trends and market conditions we experienced last quarter. Against that backdrop, we are pleased to report solid quarterly results that provided further growth in our book value to
“Net premiums written1 for our commercial lines business segment grew by
“On the whole, our underwriting results for the second quarter of 2026 were solid, which we primarily attribute to favorable core loss ratios in both our commercial and personal lines segments, lower-than-average weather-related losses and favorable prior-year reserve development, offset partially by a moderate increase in large fire losses. Solid underwriting performance and enhanced investment income allowed us to continue growing our book value in the second quarter.
“While we face a softening phase of the insurance cycle, we have established a strong foundation over the past several years, and we continue to believe that the effective ongoing execution of our strategies will enhance stockholder value over time. For example, we are beginning to realize benefits from our ongoing emphasis on enhanced engagement with our independent agents as a means of attracting profitable growth opportunities.”
Insurance Operations
Donegal Group Inc. 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 Inc. conduct business together as the Donegal Insurance Group.
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||
| 2026 | 2025 | % Change | 2026 | 2025 | % Change | ||||||||||||||||
| (dollars in thousands) | |||||||||||||||||||||
| Net Premiums Earned | |||||||||||||||||||||
| Commercial lines | $ | 141,516 | $ | 138,527 | 2.2 | % | $ | 280,480 | $ | 274,743 | 2.1 | % | |||||||||
| Personal lines | 81,058 | 93,248 | -13.1 | 163,452 | 189,733 | -13.9 | |||||||||||||||
| Total net premiums earned | $ | 222,574 | $ | 231,775 | -4.0 | % | $ | 443,932 | $ | 464,476 | -4.4 | % | |||||||||
| Net Premiums Written | |||||||||||||||||||||
| Commercial lines: | |||||||||||||||||||||
| Automobile | $ | 54,608 | $ | 50,584 | 8.0 | % | $ | 115,388 | $ | 107,109 | 7.7 | % | |||||||||
| Workers' compensation | 20,573 | 24,243 | -15.1 | 47,467 | 52,997 | -10.4 | |||||||||||||||
| Commercial multi-peril | 53,980 | 56,478 | -4.4 | 114,606 | 117,268 | -2.3 | |||||||||||||||
| Other | 16,944 | 13,609 | 24.5 | 32,751 | 28,158 | 16.3 | |||||||||||||||
| Total commercial lines | 146,105 | 144,914 | 0.8 | 310,212 | 305,532 | 1.5 | |||||||||||||||
| Personal lines: | |||||||||||||||||||||
| Automobile | 45,519 | 52,741 | -13.7 | 91,436 | 107,933 | -15.3 | |||||||||||||||
| Homeowners | 32,333 | 33,590 | -3.7 | 59,272 | 62,378 | -5.0 | |||||||||||||||
| Other | 2,455 | 2,568 | -4.4 | 4,782 | 5,062 | -5.5 | |||||||||||||||
| Total personal lines | 80,307 | 88,899 | -9.7 | 155,490 | 175,373 | -11.3 | |||||||||||||||
| Total net premiums written | $ | 226,412 | $ | 233,813 | -3.2 | % | $ | 465,702 | $ | 480,905 | -3.2 | % | |||||||||
Net Premiums Written
The
- Commercial Lines:
$1.2 million increase that we attribute primarily to new business writings, offset partially by a lower level of renewal premium increases and retention. - Personal Lines:
$8.6 million decrease that we attribute primarily to modestly higher attrition, offset partially by more modest renewal premium rate increases and incremental growth in 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 and six months ended June 30, 2026 and 2025:
| Three Months Ended | Six Months Ended | ||||||||||
| June 30 | June 30 | ||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||
| GAAP Combined Ratios (Total Lines) | |||||||||||
| Loss ratio - core losses | 51.0 | % | 50.1 | % | 52.3 | % | 52.1 | % | |||
| Loss ratio - weather-related losses | 5.3 | 11.1 | 6.5 | 7.4 | |||||||
| Loss ratio - large fire losses | 6.7 | 5.2 | 6.1 | 4.3 | |||||||
| Loss ratio - net prior-year reserve development | -3.5 | -1.3 | -3.1 | -2.9 | |||||||
| Loss ratio | 59.5 | 65.1 | 61.8 | 60.9 | |||||||
| Expense ratio | 35.8 | 32.2 | 35.6 | 33.4 | |||||||
| Dividend ratio | 0.3 | 0.4 | 0.3 | 0.3 | |||||||
| Combined ratio | 95.6 | % | 97.7 | % | 97.7 | % | 94.6 | % | |||
| Statutory Combined Ratios | |||||||||||
| Commercial lines: | |||||||||||
| Automobile | 91.1 | % | 97.7 | % | 91.4 | % | 94.6 | % | |||
| Workers' compensation | 105.4 | 104.9 | 109.0 | 111.3 | |||||||
| Commercial multi-peril | 108.7 | 97.5 | 111.2 | 93.9 | |||||||
| Other | 100.2 | 119.8 | 100.4 | 100.6 | |||||||
| Total commercial lines | 100.9 | 101.0 | 102.7 | 97.8 | |||||||
| Personal lines: | |||||||||||
| Automobile | 83.6 | 79.3 | 82.0 | 82.2 | |||||||
| Homeowners | 81.8 | 115.1 | 88.2 | 99.0 | |||||||
| Other | 63.5 | 55.2 | 71.0 | 55.9 | |||||||
| Total personal lines | 82.3 | 91.7 | 84.0 | 87.5 | |||||||
| Total lines | 94.2 | % | 97.4 | % | 96.0 | % | 93.9 | % | |||
Loss Ratio
For the second quarter of 2026, 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 reduced the loss ratio by 3.5 percentage points for the second quarter of 2026 compared to 1.3 percentage points for the second quarter of 2025. Our insurance subsidiaries experienced favorable development primarily in the personal automobile, workers’ compensation, commercial automobile and homeowners lines of business.
Expense Ratio
The expense ratio was
Investment Operations
Our 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, 2026 | December 31, 2025 | ||||||||||||
| Amount | % | Amount | % | ||||||||||
| (dollars in thousands) | |||||||||||||
| Fixed maturities, at carrying value: | |||||||||||||
| U.S. Treasury securities and obligations of U.S. government corporations and agencies | $ | 94,269 | 6.2 | % | $ | 103,619 | 6.9 | % | |||||
| Obligations of states and political subdivisions | 512,924 | 33.8 | 485,710 | 32.4 | |||||||||
| Corporate securities | 388,993 | 25.7 | 383,927 | 25.6 | |||||||||
| Mortgage-backed securities | 444,935 | 29.4 | 445,227 | 29.7 | |||||||||
| Allowance for expected credit losses | (1,306 | ) | -0.1 | (1,313 | ) | -0.1 | |||||||
| Total fixed maturities | 1,439,815 | 95.0 | 1,417,170 | 94.5 | |||||||||
| Equity securities, at fair value | 48,880 | 3.2 | 44,370 | 3.0 | |||||||||
| Short-term investments, at cost | 26,530 | 1.8 | 38,713 | 2.5 | |||||||||
| Total investments | $ | 1,515,225 | 100.0 | % | $ | 1,500,253 | 100.0 | % | |||||
| Average investment yield | 3.8 | % | 3.6 | % | |||||||||
| Average tax-equivalent investment yield | 4.0 | % | 3.7 | % | |||||||||
| Average fixed-maturity duration (years) | 5.7 | 5.5 | |||||||||||
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, | ||||||||||||||||
| 2026 | 2025 | % Change | 2026 | 2025 | % Change | ||||||||||||
| (dollars in thousands) | |||||||||||||||||
| Reconciliation of Net Premiums | |||||||||||||||||
| Earned to Net Premiums Written | |||||||||||||||||
| Net premiums earned | $ | 222,574 | $ | 231,775 | -4.0 | % | $ | 443,932 | $ | 464,476 | -4.4 | % | |||||
| Change in net unearned premiums | 3,838 | 2,038 | 88.3 | 21,770 | 16,429 | 32.5 | |||||||||||
| Net premiums written | $ | 226,412 | $ | 233,813 | -3.2 | % | $ | 465,702 | $ | 480,905 | -3.2 | % | |||||
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, | ||||||||||||||||||||
| 2026 | 2025 | % Change | 2026 | 2025 | % Change | ||||||||||||||||
| (dollars in thousands, except per share amounts) | |||||||||||||||||||||
| Reconciliation of Net Income | |||||||||||||||||||||
| to Non-GAAP Operating Income | |||||||||||||||||||||
| Net income | $ | 22,306 | $ | 16,866 | 32.3 | % | $ | 33,816 | $ | 42,071 | -19.6 | % | |||||||||
| Investment gains (after tax) | (2,609 | ) | (1,219 | ) | 114.0 | (2,229 | ) | (847 | ) | 163.2 | |||||||||||
| Non-GAAP operating income | $ | 19,697 | $ | 15,647 | 25.9 | % | $ | 31,587 | $ | 41,224 | -23.4 | % | |||||||||
| Per Share Reconciliation of Net Income | |||||||||||||||||||||
| to Non-GAAP Operating Income | |||||||||||||||||||||
| Net income – Class A (diluted) | $ | 0.60 | $ | 0.46 | 30.4 | % | $ | 0.91 | $ | 1.17 | -22.2 | % | |||||||||
| Investment gains (after tax) | (0.07 | ) | (0.03 | ) | 133.3 | (0.06 | ) | (0.03 | ) | 100.0 | |||||||||||
| Non-GAAP operating income – Class A | $ | 0.53 | $ | 0.43 | 23.3 | % | $ | 0.85 | $ | 1.14 | -25.4 | % | |||||||||
| Net income – Class B | $ | 0.55 | $ | 0.43 | 27.9 | % | $ | 0.84 | $ | 1.08 | -22.2 | % | |||||||||
| Investment gains (after tax) | (0.06 | ) | (0.03 | ) | 100.0 | (0.05 | ) | (0.02 | ) | 150.0 | |||||||||||
| Non-GAAP operating income – Class B | $ | 0.49 | $ | 0.40 | 22.5 | % | $ | 0.79 | $ | 1.06 | -25.5 | % | |||||||||
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 16, 2026, we declared a regular quarterly cash dividend of
Pre-Recorded Webcast
At approximately 8:30 am ET on Thursday, July 30, 2026, 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, advancing our operational and digital capabilities, 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 industry trends that could increase our loss costs (including distracted driving, higher rates of litigation, higher judicial awards and escalating medical, automobile and property repair costs, including due to tariffs), adverse and catastrophic weather events and other natural disasters (including from changing climate conditions), man-made disasters (such as terrorism), 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 successful operation (including cost, security and availability) of the information technology systems our insurance subsidiaries utilize, the successful development and deployment of new technologies (including artificial intelligence, data modernization and cloud migration) to allow our insurance subsidiaries to compete effectively, the loss or significant restriction of the use of specific rating attributes, analytical models or technologies our insurance subsidiaries use in their pricing and underwriting, increases in assessments pursuant to guaranty fund laws, business and economic conditions in the areas in which we and our insurance subsidiaries operate (including from pandemics), interest rates and other factors impacting the investment portfolios of our insurance subsidiaries, competition from various insurance and other financial businesses (including changes in consumer preferences for insurance distribution channels), the availability and cost of reinsurance, legal and judicial developments, changes in regulatory requirements, our ability to attract and retain independent insurance agents (and their ability to maintain adequate levels of premium volume and quality), 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
Jeremy Hellman, Vice President, The Equity Group Inc.
Phone: (212) 836-9626
E-mail: jhellman@theequitygroup.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, | |||||||
| 2026 | 2025 | ||||||
| Net premiums earned | $ | 222,574 | $ | 231,775 | |||
| Investment income, net of expenses | 14,491 | 12,540 | |||||
| Net investment gains | 3,267 | 1,544 | |||||
| Lease income | 74 | 76 | |||||
| Installment payment fees | 713 | 844 | |||||
| Other income, net | - | 369 | |||||
| Total revenues | 241,119 | 247,148 | |||||
| Net losses and loss expenses | 132,556 | 150,917 | |||||
| Amortization of deferred acquisition costs | 36,123 | 39,501 | |||||
| Other underwriting expenses | 43,562 | 35,150 | |||||
| Policyholder dividends | 560 | 819 | |||||
| Interest | 337 | 337 | |||||
| Other expenses, net | 433 | - | |||||
| Total expenses | 213,571 | 226,724 | |||||
| Income before income tax expense | 27,548 | 20,424 | |||||
| Income tax expense | 5,242 | 3,558 | |||||
| Net income | $ | 22,306 | $ | 16,866 | |||
| Net income per common share: | |||||||
| Class A - basic | $ | 0.61 | $ | 0.47 | |||
| Class A - diluted | $ | 0.60 | $ | 0.46 | |||
| Class B - basic and diluted | $ | 0.55 | $ | 0.43 | |||
| Supplementary Financial Analysts' Data | |||||||
| Weighted-average number of shares outstanding: | |||||||
| Class A - basic | 31,472,806 | 30,678,158 | |||||
| Class A - diluted | 31,891,385 | 31,336,862 | |||||
| Class B - basic and diluted | 5,576,775 | 5,576,775 | |||||
| Net premiums written | $ | 226,412 | $ | 233,813 | |||
| Book value per common share at end of period | $ | 17.98 | $ | 16.62 | |||
| Annualized return on average equity | 13.6 | % | 11.3 | % | |||
| Donegal Group Inc. | |||||||
| Consolidated Statements of Income | |||||||
| (unaudited; in thousands, except share data) | |||||||
| Six Months Ended June 30, | |||||||
| 2026 | 2025 | ||||||
| Net premiums earned | $ | 443,932 | $ | 464,476 | |||
| Investment income, net of expenses | 28,778 | 24,524 | |||||
| Net investment gains | 2,788 | 1,073 | |||||
| Lease income | 148 | 153 | |||||
| Installment payment fees | 1,469 | 1,727 | |||||
| Total revenues | 477,115 | 491,953 | |||||
| Net losses and loss expenses | 274,555 | 282,950 | |||||
| Amortization of deferred acquisition costs | 72,420 | 78,732 | |||||
| Other underwriting expenses | 85,576 | 76,345 | |||||
| Policyholder dividends | 1,212 | 1,578 | |||||
| Interest | 670 | 670 | |||||
| Other expenses, net | 1,011 | 93 | |||||
| Total expenses | 435,444 | 440,368 | |||||
| Income before income tax expense | 41,671 | 51,585 | |||||
| Income tax expense | 7,855 | 9,514 | |||||
| Net income | $ | 33,816 | $ | 42,071 | |||
| Net income per common share: | |||||||
| Class A - basic | $ | 0.93 | $ | 1.19 | |||
| Class A - diluted | $ | 0.91 | $ | 1.17 | |||
| Class B - basic and diluted | $ | 0.84 | $ | 1.08 | |||
| Supplementary Financial Analysts' Data | |||||||
| Weighted-average number of shares outstanding: | |||||||
| Class A - basic | 31,450,682 | 30,400,944 | |||||
| Class A - diluted | 31,909,925 | 30,884,992 | |||||
| Class B - basic and diluted | 5,576,775 | 5,576,775 | |||||
| Net premiums written | $ | 465,702 | $ | 480,905 | |||
| Book value per common share at end of period | $ | 17.98 | $ | 16.62 | |||
| Annualized return on average equity | 10.4 | % | 14.6 | % | |||
| Donegal Group Inc. | |||||||
| Consolidated Balance Sheets | |||||||
| (in thousands) | |||||||
| June 30, | December 31, | ||||||
| 2026 | 2025 | ||||||
| (unaudited) | |||||||
| ASSETS | |||||||
| Investments: | |||||||
| Fixed maturities: | |||||||
| Held to maturity, at amortized cost | $ | 803,295 | $ | 776,447 | |||
| Available for sale, at fair value | 636,520 | 640,723 | |||||
| Equity securities, at fair value | 48,880 | 44,370 | |||||
| Short-term investments, at cost | 26,530 | 38,713 | |||||
| Total investments | 1,515,225 | 1,500,253 | |||||
| Cash | 23,722 | 26,786 | |||||
| Premiums receivable | 217,819 | 180,804 | |||||
| Reinsurance receivable | 413,119 | 398,582 | |||||
| Deferred policy acquisition costs | 71,900 | 68,670 | |||||
| Prepaid reinsurance premiums | 197,964 | 171,083 | |||||
| Other assets | 42,337 | 40,451 | |||||
| Total assets | $ | 2,482,086 | $ | 2,386,629 | |||
| LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||
| Liabilities: | |||||||
| Losses and loss expenses | $ | 1,129,135 | $ | 1,100,050 | |||
| Unearned premiums | 639,692 | 591,040 | |||||
| Borrowings under lines of credit | 35,000 | 35,000 | |||||
| Other liabilities | 12,150 | 20,121 | |||||
| Total liabilities | 1,815,977 | 1,746,211 | |||||
| Stockholders' equity: | |||||||
| Class A common stock | 345 | 344 | |||||
| Class B common stock | 56 | 56 | |||||
| Additional paid-in capital | 394,280 | 391,811 | |||||
| Accumulated other comprehensive loss | (11,616 | ) | (8,296 | ) | |||
| Retained earnings | 324,270 | 297,729 | |||||
| Treasury stock | (41,226 | ) | (41,226 | ) | |||
| Total stockholders' equity | 666,109 | 640,418 | |||||
| Total liabilities and stockholders' equity | $ | 2,482,086 | $ | 2,386,629 | |||
