Donegal Group Inc
NASDAQ:DGICA
Donegal Group Inc
Donegal Group, Inc. is an insurance holding company, which engages in the provision of property and casualty insurance to businesses and individuals. The company is headquartered in Marietta, Pennsylvania. The Company’s subsidiaries include Atlantic States Insurance Company (Atlantic States), Southern Insurance Company of Virginia (Southern), the Peninsula Insurance Group (Peninsula). The Company, through its subsidiaries offers personal and commercial lines of property and casualty insurance to businesses and individuals in 24 Mid-Atlantic, Midwestern, New England, Southern and Southwestern states. The firm operates through three segments: investment function, commercial lines of insurance and personal lines of insurance. The commercial lines products of its insurance subsidiaries consist primarily of commercial automobile, commercial multi-peril and workers’ compensation policies. The personal lines products of insurance subsidiaries consist primarily of homeowners and private passenger automobile policies. The Workers' compensation line of insurance includes policies employers purchase to provide benefits to employees.
Donegal Group, Inc. is an insurance holding company, which engages in the provision of property and casualty insurance to businesses and individuals. The company is headquartered in Marietta, Pennsylvania. The Company’s subsidiaries include Atlantic States Insurance Company (Atlantic States), Southern Insurance Company of Virginia (Southern), the Peninsula Insurance Group (Peninsula). The Company, through its subsidiaries offers personal and commercial lines of property and casualty insurance to businesses and individuals in 24 Mid-Atlantic, Midwestern, New England, Southern and Southwestern states. The firm operates through three segments: investment function, commercial lines of insurance and personal lines of insurance. The commercial lines products of its insurance subsidiaries consist primarily of commercial automobile, commercial multi-peril and workers’ compensation policies. The personal lines products of insurance subsidiaries consist primarily of homeowners and private passenger automobile policies. The Workers' compensation line of insurance includes policies employers purchase to provide benefits to employees.
Profitability: Donegal reported strong profitability in Q3 2025, with a combined ratio of 95.9% and net income of $20.1 million, up 20% from last year.
Premium Trends: Net premiums written fell 5.4% overall, with Personal Lines down 15.9% and Commercial Lines up 3.4%, reflecting strategic actions to improve portfolio quality.
Weather Impact: Weather-related losses were the lowest for any third quarter in 20 years, significantly boosting results compared to Q3 2024.
Expense Efficiency: The expense ratio improved to 33.5%, down 100 basis points from last year, helped by automation and cost reduction initiatives.
Investment Income: Net investment income jumped 29% to $13.9 million, driven by higher yields and active bond management.
Tech Transformation: The company completed an eight-year systems modernization project, enabling future operational improvements and AI initiatives.
Guidance & Strategy: Management is shifting focus from profit improvement to profitable growth, particularly in Commercial Lines, and plans to exit the farm line of business.
