Donegal Group Inc. Reports $16.9 Million Net Income for Q2 2025, Up from $4.2 Million Last Year

Donegal Group Inc. reported its financial results for the second quarter and first half of 2025, revealing a net income of $16.9 million for the quarter, a significant increase from $4.2 million in the same period last year. For the first half of 2025, net income reached $42.1 million, compared to $10.1 million in the first half of 2024. The company’s diluted earnings per share for Class A common stock were $0.46 for the second quarter and $1.17 for the first half, up from $0.13 and $0.31, respectively, in the prior year. Total revenues for the second quarter were $247.1 million, slightly higher than $246.8 million in the same quarter of 2024, while revenues for the first half increased to $492.0 million from $487.9 million.

The company experienced a decrease in net premiums earned, which totaled $231.8 million for the second quarter, down from $234.3 million a year earlier. For the first half, net premiums earned rose marginally to $464.5 million from $462.1 million. The decline in the second quarter was attributed to planned attrition and lower new business writings, although solid premium retention and renewal premium increases provided some offset. Net premiums written for the second quarter were $233.8 million, a decrease of 5.4% from the previous year, while the first half saw a decline of 3.6% to $480.9 million.

In terms of operational metrics, Donegal Group's loss ratio improved to 65.1% in the second quarter of 2025, down from 70.6% in the same quarter of 2024. The core loss ratio, which excludes weather-related and large fire losses, also decreased to 50.1% from 55.0%. The company reported favorable loss reserve development of $3.0 million for the second quarter, contributing to the improved loss ratio. The expense ratio for the quarter was 32.2%, slightly higher than 31.9% in the prior year, reflecting increased underwriting-based incentive costs.

Looking ahead, Donegal Group remains focused on maintaining its underwriting profitability and managing its investment portfolio effectively. The company continues to benefit from its pooling agreement with Donegal Mutual, which allows for shared underwriting results and risk management. As of June 30, 2025, Donegal Group had 30,931,854 shares of Class A common stock and 5,576,775 shares of Class B common stock outstanding. The company declared quarterly cash dividends of $0.1825 per share for Class A and $0.165 per share for Class B, payable on August 15, 2025. The outlook for the remainder of the year remains cautiously optimistic, with expectations for continued premium retention and strategic management of underwriting expenses.