Donegal Group Inc. Reports $25.2 Million Net Income in Q1 2025

Donegal Group Inc. reported its financial results for the first quarter of 2025, revealing a net income of $25.2 million, or $0.71 per diluted share for Class A common stock and $0.65 for Class B common stock. This marks a significant increase from the $6.0 million, or $0.18 per diluted share for Class A and $0.16 for Class B, reported in the same period last year. The company’s total revenues for the quarter reached $245.2 million, up from $241.1 million in the prior year, driven primarily by a 2.2% increase in net premiums earned, which totaled $232.7 million.

In comparison to the previous fiscal period, Donegal Group saw a notable improvement in its loss ratio, which decreased to 56.7% from 66.3% year-over-year. This reduction was attributed to lower core losses and fewer large fire losses, with the core loss ratio dropping to 54.2% from 58.7%. The company also reported a decrease in underwriting expenses, with the expense ratio improving to 34.6% from 35.7%, reflecting effective expense management initiatives.

Operationally, Donegal Group's net premiums written for the first quarter of 2025 were $247.1 million, a slight decrease of 1.7% from $251.4 million in the prior year. The decline was primarily due to a 9.9% drop in personal lines net premiums written, which was offset by a 3.3% increase in commercial lines. The company continues to focus on premium retention and renewal premium increases, particularly in its commercial lines segment.

The company’s investment income also showed positive growth, increasing by 9.2% to $12.0 million, while net investment losses amounted to $470,861, a shift from the $2.1 million in gains reported in the previous year. The overall investment portfolio remains a critical component of Donegal's financial strategy, with a focus on maintaining liquidity and managing market risks effectively.

Looking ahead, Donegal Group remains optimistic about its financial outlook, emphasizing its commitment to underwriting profitability and effective risk management. The company plans to continue leveraging its pooling agreement with Donegal Mutual to enhance cash flow and maintain a strong capital position. As of May 1, 2025, Donegal Group had 30,519,896 shares of Class A common stock and 5,576,775 shares of Class B common stock outstanding, reflecting its ongoing commitment to shareholder value.