- Donegal Group Inc. (DGICA, Financial) reports a 323.2% increase in net income, reaching $25.2 million for Q1 2025.
- The company's combined ratio significantly improved to 91.6% from 102.4% year-over-year.
- Commercial lines premiums written grew by 3.3%, while personal lines decreased by 9.9%.
Donegal Group Inc. (DGICA) has announced robust financial results for the first quarter of 2025, showcasing significant improvements across various metrics. The company's net income surged to $25.2 million, or $0.71 per diluted Class A share, compared to $6.0 million in Q1 2024, marking a 323.2% increase. The enhancements in profitability are attributed to strategic initiatives and disciplined underwriting practices.
The insurer reported a combined ratio of 91.6%, a substantial improvement from 102.4% in the previous year. This improvement reflects a decrease in the core loss ratio by 4.3% and reduced large fire and weather-related losses. Net premiums earned saw a modest increase of 2.2%, rising to $232.7 million, while net premiums written experienced a decline of 1.7%.
Commercial lines showed a healthy 3.3% growth in premiums written, driven by increases in commercial auto and commercial multi-peril segments. However, personal lines faced a 9.9% decrease, primarily due to planned attrition and a focus on profitability over volume.
Investment income contributed positively, with net investment income increasing by 9.2% to $12.0 million. Despite this, the company recorded net investment losses of $0.5 million compared to gains of $2.1 million the previous year. The book value per share rose to $16.24, an 11.8% increase from the previous year, supported by strong earnings and after-tax unrealized gains in the fixed-maturity portfolio.
With an annualized return on average equity reaching 17.8%, Donegal Group Inc. (DGICA, Financial) has demonstrated its strong financial performance and strategic focus on sustainable profitability and growth. The company continues to prioritize enhancing shareholder value through strategic growth opportunities and operational improvements.
