Donegal Group Q2 net income rises to $16.9mln, up 300% YoY.

• Net premiums earned down 1.1% to $231.8 million • Combined ratio improved to 97.7% • Net income at $16.9 million, up from $4.2 million • Annualized return on average equity at 11.3% • Book value per share at $16.62, up from $14.48

Donegal Group Inc. (NASDAQ: DGICA and DGICB) reported its financial results for the second quarter and first half of 2025, highlighting improvements in key financial metrics. The company's net premiums earned decreased 1.1% to $231.8 million, while the combined ratio improved to 97.7% from 103.0%. Net income reached $16.9 million, up from $4.2 million, and the annualized return on average equity stood at 11.3%, compared to 3.4% in the previous year. The book value per share increased to $16.62 from $14.48.

The company attributed the decrease in net premiums earned to a decline in new business writings and planned attrition in its personal lines of business. However, the company maintained a focus on profitable growth opportunities by slowing new business writings in personal lines to protect underwriting margins. The company also reported significant improvements in underwriting performance, with the core loss ratio decreasing to 54.5% from 54.8% in the previous year.

Kevin G. Burke, President and Chief Executive Officer of Donegal Group Inc., stated, "We are pleased with the progress we have made and the results we delivered for both the second quarter and first half of 2025, which we believe reflect the strength of our strategic execution and underwriting discipline."

Donegal Group Inc. continues to focus on disciplined execution, organizational alignment, and operational excellence to strengthen its long-term competitive position and enhance value for its stockholders. The company also reached a significant milestone in its multi-year systems modernization project with the successful deployment of its final major commercial lines systems release.

References:

[1] https://www.marketscreener.com/news/donegal-group-inc-announces-second-quarter-and-first-half-2025-results-ce7c5cd3df89fe2d