On July 25, 2024, Donegal Group Inc (DGICA, Financial) released its 8-K filing detailing its financial results for the second quarter and first half of 2024. Donegal Group Inc is an insurance holding company that offers personal and commercial lines of property and casualty insurance, operating primarily in the United States.
Financial Highlights
Donegal Group Inc (DGICA, Financial) reported a net income of $4.2 million, or 13 cents per diluted Class A share, for the second quarter of 2024, compared to $2.0 million, or 6 cents per diluted Class A share, in the same period of 2023. This represents a significant increase of 108% in net income year-over-year.
Net premiums earned increased by 8.3% to $234.3 million, while net premiums written rose by 9.1% to $247.2 million. The combined ratio improved to 103.0% from 104.7% in the prior-year quarter, indicating better underwriting performance.
Income Statement and Key Metrics
| Metric | Q2 2024 | Q2 2023 | % Change |
|---|---|---|---|
| Net Premiums Earned | $234.3 million | $216.3 million | 8.3% |
| Net Income | $4.2 million | $2.0 million | 108% |
| Combined Ratio | 103.0% | 104.7% | -1.7 pts |
| Book Value per Share | $14.48 | $14.68 | -1.4% |
Investment and Expense Management
Net investment income for the second quarter of 2024 was $11.1 million, a 8.8% increase from $10.2 million in the same period of 2023. The company attributed this growth to an increase in average investment yield. However, net investment gains decreased significantly to $0.7 million from $2.5 million in the prior-year quarter.
The expense ratio improved to 31.9% from 34.2% in the second quarter of 2023, reflecting the impact of various expense reduction initiatives. These included agency incentive program revisions, commission schedule adjustments, and targeted staffing reductions.
Segment Performance
Donegal Group Inc (DGICA, Financial) saw a 7.1% growth in commercial lines net premiums written and a 12.1% growth in personal lines net premiums written. The commercial lines segment benefited from new business writings, strong premium retention, and renewal premium increases. The personal lines segment saw strong policy retention and renewal premium rate increases.
Management Commentary
"We continued to execute successfully on several important objectives during the second quarter of 2024 that we expect will further enhance our financial performance in future periods," said Kevin G. Burke, President and Chief Executive Officer of Donegal Group Inc.
For more detailed information, please refer to the full 8-K filing.
Explore the complete 8-K earnings release (here) from Donegal Group Inc for further details.
