MARIETTA, PA — Donegal Group Inc. (NASDAQ: DGICA) and (NASDAQ: DGICB) released its financial results for the fourth quarter and full year ending December 31, 2024, showcasing notable improvements across several key metrics.
For the fourth quarter of 2024, net premiums earned grew by 4.6% to $236.6 million, compared to the same period in 2023. The company reported a combined ratio of 92.9%, a significant improvement from 106.8% in the prior-year quarter. Net income surged to $24.0 million, or $0.70 per diluted Class A share, from a net loss of $2.0 million, or $0.06 per Class A share, in the fourth quarter of 2023.
Full-year 2024 results further demonstrated Donegal Group’s operational progress. Net premiums earned increased 6.2% to $936.7 million. The combined ratio improved to 98.6%, down from 104.4% in 2023. Full-year net income jumped to $50.9 million, or $1.53 per diluted Class A share, compared to $4.4 million, or $0.14 per diluted Class A share, the previous year. The company’s book value per share rose to $15.36 at year-end, up from $14.39 at the close of 2023.
President and CEO Kevin G. Burke attributed the strong results to the company’s strategic focus and operational improvements. “We concluded 2024 with strong performance in the fourth quarter that we believe reflected our unrelenting focus in recent years on execution, whether on strategic initiatives to broaden our market capabilities or on profit-improvement measures to enhance our operating performance,” he said.
Burke highlighted key achievements, including higher earned premiums, effective underwriting initiatives, and reduced claim activity. “Our weather-related loss ratio compared favorably to both the prior-year quarter and our previous five-year average for the fourth quarter of the year. Net development of reserves for claims incurred in prior years had virtually no effect on the loss ratio for the fourth quarter of 2024 or 2023,” added Burke.
Looking ahead, Burke outlined the company’s goals, emphasizing intentional growth and underwriting discipline. “We will continue to implement premium rate increases as needed to maintain rate adequacy and achieve targeted risk-adjusted returns. We are also actively pursuing new business opportunities across our regional footprint, concentrating primarily on high-quality new commercial middle market and small business accounts, while also seeking strategic new business growth within our personal lines segment,” he noted.
Operationally, Donegal Group reported a 59.8% loss ratio for the fourth quarter, down significantly from 72.1% in the same period in 2023. Core loss ratios improved across both commercial and personal lines. For the personal lines segment, the core loss ratio closed at 48.4%, a sharp improvement from 65.1% in the prior-year quarter. Weather-related and large fire losses also saw year-over-year reductions, contributing to the company’s favorable performance.
Donegal also revealed advancements in its expense management strategies, which led to a lower expense ratio of 32.8% in the fourth quarter and 33.7% for the full year, compared to 34.1% and 34.7% respectively in 2023. These gains were supported by targeted cost reductions and optimization of operational expenses.
Investment income played a role in the company’s financial success, growing 12.5% in the fourth quarter due to higher average invested assets and improved yields.
Donegal Group’s continued efforts to refine its approach to underwriting and expense management, combined with enhanced investments in technology and data analytics, position the company for sustained growth. Burke concluded, “We believe that the successful execution of those actions will allow us to further enhance underwriting performance, drive sustainable measured growth and strengthen our competitive position with our independent agents, ultimately increasing the value of our stockholders’ investment in Donegal Group Inc.”
With a strong financial foundation and clear strategic goals, Donegal Group is well-prepared to tackle market challenges in 2025 while continuing to provide dependable services across its expansive geographic footprint.
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