Form 8-K
8-K — DONEGAL GROUP INC
Accession: 0001171843-26-006950
Filed: 2026-10-29
Period: 2026-10-29
CIK: 0000800457
SIC: 6331 (FIRE, MARINE & CASUALTY INSURANCE)
Item: Results of Operations and Financial Condition
Item: Financial Statements and Exhibits
Documents
8-K — f8k_102926.htm (Primary)
EX-99.1 — EXHIBIT 99.1 (exh_991.htm)
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2026-10-29
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2026-10-29
2026-10-29
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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
_____________________
FORM 8-K
_____________________
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event Reported): October 29, 2026
Donegal Group Inc.
(Exact Name of Registrant as Specified in Charter)
Delaware
0-15341
23-2424711
(State or Other Jurisdiction of Incorporation)
(Commission File Number)
(I.R.S. Employer Identification Number)
1195 River Road, P.O. Box 302, Marietta, Pennsylvania 17547
(Address of Principal Executive Offices) (Zip Code)
(717) 426-1931
(Registrant's telephone number, including area code)
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
☐
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule
405 of the Securities Act of 1933 (17 CFR §230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR §240.12b-2).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use
the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a)
of the Exchange Act. ☐
Securities registered pursuant to Section 12(b) of the Act:
Title of Each Class
Trading Symbols
Name of Each Exchange on Which Registered
Class A Common Stock, $.01 par value
DGICA
The NASDAQ Global Select Market
Class B Common Stock, $.01 par value
DGICB
The NASDAQ Global Select Market
Item 2.02. Results of Operations and Financial Condition.
On October 29, 2026, the Registrant issued a press release, a copy of
which is attached hereto as Exhibit 99.1 and is incorporated herein by reference.
Item 9.01. Financial Statements and Exhibits.
Exhibit 99.1
Press release dated October 29, 2026
Exhibit 104
Cover Page Interactive Data File (embedded within the Inline XBRL document)
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly
caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
Donegal Group Inc.
Date: October 29, 2026
By:
/s/ Jeffrey D. Miller
Jeffrey D. Miller
Executive Vice President & Chief Financial Officer
EXHIBIT INDEX
Exhibit Number
Description
Exhibit 99.1
Press release dated October 29, 2026
Exhibit 104
Cover Page Interactive Data File (embedded within the Inline XBRL document)
EX-99.1 — EXHIBIT 99.1
EX-99.1
Filename: exh_991.htm · Sequence: 2
EdgarFiling
EXHIBIT 99.1
Donegal Group Inc. Announces Third Quarter and First Nine Months
of 2026 Results
MARIETTA, Pa., Oct. 29, 2026 (GLOBE NEWSWIRE) -- Donegal Group Inc. (NASDAQ: DGICA) and (NASDAQ: DGICB) today reported
its financial results for the third quarter and first nine months of 2026.
Significant Items for third quarter of 2026 (all comparisons to third quarter of 2025):
Net premiums earned decreased 3.0% to $222.9 million
Combined ratio of 96.5%, compared to 95.9%
Net income of $18.2 million, or 49 cents per diluted Class A share, compared to $20.1
million, or 55 cents per diluted Class A share
Net income included after-tax net investment losses of $0.6 million, or 1 cent per
diluted Class A share, compared to after-tax net investment gains of $1.0 million, or 3 cents per diluted Class A share
Annualized return on average equity of 10.9%, compared to 13.0%
Book value per share of $17.70 at September 30, 2026, compared to $17.14 at September
30, 2025
Financial Summary
Three
Months Ended September 30,
Nine
Months Ended September 30,
2026
2025
%
Change
2026
2025
%
Change
(dollars in
thousands, except per share amounts)
Income Statement Data
Net
premiums earned
$
222,883
$
229,822
-3.0
%
$
666,814
$
694,299
-4.0
%
Investment income, net
14,689
13,943
5.4
43,468
38,466
13.0
Net investment (losses) gains
(701
)
1,272
NM2
2,087
2,345
-11.0
Total revenues
237,658
245,919
-3.4
714,773
737,872
-3.1
Net income
18,157
20,080
-9.6
51,973
62,152
-16.4
Non-GAAP operating income1
18,639
19,075
-2.3
50,225
60,299
-16.7
Annualized return on average
equity
10.9
%
13.0
%
-2.1 pts
10.6
%
14.1
%
-3.5 pts
Per Share Data
Net income – Class A
(diluted)
$
0.49
$
0.55
-10.9
%
$
1.40
$
1.72
-18.6
%
Net income – Class B
0.45
0.51
-11.8
1.29
1.58
-18.4
Non-GAAP operating income
– Class A (diluted)
0.50
0.52
-3.8
1.35
1.67
-19.2
Non-GAAP operating income
– Class B
0.46
0.48
-4.2
1.25
1.53
-18.3
Book value
17.70
17.14
3.3
17.70
17.14
3.3
1The “Definitions of Non-GAAP Financial Measures” section of this release defines and
reconciles data that we prepare on an accounting basis other than U.S. generally accepted accounting principles (“GAAP”).
2Not meaningful.
Management Commentary
Kevin G. Burke, President and Chief Executive Officer of Donegal Group Inc., stated, “As expected, we continued
to experience soft market conditions throughout our operating regions in the third quarter of 2026. Although those conditions continued
to impede our ability to achieve our premium growth plan, we were able to deliver solid profitability, as demonstrated by earnings per
diluted Class A share of $0.49 and an annualized return on equity of 10.9%.”
“Net premiums written1 declined modestly for both commercial and personal lines. We primarily attribute
the declines to higher-than-planned attrition that we believe resulted from our commitment to pricing discipline on policy renewals amid
increased rate competition, offset partially by incrementally higher new business writings as we have selectively enhanced our competitive
posture for desired accounts. Within our personal lines, our automobile new business growth benefited from the reintroduction of a 12-month
policy term that customers selected for the vast majority of new automobile policies written during the quarter. The increase from six-month
terms to 12-month terms effectively doubled the net premiums written related to those new policies.”
“Our underwriting results for the third quarter were generally favorable despite an increase in weather-related
losses compared to the prior-year quarter and a handful of unusually severe workers’ compensation claims during the quarter. We
were pleased with the relative consistency of our core loss ratio compared to the prior-year quarter.”
“As we close out 2026 and finalize our business plan for 2027, we continue to engage with our independent agency
partners in developing and deploying specific action plans with a goal of achieving profitable premium growth, albeit at a modest pace
in recognition of current market conditions. We remain confident in our team’s ability to successfully achieve our strategic objectives
that we believe will enhance stockholder value over time.”
Insurance Operations
Donegal Group is an insurance holding company whose insurance subsidiaries and affiliates offer property and casualty
lines of insurance in three Mid-Atlantic states (Delaware, Maryland and Pennsylvania), five Southern states (Georgia, North Carolina,
South Carolina, Tennessee and Virginia), eight Midwestern states (Illinois, Indiana, Iowa, Michigan, Nebraska, Ohio, South Dakota and
Wisconsin) and five Southwestern states (Arizona, Colorado, New Mexico, Texas and Utah). Donegal Mutual Insurance Company and the insurance
subsidiaries of Donegal Group conduct business together as the Donegal Insurance Group.
Three
Months Ended September 30,
Nine
Months Ended September 30,
2026
2025
%
Change
2026
2025
%
Change
(dollars in
thousands)
Net Premiums Earned
Commercial
lines
$
142,916
$
140,289
1.9
%
$
423,395
$
415,032
2.0
%
Personal lines
79,967
89,533
-10.7
243,419
279,267
-12.8
Total net premiums earned
$
222,883
$
229,822
-3.0
%
$
666,814
$
694,299
-4.0
%
Net Premiums Written
Commercial lines:
Automobile
$
46,089
$
45,621
1.0
%
$
161,477
$
152,730
5.7
%
Workers'
compensation
18,540
21,013
-11.8
66,007
74,010
-10.8
Commercial
multi-peril
47,391
51,800
-8.5
161,997
169,068
-4.2
Other
13,508
11,950
13.0
46,258
40,108
15.3
Total commercial lines
125,528
130,384
-3.7
435,739
435,916
-0.0
Personal lines:
Automobile
49,044
53,870
-9.0
140,480
161,803
-13.2
Homeowners
32,728
32,908
-0.5
92,000
95,286
-3.4
Other
2,433
2,453
-0.8
7,215
7,516
-4.0
Total personal lines
84,205
89,231
-5.6
239,695
264,605
-9.4
Total net premiums written
$
209,733
$
219,615
-4.5
%
$
675,434
$
700,521
-3.6
%
Net Premiums Written
The 4.5% decrease in net premiums written for the third quarter of 2026 compared to the third quarter of 2025, as shown
in the table above, represents the net combination of a 3.7% decrease in commercial lines net premiums written and a 5.6% decrease in
personal lines net premiums written. The $9.9 million decrease in net premiums written for the third quarter of 2026 compared to the third
quarter of 2025 reflected competitive market conditions and included:
Commercial Lines: $4.9 million decrease that we attribute primarily to modestly
higher attrition and a lower level of renewal premium increases, offset partially by incremental growth in new business writings.
Personal Lines: $5.0 million decrease that we attribute primarily to a lower
level of renewal premium increases, offset partially by incremental growth in new business writings that included the impact of our insurance
subsidiaries’ introduction during the third quarter of 2026 of a 12-month automobile policy term option for new business policies.
Underwriting Performance
We evaluate the performance of our commercial lines and personal lines segments primarily based upon the underwriting
results of our insurance subsidiaries as determined under statutory accounting practices. The following table presents comparative details
with respect to the GAAP and statutory combined ratios1 for the three and nine months ended September 30, 2026 and 2025:
Three
Months Ended
Nine
Months Ended
September
30
September
30
2026
2025
2026
2025
GAAP Combined Ratios
(Total Lines)
Loss
ratio - core losses
51.8
%
51.1
%
52.1
%
51.8
%
Loss ratio - weather-related
losses
8.6
6.2
7.2
7.0
Loss ratio - large fire losses
2.6
4.4
5.0
4.3
Loss ratio - net prior-year
reserve development
-1.5
0.4
-2.6
-1.8
Loss ratio
61.5
62.1
61.7
61.3
Expense ratio
34.8
33.5
35.3
33.4
Dividend ratio
0.2
0.3
0.3
0.4
Combined ratio
96.5
%
95.9
%
97.3
%
95.1
%
Statutory Combined
Ratios
Commercial lines:
Automobile
96.9
%
100.9
%
93.2
%
96.7
%
Workers'
compensation
128.1
103.9
115.1
108.7
Commercial
multi-peril
95.6
91.6
106.0
93.1
Other
93.3
87.5
97.8
96.2
Total commercial lines
100.7
96.6
101.9
97.3
Personal lines:
Automobile
89.3
91.2
84.4
85.1
Homeowners
91.7
102.1
89.4
100.0
Other
85.5
52.8
75.8
54.9
Total personal lines
90.1
94.1
86.0
89.6
Total lines
96.5
%
95.5
%
96.2
%
94.4
%
Loss Ratio
For the third quarter of 2026, the loss ratio decreased slightly to 61.5%, compared to 62.1% for the third quarter
of 2025. For the commercial lines segment, the core loss ratio, which excludes weather-related losses, large fire losses and net development
of reserves for losses incurred in prior accident years, of 57.2% for the third quarter of 2026 increased from 54.0% for the third quarter
of 2025, due largely to higher workers’ compensation and casualty loss severity. For the personal lines segment, the core loss ratio
of 42.2% for the third quarter of 2026 decreased from 46.6% for the third quarter of 2025, with the improvement primarily attributable
to the homeowners line of business.
Weather-related losses were $19.1 million, or 8.6 percentage points of the loss ratio, for the third quarter of 2026,
compared to $14.3 million, or 6.2 percentage points of the loss ratio, for the third quarter of 2025. Weather-related loss activity for
the third quarter of 2026 was lower than our previous five-year average of $20.4 million, or 9.3 percentage points of the loss ratio,
for third-quarter weather-related losses. Our insurance subsidiaries incurred $4.2 million in losses from a July severe convective storm
in the third quarter of 2026.
Large fire losses, which we define as individual fire losses in excess of $50,000, for the third quarter of 2026 were
$5.8 million, or 2.6 percentage points of the loss ratio. That amount compared to large fire losses of $10.0 million, or 4.4 percentage
points of the loss ratio, for the third quarter of 2025. We experienced decreases in both commercial property and homeowners fire losses
compared to the prior-year quarter.
Net favorable development of reserves for losses incurred in prior accident years of $3.5 million decreased the loss
ratio for the third quarter of 2026 by 1.5 percentage points, compared to net unfavorable development of $1.0 million that increased the
loss ratio for the third quarter of 2025 by 0.4 percentage points. For the third quarter of 2026, we attribute the net favorable development
primarily to lower-than-expected emergence that our insurance subsidiaries experienced for the workers’ compensation and commercial
automobile lines of business.
Expense Ratio
The expense ratio was 34.8% for the third quarter of 2026, compared to 33.5% for the third quarter of 2025. The increase
in the expense ratio primarily reflected the impact of a lower base of net premiums earned compared to the prior-year quarter.
Investment Operations
Donegal Group’s investment strategy is to generate an appropriate amount of after-tax income on its invested
assets while minimizing credit risk through investment in high-quality securities. As a result, we had invested 95% of our consolidated
investment portfolio in diversified, highly rated and marketable fixed-maturity securities at September 30, 2026.
September
30, 2026
December
31, 2025
Amount
%
Amount
%
(dollars in
thousands)
Fixed maturities, at carrying
value:
U.S.
Treasury securities and obligations of U.S.
government
corporations and agencies
$
97,279
6.5
%
$
103,619
6.9
%
Obligations
of states and political subdivisions
516,109
34.6
485,710
32.4
Corporate
securities
381,926
25.6
383,927
25.6
Mortgage-backed
securities
424,471
28.4
445,227
29.7
Allowance
for expected credit losses
(1,203
)
-0.1
(1,313
)
-0.1
Total fixed maturities
1,418,582
95.0
1,417,170
94.5
Equity securities, at fair
value
51,055
3.4
44,370
3.0
Short-term investments, at
cost
23,235
1.6
38,713
2.5
Total investments
$
1,492,872
100.0
%
$
1,500,253
100.0
%
Average investment yield
3.9
%
3.6
%
Average tax-equivalent investment
yield
4.0
%
3.7
%
Average fixed-maturity duration
(years)
6.1
5.5
Net investment income of $14.7 million for the third quarter of 2026 increased 5.4% compared to $13.9 million
for the third quarter of 2025. The increase in net investment income primarily reflected an increase in average investment yield relative
to the prior-year third quarter.
Net investment losses of $0.7 million for the third quarter of 2026 were primarily related to net realized investment
losses on the strategic sales of available-for-sale fixed-maturity securities, offset partially by net unrealized gains in the fair value
of equity securities held at September 30, 2026. Net investment gains of $1.3 million for the third quarter of 2025 were primarily related
to net unrealized gains in the fair value of equity securities held at September 30, 2025, offset partially by net realized investment
losses on the strategic sales of available-for-sale fixed-maturity securities.
Our book value per share was $17.70 at September 30, 2026, compared to $17.33 at December 31, 2025, with the increase related to net
income, offset partially by cash dividends declared as well as $24.1 million of after-tax net unrealized losses within our available-for-sale
fixed-maturity portfolio during 2026 that decreased our book value by $0.65 per share.
Definitions of Non-GAAP Financial Measures
We prepare our consolidated financial statements on the basis of GAAP. Our insurance subsidiaries also prepare
financial statements based on statutory accounting principles state insurance regulators prescribe or permit (“SAP”). In addition
to using GAAP-based performance measurements, we also utilize certain non-GAAP financial measures that we believe provide value in managing
our business and for comparison to the financial results of our peers. These non-GAAP measures are net premiums written, operating income
or loss and statutory combined ratio.
Net premiums written and operating income or loss are non-GAAP financial measures investors in insurance companies
commonly use. We define net premiums written as the amount of full-term premiums our insurance subsidiaries record for policies effective
within a given period less premiums our insurance subsidiaries cede to reinsurers. We define operating income or loss as net income or
loss excluding after-tax net investment gains or losses, after-tax restructuring charges and other significant non-recurring items. Because
our calculation of operating income or loss may differ from similar measures other companies use, investors should exercise caution when
comparing our measure of operating income or loss to the measure of other companies.
The following table provides a reconciliation of net premiums earned to net premiums written for the periods indicated:
Three
Months Ended September 30,
Nine
Months Ended September 30,
2026
2025
%
Change
2026
2025
%
Change
(dollars in
thousands)
Reconciliation of
Net Premiums
Earned to Net Premiums
Written
Net
premiums earned
$
222,883
$
229,822
-3.0
%
$
666,814
$
694,299
-4.0
%
Change in net unearned premiums
(13,150
)
(10,207
)
28.8
8,620
6,222
38.5
Net premiums written
$
209,733
$
219,615
-4.5
%
$
675,434
$
700,521
-3.6
%
The following table provides a reconciliation of net income to operating income for the periods indicated:
Three
Months Ended September 30,
Nine
Months Ended September 30,
2026
2025
%
Change
2026
2025
%
Change
(dollars
in thousands, except per share amounts)
Reconciliation
of Net Income
to
Non-GAAP Operating Income
Net
income
$
18,157
$
20,080
-9.6
%
$
51,973
$
62,152
-16.4
%
Investment
losses (gains) (after tax)
554
(1,005
)
NM
(1,649
)
(1,853
)
-11.0
Other, net
(72
)
-
NM
(99
)
-
NM
Non-GAAP operating
income
$
18,639
$
19,075
-2.3
%
$
50,225
$
60,299
-16.7
%
Per
Share Reconciliation of Net Income
to
Non-GAAP Operating Income
Net income
– Class A (diluted)
$
0.49
$
0.55
-10.9
%
$
1.40
$
1.72
-18.6
%
Investment
losses (gains) (after tax)
0.01
(0.03
)
NM
(0.05
)
(0.05
)
0.0
Other, net
-
-
NM
-
-
NM
Non-GAAP operating
income – Class A
$
0.50
$
0.52
-3.8
%
$
1.35
$
1.67
-19.2
%
Net income
– Class B
$
0.45
$
0.51
-11.8
%
$
1.29
$
1.58
-18.4
%
Investment
losses (gains) (after tax)
0.01
(0.03
)
NM
(0.04
)
(0.05
)
-20.0
Other, net
-
-
NM
-
-
NM
Non-GAAP operating
income – Class B
$
0.46
$
0.48
-4.2
%
$
1.25
$
1.53
-18.3
%
The statutory combined ratio is a non-GAAP standard measurement of underwriting profitability that is based upon amounts determined
under SAP. The statutory combined ratio is the sum of:
the statutory loss ratio, which is the ratio of calendar-year incurred losses and loss
expenses, excluding anticipated salvage and subrogation recoveries, to premiums earned;
the statutory expense ratio, which is the ratio of expenses incurred for net commissions,
premium taxes and underwriting expenses to premiums written; and
the statutory dividend ratio, which is the ratio of dividends to holders of workers’ compensation
policies to premiums earned.
The statutory combined ratio does not reflect investment income, federal income taxes or other non-operating income
or expense. A statutory combined ratio of less than 100% generally indicates underwriting profitability.
Dividend Information
On October 15, 2026, we declared a regular quarterly cash dividend of $0.1925 per share for our Class A common stock
and $0.175 per share for our Class B common stock, which are payable on November 16, 2026 to stockholders of record as of the close of
business on November 2, 2026.
Pre-Recorded Webcast
At approximately 8:30 am ET on Thursday, October 29, 2026, we will make available in the Investors section of our website
a pre-recorded audio webcast featuring management commentary on our quarterly results and general business updates. You may listen to
the pre-recorded webcast by accessing the link on our website at http://investors.donegalgroup.com. A supplemental investor presentation
is also available via our website.
About the Company
Donegal Group Inc. is an insurance holding company whose insurance subsidiaries and affiliates offer property and casualty
lines of insurance in certain Mid-Atlantic, Midwestern, Southern and Southwestern states. Donegal Mutual Insurance Company and the insurance
subsidiaries of Donegal Group Inc. conduct business together as the Donegal Insurance Group. The Donegal Insurance Group has an A.M. Best
rating of A (Excellent).
The Class A common stock and Class B common stock of Donegal Group Inc. trade on the NASDAQ Global Select Market under
the symbols DGICA and DGICB, respectively. We are focused on several primary strategies, including achieving sustained excellent financial
performance, advancing our operational and digital capabilities, capitalizing on opportunities to grow profitably and providing superior
experiences to our agents, policyholders and employees.
Safe Harbor
We base all statements contained in this release that are not historic facts on our current expectations. Such statements
are forward-looking in nature (as defined in the Private Securities Litigation Reform Act of 1995) and necessarily involve risks and uncertainties.
Forward-looking statements we make may be identified by our use of words such as “will,” “expect,” “intend,”
“plan,” “anticipate,” “believe,” “seek,” “estimate” and similar expressions.
Our actual results could vary materially from our forward-looking statements. The factors that could cause our actual results to vary
materially from the forward-looking statements we have previously made include, but are not limited to, adverse litigation and other industry
trends that could increase our loss costs (including distracted driving, higher rates of litigation, higher judicial awards and escalating
medical, automobile and property repair costs, including due to tariffs), adverse and catastrophic weather events and other natural disasters
(including from changing climate conditions), man-made disasters (such as terrorism), our ability to maintain profitable operations (including
our ability to underwrite risks effectively and charge adequate premium rates), the adequacy of the loss and loss expense reserves of
our insurance subsidiaries, the successful operation (including cost, security and availability) of the information technology systems
our insurance subsidiaries utilize, the successful development and deployment of new technologies (including artificial intelligence,
data modernization and cloud migration) to allow our insurance subsidiaries to compete effectively, the loss or significant restriction
of the use of specific rating attributes, analytical models or technologies our insurance subsidiaries use in their pricing and underwriting,
increases in assessments pursuant to guaranty fund laws, business and economic conditions in the areas in which we and our insurance subsidiaries
operate (including from pandemics), interest rates and other factors impacting the investment portfolios of our insurance subsidiaries,
competition from various insurance and other financial businesses (including changes in consumer preferences for insurance distribution
channels), the availability and cost of reinsurance, legal and judicial developments, changes in regulatory requirements, our ability
to attract and retain independent insurance agents (and their ability to maintain adequate levels of premium volume and quality), changes
in our A.M. Best rating and the other risks that we describe from time to time in our filings with the Securities and Exchange Commission.
We disclaim any obligation to update such statements or to announce publicly the results of any revisions that we may make to any forward-looking
statements to reflect the occurrence of anticipated or unanticipated events or circumstances after the date of such statements.
Investor Relations Contacts
Jeremy Hellman, Vice President, The Equity Group Inc.
Phone: (212) 836-9626
E-mail: jhellman@theequitygroup.com
Jeffrey D. Miller, Executive Vice President & Chief Financial Officer
Phone: (717) 426-1931
E-mail: investors@donegalgroup.com
Financial Supplement
Donegal Group Inc.
Consolidated Statements of Income
(unaudited; in thousands, except share data)
Quarter Ended
September 30,
2026
2025
Net premiums earned
$
222,883
$
229,822
Investment income, net of expenses
14,689
13,943
Net investment (losses) gains
(701
)
1,272
Lease income
74
75
Installment payment fees
713
807
Total revenues
237,658
245,919
Net losses and loss expenses
137,007
142,715
Amortization of deferred acquisition costs
35,881
37,218
Other underwriting expenses
41,724
39,688
Policyholder dividends
490
731
Interest
343
341
Other expenses, net
168
177
Total expenses
215,613
220,870
Income before income tax expense
22,045
25,049
Income tax expense
3,888
4,969
Net income
$
18,157
$
20,080
Net income per common share:
Class A - basic
$
0.49
$
0.56
Class A - diluted
$
0.49
$
0.55
Class B - basic and diluted
$
0.45
$
0.51
Supplementary Financial Analysts' Data
Weighted-average number of shares
outstanding:
Class A - basic
31,658,439
30,953,696
Class A - diluted
32,166,249
31,439,953
Class B - basic and diluted
5,576,775
5,576,775
Net premiums written
$
209,733
$
219,615
Book value per common share
at end of period
$
17.70
$
17.14
Annualized return on average equity
10.9
%
13.0
%
Donegal Group Inc.
Consolidated Statements of Income
(unaudited; in thousands, except share data)
Nine Months
Ended September 30,
2026
2025
Net premiums earned
$
666,814
$
694,299
Investment income, net of expenses
43,468
38,466
Net investment gains
2,087
2,345
Lease income
222
228
Installment payment fees
2,182
2,534
Total revenues
714,773
737,872
Net losses and loss expenses
411,562
425,666
Amortization of deferred acquisition costs
108,301
115,950
Other underwriting expenses
127,300
116,033
Policyholder dividends
1,702
2,309
Interest
1,013
1,010
Other expenses, net
1,179
269
Total expenses
651,057
661,237
Income before income tax expense
63,716
76,635
Income tax expense
11,743
14,483
Net income
$
51,973
$
62,152
Net income per common share:
Class A - basic
$
1.42
$
1.74
Class A - diluted
$
1.40
$
1.72
Class B - basic and diluted
$
1.29
$
1.58
Supplementary Financial Analysts' Data
Weighted-average number of shares
outstanding:
Class A - basic
31,520,696
30,587,219
Class A - diluted
31,996,127
31,071,583
Class B - basic and diluted
5,576,775
5,576,775
Net premiums written
$
675,434
$
700,521
Book value per common share
at end of period
$
17.70
$
17.14
Annualized return on average equity
10.6
%
14.1
%
Donegal Group Inc.
Consolidated Balance Sheets
(in thousands)
September 30,
December 31,
2026
2025
(unaudited)
ASSETS
Investments:
Fixed maturities:
Held to maturity, at amortized cost
$
804,647
$
776,447
Available for sale, at fair value
613,935
640,723
Equity securities, at fair value
51,055
44,370
Short-term investments, at cost
23,235
38,713
Total investments
1,492,872
1,500,253
Cash
32,503
26,786
Premiums receivable
220,719
180,804
Reinsurance receivable
410,095
398,582
Deferred policy acquisition costs
69,145
68,670
Prepaid reinsurance premiums
205,818
171,083
Other assets
41,388
40,451
Total assets
$
2,472,540
$
2,386,629
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities:
Losses and loss expenses
$
1,127,476
$
1,100,050
Unearned premiums
634,396
591,040
Borrowings under lines of credit
35,000
35,000
Other liabilities
14,384
20,121
Total liabilities
1,811,256
1,746,211
Stockholders' equity:
Class A common stock
348
344
Class B common stock
56
56
Additional paid-in capital
399,253
391,811
Accumulated other comprehensive loss
(32,400
)
(8,296
)
Retained earnings
335,253
297,729
Treasury stock
(41,226
)
(41,226
)
Total stockholders' equity
661,284
640,418
Total liabilities and stockholders' equity
$
2,472,540
$
2,386,629
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