| Metric | Value ($ M) | Q1 FY25 |
|---|---|---|
| Revenue | 236.00 | 3.7% |
| Total Income | 236.00 | 3.7% |
| Expenditure | 221.87 | 3.7% |
| PBT | 14.12 | 54.7% |
| Net Profit | 11.51 | 54.3% |
| OPM | — | |
| NPM | 4.88% | 5.40pp |
| EPS | — |
Donegal Group Inc. Announces First Quarter 2026 Results
03 May 2026 · 3 May, 6:08 pm
Summary
Donegal Group Inc. reported its financial results for the first quarter of 2026, with net premiums earned decreasing by 4.9% to $221.4 million. Net income decreased to $11.5 million, or $0.31 per diluted Class A share, compared to $25.2 million, or $0.71 per diluted Class A share, in the first quarter of 2025. The combined ratio was 99.8%, compared to 91.6% in the prior-year quarter. According to the President and CEO, the results reflected solid underlying operating performance despite softening conditions in the insurance markets.
Key Highlights
- 1
Net premiums earned decreased by 4.9% to $221.4 million compared to the first quarter of 2025.
- 2
The combined ratio was 99.8%, compared to 91.6% in the prior-year quarter.
- 3
Net income amounted to $11.5 million, or $0.31 per diluted Class A share, a decrease from $25.2 million, or $0.71 per diluted Class A share, in the first quarter of 2025.
- 4
The annualized return on average equity was 7.1%, compared to 17.8% in the same period last year.
- 5
Book value per share stood at $17.54 at March 31, 2026, compared to $16.24 at March 31, 2025.
- 6
Net premiums written for the commercial lines business segment grew by 2.2% compared to the prior-year quarter.
- 7
Weather-related losses were $17.2 million, representing 7.8 percentage points of the loss ratio for the first quarter of 2026.
Management Comments
Kevin G. Burke
Our first quarter of 2026 results reflected solid underlying operating performance despite softening conditions in the insurance markets we serve. At a high level, the past few years have been characterized by generally favorable conditions for our industry, and, as is often the case, a softening market has emerged as the availability of capital has led industry participants to reduce rates to win and retain accounts. Against this challenging backdrop, we remain committed to maintaining underwriting and pricing discipline as we pursue new, high-quality accounts and seek to retain existing accounts at adequate pricing levels. Net premiums written1 for our commercial lines business segment grew by 2.2% compared to the prior-year quarter, as we began to gain traction in new business production despite competitive market conditions, supported by solid retention and continued renewal premium increases in lines other than workers’ compensation. We experienced a continued decline in our personal lines net premiums written, which we believe will gradually taper over the course of 2026 as actions we have taken to slow the decline take effect. While our underwriting results for the first quarter of 2026 lagged the unusually favorable results we achieved for the prior-year quarter, we primarily attribute the lower profitability to higher-than-average weather-related losses and the impact of several large current-year and prior-year losses. We are pleased that our core loss ratios for both the commercial and personal lines segments improved modestly compared to the first quarter of 2025, reflecting solid underlying performance within our book of business. We believe we are well positioned to build value for all of our constituents as we navigate the current market cycle. Coupling excellent service to our independent agents and policyholders with prudent underwriting and advancing operational capabilities, we expect to build upon the strong foundation we have established over the past several years. We believe that the effective ongoing execution of our strategies will enhance stockholder value over time.
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