| Metric | Value ($ M) | Q1 FY26 | Q2 FY25 |
|---|---|---|---|
| Revenue | 241.12 | 2.2% | 2.4% |
| Total Income | 241.12 | 2.2% | 2.4% |
| Expenditure | 213.57 | 3.7% | 5.8% |
| PBT | 27.55 | 95.1% | 34.9% |
| Net Profit | 22.31 | 93.8% | 32.3% |
| OPM | — | ||
| NPM | 9.25% | 4.37pp | 2.43pp |
| EPS | — |
Donegal Group Inc. Announces Second Quarter and First Half 2026 Results
30 Jul 2026 · 30 Jul, 4:06 pm
Summary
Donegal Group Inc. reported second quarter 2026 results with net premiums earned decreasing 4.0% year-over-year to $222.6 million, reflecting challenging market conditions. However, the company saw a significant improvement in its combined ratio to 95.6% from 97.7% in the prior year, driven by solid underwriting results and lower weather-related losses. Net income rose by 32.3% to $22.3 million, with diluted Class A earnings per share increasing to $0.60. The company also reported growth in book value per share to $17.98.
Key Highlights
- 1
For the second quarter of 2026, net premiums earned decreased 4.0% year-over-year to $222.6 million.
- 2
The combined ratio improved to 95.6% in Q2 2026, compared to 97.7% in the prior-year quarter.
- 3
Net income for the second quarter of 2026 was $22.3 million, or $0.60 per diluted Class A share, a 32.3% increase from $16.9 million, or $0.46 per share, in Q2 2025.
- 4
Net investment gains after tax were $2.6 million, or $0.07 per diluted Class A share, for Q2 2026, up from $1.2 million, or $0.03 per share, in Q2 2025.
- 5
Annualized return on average equity increased to 13.6% in Q2 2026, from 11.3% in the same period of 2025.
- 6
Book value per share reached $17.98 at June 30, 2026, an increase from $16.62 at June 30, 2025.
Management Comments
Kevin G. Burke
Our net premiums earned for the second quarter of 2026 reflected a continuation of challenging trends and market conditions we experienced last quarter. Against that backdrop, we are pleased to report solid quarterly results that provided further growth in our book value to $17.98 per share at June 30, 2026, compared to $17.54 at the end of the first quarter of 2026. Net premiums written for our commercial lines business segment grew by 0.8% compared to the prior-year quarter, resulting primarily from improved new business production that was mostly offset by lower renewal premium increases and retention levels. As expected, we experienced a continuing decline in our personal lines net premiums written that we expect will gradually taper over the course of 2026 as actions we have taken to slow and eventually reverse the decline take effect. 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. On the whole, our underwriting results for the second quarter of 2026 were solid, which we primarily attribute to favorable core loss ratios in both our commercial and personal lines segments, lower-than-average weather-related losses and favorable prior-year reserve development, offset partially by a moderate increase in large fire losses. Solid underwriting performance and enhanced investment income allowed us to continue growing our book value in the second quarter. While we face a softening phase of the insurance cycle, we have established a strong foundation over the past several years, and we continue to believe that the effective ongoing execution of our strategies will enhance stockholder value over time. For example, we are beginning to realize benefits from our ongoing emphasis on enhanced engagement with our independent agents as a means of attracting profitable growth opportunities.
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