Donegal Group Inc. Announces Second Quarter and First Half 2023 Results

About this update from Donegal Group, Inc.

[{"type":"text","content":"MARIETTA, Pa., July 27, 2023 (GLOBE NEWSWIRE) -- Donegal Group Inc. (NASDAQ: DGICA) and (NASDAQ: DGICB) today reported its financial results for the second quarter and first half of 2023. Significant Items for Second Quarter of 2023 (all comparisons to second quarter of 2022): Net income of $2.0 million, or 6 cents per diluted Class A share, compared to net loss of $8.2 million, or 26 cents per Class A shareNet premiums earned increased 5.9% to $216.3 millionNet premiums written1 increased 3.7% to $226.5 millionCombined ratio of 104.7%, compared to 105.0%Net income included after-tax net investment gains of $2.0 million, or 6 cents per diluted Class A share, compared to after-tax net investment losses of $6.6 million, or 21 cents per Class A shareBook value per share of $14.68 at June 30, 2023 Financial Summary Three Months Ended June 30, Six Months Ended June 30, 2023 2022 % Change 2023 2022 % Change (dollars in thousands, except per share amounts) Income Statement Data Net premiums earned$216,260 $204,128 5.9% $431,493 $403,377 7.0%Investment income, net 10,157 8,204 23.8 19,607 16,063 22.1 Net investment gains (losses) 2,504 (8,377) NM2 2,173 (8,453) NMTotal revenues 229,196 204,311 12.2 453,942 411,938 10.2 Net income (loss) 1,997 (8,208) NM 7,201 4,937 45.9 Non-GAAP operating income (loss)1 19 (1,590) NM 5,484 11,615 -52.8 Annualized return (loss) on average equity 1.6% -6.3% NM 3.0% 1.9% 1.1 pts Per Share Data Net income (loss) – Class A (diluted)$0.06 $(0.26) NM $0.22 $0.16 37.5%Net income (loss) – Class B 0.05 (0.24) NM 0.20 0.14 42.9 Non-GAAP operating income (loss) – Class A (diluted) - (0.05) NM 0.17 0.37 -54.1 Non-GAAP operating income (loss) – Class B - (0.05) NM 0.15 0.34 -55.9 Book value 14.68 15.87 -7.5% 14.68 15.87 -7.5 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 “We are continuing to navigate through a challenging time for the insurance industry as we respond to the ongoing effects of elevated loss cost inflation. During the quarter, we intentionally slowed our new business growth in personal lines, a strategic decision due to the ongoing inflationary increases in the cost and duration of automobile and property...

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