Slide 1: Fourth Quarter 2024 Investor Presentation
Fourth Quarter 2024 Investor Presentation February 20, 2025 Kevin G. Burke President and Chief Executive Officer Jeffrey D. Miller Executive Vice President and Chief Financial Officer www.donegalgroup.com
Slide 2: Safe Harbor
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 st
Slide 3: Company Overview
Company Overview Donegal Group Inc. is an insurance holding company whose insurance subsidiaries and affiliates offer commercial and personal lines of property and casualty insurance to businesses and individuals in certain Mid-Atlantic, Midwestern, Southern and Southwestern states through approxima
Slide 4: Strategies to Provide Value to Stakeholders
Strategies to Provide Value to Stakeholders Strategically modernizing Providing superior Achieving sustained Capitalizing on our operations and experiences to our agents, excellent financial opportunities to grow processes to transform our policyholders and performance profitably business employees
Slide 5: Significant Benefits to Shareholders from Mutual Relationship
Significant Benefits to Shareholders from Mutual Relationship • Pooling agreement fosters an environment of continuity and maintains superior employee relations in which the business can grow. • Shared combined business plan to enhance market penetration and underwriting profitability. Rated A (Exce
Slide 6: Valuation vs. Multi-Line Insurers
Valuation vs. Multi-Line Insurers Price-to-Book Multiple 3.80 2.65 2.71 Peer Average 1.93x 2.44 1.91 1.92 1.97 1.63 1.69 1.53 1.01 0.92 0.35 DGICA: Price and Book Value as of 12/31/2024 Peer Data Source: FactSet; Price as of 12/31/2024 and Book Value as of latest reported quarter as of 2/11/2025. ww
Slide 7: Mix of Commercial and Personal Lines
Mix of Commercial and Personal Lines Net Premiums Written by Line of Business Year Ended December 31, 2024 Commercial Lines Other Personal Commercial Auto 1.1% Commercial Multi-Peril 58% of NPW Commercial Auto Workers’ Comp 19.6% Homeowners Other Commercial 14.9% Workers' Comp 11.0% Personal Auto Co
Slide 8: Continued Emphasis on Growth in Commercial Lines
Continued Emphasis on Growth in Commercial Lines 100.0% 115,000 95.0% 91.0% 89.7% 89.2% 86.6% 86.8% 87.2% 90.0% 86.4% 85.5% 86.2% 85.4% 85.4% 106,686 84.4% 105,549 85.0% 105,000 100,075 80.0% 99,210 99,325 97,878 96,316 96,562 75.0% 95,000 92,334 91,254 70.0% 89,971 87,051 65.0% 85,000 60.0% 55.0% 7
Slide 9: Fourth Quarter 2024 – Overview
Fourth Quarter 2024 – Overview Solid Premium High-Quality Investment Improved Underwriting Results Growth Portfolio Avg. Net Premiums Net Investment Loss Ratio Expense Ratio Investment Earned Income Yield $236.6M 59.8% 32.8% $12.1M 3.3% 4.6% 12.3 pts 1.3 pts 12.5% 20 bps vs. Q4’23 vs. Q4’23 vs. Q4’2
Slide 10: Financial Results – Fourth Quarter 2024
Financial Results – Fourth Quarter 2024 (dollars in thousands, except per share data) Q4’24 Q4’23 Change Net Premiums Written $211,442 $212,693 (0.6%) Net Premiums Earned $236,635 $226,185 4.6% Better/(Worse) Loss Ratio 59.8% 72.1% 12.3 pts Core 52.3% 61.8% 9.5 pts Weather 3.3% 5.9% 2.6 pts Large Fi
Slide 11: Financial Results – Full Year 2024
Financial Results – Full Year 2024 (dollars in thousands, except per share data) 2024 2023 Change Net Premiums Written $942,281 $895,697 5.2% Net Premiums Earned $936,651 $882,071 6.2% Better/(Worse) Loss Ratio 64.5% 69.1% 4.6 pts Core 54.0% 57.5% 3.5 pts Weather 7.2% 8.3% 1.1 pts Large Fire Losses
Slide 12: Fourth Quarter 2024 - Results by Line of Business
Fourth Quarter 2024 - Results by Line of Business • Continued renewal premium increases averaging ~11% (12% excl. workers’ compensation). • Commercial lines net premiums written increased 2.8% primarily attributable to solid premium retention and a continuation of renewal premium increases, offset p
Slide 13: Conservative Investment Strategy
Conservative Investment Strategy $1.4 Billion in Invested Assets As of December 31, 2024 • Quarterly net investment income increased 12.5% to $12.1 million. Corporate 31.8% • Investment portfolio emphasizes on high- Mortgage Backed Securities (MBS) quality fixed-income securities. 22.0% Treasury and
Slide 14: Investment Thesis
Investment Thesis • Well-established regional insurance group with a diverse book of business including both commercial and personal lines • Continuing the optimization of our mix of business with emphasis on commercial lines while strategically stabilizing personal lines to maintain a profitable bo
Slide 15: Contact Information
Contact Information Transfer Agent Investor Relations Contact Computershare Trust Company, N.A. Karin Daly P.O. Box 43006 Vice President, The Equity Group Providence, RI 02940 Phone: (212) 836-9623 Phone: 800-317-4445 kdaly@equityny.com www.computershare.com www.donegalgroup.com 15
Slide 16: Definitions of Non-GAAP Financial Measures
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-ba
Slide 17: Supplemental Information: Reconciliations
Supplemental Information: Reconciliations Reconciliation of net premiums earned to net premiums written: Three Months Ended December 31, Year Ended December 31, 2024 2023 % Change 2024 2023 % Change (dollars in thousands) Reconciliation of Net Premiums Earned to Net Premiums Written Net premiums ear
Slide 18: Supplemental Information: GAAP Loss Ratio Components
Supplemental Information: GAAP Loss Ratio Components Commercial Lines Personal Lines Workers' Commercial Automobile Compensation Multi-peril Other Total Automobile Homeowners Other Total Fourth Quarter 2024 Loss ratio - core losses 67.9% 70.2% 38.3% 46.9% 55.2% 64.4% 22.5% 25.3% 48.4% Loss ratio - w
Slide 19: Supplemental Information: GAAP Loss Ratio Components
Supplemental Information: GAAP Loss Ratio Components Commercial Lines Personal Lines Workers' Commercial Automobile Compensation Multi-peril Other Total Automobile Homeowners Other Total Full Year 2024 Loss ratio - core losses 66.1% 61.9% 43.3% 39.8% 54.4% 67.8% 28.1% 61.1% 53.5% Loss ratio - weathe