Donegal Group, Inc. · NASDAQ:DGICA
Donegal — Shareholder Meeting (April 2013)
22 slides from Donegal's shareholder meeting presentation, Apr 18, 2013
Slide 1: Annual Meeting of Stockholders
Exhibit 99.1 Annual Meeting of Stockholders April 18, 2013
Slide 2: Forward-Looking Statements
2 Forward-Looking Statements The Company bases all statements made in this presentation that are not historic facts on its current expectations. These statements are forward-looking in nature (as defined in the Private Securities Litigation Reform Act of 1995) and involve a number of risks and uncer
Slide 3: President's Report
President’s Report
Slide 4: Corporate Objective
Corporate Objective Create value for shareholders, policyholders, agents, employees and the communities we serve by outperforming the property and casualty insurance industry over time in terms of service, profitability and book value growth
Slide 5: Multi-faceted Strategy to Achieve Strategic Goals
5 Multi-faceted Strategy to Achieve Strategic Goals • Conservative underwriting • Pricing discipline and premium adequacy • Prudent organic and acquisition growth • Best-in-class technology • Effective and growing agency distribution system
Slide 6: Multi-faceted Strategy to Achieve Strategic Goals
6 Multi-faceted Strategy to Achieve Strategic Goals • Superior claims service • Efficient operations • Conservative investing • Strong enterprise risk management • Recruiting, development and retention of quality personnel
Slide 7: 2012 Financial Results
2012 Financial Results
Slide 8: Financial Results
8 Financial Results 2011 • Total Revenues $475,018,000 $514,983,000 • Premiums Earned $431,470,000 $475,002,000 • Investment Income $20,858,000 $20,168,000 • Net Income $453,000 $23,093,000 • Statutory Combined Ratio 107.9% 99.8% 2012
Slide 9: Balance Sheet Strength
9 Balance Sheet Strength December 31, • Total Assets • Stockholders’ Equity • Book Value per Share $15.01 $15.63 $400,034,000 $383,452,000 $1,336,889,000 $1,290,793,000 2012 2011
Slide 10: Investment Portfolio
10 Investment Portfolio * Excluding investments in affiliates Short-Term Securities 5% Treasury 2% Agency 7% Corporate 10% Mortgage -Backed Securities (MBS) 16% Taxable Munis 2% Equity 1% $769 Million in Invested Assets* Tax-Exempt Municipals 57%
Slide 11: Fixed Maturity Investment Ratings
11 Fixed Maturity Investment Ratings December 31, 2012 U.S. Treasury and U.S. Agency Securities $201,358,000 27.3% Aaa or AAA 53,203,000 7.2% Aa or AA 379,372,000 51.5% A 89,338,000 12.1% BBB 13,339,000 1.9% Total $736,610,000 100.0%
Slide 12: Book Value Plus Cumulative Dividends
12 Book Value Plus Cumulative Dividends Growth of Book Value $- $5.00 $10.00 $15.00 $20.00 Book Value Dividends Paid
Slide 13: First Quarter 2013 Financial Results
st Quarter 2013 Financial Results
Slide 14: First Quarter Financial Results
14 st Quarter Financial Results st Qtr 2012 st Qtr 2013 • Total Revenues $125,348,000 $133,873,000 • Premiums Earned $114,692,000 $124,702,000 • Investment Income $5,090,000 $4,815,000 • Net Income $8,010,000 $6,475,000 • Statutory Combined Ratio 96.9% 98.0%
Slide 15: Balance Sheet Strength
15 Balance Sheet Strength December 31, March 31, 2012 2013 • Total Assets $1,336,889,000 $1,352,033,000 • Stockholders’ Equity $400,034,000 $404,722,000 • Book Value per Share $15.63 $15.72
Slide 16: Technological Capabilities
16 Technological Capabilities
Slide 17: Acquisitions and Affiliations
Acquisitions and Affiliations
Slide 18: Regional Focus: Serving States Through 2,500 Independent Agencies
18 Regional Focus: Serving 22 States Through 2,500 Independent Agencies • 10 M&A transactions – Experienced consolidation team • Acquisition criteria: – Serving attractive geography – Favorable regulatory, legislative and judicial environments – Similar personal/commercial business mix – Premium vol
Slide 19: Acquisitions Have Made Meaningful Contribution to Long-term Growth
19 Acquisitions Have Made Meaningful Contribution to Long-term Growth $283 $302 $207 $307 $314 $365 $363 $392 $454 $496 Net Written Premiums (dollars in millions) January 2004 Acquired Le Mars and Peninsula December 2008 Acquired Sheboygan Falls Implemented Pooling Change December 2010 Acquired Mich
Slide 20: Union Community Bank
20 Union Community Bank (48% owned by Donegal Group Inc.) • Financial results: – $509.8 million in assets at year-end 2012 – $9.8 million in 2012 net income, up from $4.8 million in 2011 – $2.3 million in net income for first quarter of 2013 • Excellent capital ratios at March 31, 2013: Tier 1 capit
Slide 21: Recognition: Affirmed October 2012
21 Affirmed October 2012 Recognition Affirmed October 2012
Slide 22: Annual Meeting of Stockholders
Annual Meeting of Stockholders April 18, 2013