Donegal Group, Inc. · NASDAQ:DGICA
Donegal — Q4 2025 Earnings Presentation
17 slides from Donegal's earnings presentation, Feb 19, 2026
Slide 1: Fourth Quarter 2025 Investor Presentation
Fourth Quarter 2025 Investor Presentation February 19, 2026 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 property and casualty insurance to businesses and individuals in certain Mid-Atlantic, Midwestern, Southern and Southwestern states through approximately 2,000 independent insurance
Slide 4: Strategies to Provide Value to Stakeholders
Strategies to Provide Value to Stakeholders Providing superior Achieving sustained Capitalizing on Advancing our operational experiences to our agents, excellent financial opportunities to grow and digital capabilities policyholders and performance profitably employees Streamlining and Continuing ex
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: Mix of Commercial and Personal Lines
Mix of Commercial and Personal Lines Net Premiums Written by Line of Business Year Ended December 31, 2025 Commercial Lines Other Personal Commercial Auto 1.1% Commercial Multi-Peril 62% of NPW Commercial Auto Workers’ Comp 21.9% Homeowners Other Commercial 13.6% Workers' Comp 10.2% Personal Auto 23
Slide 7: Valuation vs. Multi-Line Insurers
Valuation vs. Multi-Line Insurers Price-to-Book Multiple 2.72 2.41 2.13 2.14 2.05 1.92 Peer Average 1.69x 1.71 1.65 1.54 1.15 1.03 0.89 0.58 DGICA: Price and Book Value as of 12/31/2025. Peer Data Source: FactSet; Price as of 12/31/2025 and Book Value as of latest reported quarter as of 2/17/2026. w
Slide 8: Fourth Quarter 2025 – Overview
Fourth Quarter 2025 – Overview Modest Decline High-Quality Investment Excellent Underwriting Results in Premiums Portfolio Avg. Net Premiums Net Investment Loss Ratio Expense Ratio Investment Earned Income Yield $226.9M 61.1% 34.9% $14.2M 3.6% (4.1)% (1.3) pts (2.1) pts 17.5% 30 bps vs. Q4’24 vs. Q4
Slide 9: Financial Results – Fourth Quarter 2025
Financial Results – Fourth Quarter 2025 (dollars in thousands, except per share data) Q4’25 Q4’24 Change Net Premiums Written $204,306 $211,442 (3.4)% Net Premiums Earned $226,885 $236,635 (4.1)% Better/(Worse) Loss Ratio 61.1% 59.8% (1.3) pts Core 50.3% 52.3% 2.0 pts Weather 3.6% 3.3% (0.3) pts Lar
Slide 10: Fourth Quarter 2025 - Results by Line of Business
Fourth Quarter 2025 - Results by Line of Business • Net premiums written decreased 3.4% (Commercial Lines +3.2%; Personal Lines -12.7%), primarily attributable to lower new business writings, offset partially by solid retention and renewal premium increases. • Commercial lines renewal premium increa
Slide 11: Conservative Investment Strategy
Conservative Investment Strategy $1.5 Billion in Invested Assets As of December 31, 2025 • Quarterly net investment income increased 17.5% to $14.2 million. Mortgage Backed Corporate Securities (MBS) • Investment portfolio emphasizes on high- 25.5% 29.7% quality fixed-income securities. Treasury and
Slide 12: 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 13: Contact Information
Contact Information Transfer Agent Investor Relations Contact Computershare Trust Company, N.A. Jeremy Hellman P.O. Box 43006 Vice President, The Equity Group Providence, RI 02940 Phone: (212) 836-9626 Phone: 800-317-4445 jhellman@theequitygroup.com www.computershare.com www.donegalgroup.com 13
Slide 14: 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 15: Supplemental Information: Reconciliations
Supplemental Information: Reconciliations Reconciliation of net premiums earned to net premiums written: Three Months Ended December 31, Year Ended December 31, 2025 2024 % Change 2025 2024 % Change (dollars in thousands) Reconciliation of Net Premiums Earned to Net Premiums Written Net premiums ear
Slide 16: 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 2025 Loss ratio - core losses 58.8% 60.4% 40.7% 64.6% 52.5% 62.4% 22.7% 28.4% 46.8% Loss ratio - w
Slide 17: 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 2025 Loss ratio - core losses 62.6% 68.4% 42.7% 51.2% 54.8% 58.1% 27.9% 32.9% 46.3% Loss ratio - weathe