On this page of StockholderLetter.com we present the latest annual shareholder letter from DONEGAL GROUP INC — ticker symbol DGICA. Reading current and past DGICA letters to shareholders can bring important insights into the investment thesis.
ANNUAL REPORT 20 24
Donegal Group Inc. is an insurance holding company whose insurance subsidiaries and afwliates offer property and casualty lines of insurance in certain Mid-Atlantic, Midwestern, Southern and Southwestern states. Donegal Mutual Insurance Company and the insurance subsidiaries of Donegal Group Inc. conduct business together as the Donegal Insurance Group. The Class A common stock and Class B common stock of Donegal Group Inc. trade on the NASDAQ Global Select Market under the symbols DGICA and DGICB, respectively. The Donegal Insurance Group has an A.M. Best rating of A (Excellent). Building Tomorrow Together
Financial Highlights 2024 2023 2022 2021 2020 $ 936,651,480 $ 882,071,386 $ 822,489,450 $ 776,015,201 $ 742,040,339 Investment income, net 44,918,162 40,853,215 34,016,112 31,125,631 29,504,466 Investment gains (losses) 4,981,072 3,172,807 (10,184,797) 6,477,286 2,777,919 989,605,050 927,337,984 848,220,546 816,465,791 777,819,910 Income (loss) before income tax expense (benewt) 62,338,932 5,063,476 (3,638,099) 30,338,508 63,272,503 Income tax expense (benewt) 11,476,680 637,972 (1,678,694) 5,084,334 10,457,251 Net income (loss) 50,862,252 4,425,504 (1,959,405) 25,254,174 52,815,252 Basic earnings (loss) per share - Class A 1.53 0.14 (0.06) 0.83 1.84 Diluted earnings (loss) per share - Class A 1.53 0.14 (0.06) 0.83 1.83 Cash dividends per share - Class A 0.69 0.68 0.66 0.64 0.60 Basic earnings (loss) per share - Class B 1.38 0.11 (0.07) 0.74 1.65 Diluted earnings (loss) per share - Class B 1.38 0.11 (0.07) 0.74 1.65 Cash dividends per share - Class B 0.62 0.61 0.59 0.57 0.53 Year Ended December 31, Income Statement Data Premiums earned Total revenues Balance Sheet Data at Year End Total investments $ 1,384,972,332 $ 1,327,053,645 $ 1,304,657,242 $ 1,276,845,897 $ 1,221,201,784 2,336,031,983 2,266,293,888 2,243,349,335 2,255,175,399 2,160,520,324 35,000,000 35,000,000 35,000,000 35,000,000 90,000,000 Stockholders equity 545,776,131 479,745,354 483,593,012 531,036,087 517,774,120 Book value per share 15.36 14.39 14.79 16.95 17.13 Net Income (Loss) Stockholders Equity [ in millions ] $20 $475 $550 $10 20 $650 21 $500 22 $30 23 $750 24 $525 20 $40 21 $850 22 $550 23 $50 24 $950 $450 20 [ in millions ] 21 [ in millions ] 22 Total Revenues 23 Debt obligations 24 Total assets 1
To Our Stockholders A Year of Progress The year 2024 was one of continuing strategic execution, and we were pleased to realize incremental i i w > V > i v > Vi / i i } ii i i` v > v i `i` V> i` V >L > i ivv i> > i i `i` i i > i i > i> 7i > i Lii } i i i iw i > i} i ] `i i v > V i > ` ` V vvi } > `] > ] i}> i i v i / ] i > i L ` } }i i Many of the actions we implemented in the past several years converged to positively impact our underwriting i { 7 i i v L ` } } i ] i > i i> i` > i i } } v >VV i ` } i > i> 7i V i` ` i v i }i } > V footprint of our insured property risks to improve our mix of business and reduce the overall impact of losses v i i i i> i i i 7i v i i > > i` > > V> i > Vi `i } `iV > } i i > > } ` ` > > ` V > i v L i 7i VVi v i iV i` > }i i` i i i reduction and expense management actions to achieve meaningful cost reductions in 2024, with more to V i x > ` Li ` 7i V i` > i } i> `i i `i > iV ] > ` those efforts are on schedule to allow us to sunset our legacy systems when the last remaining legacy V i i i 7i >`i } i> } i ` } i i> > i> `> > `i > > i i i > V i i i V ` L> i` `> > v > V i > V V> v i L i Vi i > ` > i} i / >} i v > V i V> i ` > V> L> i` L i `i > ` > ` `i i i> i } / i > v i >L i } ivwV i `> > Vi }] i } >VVi i > i` > ` i >L i v i `> > `i i > v>V > i i> i i} > > > V v V ] > wV > i }i Vi > ` machine learning models, and enable innovative business use cases for technologies such as Generative wV > i }i Vi i 7i Li i i i i `> > i > i` i i i i i> >VVi L i `> > for management reporting, position us to further enhance our data analytics, enable the future addition of i `> > Vi > ` }> i `> > i} } {] i Li}> i } i V> >L i L i }>} } ` > i i i > > i > ` `i v i > i >` > v > i iV } 7i v V i` > >V i fostering awareness of associated risks, developing expertise, establishing strategic partnerships and i > } v v i >` > Vi i 7i i iV i i >}i V> >L i > > i>` i i data infrastructure platform and prioritize solutions that allow traceability, auditability and explainability of i iV i i V> i > i > Vi i ivwV i V v i > Vi i 2
Financial Summary / > i i i V i> i` v { V > i` ] iyiV } > V i> i i i i> i` > ` > V i> i i i i V i i i i }> v fx v {] V > i` f v ] i i > i > i` > V i> i i > i > i v i iV i i i ` > iVi Li ] { / i V L i` > i` } wV> n v {] V > i` { { v ] > ` i to the favorable impact of earned premium rate increases that reduced our core loss ratios for both our V i V > > ` i > i i} i 7i> i i > i` i v { i i i > i i i i Vi` v ] i i i } i Vi >}i v i > v {] V > i` n i Vi >}i v i > v 7i i i i Vi` i i `i i > Vi L ` > i V } f i i v V> i i i i -i i Li { 7i > i V } ` }i >V i ` i v }i } > V i>` v } i} }> i i >V v i i i i> i >V i v> >L i `i i i v i V i` >VV `i i> > i` f x v {] i` V } i > L i Vi >}i ] V > i` f v ] i` V } i > L i Vi >}i / i i i i > > v i v i> v {] V > i` { v i v i> v ] iyiV } i Li iw v > i i i i` V > i i i i i` ` } {] vv i > > L } i `i } L> i` Vi i V > ` V i> i` iV } i i i i i i V i v f{{ v { } i L i ` i > V i> i > i >}i invested assets as well as a higher average investment yield from increased average reinvestment interest > i { 7i > i V } v > V i > i i i > >V ] > } ` V i` management and asset allocation strategies to maintain an investment portfolio that generates consistent } > ` >L i i `i } >V i " i V i v { }i` fx ] f x i ` i` > > i] V > i` f{ { ] { Vi i ` i` > > i] v 7i > L i i V i> i > L > > i i `i } i " L > i i > i > f x > iVi Li ] {] V > i` f { > i> i ` v i > i> i` }> > > >L i v > i w i` > v ` i > `iV i > i i i > i V i> i` L > i L n Vi i > i ` } { `` > i V L L value per share from net income and other increases were partially offset by the cash dividends we declared ` } i i> 3
 • shareholder letter icon 3/17/2025 Letter Continued (Full PDF)
 • stockholder letter icon 3/17/2023 DGICA Stockholder Letter
 • stockholder letter icon 3/15/2024 DGICA Stockholder Letter
 • stockholder letter icon More "Insurance Brokers" Category Stockholder Letters
 • Benford's Law Stocks icon DGICA Benford's Law Stock Score = 80


DGICA Shareholder/Stockholder Letter Transcript:

ANNUAL REPORT
20
24

Donegal Group Inc. is an insurance holding company
whose insurance subsidiaries and afwliates offer
property and casualty lines of insurance in certain
Mid-Atlantic, Midwestern, Southern and Southwestern
states. Donegal Mutual Insurance Company and the
insurance subsidiaries of Donegal Group Inc. conduct
business together as the Donegal Insurance Group.
The Class A common stock and Class B common stock
of Donegal Group Inc. trade on the NASDAQ Global
Select Market under the symbols DGICA and DGICB,
respectively.
The Donegal Insurance Group has an A.M. Best
rating of A (Excellent).
Building Tomorrow
Together

Financial Highlights
2024
2023
2022
2021
2020
$ 936,651,480
$ 882,071,386
$ 822,489,450
$ 776,015,201
$ 742,040,339
Investment income, net
44,918,162
40,853,215
34,016,112
31,125,631
29,504,466
Investment gains (losses)
4,981,072
3,172,807
(10,184,797)
6,477,286
2,777,919
989,605,050
927,337,984
848,220,546
816,465,791
777,819,910
Income (loss) before income tax expense (benewt)
62,338,932
5,063,476
(3,638,099)
30,338,508
63,272,503
Income tax expense (benewt)
11,476,680
637,972
(1,678,694)
5,084,334
10,457,251
Net income (loss)
50,862,252
4,425,504
(1,959,405)
25,254,174
52,815,252
Basic earnings (loss) per share - Class A
1.53
0.14
(0.06)
0.83
1.84
Diluted earnings (loss) per share - Class A
1.53
0.14
(0.06)
0.83
1.83
Cash dividends per share - Class A
0.69
0.68
0.66
0.64
0.60
Basic earnings (loss) per share - Class B
1.38
0.11
(0.07)
0.74
1.65
Diluted earnings (loss) per share - Class B
1.38
0.11
(0.07)
0.74
1.65
Cash dividends per share - Class B
0.62
0.61
0.59
0.57
0.53
Year Ended December 31,
Income Statement Data
Premiums earned
Total revenues
Balance Sheet Data at Year End
Total investments
$ 1,384,972,332 $ 1,327,053,645 $ 1,304,657,242 $ 1,276,845,897 $ 1,221,201,784
2,336,031,983
2,266,293,888
2,243,349,335
2,255,175,399
2,160,520,324
35,000,000
35,000,000
35,000,000
35,000,000
90,000,000
Stockholders    equity
545,776,131
479,745,354
483,593,012
531,036,087
517,774,120
Book value per share
15.36
14.39
14.79
16.95
17.13
Net Income (Loss)
Stockholders    Equity
[ in millions ]
$20
$475
$550
$10
20
$650
21
$500
22
$30
23
$750
24
$525
20
$40
21
$850
22
$550
23
$50
24
$950
$450
20
[ in millions ]
21
[ in millions ]
22
Total Revenues
23
Debt obligations
24
Total assets
1

To Our Stockholders
A Year of Progress
The year 2024 was one of continuing strategic execution, and we were pleased to realize incremental
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Many of the actions we implemented in the past several years converged to positively impact our underwriting
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footprint of our insured property risks to improve our mix of business and reduce the overall impact of losses
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reduction and expense management actions to achieve meaningful cost reductions in 2024, with more to
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those efforts are on schedule to allow us to sunset our legacy systems when the last remaining legacy
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machine learning models, and enable innovative business use cases for technologies such as Generative
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for management reporting, position us to further enhance our data analytics, enable the future addition of
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fostering awareness of associated risks, developing expertise, establishing strategic partnerships and
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data infrastructure platform and prioritize solutions that allow traceability, auditability and explainability of
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2

Financial Summary
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to the favorable impact of earned premium rate increases that reduced our core loss ratios for both our
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invested assets as well as a higher average investment yield from increased average reinvestment interest
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management and asset allocation strategies to maintain an investment portfolio that generates consistent
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value per share from net income and other increases were partially offset by the cash dividends we declared
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3



shareholder letter icon 3/17/2025 Letter Continued (Full PDF)
 

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