Donegal Group Reports Third-Quarter Net Income of $18.2 Million, or $0.49 Per Diluted Class A Share
MARIETTA, Pennsylvania — Donegal Group Inc. (NASDAQ: DGICA and DGICB), an insurance holding company based in Marietta, Pennsylvania, on October 29 reported financial results for the third quarter and first nine months of 2026, with third-quarter net income of $18.2 million, or $0.49 per diluted Class A share, compared with $20.1 million, or $0.55 per diluted Class A share, in the third quarter of 2025.
Net premiums earned decreased 3.0% to $222.9 million in the quarter. Commercial lines net premiums earned rose 1.9% to $142.9 million, while personal lines fell 10.7% to $80.0 million. Total revenues were $237.7 million, down 3.4%.
The GAAP combined ratio was 96.5%, compared with 95.9% a year earlier. Weather-related losses were $19.1 million, or 8.6 points of the loss ratio, up from $14.3 million a year earlier, while large fire losses fell to $5.8 million. Net investment income rose 5.4% to $14.7 million; the quarter included after-tax net investment losses of $0.6 million, versus gains of $1.0 million a year earlier.
Non-GAAP operating income was $18.6 million, versus $19.1 million a year earlier, and annualized return on average equity was 10.9%, compared with 13.0%. Book value per share was $17.70 at September 30, 2026, compared with $17.14 a year earlier. Net income for the first nine months was $52.0 million, versus $62.2 million a year earlier.
President and Chief Executive Officer Kevin G. Burke said soft market conditions continued across the company's operating regions in the third quarter and impeded its premium growth plan, but the company delivered solid profitability, and personal automobile new business benefited from the reintroduction of a 12-month policy term. He said the company is working with its independent agency partners on action plans aimed at profitable, modest premium growth in 2027.
Donegal Group is an insurance holding company whose subsidiaries conduct business together as the Donegal Insurance Group, offering property and casualty insurance in 21 states across the Mid-Atlantic, the South, the Midwest and the Southwest.
Source: GSM · USA (original Chinese edition)
Photo: 宾夕法尼亚州 Marietta 老市政厅（Donegal Group 总部所在地，资料图）。Smallbones 摄，CC0，经 Wikimedia Commons。 / The Old Town Hall in Marietta, Pennsylvania, home of Donegal Group's headquarters (file photo). Photo by Smallbones, CC0, via Wikimedia Commons.
