SEC Filing | Donegal Group Inc.

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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
_____________________

FORM 8-K

_____________________

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event Reported): October 24, 2024

Donegal Group Inc.

(Exact Name of Registrant as Specified in Charter)

Delaware	0-15341	23-2424711
(State or Other Jurisdiction of Incorporation)	(Commission File Number)	(I.R.S. Employer Identification Number)

1195 River Road, P.O. Box 302, Marietta, Pennsylvania 17547
(Address of Principal Executive Offices) (Zip Code)

(717) 426-1931

(Registrant's telephone number, including area code)

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

	☐	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
	☐	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
	☐	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
	☐	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR §230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR §240.12b-2). Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Securities registered pursuant to Section 12(b) of the Act:

Title of Each Class	Trading Symbols	Name of Each Exchange on Which Registered
Class A Common Stock, $.01 par value	DGICA	The NASDAQ Global Select Market
Class B Common Stock, $.01 par value	DGICB	The NASDAQ Global Select Market

Item 2.02. Results of Operations and Financial Condition.

On October 24, 2024, the Registrant issued a press release, a copy of which is attached hereto as Exhibit 99.1 and is incorporated herein by reference.

Item 9.01. Financial Statements and Exhibits.

Exhibit 99.1		Press release dated October 24, 2024
Exhibit 104		Cover Page Interactive Data File (embedded within the Inline XBRL document)

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	Donegal Group Inc.


Date: October 24, 2024	By:	/s/ Jeffrey D. Miller
		Jeffrey D. Miller
		Executive Vice President & Chief Financial Officer

EXHIBIT INDEX

Exhibit Number		Description

Exhibit 99.1		Press release dated October 24, 2024
Exhibit 104		Cover Page Interactive Data File (embedded within the Inline XBRL document)

EdgarFiling

EXHIBIT 99.1

Donegal Group Inc. Announces Third Quarter and First Nine Months of 2024 Results

MARIETTA, Pa., Oct. 24, 2024 (GLOBE NEWSWIRE) -- Donegal Group Inc. (NASDAQ: DGICA) and (NASDAQ: DGICB) today reported its financial results for the third quarter and first nine months of 2024.

Significant Items for third quarter of 2024 (all comparisons to third quarter of 2023):

Net income of $16.8 million, or 51 cents per diluted Class A share, compared to net loss of $0.8 million, or 2 cents per Class A share
Net premiums earned increased 6.0% to $238.0 million
Net premiums written¹ increased 5.9% to $232.2 million
Combined ratio of 96.4%, compared to 104.5%
Net income included after-tax net investment gains of $1.5 million, or 5 cents per diluted Class A share, compared to after-tax net investment losses of $1.0 million, or 3 cents per Class A share
Book value per share of $15.22 at September 30, 2024, compared to $14.26

Financial Summary

	Three Months Ended September 30,								Nine Months Ended September 30,
		2024			2023		% Change			2024			2023		% Change
	(dollars in thousands, except per share amounts)

Income Statement Data
Net premiums earned	$	237,957		$	224,393		6.0	%	$	700,017		$	655,886		6.7	%
Investment income, net		10,827			10,536		2.8			32,868			30,143		9.0
Net investment gains (losses)		1,876			(1,243	)	NM²			4,725			930		408.1
Total revenues		251,738			233,928		7.6			739,651			687,870		7.5
Net income (loss)		16,752			(805	)	NM			26,860			6,396		319.9
Non-GAAP operating income¹		15,270			176		NM			23,127			5,661		308.5
Annualized return on average equity		13.4	%		-0.7	%	14.1 pts			7.2	%		1.8	%	5.4 pts

Per Share Data
Net income (loss) – Class A (diluted)	$	0.51		$	(0.02	)	NM		$	0.81		$	0.20		305.0	%
Net income (loss) – Class B		0.46			(0.02	)	NM			0.74			0.17		335.3
Non-GAAP operating income – Class A (diluted)		0.46			0.01		NM			0.70			0.17		311.8
Non-GAAP operating income – Class B		0.42			-		NM			0.63			0.15		320.0
Book value		15.22			14.26		6.7	%		15.22			14.26		6.7

¹The “Definitions of Non-GAAP Financial Measures” section of this release defines and reconciles data that we prepare on an accounting basis other than U.S. generally accepted accounting principles (“GAAP”).

²Not meaningful.

Management Commentary

“We are pleased that many of the strategic initiatives we implemented in recent years contributed to significant improvement in our financial results for the third quarter of 2024,” said Kevin G. Burke, President and Chief Executive Officer of Donegal Group Inc.

“With the exit from commercial lines markets in Georgia and Alabama essentially completed at the end of the second quarter of 2024, solid new business writings, rate achievement and retention levels led to a 6.4% increase in commercial lines net premiums written for the third quarter of 2024. Our personal lines net premiums written growth rate for the third quarter was 5.4%, primarily attributable to strong rate increases and policy retention that were partially offset by intentional strategic actions to slow growth and further improve profitability.

“Despite higher-than-average weather-related losses during the quarter, primarily attributable to Hurricane Helene in late September, our combined ratio improved significantly to 96.4%, compared to 104.5% for the prior-year quarter. Our core loss ratios improved across all of our major lines of business. We attribute that improvement to the favorable impact of numerous ongoing underwriting initiatives and higher net premiums earned from renewal rate increases that we implemented over the past two years.”

Mr, Burke concluded, “We have growing confidence that the continuing execution of our strategies will deliver sustained excellent financial performance.”

Insurance Operations

Donegal Group is an insurance holding company whose insurance subsidiaries and affiliates offer property and casualty lines of insurance in three Mid-Atlantic states (Delaware, Maryland and Pennsylvania), five Southern states (Georgia, North Carolina, South Carolina, Tennessee and Virginia), eight Midwestern states (Illinois, Indiana, Iowa, Michigan, Nebraska, Ohio, South Dakota and Wisconsin) and five Southwestern states (Arizona, Colorado, New Mexico, Texas and Utah). Donegal Mutual Insurance Company and the insurance subsidiaries of Donegal Group conduct business together as the Donegal Insurance Group.

	Three Months Ended September 30,						Nine Months Ended September 30,
		2024		2023	% Change			2024		2023	% Change
	(dollars in thousands)

Net Premiums Earned
Commercial lines	$	136,401	$	135,432	0.7	%	$	402,982	$	399,427	0.9	%
Personal lines		101,556		88,961	14.2			297,035		256,460	15.8
Total net premiums earned	$	237,957	$	224,393	6.0	%	$	700,017	$	655,887	6.7	%

Net Premiums Written
Commercial lines:
Automobile	$	41,464	$	37,535	10.5	%	$	142,067	$	134,853	5.3	%
Workers' compensation		23,934		24,371	-1.8			82,599		85,315	-3.2
Commercial multi-peril		50,155		44,949	11.6			163,528		147,622	10.8
Other		10,548		11,639	-9.4			35,649		39,913	-10.7
Total commercial lines		126,101		118,494	6.4			423,843		407,703	4.0
Personal lines:
Automobile		65,150		58,038	12.3			188,958		161,348	17.1
Homeowners		38,288		39,633	-3.4			109,655		105,035	4.4
Other		2,669		3,021	-11.7			8,383		8,917	-6.0
Total personal lines		106,107		100,692	5.4			306,996		275,300	11.5
Total net premiums written	$	232,208	$	219,186	5.9	%	$	730,839	$	683,003	7.0	%

Net Premiums Written

The 5.9% increase in net premiums written for the third quarter of 2024 compared to the third quarter of 2023, as shown in the table above, represents the combination of 6.4% growth in commercial lines net premiums written and 5.4% growth in personal lines net premiums written. The $13.0 million increase in net premiums written for the third quarter of 2024 compared to the third quarter of 2023 included:

Commercial Lines: $7.6 million increase that we attribute primarily to new business writings, strong premium retention, and a continuation of renewal premium increases in lines other than workers’ compensation, offset partially by planned attrition in states in which we are executing ongoing profit improvement initiatives as part of our state-specific strategies.
Personal Lines: $5.4 million increase that we attribute primarily to a continuation of renewal premium rate increases and strong policy retention, offset partially by planned attrition due to non-renewal actions.

Underwriting Performance

We evaluate the performance of our commercial lines and personal lines segments primarily based upon the underwriting results of our insurance subsidiaries as determined under statutory accounting practices. The following table presents comparative details with respect to the GAAP and statutory combined ratios¹ for the three and nine months ended September 30, 2024 and 2023:

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2024		2023		2024		2023

GAAP Combined Ratios (Total Lines)
Loss ratio - core losses	50.1	%	56.7	%	54.5	%	56.0	%
Loss ratio - weather-related losses	10.3		11.5		8.6		9.1
Loss ratio - large fire losses	3.7		4.9		5.2		5.3
Loss ratio - net prior-year reserve development	-2.6		-3.3		-2.2		-2.4
Loss ratio	61.5		69.8		66.1		68.0
Expense ratio	34.5		34.1		34.0		34.9
Dividend ratio	0.4		0.6		0.5		0.6
Combined ratio	96.4	%	104.5	%	100.6	%	103.5	%

Statutory Combined Ratios
Commercial lines:
Automobile	101.5	%	86.5	%	98.2	%	94.8	%
Workers' compensation	84.7		97.7		104.1		93.1
Commercial multi-peril	88.4		114.8		100.4		113.8
Other	59.4		76.2		78.4		82.7
Total commercial lines	89.8		97.5		98.6		100.2
Personal lines:
Automobile	97.8		109.8		97.8		106.1
Homeowners	116.8		128.9		107.5		111.2
Other	102.2		46.4		97.2		81.3
Total personal lines	104.7		119.4		101.2		107.2
Total lines	96.0	%	105.2	%	99.7	%	102.9	%

Loss Ratio

For the third quarter of 2024, the loss ratio decreased to 61.5%, compared to 69.8% for the third quarter of 2023. For the commercial lines segment, the core loss ratio of 48.5% for the third quarter of 2024 decreased from 53.7% for the third quarter of 2023, due largely to lower severity of large casualty losses. For the personal lines segment, the core loss ratio of 52.5% for the third quarter of 2024 decreased from 61.8% for the third quarter of 2023, due largely to the favorable impact of premium rate increases on net premiums earned for that segment. Core loss ratios in both segments improved compared to the respective ratios for the first half of 2024.

Weather-related losses were $24.4 million, or 10.3 percentage points of the loss ratio, for the third quarter of 2024, compared to $25.7 million, or 11.5 percentage points of the loss ratio, for the third quarter of 2023. Weather-related loss activity for the third quarter of 2024 was higher than our previous five-year average of $18.8 million, or 9.4 percentage points of the loss ratio, for third-quarter weather-related losses. Our insurance subsidiaries incurred $6.0 million in net losses from Hurricane Helene in September 2024.

Large fire losses, which we define as individual fire losses in excess of $50,000, for the third quarter of 2024 were $8.8 million, or 3.7 percentage points of the loss ratio. That amount was lower than large fire losses of $11.0 million, or 4.9 percentage points of the loss ratio, for the third quarter of 2023. We experienced a decrease in commercial property fire losses compared to the prior-year quarter.

Net favorable development of reserves for losses incurred in prior accident years of $6.2 million decreased the loss ratio for the third quarter of 2024 by 2.6 percentage points, compared to $7.3 million that decreased the loss ratio for the third quarter of 2023 by 3.3 percentage points. Our insurance subsidiaries experienced favorable development primarily in the commercial multi-peril and other commercial lines of business.

Expense Ratio

The expense ratio was 34.5% for the third quarter of 2024, compared to 34.1% for the third quarter of 2023. The modest increase in the expense ratio primarily reflected an increase in underwriting-based incentive costs as well as higher technology systems-related expenses that were primarily due to increased costs related to our ongoing systems modernization project, a portion of which Donegal Mutual Insurance Company allocates to our insurance subsidiaries. This increase was offset partially by impacts of various expense reduction initiatives, including agency incentive program revisions, commission schedule adjustments, targeted staffing reductions, and hiring restrictions for open employment positions, among others. We expect the impact from allocated costs from Donegal Mutual Insurance Company to our insurance subsidiaries related to the ongoing systems modernization project will peak at approximately 1.3 percentage points of the expense ratio for the full year of 2024 before beginning to subside gradually in subsequent years.

Investment Operations

Donegal Group’s investment strategy is to generate an appropriate amount of after-tax income on its invested assets while minimizing credit risk through investment in high-quality securities. As a result, we had invested 96.2% of our consolidated investment portfolio in diversified, highly rated and marketable fixed-maturity securities at September 30, 2024.

	September 30, 2024					December 31, 2023
	Amount			%		Amount			%
	(dollars in thousands)
Fixed maturities, at carrying value:
U.S. Treasury securities and obligations of U.S. government corporations and agencies	$	173,663		12.7	%	$	176,991		13.3	%
Obligations of states and political subdivisions		413,040		30.1			415,280		31.3
Corporate securities		427,372		31.2			399,640		30.1
Mortgage-backed securities		304,911		22.3			278,260		21.0
Allowance for expected credit losses		(1,483	)	-0.1			(1,326	)	-0.1
Total fixed maturities		1,317,503		96.2			1,268,845		95.6
Equity securities, at fair value		35,957		2.6			25,903		2.0
Short-term investments, at cost		15,805		1.2			32,306		2.4
Total investments	$	1,369,265		100.0	%	$	1,327,054		100.0	%

Average investment yield		3.3	%				3.1	%
Average tax-equivalent investment yield		3.3	%				3.2	%
Average fixed-maturity duration (years)		5.1					4.3

Net investment income of $10.8 million for the third quarter of 2024 increased modestly compared to $10.5 million for the third quarter of 2023. The increase in net investment income primarily reflected an increase in average investment yield relative to the prior-year third quarter.

Net investment gains of $1.9 million for the third quarter of 2024 were primarily related to unrealized gains in the fair value of equity securities held at September 30, 2024. Net investment losses of $1.2 million for the third quarter of 2023 were primarily related to unrealized losses in the fair value of equity securities held at September 30, 2023.

Our book value per share was $15.22 at September 30, 2024, compared to $14.39 at December 31, 2023, with the increase related to net income as well as $11.9 million of after-tax unrealized gains within our available-for-sale fixed-maturity portfolio during 2024 that increased our book value by $0.37 per share, offset partially by cash dividends declared.

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-based performance measurements, we also utilize certain non-GAAP financial measures that we believe provide value in managing our business and for comparison to the financial results of our peers. These non-GAAP measures are net premiums written, operating income or loss and statutory combined ratio.

Net premiums written and operating income or loss are non-GAAP financial measures investors in insurance companies commonly use. We define net premiums written as the amount of full-term premiums our insurance subsidiaries record for policies effective within a given period less premiums our insurance subsidiaries cede to reinsurers. We define operating income or loss as net income or loss excluding after-tax net investment gains or losses, after-tax restructuring charges and other significant non-recurring items. Because our calculation of operating income or loss may differ from similar measures other companies use, investors should exercise caution when comparing our measure of operating income or loss to the measure of other companies.

The following table provides a reconciliation of net premiums earned to net premiums written for the periods indicated:


	Three Months Ended September 30,								Nine Months Ended September 30,
		2024			2023		% Change			2024		2023	% Change
	(dollars in thousands)

Reconciliation of Net Premiums
Earned to Net Premiums Written
Net premiums earned	$	237,957		$	224,393		6.0	%	$	700,017	$	655,886	6.7	%
Change in net unearned premiums		(5,749	)		(5,207	)	10.4			30,822		27,117	13.7
Net premiums written	$	232,208		$	219,186		5.9	%	$	730,839	$	683,003	7.0	%

The following table provides a reconciliation of net income (loss) to operating income for the periods indicated:

	Three Months Ended September 30,							Nine Months Ended September 30,
		2024			2023		% Change		2024			2023		% Change
	(dollars in thousands, except per share amounts)

Reconciliation of Net Income (Loss)
to Non-GAAP Operating Income
Net income (loss)	$	16,752		$	(805	)	NM	$	26,860		$	6,396		319.9	%
Investment (gains) losses (after tax)		(1,482	)		981		NM		(3,733	)		(735	)	407.9
Non-GAAP operating income	$	15,270		$	176		NM	$	23,127		$	5,661		308.5	%

Per Share Reconciliation of Net Income (Loss)
to Non-GAAP Operating Income
Net income (loss) – Class A (diluted)	$	0.51		$	(0.02	)	NM	$	0.81		$	0.20		305.0	%
Investment (gains) losses (after tax)		(0.05	)		0.03		NM		(0.11	)		(0.03	)	266.7
Non-GAAP operating income – Class A	$	0.46		$	0.01		NM	$	0.70		$	0.17		311.8	%

Net income (loss) – Class B	$	0.46		$	(0.02	)	NM	$	0.74		$	0.17		335.3	%
Investment (gains) losses (after tax)		(0.04	)		0.02		NM		(0.11	)		(0.02	)	450.0
Non-GAAP operating income – Class B	$	0.42		$	-		NM	$	0.63		$	0.15		320.0	%

The statutory combined ratio is a non-GAAP standard measurement of underwriting profitability that is based upon amounts determined under SAP. The statutory combined ratio is the sum of:

the statutory loss ratio, which is the ratio of calendar-year incurred losses and loss expenses, excluding anticipated salvage and subrogation recoveries, to premiums earned;
the statutory expense ratio, which is the ratio of expenses incurred for net commissions, premium taxes and underwriting expenses to premiums written; and
the statutory dividend ratio, which is the ratio of dividends to holders of workers’ compensation policies to premiums earned.

The statutory combined ratio does not reflect investment income, federal income taxes or other non-operating income or expense. A statutory combined ratio of less than 100% generally indicates underwriting profitability.

Dividend Information

On October 17, 2024, we declared a regular quarterly cash dividend of $0.1725 per share for our Class A common stock and $0.155 per share for our Class B common stock, which are payable on November 15, 2024 to stockholders of record as of the close of business on November 1, 2024.

Pre-Recorded Webcast

At approximately 8:30 am ET on Thursday, October 24, 2024, we will make available in the Investors section of our website a pre-recorded audio webcast featuring management commentary on our quarterly results and general business updates. You may listen to the pre-recorded webcast by accessing the link on our website at http://investors.donegalgroup.com. A supplemental investor presentation is also available via our website.

About the Company

Donegal Group Inc. is an insurance holding company whose insurance subsidiaries and affiliates 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 Donegal Insurance Group has an A.M. Best rating of A (Excellent).

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. We are focused on several primary strategies, including achieving sustained excellent financial performance, strategically modernizing our operations and processes to transform our business, capitalizing on opportunities to grow profitably and delivering a superior experience to our agents and customers.

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 statements we make may be identified by our use of words such as “will,” “expect,” “intend,” “plan,” “anticipate,” “believe,” “seek,” “estimate” and similar expressions. Our actual results could vary materially from our forward-looking statements. The factors that could cause our actual results to vary materially from the forward-looking statements we have previously made include, but are not limited to, adverse litigation and other trends that could increase our loss costs (including social inflation, labor shortages and escalating medical, automobile and property repair costs), adverse and catastrophic weather events (including from changing climate conditions), our ability to maintain profitable operations (including our ability to underwrite risks effectively and charge adequate premium rates), the adequacy of the loss and loss expense reserves of our insurance subsidiaries, the availability and successful operation of the information technology systems our insurance subsidiaries utilize, the successful development of new information technology systems to allow our insurance subsidiaries to compete effectively, business and economic conditions in the areas in which we and our insurance subsidiaries operate, interest rates, competition from various insurance and other financial businesses, terrorism, the availability and cost of reinsurance, legal and judicial developments (including those related to COVID-19 business interruption coverage exclusions), changes in regulatory requirements, our ability to attract and retain independent insurance agents, changes in our A.M. Best rating and the other risks that we describe from time to time in our filings with the Securities and Exchange Commission. We disclaim any obligation to update such statements or to announce publicly the results of any revisions that we may make to any forward-looking statements to reflect the occurrence of anticipated or unanticipated events or circumstances after the date of such statements.

Investor Relations Contacts

Karin Daly, Vice President, The Equity Group Inc.

Phone: (212) 836-9623
E-mail: kdaly@equityny.com

Jeffrey D. Miller, Executive Vice President & Chief Financial Officer
Phone: (717) 426-1931
E-mail: investors@donegalgroup.com

Financial Supplement

Donegal Group Inc.
Consolidated Statements of Income (Loss)
(unaudited; in thousands, except share data)

		Quarter Ended September 30,
			2024		2023

Net premiums earned		$	237,957	$	224,393
Investment income, net of expenses			10,827		10,536
Net investment gains (losses)			1,876		(1,243	)
Lease income			77		86
Installment payment fees			1,001		156
	Total revenues		251,738		233,928

Net losses and loss expenses			146,426		156,683
Amortization of deferred acquisition costs			40,200		39,332
Other underwriting expenses			41,827		37,155
Policyholder dividends			1,007		1,399
Interest			367		156
Other expenses, net			1,499		208
	Total expenses		231,326		234,933

Income (loss) before income tax expense (benefit)			20,412		(1,005	)
Income tax expense (benefit)			3,660		(200	)

Net income (loss)		$	16,752	$	(805	)

Net income (loss) per common share:
	Class A - basic and diluted	$	0.51	$	(0.02	)
	Class B - basic and diluted	$	0.46	$	(0.02	)

Supplementary Financial Analysts' Data

Weighted-average number of shares
	outstanding:
	Class A - basic		27,978,435		27,594,973
	Class A - diluted		28,058,399		27,665,293
	Class B - basic and diluted		5,576,775		5,576,775

Net premiums written		$	232,208	$	219,186

Book value per common share
	at end of period	$	15.22	$	14.26

Donegal Group Inc.
Consolidated Statements of Income
(unaudited; in thousands, except share data)

		Nine Months Ended September 30,
			2024		2023

Net premiums earned		$	700,017	$	655,886
Investment income, net of expenses			32,868		30,143
Net investment gains			4,725		930
Lease income			237		262
Installment payment fees			1,804		649
	Total revenues		739,651		687,870

Net losses and loss expenses			462,683		446,024
Amortization of deferred acquisition costs			120,458		115,065
Other underwriting expenses			117,604		113,715
Policyholder dividends			3,248		4,088
Interest			677		464
Other expenses, net			2,309		969
	Total expenses		706,979		680,325

Income before income tax expense			32,672		7,545
Income tax expense			5,812		1,149

Net income		$	26,860	$	6,396

Net income per common share:
	Class A - basic	$	0.82	$	0.20
	Class A - diluted	$	0.81	$	0.20
	Class B - basic and diluted	$	0.74	$	0.17

Supplementary Financial Analysts' Data

Weighted-average number of shares outstanding:
	Class A - basic		27,878,552		27,390,883
	Class A - diluted		27,916,904		27,507,706
	Class B - basic and diluted		5,576,775		5,576,775

Net premiums written		$	730,839	$	683,003

Book value per common share
	at end of period	$	15.22	$	14.26


Donegal Group Inc.
Consolidated Balance Sheets
(in thousands)

			September 30,			December 31,
				2024			2023
			(unaudited)

ASSETS
Investments:
	Fixed maturities:
		Held to maturity, at amortized cost	$	694,663		$	679,497
		Available for sale, at fair value		622,840			589,348
	Equity securities, at fair value			35,957			25,903
	Short-term investments, at cost			15,805			32,306
		Total investments		1,369,265			1,327,054
Cash				28,651			23,792
Premiums receivable				194,254			179,592
Reinsurance receivable				434,078			441,431
Deferred policy acquisition costs				78,484			75,043
Prepaid reinsurance premiums				185,364			168,724
Other assets				56,030			50,658
		Total assets	$	2,346,126		$	2,266,294

LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities:
	Losses and loss expenses		$	1,134,853		$	1,126,157
	Unearned premiums			646,870			599,411
	Accrued expenses			2,987			3,947
	Borrowings under lines of credit			35,000			35,000
	Other liabilities			13,046			22,034
		Total liabilities		1,832,756			1,786,549
Stockholders' equity:
	Class A common stock			312			308
	Class B common stock			56			56
	Additional paid-in capital			342,186			335,694
	Accumulated other comprehensive loss			(20,951	)		(32,882	)
	Retained earnings			232,993			217,795
	Treasury stock			(41,226	)		(41,226	)
		Total stockholders' equity		513,370			479,745
		Total liabilities and stockholders' equity	$	2,346,126		$	2,266,294