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): August 13, 2012
Donegal Group Inc.
(Exact name of registrant as specified in its charter)
| Delaware | 0-15341 | 23-02424711 | ||
| (State or other jurisdiction of incorporation) |
(Commission file number) |
(I.R.S. employer identification no.) | ||
| 1195 River Road, Marietta, Pennsylvania | 17547 | |||
| (Address of principal executive offices) | (Zip code) | |||
Registrant’s telephone number, including area code: 717-426-1931
Not Applicable
(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)) |
| Item 7.01. | Regulation FD Disclosure. |
On August 13, 2012, we issued a press release, a copy of which we have attached to this Current Report on Form 8-K as Exhibit 99.1 and incorporate by reference in this Current Report on Form 8-K.
Beginning on August 13, 2012, our officers will present to various investors and analysts the information attached to this Current Report on Form 8-K as Exhibit 99.2. We incorporate by reference the material information included in our presentation to those investors and analysts in Exhibit 99.2 in this Current Report on Form 8-K.
The information in this Current Report on Form 8-K, including the information in Exhibit 99.1 and Exhibit 99.2, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or the Exchange Act, or incorporated by reference in any filing under the Securities Act of 1933, as amended, or in any filing under the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.
| Item 9.01. | Financial Statements and Exhibits. |
| Exhibit No. |
Exhibit Description | |
| 99.1 | Press Release dated August 13, 2012. | |
| 99.2 | Investor Presentation. | |
-2-
SIGNATURES
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. | ||
| By: | /s/ Jeffrey D. Miller | |
| Jeffrey D. Miller, Senior Vice President and Chief Financial Officer | ||
Date: August 13, 2012
-3-
Exhibit 99.1
CONTACT: Jeffrey D. Miller
Senior Vice President and Chief Financial Officer
Phone: (717) 426-1931
Fax: (717) 426-7031
E-mail: jeffmiller@donegalgroup.com
Donegal Group Inc. to Present at Keefe, Bruyette & Woods
2012 Insurance Conference
MARIETTA, Pennsylvania, August 13, 2012 – Donegal Group Inc. (NASDAQ:DGICA/DGICB) announced today that the Company will participate in the Keefe, Bruyette & Woods 2012 Insurance Conference. Donald H. Nikolaus, President and Chief Executive Officer, and Jeffrey D. Miller, Senior Vice President and Chief Financial Officer, are scheduled to present on September 6, 2012 at 10:20 a.m. (Eastern). If you are unable to attend the conference, you may listen to the presentation live over the Internet through a link on the Investors page of our website at www.donegalgroup.com.
The Company will make its presentation materials available on its website. The Company will also make a replay of the presentation available on its website for 90 days after the live event.
About the Company
Donegal Group is an insurance holding company. The Company’s Class A common stock and Class B common stock trade on NASDAQ under the symbols DGICA and DGICB, respectively. As an effective acquirer of small to medium-sized “main street” property and casualty insurers, Donegal Group has grown profitably over the past 25 years. The Company continues to seek opportunities for growth while striving to achieve its longstanding goal of outperforming the industry in terms of service, profitability and growth in book value.
The insurance subsidiaries of Donegal Group Inc. and Donegal Mutual Insurance Company conduct business together as the Donegal Insurance Group. The Donegal Insurance Group has an A.M. Best rating of A (Excellent).
Exhibit 99.2
Effective Consolidator of “Main Street” Property and Casualty Insurers
!
Investor!Presenta,on!
Forward-Looking Statements
The!Company!bases!all!statements!made!in!this!presenta,on!that!are!not!historic!facts!on!its!current! expecta,ons.!These!statements!are!forward=looking!in!nature!(as!defined!in!the!Private!Securi,es! Li,ga,on!Reform!Act!of!1995)!and!involve!a!number!of!risks!and!uncertain,es.!Actual!results!could! vary!materially.!Factors!that!could!cause!actual!results!to!vary!materially!include:!the!Company’s! ability!to!maintain!profitable!opera,ons,!the!adequacy!of!the!loss!and!loss!expense!reserves!of!the! Company’s!insurance!subsidiaries,!business!and!economic!condi,ons!in!the!areas!in!which!the! Company!operates,!interest!rates,!compe,,on!from!various!insurance!and!other!financial!businesses,! terrorism,!the!availability!and!cost!of!reinsurance,!adverse!and!catastrophic!weather!events,!legal!and! judicial!developments,!changes!in!regulatory!requirements,!the!Company’s!ability!to!integrate!and! manage!successfully!the!companies!it!may!acquire!from!,me!to!,me!and!other!risks!the!Company! describes!from!,me!to!,me!in!the!periodic!reports!it!files!with!the!Securi,es!and!Exchange!
Commission.!You!should!not!place!undue!reliance!on!any!such!forward=looking!statements.!!The! Company!disclaims!any!obliga,on!to!update!such!statements!or!to!announce!publicly!the!results!of! any!revisions!that!it!may!make!to!any!forward=looking!statements!to!reflect!the!occurrence!of! an,cipated!or!unan,cipated!events!or!circumstances!aSer!the!date!of!such!statements.!!
Reconcilia,ons!of!non=GAAP!data!are!available!in!the!Investors!sec,on!of!the!Company’s!website!at! www.donegalgroup.com!in!the!Company’s!news!releases!regarding!quarterly!financial!results.!
Snapshot: NASDAQ:DGICA/DGICB
• Insurance!holding!company!with!controlling!mutual!affiliate!
– Class!A!dividend!yield!of!3.5%!
– Class!A!shares!have!1/10!vote;!Class!B!shares!have!one!vote!
• Regional!standard!market!property!and!casualty!insurance!group!
– 22!Mid=Atlan,c,!Midwestern,!New!England!and!Southern!states!
– Distribu,on!force!of!approximately!2,500!independent!agencies!
– $454!million!in!2011!net!wriben!premiums,!up!16%!from!2010!!
($629&million&in&agency&direct&wri5en&premiums&for&insurance&group*)&
– Completed!ten!M&A!transac,ons!since!1988!
• Rated!A!(Excellent)!by!A.M.!Best!
– Debt=to=capital!of!approximately!19%!
– Premium=to=surplus!ra,o!of!approximately!1.3=to=1!
*&Includes&Donegal&Mutual&Insurance&Company&and&Southern&Mutual&Insurance&Company&
Objective: Outperform Industry
Service, Profitability and Book Value Growth
Change’in’Net’Wri-en’Premiums’ GAAP’Combined’Ra@o’ Change’in’Book’Value’
DGI’CAGR:’9.9%”‘Index’CAGR:’1.9%’ DGI’Avg:’97.2%”Index’Avg:’101.8%’ DGI’CAGR:’7.0%”Index’CAGR:’6.5%’
50%! 130%! 25%!
40%! 125%! 20%!
120%! 15%!
30%!
115%! 10%!
20%! 110%! 5%!
10%! 105%! 0%!
0%! 100%! =5%!
95%! =10%!
=10%!
90%! =15%!
=20%! 85%! =20%!
=30%! 80%! =25%!
2002! 2003! 2004! 2005! 2006! 2007! 2008! 2009! 2010! 2011! 2002! 2003! 2004! 2005! 2006! 2007! 2008! 2009! 2010! 2011! 2002! 2003! 2004! 2005! 2006! 2007! 2008! 2009! 2010! 2011!
Donegal!Group! SNL!Small!Cap!U.S.!Insurance!Index!(average)!
1H 2012: Strong Growth and Improved Operating EPS* of 30¢ vs. 10¢ Loss in 1H 2011
• 9.7%!increase!in!net!wriben!premiums!
– 7.4%!from!organic!growth,!including!12.0%!commercial!lines!expansion!with! con,nued!signs!of!improving!pricing!environment!
– Insurance!Company!subsidiary! 2.3%!from!change!in!external!quota=share!agreement!for!Michigan!
• 92.0%!commercial!lines!and!105.0%!personal!lines!statutory! combined!ra,os!
– 100.2%!overall!statutory!combined!ra,o,!improved!from!103.9%!in!1H!2011!
– 102.5%!overall!GAAP!combined!ra,o,!improved!from!108.1%!in!1H!2011!
– Primary!factors!impac,ng!1H!2012!were!elevated!weather!losses,!increase!in!
fire!losses!!and!modest!strengthening!of!prior=year!reserves!
– Concentra,ng!on!ini,a,ves!to!drive!sustained!underwri,ng!profitability!
• Decline!in!investment!income!due!to!lower!yields!
• Book!value!per!share!at!$15.36!vs. !$15.01!at!year=end!2011!
*&ReconciliaCons&and&definiCons&of&nonEGAAP&data&are&available&on&the&Investors&area&of&our&website&
Achieve Objectives By Implementing Plan
Con@nue’to’pursue’consolida@on’opportuni@es’
Complement!with!organic!growth!and!diversifica,on!! Translate!into!book!value!growth!
Acquisitions Have Made Meaningful Contribution to Long-term Growth
Michigan’ Net’Wri-en’Premiums’ $454’
Sheboygan’ (dollars’in’millions)’
Peninsula’ 10%’CAGR’ $392’
Le’Mars’ $365’ $363’
Southern’
Atlan@c’States’ $302’ $307’ $314’
$283’
$195’ $207’
2002! 2003! 2004! 2005! 2006! 2007! 2008! 2009! 2010! 2011!
January’2004” December’2008” December’2010”
Acquired’Le’Mars’and’Peninsula Acquired’Sheboygan’Falls’ Acquired’Michigan”
Implemented’Pooling’Change’ Implemented’25%’Quota’Share
Structure Provides Flexibility and CapacityOpportunistic Ownership Structure Provides Flexibility and Capacity
Public 47%(1) Donegal’Mutual”
Stockholders Insurance’Company”
52%
20%
53%(1)
Donegal’Financial’
Services’Corpora@on’
48% (Union!Community!Bank)! POOLING 100%
Donegal’Group’Inc.” AGREEMENT Reinsurance
80%
100% 100% 100% 100% 100% 100%
Atlantic States
Sheboygan Falls Michigan Insurance Southern Insurance Le Mars The Peninsula Insurance Southern Mutual
Insurance Company Company Company of Virginia Insurance Company Insurance Company Insurance Company
Company
100%
Peninsula
= P&C Insurance Subsidiaries = Thrift Holding Company /Federal Savings Bank Indemnity Company
(1) Because of the different relative voting power of Class A common stock and Class B common stock, public stockholders hold approximately 34% of the aggregate voting power of the combined classes, and
Donegal Mutual holds approximately 66% of the aggregate voting power of the combined classes.
Southern Mutual Insurance Company
Affiliation with Donegal Mutual – 2009
• Donegal!Mutual!surplus!note!investment!of!$2.5!million!
• $13.9!million!in!2011!direct!wriben!premiums!
• 100%!quota!share!reinsurance!with!Donegal!Mutual!
– SMIC!cedes!underwri,ng!results!to!Donegal!Mutual!
– Donegal!Mutual!includes!business!in!pooling!agreement!with! Atlan,c!States!(80%!of!SMIC!business!to!Donegal!Group)!
• Expanded!market!presence!in!Georgia!and!South!Carolina!
• Serves!as!model!for!mutual=to=mutual!affilia,ons!
Michigan Insurance: Attractive Franchise
Acquired December 2010
• Purchase!price!of! $42!million!=!1.22x!GAAP! book!value!
• Track!record!of!profitability!
• Provided!entry!into!new! state!as!part!of!Midwest! expansion!strategy!
– Capable!management!team!!
– Quality!agency!distribu,on! system!
– Diversified!mix!of!business!
Michigan’Insurance’Company” Combined’Ra@o’(stat)’
100.0%!
90.0%!
80.0%!
70.0%!
60.0%!
50.0%!
40.0%!
30.0%!
20.0%!
10.0%!
0.0%!
2005! 2006! 2007! 2008! 2009! 2010! 2011!
Michigan Insurance: Potential for Increased Premium Contribution
• Op,on!to!con,nue!to! Michigan!Insurance! increase!reten,on!of! business!
• successfully!navigated! Michigan!Insurance!has! state’s!economy!
– Michigan!is!8th!largest! state!based!on!number! of!households!
• system!and!product! 2012!focus!on!comple,ng! conversion!
2010’(under’ 2011’ 2012’
prior’owner)’
Direct!
wriben! $105!million! $108!million! $110!million**!
premiums!
Retained!by!
MICO! 25%! 25%! 35%!
Ceded!to!
Donegal! N/A! 25%! 25%!
Mutual*!
External!
quota!share! 75%! 50%! 40%!
*&Premiums&ceded&to&Donegal&Mutual&are&included&in&&&&
pooling&agreement&with&AtlanCc&States&(80%&to&DGI)&
**!Projected&based&on&sixEmonth&2012&growth&rate&
History of Contributing Transactions
Achieve Objectives By Implementing Plan
Con,nue!to!pursue!consolida,on!opportuni,es!
Complement’with’organic’growth’and’ diversifica@on”
Translate!into!book!value!growth!
Organic Growth Initiatives Emphasize Agent Relationships
• Achieve!top!three!ranking! within!appointed!agencies!in! “lines!of!business!we!serve”!
– Best=in=class!customer!service! and!technology!
– High=quality!products!
– Consistent!claims!handling!
– Abrac,ve!compensa,on! package!!
– Semi=annual!agency!reviews!
– Maintain!personal!rela,onships! as!agencies!grow!and! consolidate!
• Selec,vely!appoint!quality! agencies!to!expand!distribu,on! in!key!geographies!!
– rela,onships!with!agencies! 2012!focus!on!strengthening! appointed!in!2009=2011!
– Approximately!23%!of!new! agencies! business!in!2011!from!those!
– Targe,ng!135!appointments!in!
2012!
Build On Solid Technological Capabilities
Personal’Lines” Commercial’Lines’
• Donegal!offers!”Na,onal! • Donegal!introducing!web=based!
Company”!quo,ng!and! underwri,ng!system!with!
underwri,ng!capabili,es! automated!ra,ng!and!
underwri,ng!
Remain Focused on Underwriting to Best Leverage Rate Increases
Net’Wri-en’Premiums’by’Line’of’Business’ (December’31,’2011)’
Workers’! Homeowners!
Compensa,on! 20%!
11%! Other!Personal!
2%!
Mul,!Peril!
13%!
Other!
Commercial!
2%!
Commercial! Personal!Auto!
Auto! 41%!
10%!
• Personal!lines!currently!64%! of!NWP!
– Mul,ple!rate!increases! implemented!in!2011!will! increase!premium!in!2012!
– Minimal!exposure!growth!other! than!MICO!acquisi,on!
• Commercial!lines!currently! 36%!of!NWP!
– Commercial!lines!rates!up! approximately!3=8%!in!1H!2012!
– Most!of!1H!2012!increase!due!to! exposure!growth!
Employ Sophisticated Actuarial Tools
• Predic,ve!modeling!tools! • External!informa,on!sources!
enhance!our!ability!to! allow!us!to!gather!compe,tor!
appropriately!price!our! pricing!informa,on!and!to!
products! develop!price!op,miza,on!
– Sophis,cated!predic,ve! strategies!
modeling!algorithms!for! • Formal!schedule!of!regular!
pricing/,ering!risks! rate!adequacy!reviews!for!all!
– Territorial!segmenta,on!and! lines!of!business,!including!
analysis!of!environmental! GLM!analysis!on!claim!costs!
factors!that!affect!loss!
experience! and!agency!performance!
– Exploring!tools!that!allow! • Currently!evalua,ng!usage=
considera,on!of!vehicle= based!insurance!tools!
specific!data!in!pricing!
Leverage Personal Lines
In=Force!Policy!Count! Reten,on!Levels!
!500,000!! 100.0%!
!450,000!! 95.0%!
!400,000!! 90.0%!
!350,000!! 85.0%!
!300,000!! 80.0%!
!250,000!! 75.0%!
!200,000!! 70.0%!
!150,000!! 65.0%!
!100,000!! 60.0%!
!50,000!! 55.0%!
!=!!!! 50.0%!
2008! 2009! 2010! 2011*!
*”Includes”Michigan”policies”acquired”
• Acquired!companies!weighted! to!personal!lines!
• Focus!on!the!preferred!and! superior!risk!markets!
• Rate!increases!in!virtually! every!jurisdic,on!
• New!and!renewal!inspec,on! and!renewal!re=,ering!
• Seek!geographic!spread!of! risk!
• Balance!portolio!(auto/ home)!
Build Commercial Lines
• Introduce!core!Donegal! products!in!new!regions!
• with!premiums!in!$10,000!to! Growth!focus!on!accounts! $75,000!range!
• Expand!appe,te!within! wriben! classes!and!lines!already!
• Apply!underwri,ng!controls!
– Produc,on!underwriters!
– Large!account!reviews!
– Loss!control!processes!
– Coastal!controls!
In=Force!Policy!Count! Reten,on!Levels!
!80,000!! 100.0%!
!70,000!! 95.0%!
90.0%!
!60,000!!
85.0%!
!50,000!! 80.0%!
!40,000!! 75.0%!
!30,000!! 70.0%!
65.0%!
!20,000!!
60.0%!
!10,000!! 55.0%!
!=!!!! 50.0%!
2008! 2009! 2010! 2011*!
*”Includes”Michigan”policies”acquired”
Achieve Objectives By Implementing Plan
Con,nue!to!pursue!consolida,on!opportuni,es! Complement!with!organic!growth!and!diversifica,on!!
Translate’into’book’value’growth’
Build on Healthy Insurance Operations
Personal’Lines’Loss’Ra@o’ Commercial’Lines’Loss’Ra@o’
90%! 90%!
80%! 80%!
70%! 70%!
60%! 60%!
50%! 50%!
40%! 40%!
30%! 30%!
20%! 20%!
10%! 10%!
0%! 0%!
2005! 2006! 2007! 2008! 2009! 2010! 2011! 2005! 2006! 2007! 2008! 2009! 2010! 2011!
Donegal!Insurance!Group!(SNL!P&C!Group)! SNL!P&C!Industry!(Aggregate)!
Sustain Pricing Discipline and Conservative Underwriting
• Manage!exposure!to! catastrophe/unusual! weather!events!
– Purchase!reinsurance! coverage!in!excess!of!a!one= in=200!year!event!
• Link!employee! compensa,on!directly!to! underwri,ng!performance!
• Focus!on!rate!adequacy!and! pricing!sophis,ca,on!
• Leverage!centralized! oversight!of!regional! underwri,ng!
• Emphasize!IT=based! programs!such!as! automated!decision!trees! and!predic,ve!modeling!
• Address!HO!results:!
– Higher!deduc,bles!
– Re=inspec,on!programs!
– Managing!concentra,ons!
Maintain Reserve Adequacy
• Reserves!at!$243!million!at! Quarterly’Reserve’Development’
$6!
year=end!2011!(net!of! (dollars!in!millions)!
reinsurance)! $4!
– Midpoint!of!actuarial!range! $2! $2!
– Reported!redundant!reserves! $2!
in!seven!out!of!past!10!years! $1!
$0!
– Conserva,ve!reinsurance! =$1! =$1!
program!limits!vola,lity!! =$1!
=$2! =$2!
• Emphasis!on!faster!claims! =$2!
seblements!leading!to!higher! =$4!
paid!losses!but!reduced! =$6!
2010! 2011! 2012!
longer=term!exposures! Q1! Q2! Q3! Q4!
Drive Increased Efficiency with Automation
Direct’Premiums’per’Employee’ • Current!infrastructure!can!
!$900!! support!premium!growth!
(Dollars!in!thousands)! • Premiums!per!employee!rising!
!$800!! due!to!underwri,ng!systems!
!$700!! • Claims!system!allows!more!
rapid!and!efficient!claims!
!$600!! handling!
!$500!! • Mutual!structure!provides!
opportuni,es!for!opera,onal!
!$400!! and!expense!synergies!
• Expense!ra,o!of!31.4%!for!
!$300!! 2011!vs.!32%!for!2010!due!to!
!$200!! lower!underwri,ng=based!
incen,ves!
Conservative Investment Approach
• $794!million!in!invested!assets!at!June!30,!2012!
– 90%!of!portolio!invested!in!fixed!maturi,es!
• 55%!tax=exempt!securi,es!
• 45%!taxable!securi,es!
• Emphasis!on!quality!
– !86%!AA=rated!or!beber !!
– !98%!A=rated!or!beber!
• No!exposure!to!euro!debt,!sub=prime,!CDO!or!Alt=A!
• Effec,ve!dura,on!=!4.6!years!
• Tax!equivalent!yield!=!3.5%!
• Liquidity!managed!through!laddering!
Maintain Conservative Investment Mix
ShortaTerm”
$759’Million’ Securi@es’ Treasury’
5%’ 3%’ Agency’
in’Invested’ 7%’
Corporate’
Assets*’ 10%’
MortgageaBacked’
Securi@es’(MBS)’
16%’
Bank Investment = 4% of Invested Assets
• Union!Community!Bank!!
– Lancaster!County!(Donegal!headquarters)!bank!
• Expanded!to!13!branches!via!acquisi,on!in!May!2011!
– Added!scale!to!banking!opera,on!
– Enhanced!value!of!historic!bank!investment!
– Increased!poten,al!for!bobom=line!contribu,on!
• DGI!owns!approximately!48%!of!bank!holding!company!
– 52%!owned!by!Donegal!Mutual!
Union Community Bank is Financially Strong and Profitable
• $516!million!in!assets!at!June!30,!2012!
• $4.8!million!in!2011!net!income!!
• $5.0!million!in!first!half!2012!net!income!
• Excellent!capital!ra,os!at!June!30,!2012:!
– Tier!1!capital!to!average!total!assets ! ! !13.89%!
– Tier!1!capital!to!risk=weighted!assets ! ! !19.14%!
– Risk=based!capital!to!risk=weighted!assets! !20.93%!
Outperform Industry in Service, Profitability and Book Value Growth
Strong Capital + Solid Plan to Drive Results
Book’Value’Plus’Cumula@ve’Dividends’ • Rated!A!(Excellent)!by!
A.M.!Best!
– Debt=to=capital!of!
!$20.00!! approximately!19%!!
– Premium=to=surplus!of!
!$15.00!! approximately!1.3=to=1!
• Dividend!yield!of!3.5%!for!
!$10.00!! Class!A!shares!
• Repurchase!authoriza,on!of!
!$5.00!! 300,000!Class!A!shares!
– !!46,000!purchased!in!2012!
!$=!!!! – 118,000!remaining!
Book!Value! Dividends!Paid!
Effective Consolidator of “Main Street” Property and Casualty Insurers
• Con,nue!to!pursue!consolida,on!opportuni,es!
– contribu,on!from!transac,ons! 10%!CAGR!in!net!wriben!premiums!since!2001!driven!by!
• Complement!with!organic!growth!and!diversifica,on!!
– commercial!lines!book! Strong!agency!rela,onships!set!stage!for!expansion!of!
• Translate!into!book!value!growth!
– Leveraging!strong!capital!posi,on!and!solid!plan!
Effective Consolidator of “Main Street” Property and Casualty Insurers
Appendix’
Net Premiums Written by Line of Business
(Dollars’in’millions)’ Q212’ Q112’ Q411’ Q311’ Q211’ Q111’ Q410’ Q310’ Q210’
Personal’lines:’
!!!!Automobile! $50.2! $48.0! $44.6! $49.5! $47.7! $46.3! $41.9! $45.0! $43.4!
!!!!Homeowners! 27.0! 20.2! 22.3! 24.4! 23.4! 19.4! 20.5! 23.8! 22.4!
!!!!Other! 4.2! 3.7! 3.8! 3.9! 3.9! 3.4! 3.4! 3.5! 3.5!
Total’personal’lines’ 81.4! 71.9! 70.7! 77.8! 75.0! 69.1! 65.8! 72.3! 69.3!
Commercial’lines:’
!!!!Automobile! 14.0! 12.9! 10.6! 10.9! 11.8! 11.3! 8.6! 8.9! 10.0!
!!!!Workers’!compensa,on! 16.3! 18.6! 11.0! 12.4! 13.6! 15.0! 7.8! 8.2! 9.1!
!!!!Commercial!mul,=peril! 17.4! 16.4! 13.4! 13.6! 15.7! 15.2! 11.1! 11.5! 12.9!
!!!!Other! 2.0! 1.5! 2.0! 1.5! 1.8! 1.5! 1.0! 1.0! 1.0!
Total’commercial’lines’ 49.7! 49.4! 37.0! 38.4! 42.9! 43.1! 28.5! 29.6! 33.0!
Total’net’premiums’wri-en’ $131.1! $121.3! $107.7! $116.2! $117.9! $112.2! $94.3! $101.9! $102.3!
Quarterly Loss Activity Detail
Quarterly’Fire’Losses’ Quarterly’Weather’Losses*’
(dollars!in!millions)!
$50!
$12!
$40!
$13!
$30! $4!
$5! $3! $10!
$20!
$8! $5! $6! $6! $21!
$10!
$10! $3! $2! $6! $8! $8! $11!
$2! $7!
$0!
2009! 2010! 2011! 2012! 2009! 2010! 2011! 2012!
Q1! Q2! Q3! Q4! *!Net&of&reinsurance&
Effective Consolidator of “Main Street” Property and Casualty Insurers
!
For!Further!Informa,on:!
Jeffrey!D.!Miller,!Senior!Vice!President!and!Chief!Financial!Officer! Phone:!(717)!426=1931!!Fax:!(717)!426=7031!
E=mail:!jeffmiller@donegalgroup.com! www.DonegalGroup.com!