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): July 14, 2017
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 RD, MARIETTA, PA 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. [ ]
Item 7.01. Regulation FD Disclosure.
On July 14, 2017, 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 July 14, 2017
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: July 14, 2017 | By: | /s/ Jeffrey D. Miller |
| Jeffrey D. Miller | ||
| Executive Vice President & Chief Financial Officer | ||
EXHIBIT 99.1
Donegal Group Inc. Provides Information Relating to Claim Activity in Second Quarter
MARIETTA, Pa., July 14, 2017 (GLOBE NEWSWIRE) -- Donegal Group Inc. (NASDAQ:DGICA) (NASDAQ:DGICB) announced today that its results of operations for the second quarter of 2017 will reflect significant loss activity.
Weather-related losses added approximately $20.1 million to the Company’s losses for the second quarter of 2017, including a provision of approximately $3.6 million for additional weather-related losses incurred but not yet reported at June 30, 2017 and approximately $2.7 million from events that occurred during the first quarter of 2017. The claims resulted from numerous wind and hail events related to severe weather patterns that persisted in the Company’s operating regions during extended periods during the second quarter of 2017. None of the loss accumulations from these events exceeded the Company’s $5.0 million third-party catastrophe reinsurance retention. The Company’s previous five-year average for second quarter weather-related losses was $10.5 million.
In addition to the weather-related losses, the Company incurred approximately $7.6 million of large fire losses for the second quarter of 2017, compared to approximately $3.7 million of large fire losses for the second quarter of 2016. The Company attributes this increase to a higher volume of fire losses that impacted the Company’s homeowners line of business. The Company also increased its loss and loss expense reserves by approximately $5.8 million related primarily to higher-than-anticipated severity of commercial automobile liability and commercial multi-peril losses that the Company incurred in 2015 and 2016.
As a result of the increased claims and reserving activity, the Company currently expects to report a net loss between $0.07 and $0.09 per diluted share of its Class A common stock for the second quarter of 2017. The Company will provide further details with respect to the quarterly claims activity in its earnings conference call and webcast scheduled for July 19, 2017 at 11:00AM Eastern Time.
About the Company
Donegal Group Inc. is an insurance holding company with insurance subsidiaries offering personal and commercial property and casualty lines of insurance in 21 Mid-Atlantic, Midwestern, New England and Southern states. 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).
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 consolidator of small to medium-sized "main street" property and casualty insurers, Donegal Group Inc. has grown profitably over the last three decades. 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.
For Further Information:
Jeffrey D. Miller, Executive Vice President and Chief Financial Officer
Phone: (717) 426-1931
E-mail: investors@donegalgroup.com