MARIETTA, Pa., Feb. 19, 2026 (GLOBE NEWSWIRE) -- Donegal Group Inc. $(DGICA)$ and $(DGICB)$ today reported its financial results for the fourth quarter and full year ended December 31, 2025.

Significant items for fourth quarter of 2025 (all comparisons to fourth quarter of 2024):

   -- Net premiums earned decreased 4.1% to $226.9 million 
 
   -- Combined ratio of 96.3%, compared to 92.9% 
 
   -- Net income of $17.2 million, or 47 cents per diluted Class A share, 
      compared to $24.0 million, or 70 cents per diluted Class A share 
 
   -- Net income included net investment losses (after tax) of $1.4 million, or 
      3 cents per diluted Class A share, compared to net investment gains of 
      $0.2 million, or 1 cent per diluted Class A share 

Significant items for full year of 2025 (all comparisons to full year of 2024):

   -- Net premiums earned decreased 1.7% to $921.2 million 
 
   -- Combined ratio of 95.4%, compared to 98.6% 
 
   -- Net income of $79.3 million, or $2.18 per diluted Class A share, compared 
      to $50.9 million, or $1.53 per diluted Class A share 
 
   -- Net income included net investment gains (after tax) of $0.5 million, or 
      1 cent per diluted Class A share, compared to $3.9 million, or 12 cents 
      per diluted Class A share 
 
   -- Return on average equity of 13.4%, compared to 9.9% 
 
   -- Book value per share of $17.33 at December 31, 2025, compared to $15.36 
      at year-end 2024 

Financial Summary

 
 
                Three Months Ended December 31,             Year Ended December 31, 
             --------------------------------------  -------------------------------------- 
               2025          2024         % Change     2025          2024         % Change 
              -------       -------      ----------   -------       -------      ---------- 
                            (dollars in thousands, except per share amounts) 
 
Income 
Statement 
Data 
Net 
 premiums 
 earned      $226,885      $236,635        -4.1%     $921,184      $936,651        -1.7% 
Investment 
 income, 
 net           14,160        12,050        17.5        52,627        44,918        17.2 
Net 
 investment 
 (losses) 
 gains         (1,726)          256       NM(2)           619         4,981       -87.6 
Total 
 revenues     240,142       249,954        -3.9       978,014       989,605        -1.2 
Net income     17,189        24,003       -28.4        79,341        50,862        56.0 
Non-GAAP 
 operating 
 income(1)     18,553        23,801       -22.0        78,851        46,927        68.0 
Annualized 
 return on 
 average                                   -7.3                                     3.5 
 equity          10.8%         18.1%        pts          13.4%          9.9%        pts 
 
Per Share 
Data 
Net income 
 -- Class A 
 (diluted)   $   0.47      $   0.70       -32.9%     $   2.18      $   1.53        42.5% 
Net income 
 -- Class 
 B               0.43          0.64       -32.8          2.01          1.38        45.7 
Non-GAAP 
 operating 
 income -- 
 Class A 
 (diluted)       0.50          0.69       -27.5          2.17          1.41        53.9 
Non-GAAP 
 operating 
 income -- 
 Class B         0.46          0.63       -27.0          1.99          1.27        56.7 
Book value      17.33         15.36        12.8         17.33         15.36        12.8 
 
 

(1) The "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").

(2) Not meaningful.

Management Commentary

Kevin G. Burke, President and Chief Executive Officer of Donegal Group Inc., stated, "We are pleased with our solid operating performance in the fourth quarter and full year of 2025 that reflected the favorable impact of numerous strategic decisions and intentional actions over the past several years. Our focus for 2026 is the pursuit of modest premium growth through our independent agency partners in geographies and classes of business we have identified as attractive. We remain committed to our strategic plan that includes capitalizing on opportunities for profitable growth as a contributor to sustained excellent financial performance.

"In our commercial lines business segment, we achieved solid underlying results for the fourth quarter of 2025, which were masked somewhat by the impact of a few large fires and a late-reported prior-year casualty loss. Due in large part to a refinement in our commercial underwriting appetite, we missed our 2025 business plan target for new business writings. For 2026, we have actively engaged our agents in the development of detailed growth plans and the introduction of new compensation incentives to encourage increased submissions of new quality accounts.

"In our personal lines business segment, we achieved continued excellent profitability and are making good progress on the incremental conversion of remaining legacy policies to our new platform that will be completed in June 2027. We expect the decline in personal lines premiums we experienced during 2025 will subside gradually throughout 2026 as we take measured steps to increase our new business success rate, while striving to maintain a targeted level of profitability in this segment in line with our long-term strategic and financial objectives.

"We believe that we are well positioned as a regional insurance group to provide excellent service to our independent agents and policyholders, as we continue to make prudent investments in talent, systems and capabilities. Building upon the strong foundation laid over the past several years, we are executing strategies that we believe will enhance the value of our stockholders' investment over time."

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 December 
                              31,                   Year Ended December 31, 
                 ------------------------------  ------------------------------ 
                   2025      2024     % Change     2025      2024     % Change 
                 --------  --------  ----------  --------  --------  ---------- 
                                     (dollars in thousands) 
 
Net Premiums 
Earned 
Commercial 
 lines           $140,841  $136,701     3.0%     $555,873  $539,683     3.0% 
Personal lines     86,044    99,934   -13.9       365,311   396,968    -8.0 
Total net 
 premiums 
 earned          $226,885  $236,635    -4.1%     $921,184  $936,651    -1.7% 
                  =======   =======  ======       =======   =======  ====== 
 
Net Premiums 
Written 
Commercial 
lines: 
  Automobile     $ 45,219  $ 42,922     5.4%     $197,949  $184,989     7.0% 
  Workers' 
   compensation    18,454    20,934   -11.8        92,464   103,533   -10.7 
  Commercial 
   multi-peril     52,215    50,431     3.5       221,283   213,959     3.4 
  Other            12,187     9,790    24.5        52,295    45,439    15.1 
Total 
 commercial 
 lines            128,075   124,077     3.2       563,991   547,920     2.9 
                  -------   -------  ------       -------   -------  ------ 
Personal lines: 
  Automobile       46,274    54,078   -14.4       208,077   243,036   -14.4 
  Homeowners       27,713    30,958   -10.5       122,999   140,613   -12.5 
  Other             2,244     2,329    -3.6         9,760    10,712    -8.9 
Total personal 
 lines             76,231    87,365   -12.7       340,836   394,361   -13.6 
                  -------   -------  ------       -------   -------  ------ 
Total net 
 premiums 
 written         $204,306  $211,442    -3.4%     $904,827  $942,281    -4.0% 
                  =======   =======  ======       =======   =======  ====== 
 
 

Net Premiums Written

The 3.4% decrease in net premiums written(1) for the fourth quarter of 2025 compared to the fourth quarter of 2024, as shown in the table above, represents the combination of 3.2% growth in commercial lines net premiums written and a 12.7% decrease in personal lines net premiums written. The $7.1 million decrease in net premiums written for the fourth quarter of 2025 compared to the fourth quarter of 2024 included:

   -- Commercial Lines: $4.0 million increase that we attribute primarily to 
      solid premium retention and a continuation of renewal premium increases 
      in lines other than workers' compensation, offset partially by lower new 
      business writings. 
 
   -- Personal Lines: $11.1 million decrease that we attribute primarily to 
      planned attrition due to lower new business writings, offset partially by 
      a continuation of renewal premium rate increases and solid retention. 

The $37.5 million decrease in net premiums written for the full year of 2025 compared to the full year of 2024 included:

   -- Commercial Lines: $16.0 million increase that we attribute primarily to 
      solid premium retention and a continuation of renewal premium increases 
      in lines other than workers' compensation, offset partially by lower new 
      business writings. 
 
   -- Personal Lines: $53.5 million decrease that we attribute primarily to 
      planned attrition due to lower new business writings and strategic 
      non-renewal actions, offset partially by a continuation of renewal 
      premium rate increases and solid retention. 

Underwriting Performance

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