Donegal Group Inc. Announces Third Quarter and First Nine Months of 2026 Results
Key Highlights
- ➤Q3 net income $18.2 million, down 9.6% year over year
- ➤Q3 diluted Class A EPS 49 cents, versus 55 cents
- ➤Q3 combined ratio 96.5%, up from 95.9%
- ➤Q3 net premiums written $209.7 million, down 4.5%
- ➤Book value per share $17.70, up 3.3% year over year
Expert Statements
Kevin G. Burke, President and Chief Executive Officer of Donegal Group Inc.
“As expected, we continued to experience soft market conditions throughout our operating regions in the third quarter of 2026. Although those conditions continued to impede our ability to achieve our premium growth plan, we were able to deliver solid profitability, as demonstrated by earnings per diluted Class A share of $0.49 and an annualized return on equity of 10.9%.”
Kevin G. Burke, President and Chief Executive Officer of Donegal Group Inc.
“Net premiums written(1) declined modestly for both commercial and personal lines. We primarily attribute the declines to higher-than-planned attrition that we believe resulted from our commitment to pricing discipline on policy renewals amid increased rate competition, offset partially by incrementally higher new business writings as we have selectively enhanced our competitive posture for desired accounts. Within our personal lines, our automobile new business growth benefited from the reintroduction of a 12-month policy term that customers selected for the vast majority of new automobile policies written during the quarter. The increase from six-month terms to 12-month terms effectively doubled the net premiums written related to those new policies.”
Kevin G. Burke, President and Chief Executive Officer of Donegal Group Inc.
“Our underwriting results for the third quarter were generally favorable despite an increase in weather-related losses compared to the prior-year quarter and a handful of unusually severe workers’ compensation claims during the quarter. We were pleased with the relative consistency of our core loss ratio compared to the prior-year quarter.”
Kevin G. Burke, President and Chief Executive Officer of Donegal Group Inc.
“As we close out 2026 and finalize our business plan for 2027, we continue to engage with our independent agency partners in developing and deploying specific action plans with a goal of achieving profitable premium growth, albeit at a modest pace in recognition of current market conditions. We remain confident in our team’s ability to successfully achieve our strategic objectives that we believe will enhance stockholder value over time.”
MARIETTA, Pa., Oct. 29, 2026 (GLOBE NEWSWIRE) -- Donegal Group Inc. (NASDAQ: DGICA) and (NASDAQ: DGICB) today reported its financial results for the third quarter and first nine months of 2026.
Significant Items for third quarter of 2026 (all comparisons to third quarter of 2025): * Net premiums earned decreased 3.0% to $222.9 million * Combined ratio of 96.5%, compared to 95.9% * Net income of $18.2 million, or 49 cents per diluted Class A share, compared to $20.1 million, or 55 cents per diluted Class A share * Net income included after-tax net investment losses of $0.6 million, or 1 cent per diluted Class A share, compared to after-tax net investment gains of $1.0 million, or 3 cents per diluted Class A share * Annualized return on average equity of 10.9%, compared to 13.0% * Book value per share of $17.70 at September 30, 2026, compared to $17.14 at September 30, 2025 Financial Summary
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