Donegal Group Inc. reported a significant increase in its financial performance for the fiscal year ending December 31, 2024, with total revenues reaching $989.6 million, up from $927.3 million in 2023, marking a 6.7% increase. The company's net income also saw a substantial rise, amounting to $50.9 million, or $1.53 per share for Class A common stock, compared to $4.4 million, or $0.14 per share, in the previous year. This improvement in profitability was attributed to a combination of increased net premiums earned and effective expense management.
The company's net premiums earned increased to $936.7 million in 2024, reflecting a 6.2% growth from $882.1 million in 2023. This growth was driven by strong retention rates and renewal premium increases across both commercial and personal lines of insurance. Specifically, commercial lines net premiums written rose to $547.9 million, while personal lines increased to $394.4 million. The overall combined ratio improved to 98.6% from 104.4% in the prior year, indicating enhanced underwriting profitability.
Strategically, Donegal Group has focused on organic growth rather than acquisitions, believing that significant opportunities exist within its current markets. The company has also been modernizing its operations, including ongoing investments in technology and data analytics to enhance underwriting and pricing strategies. As part of this modernization effort, Donegal Mutual, the parent company, has been implementing new systems to streamline processes and improve service delivery to agents and policyholders.
Operationally, Donegal Group's insurance subsidiaries reported a total employee count of 851 as of December 31, 2024, with a focus on maintaining a competitive compensation structure. The company has also been actively managing its exposure to catastrophic losses through reinsurance agreements, which are designed to mitigate the financial impact of severe weather events. The insurance subsidiaries operate in 21 states, primarily in the Mid-Atlantic, Midwestern, Southern, and Southwestern regions, and continue to seek growth opportunities within these areas.
Looking ahead, Donegal Group remains optimistic about its growth prospects, emphasizing its commitment to achieving sustained financial performance and enhancing its competitive position in the property and casualty insurance market. The company plans to continue leveraging its strong capital position and operational efficiencies to navigate the evolving insurance landscape and meet the needs of its policyholders.
About DONEGAL GROUP INC
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