Donegal Group Inc. (NASDAQ: DGICA and DGICB) today reported its
financial results for the first quarter of 2019. We will host a
conference call on Tuesday, April 30, 2019 at 11:00 A.M. Eastern
Time to discuss these results. You may listen to the webcast of
this conference call by accessing the event link at
http://investors.donegalgroup.com.
Significant items include:
- Net income of $23.0 million, or 82 cents per diluted Class A
share, for the first quarter of 2019, compared to a net loss of
$18.2 million, or 66 cents per Class A share, for the first quarter
of 2018
- Net investment gains of $18.1 million for the first quarter of
2019 included $12.7 million from the previously announced sale of
Donegal Financial Services Corporation and $6.0 million related to
unrealized gains in the fair value of equity securities held at
March 31, 2019
- Net premiums earned of $188.1 million for the first quarter of
2019 increased 3.5% compared to the first quarter of 2018
- Net premiums written1 of $199.9 million for the first quarter
of 2019 increased 2.4% compared to the first quarter of 2018
- Combined ratio of 99.3% for the first quarter of 2019, compared
to 119.3% for the first quarter of 2018
- Book value per share of $15.10 at March 31, 2019, compared to
$14.05 at year-end 2018
|
Three Months Ended March 31, |
|
|
2019 |
|
|
2018 |
|
|
% Change |
|
(dollars in thousands, except per share amounts) |
|
|
|
|
|
|
|
|
|
|
Income Statement Data |
|
|
|
|
|
|
|
|
|
Net premiums earned |
$ |
188,073 |
|
$ |
181,765 |
|
|
3.5% |
|
Investment income, net |
|
7,049 |
|
|
6,378 |
|
|
10.5 |
|
Net investment gains (losses) |
|
18,097 |
|
|
(918 |
) |
|
NM2 |
|
Total revenues |
|
214,714 |
|
|
189,328 |
|
|
13.4 |
|
Net income (loss) |
|
23,023 |
|
|
(18,178 |
) |
|
NM |
|
Non-GAAP operating income (loss)1 |
|
7,302 |
|
|
(17,453 |
) |
|
NM |
|
|
|
|
|
|
|
|
|
|
|
Per Share Data |
|
|
|
|
|
|
|
|
|
Net income (loss) – Class A (diluted) |
$ |
0.82 |
|
$ |
(0.66 |
) |
|
NM |
|
Net income (loss) – Class B |
|
0.75 |
|
|
(0.60 |
) |
|
NM |
|
Non-GAAP operating income (loss) – Class A (diluted) |
|
0.26 |
|
|
(0.63 |
) |
|
NM |
|
Non-GAAP operating income (loss) – Class B |
|
0.24 |
|
|
(0.57 |
) |
|
NM |
|
Book value |
|
15.10 |
|
|
15.08 |
|
|
0.1 |
|
|
|
|
|
|
|
|
|
|
|
1The
“Definitions of Non-GAAP and Operating 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”). |
|
2Not
meaningful. |
|
|
|
|
|
|
Management Commentary
Kevin G. Burke, President and Chief Executive Officer of Donegal
Group Inc., noted, “We achieved significant operating improvement
in the first quarter of 2019, as well as net investment gains from
our sale of Donegal Financial Services Corporation and a change in
unrealized gains in the fair value of our equity securities. These
factors led to a profitable quarter for Donegal Group.”
Mr. Burke continued, “Stronger performance within our commercial
lines drove the improvement in our combined ratio. We continued to
execute our strategic plan to shift our business mix to a higher
proportion of commercial business where we see greater opportunity
for long-term profitable growth. Net premiums written in our
commercial business segment grew 12.7% for the first quarter of
2019 compared to the prior-year quarter, representing approximately
57% of our total net premiums written for the current period. While
we partially attribute this growth to our previously announced
reinsurance change to a consolidated group program for 2019, we
attribute the majority of this increase to new accounts we have
written across all of our operating regions. We are particularly
pleased with the favorable underwriting results of our commercial
multi-peril business, which grew at a double-digit percentage rate
and generated a statutory combined ratio1 of 90.9% during the
quarter. We continue to implement rate increases as our policies
renew, while also working closely with our independent agents to
grow their books of business with us.” Mr. Burke continued, “Our
results for the first quarter of 2019 also reflect the favorable
impact of considerable improvement in our personal lines segment
compared to the prior-year first quarter. We achieved a 97.8%
statutory combined ratio for our total personal lines during the
first quarter of 2019, and we remain committed to maintaining a
balanced market presence, offering both commercial and personal
insurance products in many of our markets. In February 2019, we
began the non-renewal process to facilitate an orderly exit from
personal lines markets in seven states where we had incurred
consistent losses. We expect this process to reduce modestly our
net premiums written for personal lines over the course of 2019,
but we ultimately expect that our exit from the personal lines
markets in those states will lead to improved profitability and
less volatility for this operating segment.”
Jeffrey D. Miller, Executive Vice President and Chief Financial
Officer of Donegal Group Inc., commented on the first quarter
underwriting results, “The 65.5% loss ratio for the first quarter
of 2019 represented solid improvement when compared to the 86.1%
loss ratio for the first quarter of 2018. Weather-related losses
for the first quarter of 2019 were primarily related to typical
winter weather conditions, including a short period of freezing
temperatures in January and a wind event in the Mid-Atlantic region
in late February. However, the overall amount of weather-related
losses for the first quarter of 2019 compared favorably to the
amount of losses we incurred from the severe winter weather
conditions our regions experienced in the first quarter of 2018 as
well as our five-year average for first-quarter weather-related
losses. We are pleased to report modest favorable reserve
development in virtually all of our lines of business in the first
quarter of 2019, which represented a significant positive shift
compared to the prior-year period.”
Mr. Burke concluded, “Our first quarter of 2019 results have
begun to reflect the positive impact of the underwriting
initiatives we implemented in 2018, and we believe that Donegal
Group is well positioned to execute its long-term strategic goals
of improving our financial performance and enhancing our market
position. In addition, we continue to invest in technology to
further improve our operating efficiency over time. Our net income
during the first quarter of 2019, as well as unrealized gains
within our available-for-sale fixed-maturity portfolio during the
first quarter, contributed to an increase in our book value to
$15.10 at March 31, 2019, compared to $14.05 at December 31,
2018.”
Insurance OperationsDonegal Group is an
insurance holding company whose insurance subsidiaries offer
personal and commercial property and casualty lines of insurance in
three Mid-Atlantic states (Delaware, Maryland and Pennsylvania),
three New England states (Maine, New Hampshire and Vermont), six
Southern states (Alabama, Georgia, North Carolina, South Carolina,
Tennessee and Virginia) and eight Midwestern states (Illinois,
Indiana, Iowa, Michigan, Nebraska, Ohio, South Dakota and
Wisconsin). Donegal Mutual Insurance Company and the insurance
subsidiaries of Donegal Group conduct business together as the
Donegal Insurance Group.
|
Three Months Ended March 31, |
|
2019 |
|
2018 |
|
% Change |
|
|
|
|
|
|
|
|
|
|
(dollars in thousands) |
|
|
|
|
|
|
Net Premiums Earned |
|
|
|
|
|
Personal
lines |
$ |
96,592 |
|
$ |
99,539 |
|
(3.0%) |
|
Commercial lines |
|
91,481 |
|
|
82,226 |
|
11.3 |
|
Total net premiums earned |
$ |
188,073 |
|
$ |
181,765 |
|
3.5% |
|
|
|
|
|
|
|
Net Premiums Written |
|
|
|
|
|
Personal lines: |
|
|
|
|
|
Automobile |
$ |
56,026 |
|
$ |
64,906 |
|
(13.7%) |
|
Homeowners |
|
25,028 |
|
|
26,557 |
|
(5.8) |
|
Other |
|
5,180 |
|
|
2,929 |
|
76.9 |
|
Total personal lines |
|
86,234 |
|
|
94,392 |
|
(8.6) |
|
Commercial lines: |
|
|
|
|
|
Automobile |
|
34,302 |
|
|
30,246 |
|
13.4 |
|
Workers' compensation |
|
33,392 |
|
|
33,130 |
|
0.8 |
|
Commercial multi-peril |
|
37,840 |
|
|
32,185 |
|
17.6 |
|
Other |
|
8,147 |
|
|
5,303 |
|
53.6 |
|
Total commercial lines |
|
113,681 |
|
|
100,864 |
|
12.7 |
|
Total net premiums written |
$ |
199,915 |
|
$ |
195,256 |
|
2.4% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Premiums Written
The 2.4% increase in net premiums written for the first quarter
of 2019 compared to the first quarter of 2018, as shown in the
table above, represents 12.7% growth in commercial lines net
premiums written, offset by an 8.6% decline in personal lines net
premiums written. The $4.7 million growth in net premiums written
for the first quarter of 2019 compared to the first quarter of 2018
included:
- $12.8 million increase in commercial lines premiums that we
attribute primarily to new commercial accounts our insurance
subsidiaries have written throughout their operating regions, a
continuation of renewal premium increases and lower reinsurance
premiums.
- $8.1 million decline in personal lines premiums that we
attribute to net attrition as a result of underwriting measures our
insurance subsidiaries implemented to slow new policy growth and to
increase pricing on renewal policies, as well as the previously
announced non-renewal of unprofitable personal lines business in
seven states, partially offset by premium rate increases our
insurance subsidiaries have implemented over the past four quarters
and lower reinsurance premiums.
Donegal Mutual Insurance Company and our insurance subsidiaries
implemented a combined third-party reinsurance program effective
January 1, 2019. The coverage and parameters of the fully
consolidated program are common to all insurance companies within
the Donegal Insurance Group. While our insurance subsidiaries
project an overall decrease of more than $25.0 million in total
reinsurance premiums for 2019 compared to 2018, the ultimate net
benefit or cost of the restructured reinsurance program is
contingent upon the amount of large loss activity and the
occurrence of catastrophe events that may ultimately impact our
insurance subsidiaries during 2019.
Underwriting Performance
We evaluate the performance of our commercial lines and personal
lines segments primarily based upon the underwriting results of our
insurance subsidiaries as determined under statutory accounting
practices. The following table presents comparative details with
respect to the GAAP and statutory combined ratios1 for the three
months ended March 31, 2019 and 2018:
|
Three Months Ended |
|
March 31, |
|
2019 |
|
2018 |
|
|
|
|
GAAP Combined Ratios (Total Lines) |
|
|
|
Loss ratio
(non-weather) |
60.4 |
% |
|
78.6 |
% |
Loss ratio (weather-related) |
5.1 |
|
|
7.5 |
|
Expense ratio |
32.6 |
|
|
32.5 |
|
Dividend ratio |
1.2 |
|
|
0.7 |
|
Combined ratio |
99.3 |
% |
|
119.3 |
% |
|
|
|
|
Statutory Combined Ratios |
|
|
|
Personal lines: |
|
|
|
Automobile |
101.3 |
% |
|
118.0 |
% |
Homeowners |
95.4 |
|
|
111.9 |
|
Other |
70.3 |
|
|
121.1 |
|
Total personal lines |
97.8 |
|
|
116.1 |
|
Commercial lines: |
|
|
|
Automobile |
116.5 |
|
|
171.6 |
|
Workers' compensation |
88.8 |
|
|
83.4 |
|
Commercial multi-peril |
90.9 |
|
|
117.0 |
|
Other |
65.2 |
|
|
26.4 |
|
Total commercial lines |
96.4 |
|
|
119.8 |
|
Total lines |
97.1 |
% |
|
117.6 |
% |
|
|
|
|
|
|
|
|
For the first quarter of 2019, the loss ratio decreased to
65.5%, compared to 86.1% for the first quarter of 2018.
Weather-related losses of $9.7 million for the first quarter of
2019, or 5.1 percentage points of the loss ratio, decreased from
$13.7 million for the first quarter of 2018, or 7.5 percentage
points of the loss ratio. Weather-related loss activity for the
first quarter of 2019 was lower than our five-year average of $11.8
million for first-quarter weather-related losses.
Large fire losses, which we define as individual fire losses in
excess of $50,000, for the first quarter of 2019 were $6.6 million,
or 3.5 percentage points of the loss ratio. That amount was lower
than the large fire losses of $9.7 million, or 5.3 percentage
points of the loss ratio, for the first quarter of 2018. A $2.4
million decrease in commercial property fire losses accounted for
the majority of the decrease in large fire losses from the
prior-year quarter.
Net development of reserves for losses incurred in prior
accident years decreased the loss ratio for the first quarter of
2019 by 2.1 percentage points, compared to an increase of 14.7
percentage points for the first quarter of 2018. Our insurance
subsidiaries experienced modest favorable development in virtually
all lines of business in the first quarter of 2019. Conversely, in
the first quarter of 2018, our insurance subsidiaries noted changes
in loss trends that led to increased projections of the ultimate
cost of prior-year commercial automobile and personal automobile
losses. As a result, our insurance subsidiaries added $7.4 million
to their reserves for personal automobile claims and $18.8 million
to their reserves for commercial automobile claims in the first
quarter of 2018.
The expense ratio was 32.6% for the first quarter of 2019,
compared to 32.5% for the first quarter of 2018. The increase in
the expense ratio reflected higher underwriting-based incentive
costs for the first quarter of 2019.
Investment OperationsDonegal Group’s investment
strategy is to generate an appropriate amount of after-tax income
on its invested assets while minimizing credit risk through
investment in high-quality securities. As a result, we had invested
91.4% of our consolidated investment portfolio in diversified,
highly rated and marketable fixed-maturity securities at March 31,
2019.
|
March 31, 2019 |
|
December 31, 2018 |
|
Amount |
|
% |
|
Amount |
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
(dollars in thousands) |
|
|
|
|
Fixed maturities, at
carrying value: |
|
|
|
|
|
|
|
U.S. Treasury
securities and obligations of U.S. |
|
|
|
|
|
|
|
government corporations
and agencies |
$ |
109,196 |
|
|
10.4 |
% |
|
$ |
120,432 |
|
|
11.7 |
% |
Obligations
of states and political subdivisions |
|
229,812 |
|
|
21.9 |
|
|
|
234,508 |
|
|
22.8 |
|
Corporate securities |
|
273,075 |
|
|
26.1 |
|
|
|
264,843 |
|
|
25.7 |
|
Mortgage-backed securities |
|
345,371 |
|
|
33.0 |
|
|
|
309,574 |
|
|
30.0 |
|
Total fixed maturities |
|
957,454 |
|
|
91.4 |
|
|
|
929,357 |
|
|
90.2 |
|
Equity securities, at fair value |
|
49,422 |
|
|
4.7 |
|
|
|
43,667 |
|
|
4.2 |
|
Investments in affiliates |
|
- |
|
|
0.0 |
|
|
|
41,026 |
|
|
4.0 |
|
Short-term investments, at cost |
|
40,838 |
|
|
3.9 |
|
|
|
16,749 |
|
|
1.6 |
|
Total investments |
$ |
1,047,714 |
|
|
100.0 |
% |
|
$ |
1,030,799 |
|
|
100.0 |
% |
|
|
|
|
|
|
|
|
Average investment
yield |
|
2.7 |
% |
|
|
|
|
2.6 |
% |
|
|
Average tax-equivalent
investment yield |
|
2.8 |
% |
|
|
|
|
2.8 |
% |
|
|
Average fixed-maturity
duration (years) |
|
4.1 |
|
|
|
|
|
4.4 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income of $7.0 million for the first quarter of
2019 increased 10.5% compared to $6.4 million in net investment
income for the first quarter of 2018. The increase in net
investment income reflected primarily an increase in average
invested assets relative to the prior-year first quarter.
Net investment gains of $18.1 million for the first quarter of
2019 included $12.7 million from the previously announced sale of
Donegal Financial Services Corporation and $6.0 million related to
unrealized gains in the fair value of equity securities held at
March 31, 2019. That amount compared to net investment losses of
$918,339 for the first quarter of 2018 that primarily consisted of
unrealized losses in the fair value of equity securities we held at
March 31, 2018.
Definitions of Non-GAAP and Operating
MeasuresWe prepare our consolidated financial statements
on the basis of GAAP. Our insurance subsidiaries also prepare
financial statements based on statutory accounting principles state
insurance regulators prescribe or permit (“SAP”). In addition to
using GAAP-based performance measurements, we also utilize certain
non-GAAP financial measures that we believe provide value in
managing our business and for comparison to the financial results
of our peers. These non-GAAP measures are net premiums written,
operating income or loss and statutory combined ratio.
Net premiums written and operating income or
loss are non-GAAP financial measures investors in insurance
companies commonly use. We define net premiums written as the
amount of full-term premiums our insurance subsidiaries record for
policies effective within a given period less premiums our
insurance subsidiaries cede to reinsurers. We define operating
income or loss as net income or loss excluding after-tax net
investment gains or losses, after-tax restructuring charges and
other significant non-recurring items. Because our calculation of
operating income or loss may differ from similar measures other
companies use, investors should exercise caution when comparing our
measure of operating income or loss to the measure of other
companies.
The following table provides a reconciliation of
net premiums earned to net premiums written for the periods
indicated:
|
Three Months Ended March 31, |
|
2019 |
|
2018 |
|
% Change |
|
|
|
|
|
|
|
|
|
|
(dollars in thousands) |
|
|
|
|
|
|
Reconciliation of Net Premiums |
|
|
|
|
|
Earned to Net Premiums Written |
|
|
|
|
|
Net premiums
earned |
$ |
188,073 |
|
$ |
181,765 |
|
3.5% |
|
Change in net unearned premiums |
|
11,842 |
|
|
13,491 |
|
(12.2) |
|
Net premiums written |
$ |
199,915 |
|
$ |
195,256 |
|
2.4% |
|
|
|
|
|
|
|
|
|
|
|
|
|
The following table provides a reconciliation of
net income (loss) to operating income (loss) for the periods
indicated:
|
Three Months Ended March 31, |
|
2019 |
|
2018 |
|
% Change |
|
|
|
|
|
|
|
|
|
|
|
(dollars in thousands, except per share amounts) |
|
|
|
|
|
|
Reconciliation of Net Income (Loss) |
|
|
|
|
|
to Non-GAAP Operating Income (Loss) |
|
|
|
|
|
Net income
(loss) |
$ |
23,023 |
|
|
$ |
(18,178 |
) |
|
NM |
Investment (gains) losses (after tax) |
|
(15,721 |
) |
|
|
725 |
|
|
NM |
Non-GAAP operating income (loss) |
$ |
7,302 |
|
|
$ |
(17,453 |
) |
|
NM |
|
|
|
|
|
|
Per Share Reconciliation of Net Income (Loss) |
|
|
|
|
|
to Non-GAAP Operating Income (Loss) |
|
|
|
|
|
Net income (loss) – Class A (diluted) |
$ |
0.82 |
|
|
$ |
(0.66 |
) |
|
NM |
Investment (gains) losses (after tax) |
|
(0.56 |
) |
|
|
0.03 |
|
|
NM |
Non-GAAP operating income (loss) – Class A |
$ |
0.26 |
|
|
$ |
(0.63 |
) |
|
NM |
|
|
|
|
|
|
Net income (loss) – Class B |
$ |
0.75 |
|
|
$ |
(0.60 |
) |
|
NM |
Investment (gains) losses (after tax) |
|
(0.51 |
) |
|
|
0.03 |
|
|
NM |
Non-GAAP operating income (loss) – Class B |
$ |
0.24 |
|
|
$ |
(0.57 |
) |
|
NM |
|
|
|
|
|
|
|
|
|
|
|
|
The statutory combined ratio is a non-GAAP standard measurement
of underwriting profitability that is based upon amounts determined
under SAP. The statutory combined ratio is the sum of:
- the statutory loss ratio, which is the ratio of calendar-year
incurred losses and loss expenses, excluding anticipated salvage
and subrogation recoveries, to premiums earned;
- the statutory expense ratio, which is the ratio of expenses
incurred for net commissions, premium taxes and underwriting
expenses to premiums written; and
- the statutory dividend ratio, which is the ratio of dividends
to holders of workers’ compensation policies to premiums
earned.
The statutory combined ratio does not reflect investment income,
federal income taxes or other non-operating income or expense. A
statutory combined ratio of less than 100% generally indicates
underwriting profitability.
Conference Call and Webcast
We will hold a conference call and webcast on Tuesday, April 30,
2019, beginning at 11:00 A.M. Eastern Time. You may listen via the
Internet by accessing the webcast link on our website at
http://investors.donegalgroup.com. A replay of the conference call
will also be available via our website.
About Donegal Group Inc.
Donegal Group is an insurance holding company. The insurance
subsidiaries of Donegal Group and Donegal Mutual Insurance Company
conduct business together as the Donegal Insurance Group. Our Class
A common stock and Class B common stock trade on the NASDAQ Global
Select Market under the symbols DGICA and DGICB, respectively. We
are focused on several primary strategies, including improving our
financial performance, utilizing technology to improve our
operational efficiency, strategically modernizing our business in
order to achieve operational excellence and enhancing our market
position to compete effectively.
Safe Harbor
We base all statements contained in this release that are not
historic facts on our current expectations. These statements are
forward-looking in nature (as defined in the Private Securities
Litigation Reform Act of 1995) and involve a number of risks and
uncertainties. Actual results could vary materially. Factors that
could cause actual results to vary materially include: adverse and
catastrophic weather events, our ability to maintain profitable
operations, the adequacy of the loss and loss expense reserves of
our insurance subsidiaries, business and economic conditions in the
areas in which our insurance subsidiaries operate, interest rates,
competition from various insurance and other financial businesses,
terrorism, the availability and cost of reinsurance, legal and
judicial developments, changes in regulatory requirements, our
ability to integrate and manage successfully the insurance
companies we may acquire from time to time and other risks we
describe from time to time in the periodic reports we file with the
Securities and Exchange Commission. You should not place undue
reliance on any such forward-looking statements. We disclaim any
obligation to update such statements or to announce publicly the
results of any revisions that we may make to any forward-looking
statements to reflect the occurrence of anticipated or
unanticipated events or circumstances after the date of such
statements.
For Further Information:Jeffrey D. Miller, Executive Vice
President & Chief Financial Officer Phone: (717)
426-1931E-mail: investors@donegalgroup.com
|
|
Donegal Group Inc. |
Consolidated Statements of Income |
(unaudited; in thousands, except share data) |
|
|
|
|
|
|
|
Quarter Ended March 31, |
|
|
2019 |
|
2018 |
|
|
|
|
|
|
|
|
Net
premiums earned |
$ |
188,073 |
|
$ |
181,765 |
|
Investment
income, net of expenses |
|
7,049 |
|
|
6,378 |
|
Net
investment gains (losses) |
|
18,097 |
|
|
(918 |
) |
Lease
income |
|
111 |
|
|
123 |
|
Installment
payment fees |
|
1,089 |
|
|
1,348 |
|
Equity in
earnings of DFSC |
|
295 |
|
|
632 |
|
|
Total revenues |
|
214,714 |
|
|
189,328 |
|
|
|
|
|
|
|
|
|
Net losses
and loss expenses |
|
123,111 |
|
|
156,583 |
|
Amortization of deferred acquisition costs |
|
30,592 |
|
|
29,665 |
|
Other
underwriting expenses |
|
30,685 |
|
|
29,323 |
|
Policyholder dividends |
|
2,350 |
|
|
1,302 |
|
Interest |
|
565 |
|
|
464 |
|
Other
expenses, net |
|
566 |
|
|
526 |
|
|
Total expenses |
|
187,869 |
|
|
217,863 |
|
|
|
|
|
|
|
|
|
Income
(loss) before income tax expense (benefit) |
|
26,845 |
|
|
(28,535 |
) |
Income tax
expense (benefit) |
|
3,822 |
|
|
(10,357 |
) |
|
|
|
|
|
|
|
|
Net income
(loss) |
$ |
23,023 |
|
$ |
(18,178 |
) |
|
|
|
|
|
|
|
|
Net income
(loss) per common share: |
|
|
|
|
|
|
|
Class A - basic
and diluted |
$ |
0.83 |
|
$ |
(0.10 |
) |
|
Class B - basic and
diluted |
$ |
0.75 |
|
$ |
(0.60 |
) |
|
|
|
|
|
|
|
|
Supplementary Financial Analysts' Data |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average number of shares |
|
|
|
|
|
|
|
outstanding: |
|
|
|
|
|
|
|
Class A - basic |
|
22,849,717 |
|
|
22,615,445 |
|
|
Class A - diluted |
|
22,921,267 |
|
|
23,391,593 |
|
|
Class B - basic and
diluted |
|
5,576,775 |
|
|
5,576,775 |
|
|
|
|
|
|
|
|
|
Net
premiums written |
$ |
199,915 |
|
$ |
195,256 |
|
|
|
|
|
|
|
|
|
Book value
per common share |
|
|
|
|
|
|
|
at end of period |
$ |
15.10 |
|
$ |
15.08 |
|
|
|
|
|
|
|
|
|
Donegal Group Inc. |
Consolidated Balance Sheets |
(in thousands) |
|
|
|
|
|
|
|
|
|
March 31, |
|
December 31, |
|
|
|
|
2019 |
|
|
|
2018 |
|
|
|
|
(unaudited) |
|
|
|
|
|
|
|
|
ASSETS |
Investments: |
|
|
|
|
Fixed
maturities: |
|
|
|
|
|
Held to maturity, at
amortized cost |
$ |
407,433 |
|
|
$ |
402,799 |
|
|
|
Available for sale, at
fair value |
|
550,022 |
|
|
|
526,558 |
|
|
Equity
securities, at fair value |
|
49,422 |
|
|
|
43,667 |
|
|
Investments
in affiliates |
|
- |
|
|
|
41,026 |
|
|
Short-term
investments, at cost |
|
40,838 |
|
|
|
16,749 |
|
|
|
Total investments |
|
1,047,715 |
|
|
|
1,030,799 |
|
Cash |
|
|
44,608 |
|
|
|
52,594 |
|
Premiums
receivable |
|
171,516 |
|
|
|
156,702 |
|
Reinsurance
receivable |
|
350,705 |
|
|
|
343,369 |
|
Deferred
policy acquisition costs |
|
62,347 |
|
|
|
60,615 |
|
Prepaid
reinsurance premiums |
|
140,712 |
|
|
|
135,380 |
|
Other
assets |
|
47,416 |
|
|
|
52,619 |
|
|
|
Total assets |
$ |
1,865,019 |
|
|
$ |
1,832,078 |
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY |
Liabilities: |
|
|
|
|
|
Losses and
loss expenses |
$ |
836,520 |
|
|
$ |
814,665 |
|
|
Unearned
premiums |
|
523,703 |
|
|
|
506,529 |
|
|
Accrued
expenses |
|
21,499 |
|
|
|
25,442 |
|
|
Borrowings
under lines of credit |
|
35,000 |
|
|
|
60,000 |
|
|
Subordinated debentures |
|
5,000 |
|
|
|
5,000 |
|
|
Other
liabilities |
|
14,094 |
|
|
|
21,572 |
|
|
|
Total liabilities |
|
1,435,816 |
|
|
|
1,433,208 |
|
Stockholders' equity: |
|
|
|
|
Class A
common stock |
|
259 |
|
|
|
258 |
|
|
Class B
common stock |
|
56 |
|
|
|
56 |
|
|
Additional
paid-in capital |
|
262,249 |
|
|
|
261,259 |
|
|
Accumulated
other comprehensive loss |
|
(7,760 |
) |
|
|
(14,228 |
) |
|
Retained
earnings |
|
215,625 |
|
|
|
192,751 |
|
|
Treasury
stock |
|
(41,226 |
) |
|
|
(41,226 |
) |
|
|
Total stockholders'
equity |
|
429,203 |
|
|
|
398,870 |
|
|
|
Total liabilities and
stockholders' equity |
$ |
1,865,019 |
|
|
$ |
1,832,078 |
|
|
|
|
|
|
|
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