Donegal : DGICA Q1'26 Investor Presentation FINAL

Published: 2026-04-30 06:45:34 ET DGICA

Published on 04/30/2026 at 06:45 am EDT

Kevin G. Burke

President and Chief Executive Officer

Jeffrey D. Miller

https://www.donegalgroup.com

Executive Vice President and Chief Financial Officer

https://www.donegalgroup.com 3

Strategies to Provide Value to Stakeholders

Achieving sustained excellent financial performance

Advancing our operational and digital capabilities

Capitalizing on opportunities to grow profitably

Providing superior experiences to our agents, policyholders and employees

Maintaining underwriting discipline and premium rate adequacy

Streamlining and standardizing processes, leveraging digital tools to enhance insights and efficiencies

Continuing expansion within existing markets through independent agents

Ensuring "ease of doing business" through automated agency portals and interfaces

Utilizing data analytics and predictive modeling tools to inform risk selection and pricing decisions

Execute automated legacy policy conversion plan and migrate key applications and data to the cloud

State-specific strategies for growth of premiums, agency engagement and targeted underwriting portfolio mix

Responsive claims service, underwriting and customer support

Continued emphasis on growing commercial lines while

maintaining a profitable book of personal lines

https://www.donegalgroup.com 4

Shared combined business plan to enhance market penetration and underwriting profitability.

Product offerings are complementary, offering a broad range of products that expands our ability to service accounts.

1Because of the different relative voting power of Class A common stock and Class B common stock, public stockholders hold approximately 30% of the aggregate voting power of the combined classes and Donegal Mutual holds approximately 70% of the aggregate voting power of the combined classes.

Rated A (Excellent) by A.M. Best

https://www.donegalgroup.com

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Net Premiums Written

Year Ended December 31, 2025

62% of NPW

Other Personal 1.1%

Commercial Auto

Homeowners

13.6%

21.9%

Workers' Comp

10.2%

Other Commercial

Personal Auto 23.0%

Comm Multi-Peril 24.5%

38% of NPW

Other Personal

Other Commercial 5.7%

https://www.donegalgroup.com

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2.58

2.21

Peer Average 1.55x

1.88

1.93

2.01

1.72

1.73

1.54

1.33

0.99

1.00

0.67

0.53

DGICA: Price and Book Value as of 3/31/2026.

Peer Data Source: FactSet; Price as of 3/31/2026 and Book Value as of latest reported quarter as of 4/21/2026.

https://www.donegalgroup.com

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Modest Decline in Premiums

Underwriting Results Impacted by Weather-related Losses

High-Quality Investment Portfolio

Net Premiums Earned

Loss Ratio

Expense Ratio

Net Investment Income

Avg.

Investment Yield

$221.4M

64.1%

35.4%

$14.3M

3.8%

(4.9)%

(7.4) pts

(0.8) pts

19.2%

40 bps

vs. Q1'25

vs. Q1'25

vs. Q1'25

vs. Q1'25

vs. Q1'25

Percentage change is reflective of Better/(Worse)

Growth in Commercial Lines was offset

by reduced activity in Personal Lines.

https://www.donegalgroup.com

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(dollars in thousands, except per share data)

Q1'26

Q1'25

Change

Net Premiums Written

$239,290

$247,092

(3.2)%

Net Premiums Earned

$221,357

$232,702

(4.9)%

Better/(Worse)

Loss Ratio

64.1%

56.7%

(7.4) pts

Core

53.4%

54.2%

0.8 pts

Weather

7.8%

3.7%

(4.1) pts

Large Fire Losses

5.5%

3.3%

(2.2) pts

Prior Accident Year Development

Adverse/(Favorable)

(2.6)%

(4.5)%

(1.9) pts

Expense Ratio

35.4%

34.6%

(0.8) pts

Dividend Ratio

0.3%

0.3%

0.0 pts

Combined Ratio

99.8%

91.6%

(8.2) pts

Net Investment Income

$14,287

$11,984

19.2%

Net Income

$11,511

$25,205

(54.3)%

Per Share - Class A (Diluted)

$0.31

$0.71

(56.3)%

Book Value Per Share

$17.54

$16.24

8.0%

https://www.donegalgroup.com

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Net premiums written decreased 3.2% (Commercial Lines +2.2%; Personal Lines -13.1%), with solid retention and renewal premium increases (albeit lower than Q1 2025) and modestly higher new business writings.

Commercial lines renewal premium increases averaged 9.0%, excluding workers' compensation (11.5% for Q1 2025).

Personal lines renewal premium increases averaged 2.4% (9.3% for Q1 2025).

($ in millions)

Net Premiums Written

Statutory Combined Ratio

Q1'26

Q1'25

Change

Better/(Worse)

Q1'26

Q1'25

Change

Better/(Worse)

Commercial Lines - Total

$164.1

$160.6

2.2%

104.6%

94.7%

(9.9) pts

Automobile

$60.8

$56.5

7.5%

92.0%

91.4%

(0.6) pts

Workers' Compensation

$26.9

$28.8

(6.5)%

112.9%

117.6%

4.7 pts

Commercial Multi-peril

$60.6

$60.8

(0.3)%

113.9%

90.3%

(23.6) pts

Other

$15.8

$14.5

8.6%

100.6%

80.8%

(19.8) pts

Personal Lines - Total

$75.2

$86.5

(13.1)%

85.7%

83.6%

(2.1) pts

Automobile

$45.9

$55.2

(16.8)%

80.5%

85.0%

4.5 pts

Homeowners

$26.9

$28.8

(6.4)%

94.6%

83.8%

(10.8) pts

Other

$2.3

$2.5

(6.7)%

78.4%

56.6%

(21.8) pts

Total Lines

$239.3

$247.1

(3.2)%

97.9%

90.3%

(7.6) pts

Certain components may not foot due to rounding.

https://www.donegalgroup.com

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As of March 31, 2026

Quarterly net investment income increased 19.2% to $14.3 million.

Corporate 26.3%

Treasury and Agency 6.5%

Short-Term Securities 1.7%

Equity

3.0%

Mortgage Backed Securities (MBS) 29.5%

Taxable and Tax-Exempt Municipals 33.1%

Investment portfolio emphasizes on high-quality fixed-income securities.

"Laddering" structure provides additional

measure of liquidity.

Q1 2026 reinvestment rate of ~5.39% exceeded rate received on maturing and sold assets by ~72 basis points.

May not foot due to rounding.

https://www.donegalgroup.com

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Well-established regional insurance group with a diverse book of business including both commercial and personal lines

Continuing the optimization of our mix of business with emphasis on commercial lines while strategically stabilizing personal lines to maintain a profitable book of business that will increase stockholder value over time

Focusing on achieving sustained excellent financial performance, advancing our operational and digital capabilities, capitalizing on opportunities to grow profitably and providing superior experiences to our agents, policyholders and employees

Maintaining our highly responsive service levels as a key underlying force that contributes to solid growth in our commercial lines of business

https://www.donegalgroup.com 12

Investor Relations Contact

Jeremy Hellman

Vice President, The Equity Group

Phone: (212) 836-9626

[email protected]

Transfer Agent

Computershare Trust Company, N.A.

P.O. Box 43006

Providence, RI 02940

Phone: 800-317-4445

https://www.computershare.com

https://www.donegalgroup.com 13

We 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.

https://www.donegalgroup.com

Reconciliation of net premiums earned to net premiums written:

Reconciliation of Net Premiums Earned to Net Premiums Written Net premiums earned

Change in net unearned premiums Net premiums written

Three Months Ended March 31,

2026

2025 % Change

(dollars in thousands)

$ 221,357 $ 232,702 -4.9%

17,933 14,390 24.6

$ 239,290

$ 247,092 -3.2%

Reconciliation of net income to non-GAAP operating income:

Three Months Ended March 31,

2026

2025 % Change

Reconciliation of Net Income

to Non-GAAP Operating Income

Net income

Investment losses (after tax) Non-GAAP operating income

(dollars in thousands, except per share amounts)

$ 11,511 $ 25,205 -54.3%

378 372 1.6

$ 11,889

$ 25,577

-53.5%

Per Share Reconciliation of Net Income to Non-GAAP Operating Income

Net income - Class A (diluted)

Investment losses (after tax)

Non-GAAP operating income - Class A

$ 0.31

0.01

$ 0.71

0.01

$ 0.72

-56.3%

0.0

-55.6%

$ 0.32

Net income - Class B

Investment losses (after tax)

Non-GAAP operating income - Class B

$ 0.29

0.01

$ 0.65

0.01

$ 0.66

-55.4%

0.0

-54.5%

$ 0.30

https://www.donegalgroup.com

Commercial Lines Workers' Commercial

Automobile Compensation Multi-peril Other Total

Personal Lines Automobile Homeowners Other Total

First Quarter 2026

Loss ratio - core losses

64.6%

78.8%

45.2%

48.1%

57.6%

58.0%

27.4%

59.4%

46.5%

Loss ratio - weather-related losses

0.3%

0.0%

13.9%

5.7%

6.2%

0.7%

25.6%

15.5%

10.5%

Loss ratio - large fire losses

0.5%

0.0%

13.5%

1.7%

5.7%

0.1%

13.7%

0.0%

5.2%

Loss ratio - net prior-year reserve development

-7.1%

-2.8%

3.1%

11.0%

-0.7%

-7.0%

-2.6%

-21.9%

-5.8%

Loss ratio

58.3%

76.0%

75.7%

66.5%

68.8%

51.8%

64.1%

53.0%

56.4%

First Quarter 2025

Loss ratio - core losses

67.4%

74.0%

47.3%

40.6%

58.3%

58.8%

31.3%

52.5%

48.7%

Loss ratio - weather-related losses

0.2%

0.0%

5.4%

2.7%

2.4%

0.5%

13.7%

6.1%

5.4%

Loss ratio - large fire losses

1.2%

0.0%

9.3%

0.8%

4.1%

0.0%

5.9%

0.0%

2.1%

Loss ratio - net prior-year reserve development

-10.3%

7.3%

-8.2%

2.5%

-5.1%

-3.9%

-1.4%

-28.0%

-3.7%

Loss ratio

58.5%

81.3%

53.8%

46.6%

59.7%

55.4%

49.5%

30.6%

52.5%

Certain components may not foot due to rounding.

https://www.donegalgroup.com

www.donegalgroup.com

Disclaimer

Donegal Group Inc. published this content on April 30, 2026, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on April 30, 2026 at 10:44 UTC.