☒ | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
☐ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Delaware | 23-2424711 |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
Large accelerated filer ☐ | Accelerated filer ☑ | Non-accelerated filer ☐ | Smaller reporting company ☐ |
Emerging growth company ☐ |
Title of Each Class | Trading Symbols | Name of Each Exchange on Which Registered |
Class A Common Stock, $.01 par value | DGICA | The NASDAQ Global Select Market |
Class B Common Stock, $.01 par value | DGICB | The NASDAQ Global Select Market |
Page | ||
PART I | FINANCIAL INFORMATION | |
Item 1. | 1 | |
Item 2. | ||
Item 3. | ||
Item 4. | ||
PART II | OTHER INFORMATION | |
Item 1. | ||
Item 1A. | ||
Item 2. | ||
Item 3. | ||
Item 4. | ||
Item 5. | ||
Item 6. | ||
Item 1. | Financial Statements |
September 30, 2023 | December 31, 2022 | March 31, 2024 | December 31, 2023 | |||||||||||||
(Unaudited) | (Unaudited) | |||||||||||||||
Assets | ||||||||||||||||
Investments | ||||||||||||||||
Fixed maturities | ||||||||||||||||
Held to maturity, at amortized cost (net of allowance for expected credit losses of $1,358,977 and $0) | $ | 683,911,746 | $ | 688,439,360 | ||||||||||||
Held to maturity, at amortized cost (net of allowance for expected credit losses of $1,329,099 and $1,325,847) | $ | 683,398,852 | $ | 679,497,038 | ||||||||||||
Available for sale, at fair value | 566,539,622 | 523,791,931 | 600,761,425 | 589,348,243 | ||||||||||||
Equity securities, at fair value | 35,463,958 | 35,104,840 | 28,883,318 | 25,902,956 | ||||||||||||
Short-term investments, at cost, which approximates fair value | 20,370,551 | 57,321,111 | 18,860,030 | 32,305,408 | ||||||||||||
Total investments | 1,306,285,877 | 1,304,657,242 | 1,331,903,625 | 1,327,053,645 | ||||||||||||
Cash | 23,718,830 | 25,123,332 | 19,805,040 | 23,792,273 | ||||||||||||
Accrued investment income | 10,477,007 | 8,861,292 | 10,497,341 | 9,945,714 | ||||||||||||
Premiums receivable | 188,633,601 | 173,846,294 | 193,160,160 | 179,591,821 | ||||||||||||
Reinsurance receivable (net of allowance for expected credit losses of $1,604,771 and $0) | 437,888,614 | 456,522,223 | ||||||||||||||
Reinsurance receivable (net of allowance for expected credit losses of $1,026,016 and $1,394,074) | 435,505,126 | 441,431,334 | ||||||||||||||
Deferred policy acquisition costs | 77,920,996 | 73,170,230 | 78,857,108 | 75,043,404 | ||||||||||||
Deferred tax asset, net | 23,790,808 | 21,603,017 | 19,483,755 | 19,532,525 | ||||||||||||
Prepaid reinsurance premiums | 173,147,044 | 160,591,399 | 179,757,762 | 168,724,465 | ||||||||||||
Property and equipment, net | 2,673,580 | 2,755,105 | 2,594,056 | 2,633,405 | ||||||||||||
Accounts receivable - securities | — | 1,842 | 32,162 | 1,501,079 | ||||||||||||
Federal income taxes recoverable | 7,974,138 | 8,510,897 | 7,271,415 | 8,102,321 | ||||||||||||
Due from affiliate | 8,841,178 | 1,907,527 | ||||||||||||||
Goodwill | 5,625,354 | 5,625,354 | 5,625,354 | 5,625,354 | ||||||||||||
Other intangible assets | 958,010 | 958,010 | 958,010 | 958,010 | ||||||||||||
Other | 1,183,162 | 1,123,098 | 15,961 | 451,011 | ||||||||||||
Total assets | $ | 2,260,277,021 | $ | 2,243,349,335 | $ | 2,294,308,053 | $ | 2,266,293,888 | ||||||||
Liabilities and Stockholders’ Equity | ||||||||||||||||
Liabilities | ||||||||||||||||
Losses and loss expenses | $ | 1,113,354,318 | $ | 1,121,045,758 | $ | 1,124,452,191 | $ | 1,126,156,838 | ||||||||
Unearned premiums | 617,325,983 | 577,653,130 | 634,136,621 | 599,411,468 | ||||||||||||
Accrued expenses | 4,107,224 | 4,226,390 | 3,685,534 | 3,946,974 | ||||||||||||
Reinsurance balances payable | 7,454,490 | 3,495,824 | 4,016,080 | 8,758,976 | ||||||||||||
Borrowings under lines of credit | 35,000,000 | 35,000,000 | 35,000,000 | 35,000,000 | ||||||||||||
Cash dividends declared to stockholders | — | 5,296,990 | — | 5,569,992 | ||||||||||||
Due to affiliate | 1,189,483 | 5,173,289 | ||||||||||||||
Other | 8,505,945 | 7,864,942 | 7,931,153 | 7,704,286 | ||||||||||||
Total liabilities | 1,786,937,443 | 1,759,756,323 | 1,809,221,579 | 1,786,548,534 | ||||||||||||
Stockholders’ Equity | ||||||||||||||||
Preferred stock, $0.01 par value, authorized 2,000,000 shares; none issued | — | — | — | — | ||||||||||||
Class A common stock, $0.01 par value, authorized 50,000,000 shares, issued 30,629,636 and 30,120,263 shares and outstanding 27,627,048 and 27,117,675 shares | 306,297 | 301,203 | ||||||||||||||
Class A common stock, $0.01 par value, authorized 50,000,000 shares, issued 30,819,242 and 30,764,555 shares and outstanding 27,816,654 and 27,761,967 shares | 308,193 | 307,646 | ||||||||||||||
Class B common stock, $0.01 par value, authorized 10,000,000 shares, issued 5,649,240 shares and outstanding 5,576,775 shares | 56,492 | 56,492 | 56,492 | 56,492 | ||||||||||||
Additional paid-in capital | 333,559,263 | 325,601,647 | 336,817,945 | 335,694,478 | ||||||||||||
Accumulated other comprehensive loss | (50,295,321 | ) | (41,703,747 | ) | (34,483,112 | ) | (32,881,822 | ) | ||||||||
Retained earnings | 230,939,204 | 240,563,774 | 223,613,313 | 217,794,917 | ||||||||||||
Treasury stock, at cost | (41,226,357 | ) | (41,226,357 | ) | (41,226,357 | ) | (41,226,357 | ) | ||||||||
Total stockholders’ equity | 473,339,578 | 483,593,012 | 485,086,474 | 479,745,354 | ||||||||||||
Total liabilities and stockholders’ equity | $ | 2,260,277,021 | $ | 2,243,349,335 | $ | 2,294,308,053 | $ | 2,266,293,888 |
Three Months Ended September 30, | Three Months Ended March 31, | |||||||||||||||
2023 | 2022 | 2024 | 2023 | |||||||||||||
Revenues: | ||||||||||||||||
Net premiums earned | $ | 224,392,849 | $ | 206,121,826 | $ | 227,748,679 | $ | 215,233,160 | ||||||||
Investment income, net of investment expenses | 10,536,488 | 8,568,671 | 10,972,327 | 9,449,078 | ||||||||||||
Net investment losses (includes ($237,611) and $371,194 accumulated other comprehensive income reclassifications) | (1,242,521 | ) | (2,357,634 | ) | ||||||||||||
Net investment gains (losses) (includes ($77,051) and ($2,199,673) accumulated other comprehensive income reclassifications) | 2,113,378 | (331,189 | ) | |||||||||||||
Lease income | 85,663 | 91,679 | 81,823 | 89,347 | ||||||||||||
Installment payment fees | 155,771 | 413,706 | 224,662 | 305,375 | ||||||||||||
Total revenues | 233,928,250 | 212,838,248 | 241,140,869 | 224,745,771 | ||||||||||||
Expenses: | ||||||||||||||||
Net losses and loss expenses | 156,683,024 | 155,754,256 | 150,896,415 | 138,105,889 | ||||||||||||
Amortization of deferred policy acquisition costs | 39,332,000 | 35,513,000 | 39,602,000 | 37,798,000 | ||||||||||||
Other underwriting expenses | 37,155,385 | 33,411,529 | 41,739,868 | 40,611,437 | ||||||||||||
Policyholder dividends | 1,399,310 | 1,239,154 | 1,054,659 | 1,343,340 | ||||||||||||
Interest | 156,318 | 71,430 | 154,597 | 152,957 | ||||||||||||
Other expenses, net | 207,127 | 218,083 | 444,934 | 437,715 | ||||||||||||
Total expenses | 234,933,164 | 226,207,452 | 233,892,473 | 218,449,338 | ||||||||||||
Loss before income tax benefit | (1,004,914 | ) | (13,369,204 | ) | ||||||||||||
Income tax benefit (includes ($49,898) and $77,951 income tax (benefit) expense from reclassification items) | (199,613 | ) | (2,993,333 | ) | ||||||||||||
Net loss | $ | (805,301 | ) | $ | (10,375,871 | ) | ||||||||||
Net loss per share: | ||||||||||||||||
Income before income tax expense | 7,248,396 | 6,296,433 | ||||||||||||||
Income tax expense (includes $16,181 and $461,931 income tax benefit from reclassification items) | 1,292,845 | 1,092,837 | ||||||||||||||
Net income | $ | 5,955,551 | $ | 5,203,596 | ||||||||||||
Net income per share: | ||||||||||||||||
Class A common stock - basic and diluted | $ | (0.02 | ) | $ | (0.33 | ) | $ | 0.18 | $ | 0.16 | ||||||
Class B common stock - basic and diluted | $ | (0.02 | ) | $ | (0.30 | ) | $ | 0.16 | $ | 0.15 |
Three Months Ended September 30, | ||||||||
2023 | 2022 | |||||||
Net loss | $ | (805,301 | ) | $ | (10,375,871 | ) | ||
Other comprehensive loss, net of tax | ||||||||
Unrealized loss on securities: | ||||||||
Unrealized holding loss during the period, net of income tax benefit of $1,992,787 and $4,572,428 | (8,085,494 | ) | (17,201,046 | ) | ||||
Reclassification adjustment for losses (gains) included in net loss, net of income tax (benefit) expense of ($49,898) and $77,951 | 187,713 | (293,243 | ) | |||||
Other comprehensive loss | (7,897,781 | ) | (17,494,289 | ) | ||||
Comprehensive loss | $ | (8,703,082 | ) | $ | (27,870,160 | ) |
Nine Months Ended September 30, | ||||||||
2023 | 2022 | |||||||
Revenues: | ||||||||
Net premiums earned | $ | 655,886,046 | $ | 609,498,939 | ||||
Investment income, net of investment expenses | 30,143,025 | 24,631,398 | ||||||
Net investment gains (losses) (includes ($2,289,648) and $824,409 accumulated other comprehensive income reclassifications) | 930,302 | (10,810,594 | ) | |||||
Lease income | 261,718 | 294,529 | ||||||
Installment payment fees | 648,849 | 1,161,842 | ||||||
Total revenues | 687,869,940 | 624,776,114 | ||||||
Expenses: | ||||||||
Net losses and loss expenses | 446,023,609 | 415,245,619 | ||||||
Amortization of deferred policy acquisition costs | 115,065,000 | 104,867,000 | ||||||
Other underwriting expenses | 113,715,159 | 106,753,031 | ||||||
Policyholder dividends | 4,088,288 | 4,176,649 | ||||||
Interest | 463,911 | 464,188 | ||||||
Other expenses, net | 968,976 | 991,671 | ||||||
Total expenses | 680,324,943 | 632,498,158 | ||||||
Income (loss) before income tax expense (benefit) | 7,544,997 | (7,722,044 | ) | |||||
Income tax expense (benefit) (includes ($480,826) and $173,126 income tax (benefit) expense from reclassification items) | 1,149,279 | (2,283,445 | ) | |||||
Net income (loss) | $ | 6,395,718 | $ | (5,438,599 | ) | |||
Net income (loss) per share: | ||||||||
Class A common stock - basic and diluted | $ | 0.20 | $ | (0.17 | ) | |||
Class B common stock - basic and diluted | $ | 0.17 | $ | (0.16 | ) |
Nine Months Ended September 30, | ||||||||
2023 | 2022 | |||||||
Net income (loss) | $ | 6,395,718 | $ | (5,438,599 | ) | |||
Other comprehensive loss, net of tax | ||||||||
Unrealized loss on securities: | ||||||||
Unrealized holding loss during the period, net of income tax benefit of $3,353,482 and $13,185,692 | (13,204,298 | ) | (49,603,320 | ) | ||||
Reclassification adjustment for losses (gains) included in net income (loss), net of income tax (benefit) expense of ($480,826) and $173,126 | 1,808,822 | (651,283 | ) | |||||
Other comprehensive loss | (11,395,476 | ) | (50,254,603 | ) | ||||
Comprehensive loss | $ | (4,999,758 | ) | $ | (55,693,202 | ) |
Three Months Ended March 31, | ||||||||
2024 | 2023 | |||||||
Net income | $ | 5,955,551 | $ | 5,203,596 | ||||
Other comprehensive (loss) income, net of tax | ||||||||
Unrealized (loss) income on securities: | ||||||||
Unrealized holding (loss) income during the period, net of income tax (benefit) expense of ($441,850) and $603,390 | (1,662,160 | ) | 2,269,896 | |||||
Reclassification adjustment for losses included in net income, net of income tax benefit of $16,181 and $461,931 | 60,870 | 1,737,742 | ||||||
Other comprehensive (loss) income | (1,601,290 | ) | 4,007,638 | |||||
Comprehensive income | $ | 4,354,261 | $ | 9,211,234 |
Class A Shares | Class B Shares | Class A Amount | Class B Amount | Additional Paid-In Capital | Accumulated Other Comprehensive Loss | Retained Earnings | Treasury Stock | Total Stockholders’ Equity | ||||||||||||||||||||||||||||
Balance, December 31, 2023 | 30,764,555 | 5,649,240 | $ | 307,646 | $ | 56,492 | $ | 335,694,478 | $ | (32,881,822 | ) | $ | 217,794,917 | $ | (41,226,357 | ) | $ | 479,745,354 | ||||||||||||||||||
Issuance of common stock (stock compensation plans) | 38,287 | — | 383 | — | 472,740 | — | — | — | 473,123 | |||||||||||||||||||||||||||
Share-based compensation | 16,400 | — | 164 | — | 522,460 | — | — | — | 522,624 | |||||||||||||||||||||||||||
Net income | — | — | — | — | — | — | 5,955,551 | — | 5,955,551 | |||||||||||||||||||||||||||
Cash dividends declared | — | — | — | — | — | — | (8,888 | ) | — | (8,888 | ) | |||||||||||||||||||||||||
Grant of stock options | — | — | — | — | 128,267 | — | (128,267 | ) | — | — | ||||||||||||||||||||||||||
Other comprehensive loss | — | — | — | — | — | (1,601,290 | ) | — | — | (1,601,290 | ) | |||||||||||||||||||||||||
Balance, March 31, 2024 | 30,819,242 | 5,649,240 | $ | 308,193 | $ | 56,492 | $ | 336,817,945 | $ | (34,483,112 | ) | $ | 223,613,313 | $ | (41,226,357 | ) | $ | 485,086,474 |
Class A Shares | Class B Shares | Class A Amount | Class B Amount | Additional Paid-In Capital | Accumulated Other Comprehensive Loss | Retained Earnings | Treasury Stock | Total Stockholders’ Equity | ||||||||||||||||||||||||||||
Balance, December 31, 2022 | 30,120,263 | 5,649,240 | $ | 301,203 | $ | 56,492 | $ | 325,601,647 | $ | (41,703,747 | ) | $ | 240,563,774 | $ | (41,226,357 | ) | $ | 483,593,012 | ||||||||||||||||||
Issuance of common stock (stock compensation plans) | 35,045 | — | 350 | — | 440,746 | — | — | — | 441,096 | |||||||||||||||||||||||||||
Share-based compensation | 143,004 | — | 1,431 | — | 2,218,355 | — | — | — | 2,219,786 | |||||||||||||||||||||||||||
Net income | — | — | — | — | — | — | 5,203,596 | — | 5,203,596 | |||||||||||||||||||||||||||
Cash dividends declared | — | — | — | — | — | — | (7,057 | ) | — | (7,057 | ) | |||||||||||||||||||||||||
Grant of stock options | — | — | — | — | 114,724 | — | (114,724 | ) | — | — | ||||||||||||||||||||||||||
Cumulative effect of adoption of updated guidance for credit losses at January 1, 2023 | — | — | — | — | — | — | (1,895,902 | ) | — | (1,895,902 | ) | |||||||||||||||||||||||||
Other comprehensive income | — | — | — | — | — | 4,007,638 | — | — | 4,007,638 | |||||||||||||||||||||||||||
Balance, March 31, 2023 | 30,298,312 | 5,649,240 | $ | 302,984 | $ | 56,492 | $ | 328,375,472 | $ | (37,696,109 | ) | $ | 243,749,687 | $ | (41,226,357 | ) | $ | 493,562,169 | ||||||||||||||||||
Issuance of common stock (stock compensation plans) | 44,664 | — | 447 | — | 668,933 | — | — | — | 669,380 | |||||||||||||||||||||||||||
Share-based compensation | 195,893 | — | 1,958 | — | 2,966,842 | — | — | — | 2,968,800 | |||||||||||||||||||||||||||
Net income | — | — | — | — | — | — | 1,997,423 | — | 1,997,423 | |||||||||||||||||||||||||||
Cash dividends declared | — | — | — | — | — | — | (5,498,873 | ) | — | (5,498,873 | ) | |||||||||||||||||||||||||
Grant of stock options | — | — | — | — | 61,749 | — | (61,749 | ) | — | — | ||||||||||||||||||||||||||
Other comprehensive loss | — | — | — | — | — | (7,505,333 | ) | — | — | (7,505,333 | ) | |||||||||||||||||||||||||
Balance, June 30, 2023 | 30,538,869 | 5,649,240 | $ | 305,389 | $ | 56,492 | $ | 332,072,996 | $ | (45,201,442 | ) | $ | 240,186,488 | $ | (41,226,357 | ) | $ | 486,193,566 | ||||||||||||||||||
Issuance of common stock (stock compensation plans) | 28,912 | — | 289 | — | 354,337 | — | — | — | 354,626 | |||||||||||||||||||||||||||
Share-based compensation | 61,855 | — | 619 | — | 1,030,458 | — | — | — | 1,031,077 | |||||||||||||||||||||||||||
Net loss | — | — | — | — | — | — | (805,301 | ) | — | (805,301 | ) | |||||||||||||||||||||||||
Cash dividends declared | — | — | — | — | — | — | (5,536,609 | ) | — | (5,536,609 | ) | |||||||||||||||||||||||||
Grant of stock options | — | — | — | — | 101,472 | — | (101,472 | ) | — | — | ||||||||||||||||||||||||||
Reclassification of held to maturity transfer | — | — | — | — | — | 2,803,902 | (2,803,902 | ) | — | — | ||||||||||||||||||||||||||
Other comprehensive loss | — | — | — | — | — | (7,897,781 | ) | — | — | (7,897,781 | ) | |||||||||||||||||||||||||
Balance, September 30, 2023 | 30,629,636 | 5,649,240 | $ | 306,297 | $ | 56,492 | $ | 333,559,263 | $ | (50,295,321 | ) | $ | 230,939,204 | $ | (41,226,357 | ) | $ | 473,339,578 |
Class A Shares | Class B Shares | Class A Amount | Class B Amount | Additional Paid-In Capital | Accumulated Other Comprehensive Income (Loss) | Retained Earnings | Treasury Stock | Total Stockholders’ Equity | Class A Shares | Class B Shares | Class A Amount | Class B Amount | Additional Paid-In Capital | Accumulated Other Comprehensive Loss | Retained Earnings | Treasury Stock | Total Stockholders’ Equity | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance, December 31, 2021 | 28,756,203 | 5,649,240 | $ | 287,562 | $ | 56,492 | $ | 304,889,481 | $ | 3,283,551 | $ | 263,745,358 | $ | (41,226,357 | ) | $ | 531,036,087 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance, December 31, 2022 | 30,120,263 | 5,649,240 | $ | 301,203 | $ | 56,492 | $ | 325,601,647 | $ | (41,703,747 | ) | $ | 240,563,774 | $ | (41,226,357 | ) | $ | 483,593,012 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Issuance of common stock (stock compensation plans) | 33,407 | — | 335 | — | 423,665 | — | — | — | 424,000 | 35,045 | — | 350 | — | 440,746 | — | — | — | 441,096 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based compensation | 900 | — | 9 | — | 256,451 | — | — | — | 256,460 | 143,004 | — | 1,431 | — | 2,218,355 | — | — | — | 2,219,786 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | — | — | 13,145,029 | — | 13,145,029 | — | — | — | — | — | — | 5,203,596 | — | 5,203,596 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash dividends declared | — | — | — | — | — | — | (5,490 | ) | — | (5,490 | ) | — | — | — | — | — | — | (7,057 | ) | — | (7,057 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||
Grant of stock options | — | — | — | — | 98,409 | — | (98,409 | ) | — | — | — | — | — | — | 114,724 | — | (114,724 | ) | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive loss | — | — | — | — | — | (20,590,225 | ) | — | — | (20,590,225 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance, March 31, 2022 | 28,790,510 | 5,649,240 | $ | 287,906 | $ | 56,492 | $ | 305,668,006 | $ | (17,306,674 | ) | $ | 276,786,488 | $ | (41,226,357 | ) | $ | 524,265,861 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Issuance of common stock (stock compensation plans) | 54,743 | — | 547 | — | 736,349 | — | — | — | 736,896 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based compensation | 775,898 | — | 7,759 | — | 11,476,429 | — | — | — | 11,484,188 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net loss | — | — | — | — | — | — | (8,207,757 | ) | — | (8,207,757 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash dividends declared | — | — | — | — | — | — | (5,086,617 | ) | — | (5,086,617 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Grant of stock options | — | — | — | — | 59,216 | — | (59,216 | ) | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive loss | — | — | — | — | — | (12,170,089 | ) | — | — | (12,170,089 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance, June 30, 2022 | 29,621,151 | 5,649,240 | $ | 296,212 | $ | 56,492 | $ | 317,940,000 | $ | (29,476,763 | ) | $ | 263,432,898 | $ | (41,226,357 | ) | $ | 511,022,482 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Issuance of common stock (stock compensation plans) | 23,454 | — | 235 | — | 270,887 | — | — | — | 271,122 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based compensation | 195,322 | — | 1,953 | — | 3,013,995 | — | — | — | 3,015,948 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net loss | — | — | — | — | — | — | (10,375,871 | ) | — | (10,375,871 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash dividends declared | — | — | — | — | — | — | (5,235,993 | ) | — | (5,235,993 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Grant of stock options | — | — | — | — | 138,907 | — | (138,907 | ) | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive loss | — | — | — | — | — | (17,494,289 | ) | — | — | (17,494,289 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance, September 30, 2022 | 29,839,927 | 5,649,240 | $ | 298,400 | $ | 56,492 | $ | 321,363,789 | $ | (46,971,052 | ) | $ | 247,682,127 | $ | (41,226,357 | ) | $ | 481,203,399 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cumulative effect of adoption of updated guidance for credit losses at January 1, 2023 | — | — | — | — | — | — | (1,895,902 | ) | — | (1,895,902 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income | — | — | — | — | — | 4,007,638 | — | — | 4,007,638 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance, March 31, 2023 | 30,298,312 | 5,649,240 | $ | 302,984 | $ | 56,492 | $ | 328,375,472 | $ | (37,696,109 | ) | $ | 243,749,687 | $ | (41,226,357 | ) | $ | 493,562,169 |
Nine Months Ended September 30, | Three Months Ended March 31, | |||||||||||||||
2023 | 2022 | 2024 | 2023 | |||||||||||||
Cash Flows from Operating Activities: | ||||||||||||||||
Net income (loss) | $ | 6,395,718 | $ | (5,438,599 | ) | |||||||||||
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||||||||||||||||
Net income | $ | 5,955,551 | $ | 5,203,596 | ||||||||||||
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||||||||||||||||
Depreciation, amortization and other non-cash items | 3,215,399 | 3,747,654 | 966,911 | 1,122,609 | ||||||||||||
Net investment (gains) losses | (930,302 | ) | 10,810,594 | (2,113,378 | ) | 331,189 | ||||||||||
Changes in assets and liabilities: | ||||||||||||||||
Losses and loss expenses | (7,691,440 | ) | 30,505,293 | (1,704,647 | ) | 2,488,926 | ||||||||||
Unearned premiums | 39,672,853 | 22,394,901 | 34,725,153 | 32,031,102 | ||||||||||||
Premiums receivable | (14,787,307 | ) | (12,881,975 | ) | (13,568,339 | ) | (15,699,109 | ) | ||||||||
Deferred acquisition costs | (4,750,766 | ) | (6,355,269 | ) | (3,813,704 | ) | (4,019,366 | ) | ||||||||
Deferred income taxes | 600,019 | (2,645,695 | ) | 474,439 | 355,524 | |||||||||||
Reinsurance receivable | 17,501,773 | 3,564,454 | 5,926,208 | (5,291,035 | ) | |||||||||||
Prepaid reinsurance premiums | (12,555,645 | ) | 11,222,717 | (11,033,297 | ) | (9,960,021 | ) | |||||||||
Accrued investment income | (1,615,715 | ) | (1,608,978 | ) | (551,627 | ) | (1,322,590 | ) | ||||||||
Due to affiliate | (3,983,806 | ) | (1,342,121 | ) | ||||||||||||
Due from affiliate | (6,933,651 | ) | (7,651,293 | ) | ||||||||||||
Reinsurance balances payable | 3,958,666 | (16,695 | ) | (4,742,896 | ) | (220,377 | ) | |||||||||
Current income taxes | 536,759 | (4,150,265 | ) | 830,906 | 749,813 | |||||||||||
Accrued expenses | (119,166 | ) | 282,286 | (261,440 | ) | 465,988 | ||||||||||
Other, net | 580,936 | 1,811,243 | 661,955 | 734,310 | ||||||||||||
Net adjustments | 19,632,258 | 55,338,144 | (1,137,407 | ) | (5,884,330 | ) | ||||||||||
Net cash provided by operating activities | 26,027,976 | 49,899,545 | ||||||||||||||
Net cash provided by (used in) operating activities | 4,818,144 | (680,734 | ) | |||||||||||||
Cash Flows from Investing Activities: | ||||||||||||||||
Purchases of fixed maturities, held to maturity | (25,226,609 | ) | (68,902,605 | ) | (11,911,672 | ) | (12,092,863 | ) | ||||||||
Purchases of fixed maturities, available for sale | (131,155,483 | ) | (101,328,478 | ) | (46,490,362 | ) | (34,354,601 | ) | ||||||||
Purchases of equity securities, available for sale | (5,128,994 | ) | (12,488,733 | ) | (786,680 | ) | (3,590,015 | ) | ||||||||
Maturity of fixed maturities: | ||||||||||||||||
Held to maturity | 29,144,970 | 41,194,285 | 8,008,034 | 6,127,883 | ||||||||||||
Available for sale | 41,318,216 | 60,346,490 | 30,922,241 | 12,365,403 | ||||||||||||
Sales of fixed maturities: | ||||||||||||||||
Available for sale | 28,154,556 | 6,568,154 | 2,995,648 | 748,250 | ||||||||||||
Sales of equity securities, available for sale | 8,080,764 | 17,498,036 | — | 3,066,129 | ||||||||||||
Net (purchases) sales of property and equipment | (44,701 | ) | 28,289 | |||||||||||||
Net sales (purchases) of short-term investments | 36,950,560 | (23,968,454 | ) | |||||||||||||
Net cash used in investing activities | (17,906,721 | ) | (81,053,016 | ) | ||||||||||||
Net purchases of property and equipment | — | (44,700 | ) | |||||||||||||
Net sales of short-term investments | 13,445,378 | 29,183,513 | ||||||||||||||
Net cash (used in) provided by investing activities | (3,817,413 | ) | 1,408,999 | |||||||||||||
Cash Flows from Financing Activities: | ||||||||||||||||
Cash dividends paid | (16,339,529 | ) | (15,243,368 | ) | (5,578,880 | ) | (5,304,047 | ) | ||||||||
Issuance of common stock | 6,813,772 | 15,348,793 | 590,916 | 2,288,494 | ||||||||||||
Net cash (used in) provided by financing activities | (9,525,757 | ) | 105,425 | |||||||||||||
Net cash used in financing activities | (4,987,964 | ) | (3,015,553 | ) | ||||||||||||
Net decrease in cash | (1,404,502 | ) | (31,048,046 | ) | (3,987,233 | ) | (2,287,288 | ) | ||||||||
Cash at beginning of period | 25,123,332 | 57,709,375 | 23,792,273 | 25,123,332 | ||||||||||||
Cash at end of period | $ | 23,718,830 | $ | 26,661,329 | $ | 19,805,040 | $ | 22,836,044 | ||||||||
Cash paid during period - Interest | $ | 463,911 | $ | 464,188 | $ | 156,292 | $ | 156,346 | ||||||||
Net cash paid during period - Taxes | $ | — | $ | 4,500,000 | $ | — | $ | — |
1 - | Organization |
2 - | Basis of Presentation |
3 - | Net Income |
Three Months Ended September 30, | ||||||||||||||||
2023 | 2022 | |||||||||||||||
Class A | Class B | Class A | Class B | |||||||||||||
(in thousands, except per share data) | ||||||||||||||||
Basic net loss per share: | ||||||||||||||||
Numerator: | ||||||||||||||||
Allocation of net loss | $ | (671 | ) | $ | (134 | ) | $ | (8,714 | ) | $ | (1,662 | ) | ||||
Denominator: | ||||||||||||||||
Weighted-average shares outstanding | 27,595 | 5,577 | 26,781 | 5,577 | ||||||||||||
Basic net loss per share | $ | (0.02 | ) | $ | (0.02 | ) | $ | (0.33 | ) | $ | (0.30 | ) | ||||
Diluted net loss per share: | ||||||||||||||||
Numerator: | ||||||||||||||||
Allocation of net loss | $ | (671 | ) | $ | (134 | ) | $ | (8,714 | ) | $ | (1,662 | ) | ||||
Denominator: | ||||||||||||||||
Number of shares used in basic computation | 27,595 | 5,577 | 26,781 | 5,577 | ||||||||||||
Weighted-average shares effect of dilutive securities: | ||||||||||||||||
Director and employee stock options | — | — | — | — | ||||||||||||
Number of shares used in diluted computation | 27,595 | 5,577 | 26,781 | 5,577 | ||||||||||||
Diluted net loss per share | $ | (0.02 | ) | $ | (0.02 | ) | $ | (0.33 | ) | $ | (0.30 | ) |
Nine Months Ended September 30, | Three Months Ended March 31, | |||||||||||||||||||||||||||||||
2023 | 2022 | 2024 | 2023 | |||||||||||||||||||||||||||||
Class A | Class B | Class A | Class B | Class A | Class B | Class A | Class B | |||||||||||||||||||||||||
(in thousands, except per share data) | (in thousands, except per share data) | |||||||||||||||||||||||||||||||
Basic net income (loss) per share: | ||||||||||||||||||||||||||||||||
Basic net income per share: | ||||||||||||||||||||||||||||||||
Numerator: | ||||||||||||||||||||||||||||||||
Allocation of net income (loss) | $ | 5,421 | $ | 975 | $ | (4,529 | ) | $ | (910 | ) | ||||||||||||||||||||||
Allocation of net income | $ | 5,039 | $ | 917 | $ | 4,387 | $ | 817 | ||||||||||||||||||||||||
Denominator: | ||||||||||||||||||||||||||||||||
Weighted-average shares outstanding | 27,391 | 5,577 | 26,216 | 5,577 | 27,811 | 5,577 | 27,193 | 5,577 | ||||||||||||||||||||||||
Basic net income (loss) per share | $ | 0.20 | $ | 0.17 | $ | (0.17 | ) | $ | (0.16 | ) | ||||||||||||||||||||||
Basic net income per share | $ | 0.18 | $ | 0.16 | $ | 0.16 | $ | 0.15 | ||||||||||||||||||||||||
Diluted net income (loss) per share: | ||||||||||||||||||||||||||||||||
Diluted net income per share: | ||||||||||||||||||||||||||||||||
Numerator: | ||||||||||||||||||||||||||||||||
Allocation of net income (loss) | $ | 5,421 | $ | 975 | $ | (4,529 | ) | $ | (910 | ) | ||||||||||||||||||||||
Allocation of net income | $ | 5,039 | $ | 917 | $ | 4,387 | $ | 817 | ||||||||||||||||||||||||
Denominator: | ||||||||||||||||||||||||||||||||
Number of shares used in basic computation | 27,391 | 5,577 | 26,216 | 5,577 | 27,811 | 5,577 | 27,193 | 5,577 | ||||||||||||||||||||||||
Weighted-average shares effect of dilutive securities: | ||||||||||||||||||||||||||||||||
Director and employee stock options | 117 | — | — | — | 35 | — | 173 | — | ||||||||||||||||||||||||
Number of shares used in diluted computation | 27,508 | 5,577 | 26,216 | 5,577 | 27,846 | 5,577 | 27,366 | 5,577 | ||||||||||||||||||||||||
Diluted net income (loss) per share | $ | 0.20 | $ | 0.17 | $ | (0.17 | ) | $ | (0.16 | ) | ||||||||||||||||||||||
Diluted net income per share | $ | 0.18 | $ | 0.16 | $ | 0.16 | $ | 0.15 |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||||
Number of options to purchase Class A shares excluded | — | — | 2,245,435 | — |
Three Months Ended March 31, | ||||||||
2024 | 2023 | |||||||
Number of options to purchase Class A shares excluded | 1,693,904 | 2,307,435 |
4 - | Reinsurance |
• | excess of loss reinsurance, under which Donegal Mutual and our insurance subsidiaries recover losses over a set retention of $3.0 million for all losses other than |
5 - | Investments |
Carrying Value | Allowance for Credit Losses | Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Estimated Fair Value | Carrying Value | Allowance for Credit Losses | Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Estimated Fair Value | |||||||||||||||||||||||||||||||||||||
(in thousands) | (in thousands) | |||||||||||||||||||||||||||||||||||||||||||||||
Held to Maturity | ||||||||||||||||||||||||||||||||||||||||||||||||
U.S. Treasury securities and obligations of U.S. government corporations and agencies | $ | 91,484 | $ | 55 | $ | 91,539 | $ | — | $ | 12,921 | $ | 78,618 | $ | 91,551 | $ | 55 | $ | 91,606 | $ | — | $ | 9,550 | $ | 82,056 | ||||||||||||||||||||||||
Obligations of states and political subdivisions | 379,764 | 298 | 380,062 | 454 | 75,269 | 305,247 | 376,569 | 266 | 376,835 | 1,057 | 50,664 | 327,228 | ||||||||||||||||||||||||||||||||||||
Corporate securities | 202,797 | 1,000 | 203,797 | — | 24,284 | 179,513 | 202,093 | 1,001 | 203,094 | 246 | 15,565 | 187,775 | ||||||||||||||||||||||||||||||||||||
Mortgage-backed securities | 9,867 | 6 | 9,873 | — | 748 | 9,125 | 13,186 | 7 | 13,193 | 9 | 447 | 12,755 | ||||||||||||||||||||||||||||||||||||
Totals | $ | 683,912 | $ | 1,359 | $ | 685,271 | $ | 454 | $ | 113,222 | $ | 572,503 | $ | 683,399 | $ | 1,329 | $ | 684,728 | $ | 1,312 | $ | 76,226 | $ | 609,814 |
Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Estimated Fair Value | Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Estimated Fair Value | |||||||||||||||||||||||||
(in thousands) | (in thousands) | |||||||||||||||||||||||||||||||
Available for Sale | ||||||||||||||||||||||||||||||||
U.S. Treasury securities and obligations of U.S. government corporations and agencies | $ | 88,636 | $ | — | $ | 6,485 | $ | 82,151 | $ | 91,561 | $ | 79 | $ | 4,585 | $ | 87,055 | ||||||||||||||||
Obligations of states and political subdivisions | 42,173 | 7 | 6,634 | 35,546 | 41,893 | 10 | 4,164 | 37,739 | ||||||||||||||||||||||||
Corporate securities | 212,323 | — | 19,300 | 193,023 | 208,888 | 74 | 13,792 | 195,170 | ||||||||||||||||||||||||
Mortgage-backed securities | 285,619 | — | 29,799 | 255,820 | 300,874 | 377 | 20,454 | 280,797 | ||||||||||||||||||||||||
Totals | $ | 628,751 | $ | 7 | $ | 62,218 | $ | 566,540 | $ | 643,216 | $ | 540 | $ | 42,995 | $ | 600,761 |
Carrying Value | Allowance for Credit Losses | Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Estimated Fair Value | |||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||
Held to Maturity | ||||||||||||||||||||||||
U.S. Treasury securities and obligations of U.S. government corporations and agencies | $ | 91,518 | $ | 54 | $ | 91,572 | $ | — | $ | 8,885 | $ | 82,687 | ||||||||||||
Obligations of states and political subdivisions | 376,898 | 266 | 377,164 | 1,449 | 46,845 | 331,768 | ||||||||||||||||||
Corporate securities | 201,847 | 1,000 | 202,847 | 207 | 14,805 | 188,249 | ||||||||||||||||||
Mortgage-backed securities | 9,234 | 6 | 9,240 | — | 418 | 8,822 | ||||||||||||||||||
Totals | $ | 679,497 | $ | 1,326 | $ | 680,823 | $ | 1,656 | $ | 70,953 | $ | 611,526 |
Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Estimated Fair Value | |||||||||||||
(in thousands) | ||||||||||||||||
Available for Sale | ||||||||||||||||
U.S. Treasury securities and obligations of U.S. government corporations and agencies | $ | 89,367 | $ | 199 | $ | 4,147 | $ | 85,419 | ||||||||
Obligations of states and political subdivisions | 41,958 | 12 | 3,854 | 38,116 | ||||||||||||
Corporate securities | 211,882 | 100 | 15,189 | 196,793 | ||||||||||||
Mortgage-backed securities | 286,520 | 594 | 18,094 | 269,020 | ||||||||||||
Totals | $ | 629,727 | $ | 905 | $ | 41,284 | $ | 589,348 |
Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Estimated Fair Value | |||||||||||||
(in thousands) | ||||||||||||||||
Held to Maturity | ||||||||||||||||
U.S. Treasury securities and obligations of U.S. government corporations and agencies | $ | 103,362 | $ | 1 | $ | 10,566 | $ | 92,797 | ||||||||
Obligations of states and political subdivisions | 382,097 | 1,810 | 60,494 | 323,413 | ||||||||||||
Corporate securities | 190,949 | — | 20,510 | 170,439 | ||||||||||||
Mortgage-backed securities | 12,031 | — | 635 | 11,396 | ||||||||||||
Totals | $ | 688,439 | $ | 1,811 | $ | 92,205 | $ | 598,045 |
Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Estimated Fair Value | |||||||||||||
(in thousands) | ||||||||||||||||
Available for Sale | ||||||||||||||||
U.S. Treasury securities and obligations of U.S. government corporations and agencies | $ | 68,538 | $ | 109 | $ | 5,125 | $ | 63,522 | ||||||||
Obligations of states and political subdivisions | 45,448 | 34 | 5,326 | 40,156 | ||||||||||||
Corporate securities | 218,041 | 8 | 15,211 | 202,838 | ||||||||||||
Mortgage-backed securities | 239,886 | 155 | 22,765 | 217,276 | ||||||||||||
Totals | $ | 571,913 | $ | 306 | $ | 48,427 | $ | 523,792 |
Amortized Cost | Estimated Fair Value | |||||||
(in thousands) | ||||||||
Held to maturity | ||||||||
Due in one year or less | $ | 22,133 | $ | 22,012 | ||||
Due after one year through five years | 106,022 | 98,950 | ||||||
Due after five years through ten years | 251,366 | 217,144 | ||||||
Due after ten years | 295,877 | 225,272 | ||||||
Mortgage-backed securities | 9,873 | 9,125 | ||||||
Total held to maturity | $ | 685,271 | $ | 572,503 | ||||
Available for sale | ||||||||
Due in one year or less | $ | 40,101 | $ | 39,458 | ||||
Due after one year through five years | 175,077 | 161,274 | ||||||
Due after five years through ten years | 102,498 | 89,399 | ||||||
Due after ten years | 25,456 | 20,589 | ||||||
Mortgage-backed securities | 285,619 | 255,820 | ||||||
Total available for sale | $ | 628,751 | $ | 566,540 |
Amortized Cost | Estimated Fair Value | |||||||
(in thousands) | ||||||||
Held to maturity | ||||||||
Due in one year or less | $ | 42,228 | $ | 41,549 | ||||
Due after one year through five years | 130,205 | 121,873 | ||||||
Due after five years through ten years | 237,241 | 216,118 | ||||||
Due after ten years | 261,861 | 217,519 | ||||||
Mortgage-backed securities | 13,193 | 12,755 | ||||||
Total held to maturity | $ | 684,728 | $ | 609,814 | ||||
Available for sale | ||||||||
Due in one year or less | $ | 62,925 | $ | 61,761 | ||||
Due after one year through five years | 170,058 | 160,071 | ||||||
Due after five years through ten years | 86,138 | 77,937 | ||||||
Due after ten years | 23,221 | 20,195 | ||||||
Mortgage-backed securities | 300,874 | 280,797 | ||||||
Total available for sale | $ | 643,216 | $ | 600,761 |
Cost | Gross Gains | Gross Losses | Estimated Fair Value | |||||||||||||
(in thousands) | ||||||||||||||||
Equity securities | $ | 27,953 | $ | 8,014 | $ | 503 | $ | 35,464 |
Cost | Gross Gains | Gross Losses | Estimated Fair Value | |||||||||||||
(in thousands) | ||||||||||||||||
Equity securities | $ | 19,631 | $ | 9,315 | $ | 63 | $ | 28,883 |
Cost | Gross Gains | Gross Losses | Estimated Fair Value | |||||||||||||
(in thousands) | ||||||||||||||||
Equity securities | $ | 30,771 | $ | 5,666 | $ | 1,332 | $ | 35,105 |
Cost | Gross Gains | Gross Losses | Estimated Fair Value | |||||||||||||
(in thousands) | ||||||||||||||||
Equity securities | $ | 18,844 | $ | 7,059 | $ | — | $ | 25,903 |
Three Months Ended September 30, | Nine Months Ended September 30, | Three Months Ended March 31, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | 2024 | 2023 | |||||||||||||||||||
(in thousands) | (in thousands) | (in thousands) | ||||||||||||||||||||||
Gross realized gains: | ||||||||||||||||||||||||
Fixed maturities | $ | — | $ | 326 | $ | 295 | $ | 998 | $ | 4 | $ | 22 | ||||||||||||
Equity securities | 108 | 400 | 393 | 1,243 | — | 285 | ||||||||||||||||||
Real estate | — | — | — | 477 | ||||||||||||||||||||
108 | 726 | 688 | 2,718 | 4 | 307 | |||||||||||||||||||
Gross realized losses: | ||||||||||||||||||||||||
Fixed maturities | 237 | 73 | 2,585 | 173 | 81 | 2,222 | ||||||||||||||||||
Equity securities | 424 | 249 | 475 | 1,073 | — | 46 | ||||||||||||||||||
661 | 322 | 3,060 | 1,246 | 81 | 2,268 | |||||||||||||||||||
Net realized (losses) gains | (553 | ) | 404 | (2,372 | ) | 1,472 | ||||||||||||||||||
Net realized losses | (77 | ) | (1,961 | ) | ||||||||||||||||||||
Gross unrealized gains on equity securities | (735 | ) | 117 | 3,940 | 123 | 2,256 | 2,202 | |||||||||||||||||
Gross unrealized losses on equity securities | 80 | (2,879 | ) | (547 | ) | (12,406 | ) | (63 | ) | (485 | ) | |||||||||||||
Fixed maturities - credit impairment charges | (35 | ) | — | (91 | ) | — | (3 | ) | (87 | ) | ||||||||||||||
Net investment (losses) gains | $ | (1,243 | ) | $ | (2,358 | ) | $ | 930 | $ | (10,811 | ) | |||||||||||||
Net investment gains (losses) | $ | 2,113 | $ | (331 | ) |
Less Than 12 Months | More Than 12 Months | Less Than 12 Months | More Than 12 Months | |||||||||||||||||||||||||||||
Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | |||||||||||||||||||||||||
(in thousands) | (in thousands) | |||||||||||||||||||||||||||||||
U.S. Treasury securities and obligations of U.S. government corporations and agencies | $ | 51,076 | $ | 1,224 | $ | 109,693 | $ | 18,182 | $ | 37,188 | $ | 299 | $ | 125,533 | $ | 13,836 | ||||||||||||||||
Obligations of states and political subdivisions | 38,870 | 1,965 | 281,436 | 79,938 | 29,747 | 251 | 304,139 | 54,577 | ||||||||||||||||||||||||
Corporate securities | 33,707 | 2,325 | 338,829 | 41,259 | 18,034 | 431 | 343,673 | 28,926 | ||||||||||||||||||||||||
Mortgage-backed securities | 89,676 | 3,221 | 175,269 | 27,326 | 58,891 | 656 | 187,697 | 20,245 | ||||||||||||||||||||||||
Totals | $ | 213,329 | $ | 8,735 | $ | 905,227 | $ | 166,705 | $ | 143,860 | $ | 1,637 | $ | 961,042 | $ | 117,584 |
Less Than 12 Months | More Than 12 Months | Less Than 12 Months | More Than 12 Months | |||||||||||||||||||||||||||||
Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | |||||||||||||||||||||||||
(in thousands) | (in thousands) | |||||||||||||||||||||||||||||||
U.S. Treasury securities and obligations of U.S. government corporations and agencies | $ | 90,245 | $ | 5,327 | $ | 47,238 | $ | 10,364 | $ | 32,224 | $ | 217 | $ | 116,538 | $ | 12,815 | ||||||||||||||||
Obligations of states and political subdivisions | 261,465 | 49,327 | 47,945 | 16,493 | 13,097 | 68 | 307,429 | 50,631 | ||||||||||||||||||||||||
Corporate securities | 298,706 | 22,272 | 72,959 | 13,449 | 13,066 | 324 | 353,863 | 29,670 | ||||||||||||||||||||||||
Mortgage-backed securities | 143,886 | 10,941 | 69,879 | 12,459 | 46,964 | 221 | 178,113 | 18,291 | ||||||||||||||||||||||||
Totals | $ | 794,302 | $ | 87,867 | $ | 238,021 | $ | 52,765 | $ | 105,351 | $ | 830 | $ | 955,943 | $ | 111,407 |
6 - | Segment Information |
Three Months Ended September 30, | Three Months Ended March 31, | |||||||||||||||
2023 | 2022 | 2024 | 2023 | |||||||||||||
(in thousands) | (in thousands) | |||||||||||||||
Revenues: | ||||||||||||||||
Premiums earned: | ||||||||||||||||
Commercial lines | $ | 135,432 | $ | 127,497 | $ | 132,092 | $ | 133,187 | ||||||||
Personal lines | 88,961 | 78,625 | 95,657 | 82,046 | ||||||||||||
GAAP premiums earned | 224,393 | 206,122 | 227,749 | 215,233 | ||||||||||||
Net investment income | 10,536 | 8,569 | 10,972 | 9,449 | ||||||||||||
Investment losses | (1,243 | ) | (2,358 | ) | ||||||||||||
Investment gains (losses) | 2,113 | (331 | ) | |||||||||||||
Other | 242 | 505 | 307 | 395 | ||||||||||||
Total revenues | $ | 233,928 | $ | 212,838 | $ | 241,141 | $ | 224,746 | ||||||||
Loss before income tax benefit: | ||||||||||||||||
Underwriting gain (loss): | ||||||||||||||||
Income before income tax expense: | ||||||||||||||||
Underwriting (loss) gain: | ||||||||||||||||
Commercial lines | $ | 9,957 | $ | (12,100 | ) | $ | (10,371 | ) | $ | (7,912 | ) | |||||
Personal lines | (20,016 | ) | (9,126 | ) | (532 | ) | 879 | |||||||||
SAP underwriting loss | (10,059 | ) | (21,226 | ) | (10,903 | ) | (7,033 | ) | ||||||||
GAAP adjustments | (118 | ) | 1,430 | 5,359 | 4,407 | |||||||||||
GAAP underwriting loss | (10,177 | ) | (19,796 | ) | (5,544 | ) | (2,626 | ) | ||||||||
Net investment income | 10,536 | 8,569 | 10,972 | 9,449 | ||||||||||||
Investment losses | (1,243 | ) | (2,358 | ) | ||||||||||||
Investment gains (losses) | 2,113 | (331 | ) | |||||||||||||
Other | (121 | ) | 216 | (293 | ) | (196 | ) | |||||||||
Loss before income tax benefit | $ | (1,005 | ) | $ | (13,369 | ) | ||||||||||
Income before income tax expense | $ | 7,248 | $ | 6,296 |
Nine Months Ended September 30, | ||||||||
2023 | 2022 | |||||||
(in thousands) | ||||||||
Revenues: | ||||||||
Premiums earned: | ||||||||
Commercial lines | $ | 399,427 | $ | 378,680 | ||||
Personal lines | 256,459 | 230,819 | ||||||
GAAP premiums earned | 655,886 | 609,499 | ||||||
Net investment income | 30,143 | 24,631 | ||||||
Investment gains (losses) | 930 | (10,811 | ) | |||||
Other | 911 | 1,457 | ||||||
Total revenues | $ | 687,870 | $ | 624,776 | ||||
Income (loss) before income tax expense (benefit): | ||||||||
Underwriting loss: | ||||||||
Commercial lines | $ | (4,024 | ) | $ | (16,873 | ) | ||
Personal lines | (24,950 | ) | (12,654 | ) | ||||
SAP underwriting loss | (28,974 | ) | (29,527 | ) | ||||
GAAP adjustments | 5,968 | 7,984 | ||||||
GAAP underwriting loss | (23,006 | ) | (21,543 | ) | ||||
Net investment income | 30,143 | 24,631 | ||||||
Investment gains (losses) | 930 | (10,811 | ) | |||||
Other | (522 | ) | 1 | |||||
Income (loss) before income tax expense (benefit) | $ | 7,545 | $ | (7,722 | ) |
7 - | Borrowings |
FHLB of Pittsburgh stock purchased and owned | $ | 1,591,800 | $ | 1,591,800 | ||||
Collateral pledged, at par (carrying value $42,167,218) | 47,017,596 | |||||||
Collateral pledged, at par (carrying value $41,087,980) | 44,459,589 | |||||||
Borrowing capacity currently available | 4,456,902 | 3,579,560 |
8 - | Share–Based Compensation |
9 - | Fair Value Measurements |
Fair Value Measurements Using | Fair Value Measurements Using | |||||||||||||||||||||||||||||||
Fair Value | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Fair Value | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | |||||||||||||||||||||||||
(in thousands) | (in thousands) | |||||||||||||||||||||||||||||||
U.S. Treasury securities and obligations of U.S. government corporations and agencies | $ | 82,151 | $ | — | $ | 82,151 | $ | — | $ | 87,055 | $ | — | $ | 87,055 | $ | — | ||||||||||||||||
Obligations of states and political subdivisions | 35,546 | — | 35,546 | — | 37,739 | — | 37,739 | — | ||||||||||||||||||||||||
Corporate securities | 193,023 | — | 193,023 | — | 195,170 | — | 195,170 | — | ||||||||||||||||||||||||
Mortgage-backed securities | 255,820 | — | 255,820 | — | 280,797 | — | 280,797 | — | ||||||||||||||||||||||||
Equity securities | 35,464 | 33,472 | 1,992 | — | 28,883 | 26,891 | 1,992 | — | ||||||||||||||||||||||||
Total investments in the fair value hierarchy | $ | 602,004 | $ | 33,472 | $ | 568,532 | $ | — | $ | 629,644 | $ | 26,891 | $ | 602,753 | $ | — |
Fair Value Measurements Using | Fair Value Measurements Using | |||||||||||||||||||||||||||||||
Fair Value | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Fair Value | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | |||||||||||||||||||||||||
(in thousands) | (in thousands) | |||||||||||||||||||||||||||||||
U.S. Treasury securities and obligations of U.S. government corporations and agencies | $ | 63,522 | $ | — | $ | 63,522 | $ | — | $ | 85,419 | $ | — | $ | 85,419 | $ | — | ||||||||||||||||
Obligations of states and political subdivisions | 40,156 | — | 40,156 | — | 38,116 | — | 38,116 | — | ||||||||||||||||||||||||
Corporate securities | 202,838 | — | 202,838 | — | 196,793 | — | 196,793 | — | ||||||||||||||||||||||||
Mortgage-backed securities | 217,276 | — | 217,276 | — | 269,020 | — | 269,020 | — | ||||||||||||||||||||||||
Equity securities | 35,105 | 32,821 | 2,284 | — | 25,903 | 23,911 | 1,992 | — | ||||||||||||||||||||||||
Totals | $ | 558,897 | $ | 32,821 | $ | 526,076 | $ | — | $ | 615,251 | $ | 23,911 | $ | 591,340 | $ | — |
10 - | Income Taxes |
11 - | Liabilities for Losses and Loss Expenses |
Nine Months Ended September 30, | Three Months Ended March 31, | |||||||||||||||
2023 | 2022 | 2024 | 2023 | |||||||||||||
(in thousands) | (in thousands) | |||||||||||||||
Balance at January 1 | $ | 1,121,046 | $ | 1,077,620 | $ | 1,126,157 | $ | 1,121,046 | ||||||||
Less reinsurance recoverable | (451,184 | ) | (451,261 | ) | (437,014 | ) | (451,184 | ) | ||||||||
Cumulative effect of adoption of updated accounting guidance for credit losses at January 1 | 1,132 | — | — | 1,132 | ||||||||||||
Net balance at January 1 | 670,994 | 626,359 | 689,143 | 670,994 | ||||||||||||
Incurred related to: | ||||||||||||||||
Current year | 461,799 | 445,855 | 159,289 | 146,413 | ||||||||||||
Prior years | (15,775 | ) | (30,609 | ) | (8,393 | ) | (8,307 | ) | ||||||||
Total incurred | 446,024 | 415,246 | 150,896 | 138,106 | ||||||||||||
Paid related to: | ||||||||||||||||
Current year | 230,214 | 209,051 | 47,886 | 41,205 | ||||||||||||
Prior years | 204,842 | 170,129 | 98,197 | 98,820 | ||||||||||||
Total paid | 435,056 | 379,180 | 146,083 | 140,025 | ||||||||||||
Net balance at end of period | 681,962 | 662,425 | 693,956 | 669,075 | ||||||||||||
Plus reinsurance recoverable | 431,392 | 445,701 | 430,496 | 454,460 | ||||||||||||
Balance at end of period | $ | 1,113,354 | $ | 1,108,126 | $ | 1,124,452 | $ | 1,123,535 |
12 - | Allowance for Expected Credit Losses |
At and For the Three Months Ended September 30, 2023 | At and For the Three Months Ended September 30, 2022 | At and For the Three Months Ended March 31, 2024 | At and For the Three Months Ended March 31, 2023 | |||||||||||||||||||||||||||||
Held-to- Maturity, Net of Allowance for Expected Credit Losses | Allowance for Expected Credit Losses | Held-to- Maturity, Net of Allowance for Expected Credit Losses | Allowance for Expected Credit Losses | Held-to- Maturity, Net of Allowance for Expected Credit Losses | Allowance for Expected Credit Losses | Held-to- Maturity, Net of Allowance for Expected Credit Losses | Allowance for Expected Credit Losses | |||||||||||||||||||||||||
(in thousands) | (in thousands) | |||||||||||||||||||||||||||||||
Balance at beginning of period | $ | 685,402 | $ | 1,324 | $ | 700,335 | $ | — | $ | 679,497 | $ | 1,326 | $ | 668,439 | $ | — | ||||||||||||||||
Cumulative effect of adoption of updated accounting guidance for credit losses | — | 1,268 | ||||||||||||||||||||||||||||||
Current period change for expected credit losses | 35 | — | 3 | 87 | ||||||||||||||||||||||||||||
Balance at end of period | $ | 683,912 | $ | 1,359 | $ | 696,392 | $ | — | $ | 683,399 | $ | 1,329 | $ | 693,779 | $ | 1,355 |
At and For the Nine Months Ended September 30, 2023 | At and For the Nine Months Ended September 30, 2022 | |||||||||||||||
Held-to- Maturity, Net of Allowance for Expected Credit Losses | Allowance for Expected Credit Losses | Held-to- Maturity, Net of Allowance for Expected Credit Losses | Allowance for Expected Credit Losses | |||||||||||||
(in thousands) | ||||||||||||||||
Balance at beginning of period | $ | 688,439 | $ | — | $ | 668,105 | $ | — | ||||||||
Cumulative effect of adoption of updated accounting guidance for credit losses at January 1 | 1,268 | — | ||||||||||||||
Current period change for expected credit losses | 91 | — | ||||||||||||||
Balance at end of period | $ | 683,912 | $ | 1,359 | $ | 696,392 | $ | — |
At and For the Three Months Ended September 30, 2023 | At and For the Three Months Ended September 30, 2022 | |||||||||||||||
Reinsurance Receivable, Net of Allowance for Expected Credit Losses | Allowance for Expected Credit Losses | Reinsurance Receivable, Net of Allowance for Expected Credit Losses | Allowance for Expected Credit Losses | |||||||||||||
(in thousands) | ||||||||||||||||
Balance at beginning of period | $ | 460,681 | $ | 1,567 | $ | 445,151 | $ | — | ||||||||
Current period change for expected credit losses | 38 | — | ||||||||||||||
Balance at end of period | $ | 437,889 | $ | 1,605 | $ | 451,847 | $ | — |
At and For the Three Months Ended March 31, 2024 | At and For the Three Months Ended March 31, 2023 | |||||||||||||||
Reinsurance Receivable, Net of Allowance for Expected Credit Losses | Allowance for Expected Credit Losses | Reinsurance Receivable, Net of Allowance for Expected Credit Losses | Allowance for Expected Credit Losses | |||||||||||||
(in thousands) | ||||||||||||||||
Balance at beginning of period | $ | 441,431 | $ | 1,394 | $ | 456,522 | $ | — | ||||||||
Cumulative effect of adoption of updated accounting guidance for credit losses | — | 1,132 | ||||||||||||||
Current period change for expected credit losses | (368 | ) | 335 | |||||||||||||
Balance at end of period | $ | 435,505 | $ | 1,026 | $ | 460,681 | $ | 1,467 |
At and For the Nine Months Ended September 30, 2023 | At and For the Nine Months Ended September 30, 2022 | |||||||||||||||
Reinsurance Receivable, Net of Allowance for Expected Credit Losses | Allowance for Expected Credit Losses | Reinsurance Receivable, Net of Allowance for Expected Credit Losses | Allowance for Expected Credit Losses | |||||||||||||
(in thousands) | ||||||||||||||||
Balance at beginning of period | $ | 456,522 | $ | — | $ | 455,411 | $ | — | ||||||||
Cumulative effect of adoption of updated accounting guidance for credit losses at January 1 | 1,132 | — | ||||||||||||||
Current period change for expected credit losses | 473 | — | ||||||||||||||
Balance at end of period | $ | 437,889 | $ | 1,605 | $ | 451,847 | $ | — |
13 - | Impact of New Accounting Standards |
Item 2. | Management’s Discussion and Analysis of Financial Condition and Results of Operations. |
September 30, 2023 | December 31, 2022 | March 31, 2024 | December 31, 2023 | |||||||||||||
(in thousands) | (in thousands) | |||||||||||||||
Commercial lines: | ||||||||||||||||
Automobile | $ | 168,342 | $ | 174,833 | $ | 172,290 | $ | 168,749 | ||||||||
Workers’ compensation | 123,361 | 120,539 | 124,432 | 122,473 | ||||||||||||
Commercial multi-peril | 213,902 | 203,567 | 218,756 | 217,292 | ||||||||||||
Other | 28,022 | 23,071 | 27,845 | 27,167 | ||||||||||||
Total commercial lines | 533,627 | 522,010 | 543,323 | 535,681 | ||||||||||||
Personal lines: | ||||||||||||||||
Automobile | 108,285 | 108,715 | 110,287 | 112,509 | ||||||||||||
Homeowners | 27,467 | 28,481 | 28,075 | 28,001 | ||||||||||||
Other | 12,583 | 10,656 | 12,271 | 12,952 | ||||||||||||
Total personal lines | 148,335 | 147,852 | 150,633 | 153,462 | ||||||||||||
Total commercial and personal lines | 681,962 | 669,862 | 693,956 | 689,143 | ||||||||||||
Plus reinsurance recoverable | 431,392 | 451,184 | 430,496 | 437,014 | ||||||||||||
Total liabilities for losses and loss expenses | $ | 1,113,354 | $ | 1,121,046 | $ | 1,124,452 | $ | 1,126,157 |
Percentage Change in Loss and Loss Expense Reserves Net of Reinsurance | Percentage Change in Loss and Loss Expense Reserves Net of Reinsurance | Adjusted Loss and Loss Expense Reserves Net of Reinsurance at September 30, 2023 | Percentage Change in Stockholders’ Equity at September 30, 2023(1) | Adjusted Loss and Loss Expense Reserves Net of Reinsurance at December 31, 2022 | Percentage Change in Stockholders’ Equity at December 31, 2022(1) | Percentage Change in Loss and Loss Expense Reserves Net of Reinsurance | Adjusted Loss and Loss Expense Reserves Net of Reinsurance at March 31, 2024 | Percentage Change in Stockholders’ Equity at March 31, 2024(1) | Adjusted Loss and Loss Expense Reserves Net of Reinsurance at December 31, 2023 | Percentage Change in Stockholders’ Equity at December 31, 2023(1) | ||||||||||||||||||||||||||
(dollars in thousands) | (dollars in thousands) | (dollars in thousands) | ||||||||||||||||||||||||||||||||||
(10.0 | )% | $ | 613,766 | 11.4 | % | $ | 602,876 | 10.9 | % | (10.0)% | $ | 624,560 | 11.3% | $ | 620,229 | 11.3% | ||||||||||||||||||||
(7.5 | ) | 630,815 | 8.5 | 619,622 | 8.2 | (7.5) | 641,909 | 8.5 | 637,457 | 8.5 | ||||||||||||||||||||||||||
(5.0 | ) | 647,864 | 5.7 | 636,369 | 5.5 | (5.0) | 659,258 | 5.7 | 654,686 | 5.7 | ||||||||||||||||||||||||||
(2.5 | ) | 664,913 | 2.8 | 653,115 | 2.7 | (2.5) | 676,607 | 2.8 | 671,914 | 2.8 | ||||||||||||||||||||||||||
Base | Base | 681,962 | — | 669,862 | — | Base | 693,956 | — | 689,143 | — | ||||||||||||||||||||||||||
2.5 | 699,011 | (2.8 | ) | 686,609 | (2.7 | ) | 2.5 | 711,305 | (2.8) | 706,372 | (2.8) | |||||||||||||||||||||||||
5.0 | 716,060 | (5.7 | ) | 703,355 | (5.5 | ) | 5.0 | 728,654 | (5.7) | 723,600 | (5.7) | |||||||||||||||||||||||||
7.5 | 733,109 | (8.5 | ) | 720,102 | (8.2 | ) | 7.5 | 746,003 | (8.5) | 740,829 | (8.5) | |||||||||||||||||||||||||
10.0 | 750,158 | (11.4 | ) | 736,848 | (10.9 | ) | 10.0 | 763,352 | (11.3) | 758,057 | (11.3) |
(1) | Net of income tax effect. |
Three Months Ended September 30, | Nine Months Ended September 30, | Three Months Ended March 31, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | 2024 | 2023 | |||||||||||||||||||
(in thousands) | (in thousands) | |||||||||||||||||||||||
Net premiums earned | $ | 224,393 | $ | 206,122 | $ | 655,886 | $ | 609,499 | $ | 227,749 | $ | 215,233 | ||||||||||||
Change in net unearned premiums | (5,207 | ) | 107 | 27,117 | 33,618 | 23,693 | 22,071 | |||||||||||||||||
Net premiums written | $ | 219,186 | $ | 206,229 | $ | 683,003 | $ | 643,117 | $ | 251,442 | $ | 237,304 |
Three Months Ended March 31, | ||||||||
2024 | 2023 | |||||||
GAAP Combined Ratios (Total Lines) | ||||||||
Loss ratio - core losses | 58.7 | % | 56.5 | % | ||||
Loss ratio - weather-related losses | 4.7 | 6.5 | ||||||
Loss ratio - large fire losses | 6.6 | 5.1 | ||||||
Loss ratio - net prior-year reserve development | (3.7 | ) | (3.9 | ) | ||||
Loss ratio | 66.3 | 64.2 | ||||||
Expense ratio | 35.7 | 36.4 | ||||||
Dividend ratio | 0.4 | 0.6 | ||||||
Combined ratio | 102.4 | % | 101.2 | % | ||||
Statutory Combined Ratios | ||||||||
Commercial lines: | ||||||||
Automobile | 99.6 | % | 96.2 | % | ||||
Workers’ compensation | 111.2 | 86.2 | ||||||
Commercial multi-peril | 102.7 | 114.8 | ||||||
Other | 82.2 | 79.7 | ||||||
Total commercial lines | 101.6 | 99.8 | ||||||
Personal lines: | ||||||||
Automobile | 99.8 | 103.9 | ||||||
Homeowners | 102.9 | 100.6 | ||||||
Other | 85.2 | 49.3 | ||||||
Total personal lines | 100.3 | 98.9 | ||||||
Total commercial and personal lines | 101.2 | 99.6 |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||||
GAAP Combined Ratios (Total Lines) | ||||||||||||||||
Loss ratio - core losses | 56.7 | % | 60.8 | % | 56.0 | % | 58.8 | % | ||||||||
Loss ratio - weather-related losses | 11.5 | 9.4 | 9.1 | 7.7 | ||||||||||||
Loss ratio - large fire losses | 4.9 | 8.4 | 5.3 | 6.6 | ||||||||||||
Loss ratio - net prior-year reserve development | (3.3 | ) | (3.0 | ) | (2.4 | ) | (5.0 | ) | ||||||||
Loss ratio | 69.8 | 75.6 | 68.0 | 68.1 | ||||||||||||
Expense ratio | 34.1 | 33.4 | 34.9 | 34.7 | ||||||||||||
Dividend ratio | 0.6 | 0.6 | 0.6 | 0.7 | ||||||||||||
Combined ratio | 104.5 | % | 109.6 | % | 103.5 | % | 103.5 | % | ||||||||
Statutory Combined Ratios | ||||||||||||||||
Commercial lines: | ||||||||||||||||
Automobile | 86.5 | % | 107.0 | % | 94.8 | % | 98.7 | % | ||||||||
Workers’ compensation | 97.7 | 105.9 | 93.1 | 93.9 | ||||||||||||
Commercial multi-peril | 114.8 | 125.0 | 113.8 | 114.9 | ||||||||||||
Other | 76.2 | 85.9 | 82.7 | 81.9 | ||||||||||||
Total commercial lines | 97.5 | 112.1 | 100.2 | 102.4 | ||||||||||||
Personal lines: | ||||||||||||||||
Automobile | 109.8 | 103.1 | 106.1 | 100.2 | ||||||||||||
Homeowners | 128.9 | 125.0 | 111.2 | 118.8 | ||||||||||||
Other | 46.4 | 54.6 | 81.3 | 49.9 | ||||||||||||
Total personal lines | 119.4 | 107.8 | 107.2 | 103.4 | ||||||||||||
Total commercial and personal lines | 105.2 | 110.1 | 102.9 | 102.8 |
Item 3. | Quantitative and Qualitative Disclosures About Market Risk. |
Item 4. | Controls and Procedures. |
Item 1. | Legal Proceedings. |
Item 1A. | Risk Factors. |
Item 2. | Unregistered Sales of Equity Securities and Use of Proceeds. |
Purchased | ||||||||
Item 3. | Defaults upon Senior Securities. |
Item 4. | Mine Safety Disclosure. |
Item 6. | Exhibits. |
Exhibit No. | Description | Reference | ||
Management Contracts and Compensatory Plans or Arrangements | ||||
Donegal Group Inc. 2024 Equity Incentive Plan for Employees. | (a) | |||
Donegal Group Inc. 2024 Equity Incentive Plan for Directors. | (a) | |||
Other Exhibits | ||||
Certification of Chief Executive | Filed herewith | |||
Certification of Chief Financial | Filed herewith | |||
Statement of Chief Executive Officer pursuant to 18 U.S.C. Section 1350 of Title 18 of the United States | Filed herewith | |||
Statement of Chief Financial Officer pursuant to 18 U.S.C. Section 1350 of Title 18 of the United States | Filed herewith | |||
Exhibit 101.INS | XBRL Instance Document | Filed herewith | ||
Exhibit 101.SCH | XBRL Taxonomy Extension Schema Document | Filed herewith | ||
Exhibit 101.PRE | XBRL Taxonomy Presentation Linkbase Document | Filed herewith | ||
Exhibit 101.CAL | XBRL Taxonomy Calculation Linkbase Document | Filed herewith | ||
Exhibit 101.LAB | XBRL Taxonomy Label Linkbase Document | Filed herewith | ||
Exhibit 101.DEF | XBRL Taxonomy Extension Definition Linkbase Document | Filed herewith | ||
Exhibit 104 | Cover Page Interactive Data File (formatted as inline XBRL and contained in Exhibit 101) | Filed herewith |
(a) | We incorporate such exhibit by reference to the like-described exhibit in Registrant’s Form S-8 Registration Statement filed on April 25, 2024. |
DONEGAL GROUP INC. | ||
By: | /s/ Kevin G. Burke | |
Kevin G. Burke, President and Chief Executive Officer |
May 3, | By: | /s/ Jeffrey D. Miller |
Jeffrey D. Miller, Executive Vice President | ||
and Chief Financial Officer |