Donegal (DGICA) 10-Q 5 May 22 2022 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2022	May 02, 2022
Entity Listings [Line Items]
Document Type	10-Q
Amendment Flag	false
Document Quarterly Report	true
Document Period End Date	Mar. 31, 2022
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2022
Document Fiscal Period Focus	Q1
Document Transition Report	false
Entity File Number	0-15341
Entity Registrant Name	Donegal Group Inc.
Entity Central Index Key	0000800457
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	23-2424711
Entity Address, Address Line One	1195 River Road
Entity Address, Address Line Two	P.O. Box 302
Entity Address, City or Town	Marietta
Entity Address, State or Province	PA
Entity Address, Postal Zip Code	17547
City Area Code	717
Local Phone Number	426-1931
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Common Class A [Member]
Entity Listings [Line Items]
Title of 12(b) Security	Class A Common Stock, $.01 par value
Trading Symbol	DGICA
Security Exchange Name	NASDAQ
Entity Common Stock, Shares Outstanding		25,842,665
Common Class B [Member]
Entity Listings [Line Items]
Title of 12(b) Security	Class B Common Stock, $.01 par value
Trading Symbol	DGICB
Security Exchange Name	NASDAQ
Entity Common Stock, Shares Outstanding		5,576,775

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($)	Mar. 31, 2022	Dec. 31, 2021
Fixed maturities
Held to maturity, at amortized cost	$ 690,691,302	$ 668,104,568
Available for sale, at fair value	516,894,776	532,629,015
Equity securities, at fair value	54,046,368	63,419,973
Short-term investments, at cost, which approximates fair value	9,194,174	12,692,341
Total investments	1,270,826,620	1,276,845,897
Cash	56,074,886	57,709,375
Accrued investment income	9,448,842	8,214,971
Premiums receivable	182,475,495	168,862,580
Reinsurance receivable	448,295,785	455,411,009
Deferred policy acquisition costs	71,608,211	68,028,373
Deferred tax asset, net	12,493,161	6,685,619
Prepaid reinsurance premiums	174,523,309	176,935,842
Property and equipment, net	2,885,074	2,956,930
Accounts receivable - securities	1,936	2,252
Federal income taxes recoverable	1,863,053	5,290,938
Receivable from Michigan Catastrophic Claims Association	0	18,112,800
Due from affiliate	2,209,909	1,922,717
Goodwill	5,625,354	5,625,354
Other intangible assets	958,010	958,010
Other	1,472,250	1,612,732
Total assets	2,240,761,895	2,255,175,399
Liabilities
Losses and loss expenses	1,071,587,385	1,077,620,301
Unearned premiums	589,739,092	572,958,422
Accrued expenses	4,900,102	4,028,659
Reinsurance balances payable	4,069,560	3,946,105
Borrowings under lines of credit	35,000,000	35,000,000
Cash dividends declared to stockholders	0	4,915,268
Cash refunds due to Michigan policyholders	0	18,112,800
Accounts payable - securities	3,247,575	0
Other	7,952,320	7,557,757
Total liabilities	1,716,496,034	1,724,139,312
Stockholders' Equity
Preferred stock, $.01 par value, authorized 2,000,000 shares; none issued	0	0
Additional paid-in capital	305,668,006	304,889,481
Accumulated other comprehensive (loss) income	(17,306,674)	3,283,551
Retained earnings	276,786,488	263,745,358
Treasury stock, at cost	(41,226,357)	(41,226,357)
Total stockholders' equity	524,265,861	531,036,087
Total liabilities and stockholders' equity	2,240,761,895	2,255,175,399
Class A Common Stock [Member]
Stockholders' Equity
Common stock	287,906	287,562
Class B Common Stock [Member]
Stockholders' Equity
Common stock	$ 56,492	$ 56,492

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - $ / shares	Mar. 31, 2022	Dec. 31, 2021
Stockholders' Equity
Preferred stock, par value (in dollars per share)	$ 0.01	$ 0.01
Preferred stock, shares authorized (in shares)	2,000,000	2,000,000
Preferred stock, shares issued (in shares)	0	0
Class A Common Stock [Member]
Stockholders' Equity
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized (in shares)	50,000,000	50,000,000
Common stock, shares issued (in shares)	28,790,510	28,756,203
Common stock, shares outstanding (in shares)	25,787,922	25,753,615
Class B Common Stock [Member]
Stockholders' Equity
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized (in shares)	10,000,000	10,000,000
Common stock, shares issued (in shares)	5,649,240	5,649,240
Common stock, shares outstanding (in shares)	5,576,775	5,576,775

Consolidated Statements of Inco

Consolidated Statements of Income - USD ($)	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Revenues:
Net premiums earned	$ 199,248,624	$ 187,251,600
Investment income, net of investment expenses	7,858,881	7,510,578
Net investment (losses) gains (includes $165,354 and ($29,186) accumulated other comprehensive income reclassifications)	(76,247)	2,469,054
Lease income	104,628	107,767
Installment payment fees	490,831	630,899
Total revenues	207,626,717	197,969,898
Expenses:
Net losses and loss expenses	117,883,002	119,219,747
Amortization of deferred policy acquisition costs	34,182,000	30,179,000
Other underwriting expenses	37,106,304	33,782,050
Policyholder dividends	1,648,751	1,294,021
Interest	153,033	312,326
Other expenses, net	427,388	432,069
Total expenses	191,400,478	185,219,213
Income before income tax expense	16,226,239	12,750,685
Income tax expense (includes $34,724 and ($6,129) income tax expense (benefit) from reclassification items)	3,081,210	2,220,837
Net income	$ 13,145,029	$ 10,529,848
Class A Common Stock [Member]
Earnings per common share:
Basic (in dollars per share)	$ 0.43	$ 0.35
Diluted (in dollars per share)	0.43	0.35
Class B Common Stock [Member]
Earnings per common share:
Basic (in dollars per share)	0.39	0.32
Diluted (in dollars per share)	$ 0.39	$ 0.32

Consolidated Statements of In_2

Consolidated Statements of Income (Parenthetical) - USD ($)	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Revenues:
Net investment (losses) gains	$ (76,247)	$ 2,469,054
Income tax expense (benefit)	3,081,210	2,220,837
Reclassification out of Accumulated Other Comprehensive Income [Member]
Revenues:
Net investment (losses) gains	165,354	(29,186)
Income tax expense (benefit)	$ 34,724	$ (6,129)

Consolidated Statements of Comp

Consolidated Statements of Comprehensive (Loss) Income - USD ($)	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Consolidated Statements of Comprehensive (Loss) Income [Abstract]
Net income	$ 13,145,029	$ 10,529,848
Unrealized loss on securities:
Unrealized holding loss during the period, net of income tax benefit of ($5,438,628) and ($1,125,625)	(20,459,595)	(4,230,172)
Reclassification adjustment for (gains) losses included in net income, net of income tax expense (benefit) of $34,724 and ($6,129)	(130,630)	23,057
Other comprehensive loss	(20,590,225)	(4,207,115)
Comprehensive (loss) income	$ (7,445,196)	$ 6,322,733

Consolidated Statements of Co_2

Consolidated Statements of Comprehensive (Loss) Income (Parenthetical) - USD ($)	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Unrealized loss on securities:
Income tax benefit on unrealized holding loss arising during the period	$ (5,438,628)	$ (1,125,625)
Income tax expense (benefit) on reclassification adjustment for (gains) losses	$ 34,724	$ (6,129)

Consolidated Statement of Stock

Consolidated Statement of Stockholders' Equity - USD ($)	Common Stock [Member]Class A Common Stock [Member]	Common Stock [Member]Class B Common Stock [Member]	Additional Paid-In Capital [Member]	Accumulated Other Comprehensive Income (Loss) [Member]	Retained Earnings [Member]	Treasury Stock [Member]	Total
Beginning balance at Dec. 31, 2020	$ 276,518	$ 56,492	$ 289,149,567	$ 11,130,612	$ 258,387,288	$ (41,226,357)	$ 517,774,120
Beginning balance (in shares) at Dec. 31, 2020	27,651,774	5,649,240
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock (stock compensation plans)	$ 334	$ 0	419,454	0	0	0	419,788
Issuance of common stock (stock compensation plans) (in shares)	33,336	0
Share-based compensation	$ 3,461	$ 0	4,719,388	0	0	0	4,722,849
Share-based compensation (in shares)	346,124	0
Net income	$ 0	$ 0	0	0	10,529,848	0	10,529,848
Cash dividends declared	0	0	0	0	(5,000)	0	(5,000)
Grant of stock options	0	0	109,184	0	(109,184)	0	0
Other comprehensive loss	0	0	0	(4,207,115)	0	0	(4,207,115)
Ending balance at Mar. 31, 2021	$ 280,313	$ 56,492	294,397,593	6,923,497	268,802,952	(41,226,357)	529,234,490
Ending balance (in shares) at Mar. 31, 2021	28,031,234	5,649,240
Beginning balance at Dec. 31, 2021	$ 287,562	$ 56,492	304,889,481	3,283,551	263,745,358	(41,226,357)	531,036,087
Beginning balance (in shares) at Dec. 31, 2021	28,756,203	5,649,240
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock (stock compensation plans)	$ 335	$ 0	423,665	0	0	0	424,000
Issuance of common stock (stock compensation plans) (in shares)	33,407	0
Share-based compensation	$ 9	$ 0	256,451	0	0	0	256,460
Share-based compensation (in shares)	900	0
Net income	$ 0	$ 0	0	0	13,145,029	0	13,145,029
Cash dividends declared	0	0	0	0	(5,490)	0	(5,490)
Grant of stock options	0	0	98,409	0	(98,409)	0	0
Other comprehensive loss	0	0	0	(20,590,225)	0	0	(20,590,225)
Ending balance at Mar. 31, 2022	$ 287,906	$ 56,492	$ 305,668,006	$ (17,306,674)	$ 276,786,488	$ (41,226,357)	$ 524,265,861
Ending balance (in shares) at Mar. 31, 2022	28,790,510	5,649,240

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($)	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Cash Flows from Operating Activities:
Net income	$ 13,145,029	$ 10,529,848
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation, amortization and other non-cash items	1,343,128	1,654,449
Net investment losses (gains)	76,247	(2,469,054)
Changes in assets and liabilities:
Losses and loss expenses	(6,032,916)	34,971,439
Unearned premiums	16,780,670	40,291,574
Premiums receivable	(13,612,915)	(12,012,018)
Deferred acquisition costs	(3,579,838)	(5,373,755)
Deferred income taxes	(334,190)	84,596
Reinsurance receivable	7,115,224	(17,430,975)
Prepaid reinsurance premiums	2,412,533	(11,681,526)
Accrued investment income	(1,233,871)	(1,009,425)
Due from affiliate	(287,192)	(6,372,406)
Reinsurance balances payable	123,455	581,043
Current income taxes	3,427,885	2,148,756
Accrued expenses	871,443	(5,552,527)
Other, net	535,049	1,516,906
Net adjustments	7,604,712	19,347,077
Net cash provided by operating activities	20,749,741	29,876,925
Cash Flows from Investing Activities:
Purchases of fixed maturities, held to maturity	(28,656,113)	(33,904,795)
Purchases of fixed maturities, available for sale	(34,281,491)	(16,747,351)
Purchases of equity securities, available for sale	(5,276,815)	(13,885,992)
Maturity of fixed maturities:
Held to maturity	9,203,976	7,317,449
Available for sale	23,296,757	69,586,285
Sales of equity securities, available for sale	14,408,819	6,300,459
Net sales of property and equipment	28,288	684,629
Net sales (purchases) of short-term investments	3,498,167	(198,239)
Net cash (used in) provided by investing activities	(17,778,412)	19,152,445
Cash Flows from Financing Activities:
Cash dividends paid	(4,920,758)	(4,441,301)
Issuance of common stock	314,940	4,709,242
Payments on lines of credit	0	(50,000,000)
Net cash used in financing activities	(4,605,818)	(49,732,059)
Net decrease in cash	(1,634,489)	(702,689)
Cash at beginning of period	57,709,375	103,094,236
Cash at end of period	56,074,886	102,391,547
Cash paid during period - Interest	161,506	257,821
Net cash paid during period - Taxes	$ 0	$ 0

Organization

Organization	3 Months Ended
	Mar. 31, 2022
Organization [Abstract]
Organization	1 - Organization Donegal Mutual Insurance Company (“Donegal Mutual”) organized us as an insurance holding company on August 26, 1986. Our insurance subsidiaries, Atlantic States Insurance Company (“Atlantic States”), Southern Insurance Company of Virginia (“Southern”), the Peninsula Insurance Group (“Peninsula”), which consists of Peninsula Indemnity Company and The Peninsula Insurance Company and Michigan Insurance Company (“MICO”), and our affiliates write personal and commercial lines of property and casualty coverages exclusively through a network of independent insurance agents in certain Mid-Atlantic, Midwestern, New England, Southern and Southwestern states. At March 31, 2022, we had three segments: our investment function, our commercial lines of insurance and our personal lines of insurance. The commercial lines products of our insurance subsidiaries consist primarily of commercial automobile, commercial multi-peril and workers’ compensation policies. The personal lines products of our insurance subsidiaries consist primarily of homeowners and private passenger automobile policies. At March 31, 2022, Donegal Mutual held approximately 41% of our outstanding Class A common stock and approximately 84% of our outstanding Class B common stock. This ownership provides Donegal Mutual with approximately 70% of the total voting power of our common stock. Our insurance subsidiaries and Donegal Mutual have interrelated operations due to a pooling agreement and other intercompany agreements and transactions. While each company maintains its separate corporate existence, our insurance subsidiaries and Donegal Mutual conduct business together as the Donegal Insurance Group. As such, Donegal Mutual and our insurance subsidiaries share the same business philosophy, the same management, the same employees and the same facilities and offer the same types of insurance products. Atlantic States, our largest subsidiary, participates in a proportional reinsurance agreement, or pooling agreement, with Donegal Mutual. Under the pooling agreement, Donegal Mutual and Atlantic States contribute substantially all of their respective premiums, losses and loss expenses to the underwriting pool, and the underwriting pool, acting through Donegal Mutual, then allocates 80% of the pooled business to Atlantic States. Thus, Donegal Mutual and Atlantic States share the underwriting results of the pooled business in proportion to their respective participation in the underwriting pool. In addition, Donegal Mutual has a 100% quota-share reinsurance agreement with Southern Mutual Insurance Company, or Southern Mutual. Donegal Mutual places its assumed business from Southern Mutual into the underwriting pool. Donegal Mutual completed the merger of Mountain States Mutual Casualty Company, or Mountain States, with and into Donegal Mutual effective May 25, 2017. Donegal Mutual was the surviving company in the merger, and Mountain States’ insurance subsidiaries, Mountain States Indemnity Company and Mountain States Commercial Insurance Company (collectively, the “Mountain States insurance subsidiaries”), became insurance subsidiaries of Donegal Mutual upon completion of the merger. Upon completion of the merger, Donegal Mutual assumed all of the policy obligations of Mountain States and began to market its products together with the Mountain States insurance subsidiaries as the Mountain States Insurance Group in four Southwestern states. Donegal Mutual also entered into a 100% quota-share reinsurance agreement with the Mountain States insurance subsidiaries on the merger date. Beginning with policies effective in 2021, Donegal Mutual began to place the business of the Mountain States Insurance Group into the underwriting pool. The same executive management and underwriting personnel administer products, classes of business underwritten, pricing practices and underwriting standards of Donegal Mutual and our insurance subsidiaries. In addition, as the Donegal Insurance Group, Donegal Mutual and our insurance subsidiaries share a combined business plan to achieve market penetration and underwriting profitability objectives. The products our insurance subsidiaries and Donegal Mutual market are generally complementary, thereby allowing the Donegal Insurance Group to offer a broader range of products to a given market and to expand the Donegal Insurance Group’s ability to service an entire personal lines or commercial lines account. Distinctions within the products of Donegal Mutual and our insurance subsidiaries generally relate to specific risk profiles targeted within similar classes of business, such as preferred tier versus standard tier products, but we do not allocate all of the standard risk gradients to one company. Therefore, the underwriting profitability of the business the individual companies write directly will vary. However, the underwriting pool homogenizes the risk characteristics of all business that Donegal Mutual and Atlantic States write directly. The business Atlantic States derives from the underwriting pool represents a significant percentage of our total consolidated revenues.

Basis of Presentation

Basis of Presentation	3 Months Ended
	Mar. 31, 2022
Basis of Presentation [Abstract]
Basis of Presentation	2 - Basis of Presentation Our financial information for the interim periods included in this Form 10-Q Report is unaudited; however, our financial information we include in this Form 10-Q Report reflects all adjustments, consisting only of normal recurring adjustments that, in the opinion of our management, are necessary for a fair presentation of our financial position, results of operations and cash flows for those interim periods. Our results of operations for the three months ended March 31, 2022 are not necessarily indicative of the results of operations we expect for the year ending December 31, 2022. We recommend you read the interim financial statements we include in this Form 10-Q Report in conjunction with the financial statements and the notes to our financial statements contained in our Annual Report on Form 10-K for the year ended December 31, 2021.

Earnings Per Share

Earnings Per Share	3 Months Ended
	Mar. 31, 2022
Earnings Per Share [Abstract]
Earnings Per Share	3 - Earnings Per Share We have two classes of common stock, which we refer to as our Class A common stock and our Class B common stock. Our certificate of incorporation provides that whenever our board of directors declares a dividend on our Class B common stock, our board of directors shall simultaneously declare a dividend on our Class A common stock that is payable to the holders of our Class A common stock at the same time and as of the same record date at a rate that is at least 10% greater than the rate at which our board of directors declared a dividend on our Class B common stock. Accordingly, we use the two-class method to compute our earnings per common share. The two-class method is an earnings allocation formula that determines earnings per share separately for each class of common stock based on dividends we have declared and an allocation of our remaining undistributed earnings using a participation percentage that reflects the dividend rights of each class. The table below presents for the periods indicated a reconciliation of the numerators and denominators we used to compute basic and diluted net income per share for our Class A common stock and our Class B common stock: Three Months Ended March 31, 2022 2021 Class A Class B Class A Class B (in thousands, except per share data) Basic earnings per share: Numerator: Allocation of net income $ 10,986 $ 2,159 $ 8,742 $ 1,788 Denominator: Weighted-average shares outstanding 25,787 5,577 24,768 5,577 Basic earnings per share $ 0.43 $ 0.39 $ 0.35 $ 0.32 Diluted earnings per share: Numerator: Allocation of net income $ 10,986 $ 2,159 $ 8,742 $ 1,788 Denominator: Number of shares used in basic computation 25,787 5,577 24,768 5,577 Weighted-average shares effect of dilutive securities: Director and employee stock options 22 — 128 — Number of shares used in diluted computation 25,809 5,577 24,896 5,577 Diluted earnings per share $ 0.43 $ 0.39 $ 0.35 $ 0.32 We did not include outstanding options to purchase the following number of shares of Class A common stock in our computation of diluted earnings per share because the exercise price of the options exceeded the average market price of our Class A common stock during the applicable periods. Three Months Ended March 31, 2022 2021 Number of options to purchase Class A shares excluded 5,434,934 6,051,359

Reinsurance

Reinsurance	3 Months Ended
	Mar. 31, 2022
Reinsurance [Abstract]
Reinsurance	4 - Reinsurance Atlantic States and Donegal Mutual have participated in a pooling agreement since 1986 under which they pool their direct premiums written, and Atlantic States and Donegal Mutual then share the underwriting results of the pool in accordance with the terms of the pooling agreement. Atlantic States has an 80% share of the results of the pool, and Donegal Mutual has a 20% share of the results of the pool. Donegal Mutual began placing the business of the Mountain States Insurance Group into the pool beginning with policies effective in 2021. Our insurance subsidiaries and Donegal Mutual participate in a consolidated third-party reinsurance program. The coverage and parameters of the program are common to all of our insurance subsidiaries and Donegal Mutual. The program utilizes several different reinsurers. They require their reinsurers to maintain an A.M. Best rating of A- (Excellent) or better or, with respect to foreign reinsurers, have a financial condition that, in the opinion of our management, is equivalent to a company with at least an A- rating from A.M. Best. The following information describes the external reinsurance Donegal Mutual and our insurance subsidiaries have in place for 2022: • excess of loss reinsurance, under which Donegal Mutual and our insurance subsidiaries recover losses over a set retention of $2.0 million; and • catastrophe reinsurance, under which Donegal Mutual and our insurance subsidiaries recover 100% of an accumulation of many losses resulting from a single event, including natural disasters, over a set retention of $15.0 million up to aggregate losses of $185.0 million per occurrence. For property insurance, our insurance subsidiaries have excess of loss reinsurance that provide for coverage of $38.0 million per loss over a set retention of $2.0 million. For liability insurance, our insurance subsidiaries have excess of loss reinsurance that provide for coverage of $73.0 million per occurrence over a set retention of $2.0 million. For workers’ compensation insurance, our insurance subsidiaries have excess of loss reinsurance that provide for coverage of $18.0 million on any one life over a set retention of $2.0 million. In addition to the pooling agreement and third-party reinsurance, our insurance subsidiaries have a catastrophe reinsurance agreement with Donegal Mutual, under which each of our insurance subsidiaries recovers 100% of an accumulation of multiple losses resulting from a single event, including natural disasters, over a set retention of $2.0 million up to aggregate losses of $13.0 million per occurrence. The agreement also provides additional coverage for an accumulation of losses from a single event including a combination of our insurance subsidiaries over a combined retention of $5.0 million. Our insurance subsidiaries and Donegal Mutual also purchase facultative reinsurance to cover certain exposures, including property exposures that exceeded the limits provided by their respective treaty reinsurance. In order to write automobile insurance in the state of Michigan, MICO is required to be a member of the Michigan Catastrophic Claims Association (“MCCA”). The MCCA provides reinsurance to MICO for personal automobile and commercial automobile personal injury claims in the state of Michigan over a set retention. In November 2021, the MCCA approved the return of approximately $3.0 billion of its estimated surplus to its member insurance companies and provided guidance to those companies with respect to the payment of refunds to Michigan policyholders in the first half of 2022. We recorded a receivable from the MCCA and a corresponding payable for cash refunds due to Michigan policyholders in the amount of $18.1 million on our balance sheet as of December 31, 2021. In March 2022, we received such payment from the MCCA and subsequently paid the refunds due to our Michigan policyholders.

Investments

Investments	3 Months Ended
	Mar. 31, 2022
Investments [Abstract]
Investments	5 - Investments The amortized cost and estimated fair values of our fixed maturities at March 31, 2022 were as follows: 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 $ 89,848 $ 310 $ 4,139 $ 86,019 Obligations of states and political subdivisions 395,793 5,884 21,439 380,238 Corporate securities 190,105 2,594 5,844 186,855 Mortgage-backed securities 14,945 6 156 14,795 Totals $ 690,691 $ 8,794 $ 31,578 $ 667,907 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 $ 37,003 $ — $ 2,258 $ 34,745 Obligations of states and political subdivisions 57,822 456 1,973 56,305 Corporate securities 219,350 1,307 5,484 215,173 Mortgage-backed securities 219,597 134 9,059 210,672 Totals $ 533,772 $ 1,897 $ 18,774 $ 516,895 At March 31, 2022, our holdings of obligations of states and political subdivisions included general obligation bonds with an aggregate fair value of $283.6 million and an amortized cost of $296.1 million. Our holdings at March 31, 2022 also included special revenue bonds with an aggregate fair value of $152.9 million and an amortized cost of $157.5 million. With respect to both categories of those bonds at March 31, 2022, we held no securities of any issuer that comprised more than 10% of our holdings of either bond category. Education bonds and water and sewer utility bonds represented 48% and 35%, respectively, of our total investments in special revenue bonds based on the carrying values of these investments at March 31, 2022. Many of the issuers of the special revenue bonds we held at March 31, 2022 have the authority to impose ad valorem taxes. In that respect, many of the special revenue bonds we held at March 31, 2022 are similar to general obligation bonds. The amortized cost and estimated fair values of our fixed maturities at December 31, 2021 were as follows: 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 $ 89,268 $ 1,923 $ 1,015 $ 90,176 Obligations of states and political subdivisions 371,436 17,857 948 388,345 Corporate securities 191,147 11,576 773 201,950 Mortgage-backed securities 16,254 676 — 16,930 Totals $ 668,105 $ 32,032 $ 2,736 $ 697,401 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 $ 32,501 $ 144 $ 461 $ 32,184 Obligations of states and political subdivisions 55,459 2,002 83 57,378 Corporate securities 215,669 6,817 874 221,612 Mortgage-backed securities 219,664 3,001 1,210 221,455 Totals $ 523,293 $ 11,964 $ 2,628 $ 532,629 At December 31, 2021, our holdings of obligations of states and political subdivisions included general obligation bonds with an aggregate fair value of $284.9 million and an amortized cost of $272.7 million. Our holdings also included special revenue bonds with an aggregate fair value of $160.8 million and an amortized cost of $154.2 million. With respect to both categories of bonds, we held no securities of any issuer that comprised more than 10% of that category at December 31, 2021. Education bonds and water and sewer utility bonds represented 48% and 35%, respectively, of our total investments in special revenue bonds based on their carrying values at December 31, 2021. Many of the issuers of the special revenue bonds we held at December 31, 2021 have the authority to impose ad valorem taxes. In that respect, many of the special revenue bonds we held are similar to general obligation bonds. We have segregated within accumulated other comprehensive (loss) income the net unrealized losses of $15.1 million arising prior to the November 30, 2013 reclassification date for fixed maturities reclassified from available for sale to held to maturity. We are amortizing this balance over the remaining life of the related securities as an adjustment of yield in a manner consistent with the accretion of discount on the same fixed maturities. We recorded amortization of $ 149,475 and $371,265 in other comprehensive loss during the three months ended March 31, 2022 and 2021, respectively. At March 31, 2022 and December 31, 2021, net unrealized losses of $5.0 million and $5.2 million, respectively, remained within accumulated other comprehensive (loss) income. We show below the amortized cost and estimated fair value of our fixed maturities at March 31, 2022 by contractual maturity. Expected maturities may differ from contractual maturities because issuers of the securities may have the right to call or prepay obligations with or without call or prepayment penalties . Amortized Cost Estimated Fair Value (in thousands) Held to maturity Due in one year or less $ 60,854 $ 62,484 Due after one year through five years 84,257 85,415 Due after five years through ten years 223,309 216,052 Due after ten years 307,326 289,161 Mortgage-backed securities 14,945 14,795 Total held to maturity $ 690,691 $ 667,907 Available for sale Due in one year or less $ 29,090 $ 29,320 Due after one year through five years 148,499 145,592 Due after five years through ten years 105,650 101,917 Due after ten years 30,936 29,394 Mortgage-backed securities 219,597 210,672 Total available for sale $ 533,772 $ 516,895 The cost and estimated fair values of our equity securities at March 31, 2022 were as follows: Cost Gross Gains Gross Losses Estimated Fair Value (in thousands) Equity securities $ 35,307 $ 18,795 $ 56 $ 54,046 The cost and estimated fair values of our equity securities at December 31, 2021 were as follows: Cost Gross Gains Gross Losses Estimated Fair Value (in thousands) Equity securities $ 43,263 $ 20,413 $ 256 $ 63,420 We present below gross gains and losses from investments and the change in the difference between fair value and cost of investments: Three Months Ended March 31, 2022 2021 (in thousands) Gross realized gains: Fixed maturities $ 234 $ 193 Equity securities 843 73 Real estate 477 — 1,554 266 Gross realized losses: Fixed maturities 69 222 Equity securities 824 — 893 222 Net realized gains 661 44 Gross unrealized gains on equity securities 716 3,204 Gross unrealized losses on equity securities (1,453 ) (779 ) Net investment (losses) gains $ (76 ) $ 2,469 We held fixed maturities with unrealized losses representing declines that we considered temporary at March 31, 2022 as follows: Less Than 12 Months More Than 12 Months Fair Value Unrealized Losses Fair Value Unrealized Losses (in thousands) U.S. Treasury securities and obligations of U.S. government corporations and agencies $ 52,488 $ 2,816 $ 31,710 $ 3,581 Obligations of states and political subdivisions 231,429 19,976 28,289 3,436 Corporate securities 188,463 8,531 25,649 2,797 Mortgage-backed securities 192,115 7,590 14,313 1,625 Totals $ 664,495 $ 38,913 $ 99,961 $ 11,439 We held fixed maturities with unrealized losses representing declines that we considered temporary at December 31, 2021 as follows: Less Than 12 Months More Than 12 Months Fair Value Unrealized Losses Fair Value Unrealized Losses (in thousands) U.S. Treasury securities and obligations of U.S. government corporations and agencies $ 27,691 $ 412 $ 28,426 $ 1,064 Obligations of states and political subdivisions 56,655 899 7,091 132 Corporate securities 92,737 1,610 1,463 37 Mortgage-backed securities 90,006 1,128 2,361 82 Totals $ 267,089 $ 4,049 $ 39,341 $ 1,315 We make estimates concerning the valuation of our investments and the recognition of other-than-temporary declines in the value of our investments. For equity securities, we measure investments at fair value, and we recognize changes in fair value in our results of operations. With respect to a debt security that is in an unrealized loss position, we first assess if we intend to sell the debt security. If we determine we intend to sell the debt security, we recognize the impairment loss in our results of operations. If we do not intend to sell the debt security, we determine whether it is more likely than not that we will be required to sell the debt security prior to recovery. If we determine it is more likely than not that we will be required to sell the debt security prior to recovery, we recognize the impairment loss in our results of operations. If we determine it is more likely than not that we will not be required to sell the debt security prior to recovery, we then evaluate whether a credit loss has occurred with respect to that security. We determine whether a credit loss has occurred by comparing the amortized cost of the debt We amortize premiums and discounts on debt securities over the life of the security as an adjustment to yield using the effective interest method. We compute realized investment gains and losses using the specific identification method. We amortize premiums and discounts on mortgage-backed debt securities using anticipated prepayments.

Segment Information

Segment Information	3 Months Ended
	Mar. 31, 2022
Segment Information [Abstract]
Segment Information	6 - Segment Information We evaluate the performance of our personal lines and commercial lines segments based upon the underwriting results of our insurance subsidiaries using statutory accounting principles (“SAP”) that various state insurance departments prescribe or permit. Our management uses SAP to measure the performance of our insurance subsidiaries instead of United States generally accepted accounting principles (“GAAP”). SAP financial measures are considered non-GAAP financial measures under applicable SEC rules because they include or exclude certain items that the most comparable GAAP financial measures do not ordinarily include or exclude. Financial data by segment for the three months ended March 31, 2022 and 2021 is as follows: Three Months Ended March 31, 2022 2021 (in thousands) Revenues: Premiums earned: Commercial lines $ 124,329 $ 109,226 Personal lines 74,920 78,026 GAAP premiums earned 199,249 187,252 Net investment income 7,859 7,511 Investment (losses) gains (76 ) 2,469 Other 595 738 Total revenues $ 207,627 $ 197,970 Income before income tax expense: Underwriting income (loss): Commercial lines $ 62 $ (8,242 ) Personal lines 4,642 5,037 SAP underwriting income (loss) 4,704 (3,205 ) GAAP adjustments 3,725 5,982 GAAP underwriting income 8,429 2,777 Net investment income 7,859 7,511 Investment (losses) gains (76 ) 2,469 Other 14 (6 ) Income before income tax expense $ 16,226 $ 12,751

Borrowings

Borrowings	3 Months Ended
	Mar. 31, 2022
Borrowings [Abstract]
Borrowings	7 - Borrowings Lines of Credit In August 2020, we entered into a credit agreement with Manufacturers and Traders Trust Company (“M&T”) that related to a $20.0 million unsecured demand line of credit. The line of credit has no expiration date, no annual fees and no covenants. At March 31, 2022, we had no outstanding borrowings from M&T and had the ability to borrow up to $20.0 million at interest rates equal to the then-current LIBOR rate plus 2.00%. Atlantic States is a member of the FHLB of Pittsburgh. Through its membership, Atlantic States has the ability to issue debt to the FHLB of Pittsburgh in exchange for cash advances. Atlantic States has a fixed-rate cash advance of $35.0 million that was outstanding at March 31, 2022. The cash advance carries a fixed interest rate of 1.74% and is due in August 2024 March 2021 The table below presents the amount of FHLB of Pittsburgh stock Atlantic States purchased, collateral pledged and assets related to Atlantic States’ membership in the FHLB of Pittsburgh at March 31, 2022. FHLB of Pittsburgh stock purchased and owned $ 1,575,600 Collateral pledged, at par (carrying value $39,728,104) 40,871,156 Borrowing capacity currently available 2,703,399

Share-Based Compensation

Share-Based Compensation	3 Months Ended
	Mar. 31, 2022
Share-Based Compensation [Abstract]
Share-Based Compensation	8 - Share–Based Compensation We measure all share-based payments to employees, including grants of stock options, and use a fair-value-based method for the recording of related compensation expense in our results of operations. In determining the expense we record for stock options granted to directors and employees of our subsidiaries and affiliates, we estimate the fair value of each option award on the date of grant using the Black-Scholes option pricing model. The significant assumptions we utilize in applying the Black-Scholes option pricing model are the risk-free interest rate, the expected term, the dividend yield and the expected volatility. We recorded compensation expense related to our stock compensation plans of $244,140 and $292,795 for the three months ended March 31, 2022 and 2021, respectively, with a corresponding income tax benefit of $51,269 and $61,487, respectively. At March 31, 2022, we had $1.2 million of unrecognized compensation expense related to nonvested share-based compensation granted under our stock compensation plans that we expect to recognize over a weighted average period of approximately 1.8 years. We received cash from option exercises under all stock compensation plans during the three months ended March 31, 2022 and 2021 of $ 12,321 and $4.4 million, respectively. We realized actual tax benefits for the tax deductions related to those option exercises of $ 153 and $149,156 for the three months ended March 31, 2022 and 2021, respectively.

Fair Value Measurements

Fair Value Measurements	3 Months Ended
	Mar. 31, 2022
Fair Value Measurements [Abstract]
Fair Value Measurements	9 - Fair Value Measurements We account for financial assets using a framework that establishes a hierarchy that ranks the quality and reliability of the inputs, or assumptions, we use in the determination of fair value, and we classify financial assets and liabilities carried at fair value in one of the following three categories: Level 1 – quoted prices in active markets for identical assets and liabilities; Level 2 – directly or indirectly observable inputs other than Level 1 quoted prices; and Level 3 – unobservable inputs not corroborated by market data. For investments that have quoted market prices in active markets, we use the quoted market price as fair value and include these investments in Level 1 of the fair value hierarchy. We classify publicly-traded equity securities as Level 1. When quoted market prices in active markets are not available, we base fair values on quoted market prices of comparable instruments or price estimates we obtain from independent pricing services and include these investments in Level 2 of the fair value hierarchy. We classify our fixed maturity investments and non-publicly traded equity securities as Level 2. Our fixed maturity investments consist of U.S. Treasury securities and obligations of U.S. government corporations and agencies, obligations of states and political subdivisions, corporate securities and mortgage-backed securities. We present our investments in available-for-sale fixed maturity and equity securities at estimated fair value. The estimated fair value of a security may differ from the amount that could be realized if we sold the security in a forced transaction. In addition, the valuation of fixed maturity investments is more subjective when markets are less liquid, increasing the potential that the estimated fair value does not reflect the price at which an actual transaction would occur. We utilize nationally recognized independent pricing services to estimate fair values or obtain market quotations for substantially all of our fixed maturity and equity investments. We generally obtain two prices per security. These pricing services utilize market quotations for fixed maturity and equity securities that have quoted prices in active markets. For fixed maturity securities that generally do not trade on a daily basis, the pricing services prepare estimates of fair value measurements based predominantly on observable market inputs. The pricing services do not use broker quotes in determining the fair values of our investments. Our investment personnel review the estimates of fair value the pricing services provide to verify that the estimates we obtain from the pricing services are representative of fair values based upon our investment personnel’s general knowledge of the market, their research findings related to unusual fluctuations in value and their comparison of such values to execution prices for similar securities. Our investment personnel monitor the market and are familiar with current trading ranges for similar securities and the pricing of specific investments. Our investment personnel review all pricing estimates that we receive from the pricing services against their expectations with respect to pricing based on fair market curves, security ratings, coupon rates, security types and recent trading activity. Our investment personnel periodically review documentation with respect to the pricing services’ pricing methodology that they obtain to determine if the primary pricing sources, market inputs and pricing frequency for various security types are reasonable. At March 31, 2022, we received two estimates per security from the pricing services, and we priced substantially all of our Level 1 and Level 2 investments using those prices. In our review of the estimates the pricing services provided at March 31, 2022, we did not identify any material discrepancies, and we did not make any adjustments to the estimates the pricing services provided. We present our cash and short-term investments at estimated fair value. We classify these items as Level 1. The carrying values we report in our balance sheet for premium receivables, reinsurance receivables related to paid losses and loss expenses and reinsurance balances payable approximate their fair values. The carrying amounts we report in our balance sheets for our subordinated debentures and borrowings under lines of credit approximate their fair values. We classify these items as Level 3. We evaluate our assets and liabilities to determine the appropriate level at which to classify them for each reporting period. The following table presents our fair value measurements for our investments in available-for-sale fixed maturity and equity securities at March 31, 2022: 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) (in thousands) U.S. Treasury securities and obligations of U.S. government corporations and agencies $ 34,745 $ — $ 34,745 $ — Obligations of states and political subdivisions 56,305 — 56,305 — Corporate securities 215,173 — 215,173 — Mortgage-backed securities 210,672 — 210,672 — Equity securities 54,046 51,759 2,287 — Total investments in the fair value hierarchy $ 570,941 $ 51,759 $ 519,182 $ — The following table presents our fair value measurements for our investments in available-for-sale fixed maturity and equity securities at December 31, 2021: 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) (in thousands) U.S. Treasury securities and obligations of U.S. government corporations and agencies $ 32,185 $ — $ 32,185 $ — Obligations of states and political subdivisions 57,378 — 57,378 — Corporate securities 221,611 — 221,611 — Mortgage-backed securities 221,455 — 221,455 — Equity securities 63,420 61,130 2,290 — Totals $ 596,049 $ 61,130 $ 534,919 $ —

Income Taxes

Income Taxes	3 Months Ended
	Mar. 31, 2022
Income Taxes [Abstract]
Income Taxes	10 - Income Taxes At March 31, 2022 and December 31, 2021, respectively, we had no material unrecognized tax benefits or accrued interest and penalties. Tax years 2016 2021

Liabilities for Losses and Loss

Liabilities for Losses and Loss Expenses	3 Months Ended
	Mar. 31, 2022
Liability for Losses and Loss Expenses [Abstract]
Liabilities for Losses and Loss Expenses	11 - Liabilities for Losses and Loss Expenses The establishment of appropriate liabilities for losses and loss expenses is an inherently uncertain process, and we can provide no assurance that our insurance subsidiaries’ ultimate liabilities for losses and loss expenses will not exceed their loss and loss expense reserves and have an adverse effect on our results of operations and financial condition. Furthermore, we cannot predict the timing, frequency and extent of adjustments to our insurance subsidiaries’ estimated future liabilities, because the historical conditions and events that serve as a basis for our insurance subsidiaries’ estimates of ultimate claim costs may change. As is the case for substantially all property and casualty insurance companies, our insurance subsidiaries have found it necessary in the past to increase their estimated future liabilities for losses and loss expenses in certain periods, and, in other periods, their estimated future liabilities for losses and loss expenses have exceeded their actual liabilities for losses and loss expenses. Changes in our insurance subsidiaries’ estimate of their liabilities for losses and loss expenses generally reflect actual payments and their evaluation of information received subsequent to the prior reporting period. We summarize activity in our insurance subsidiaries’ liabilities for losses and loss expenses as follows: Three Months Ended 2022 2021 (in thousands) Balance at January 1 $ 1,077,620 $ 962,007 Less reinsurance recoverable (451,261 ) (404,818 ) Net balance at January 1 626,359 557,189 Incurred related to: Current year 134,432 127,433 Prior years (16,549 ) (8,213 ) Total incurred 117,883 119,220 Paid related to: Current year 40,293 35,584 Prior years 76,088 65,192 Total paid 116,381 100,776 Net balance at end of period 627,861 575,633 Plus reinsurance recoverable 443,726 421,346 Balance at end of period $ 1,071,587 $ 996,979 Our insurance subsidiaries recognized a decrease in their liabilities for losses and loss expenses of prior years of $16.5 million and $8.2 million for the three months ended March 31, 2022 and 2021, respectively. Our insurance subsidiaries made no significant changes in their reserving philosophy or claims management personnel, and they have made no significant offsetting changes in estimates that increased or decreased their loss and loss expense reserves in those years. The 2022 development represented 2.6% of the December 31, 2021 net carried reserves and resulted primarily from lower-than-expected loss emergence or severity in nearly all lines of business. The majority of the 2022 development related to decreases in the liabilities for losses and loss expenses of prior years for Atlantic States and MICO. The 2021 development represented 1.5% of the December 31, 2020 net carried reserves and resulted primarily from lower-than-expected loss emergence or severity in nearly all lines of business. The majority of the 2021 development related to decreases in the liabilities for losses and loss expenses of prior years for Atlantic States and MICO. Short-duration contracts are contracts for which our insurance subsidiaries receive premiums that they recognize as revenue over the period of the contract in proportion to the amount of insurance protection our insurance subsidiaries provide. Our insurance subsidiaries consider the policies they issue to be short-duration contracts. We consider the material lines of business of our insurance subsidiaries to be personal automobile, homeowners, commercial automobile, commercial multi-peril and workers’ compensation. Our insurance subsidiaries determine incurred but not reported (“IBNR”) reserves by subtracting the cumulative loss and loss expense amounts our insurance subsidiaries have paid and the case reserves our insurance subsidiaries have established at the balance sheet date from their actuaries’ estimate of the ultimate cost of losses and loss expenses. Accordingly, the IBNR reserves of our insurance subsidiaries include their actuaries’ projections of the cost of unreported claims as well as their actuaries’ projected development of case reserves on known claims and reopened claims. Our insurance subsidiaries’ methodology for estimating IBNR reserves has been in place for many years, and their actuaries made no significant changes to that methodology during the three months ended March 31, 2022. The actuaries for our insurance subsidiaries generally prepare an initial estimate for ultimate losses and loss expenses for the current accident year by multiplying earned premium by an “ a priori ,” or The actuaries use a variety of actuarial methods to estimate the ultimate cost of losses and loss expenses. These methods include paid loss development, incurred loss development and the Bornhuetter-Ferguson method from which the actuaries select loss development factor assumptions. The actuaries base their selection of a point estimate on a judgmental weighting of the estimates each of these methods produce. The actuaries consider loss frequency and severity trends when they develop expected loss ratios and point estimates. Loss frequency is a measure of the number of claims per unit of insured exposure, and loss severity is a measure of the average size of claims. Factors that affect loss frequency include changes in weather patterns and economic activity. Factors that affect loss severity include changes in policy limits, reinsurance retentions, inflation rates and judicial interpretations. Our insurance subsidiaries create a claim file when they receive notice of an actual demand for payment, an event that may lead to a demand for payment or when they otherwise determine that a demand for payment could potentially lead to a future demand for payment on another coverage under the same policy or another policy they have issued. In recent years, our insurance subsidiaries have noted an increase in the period of time between the occurrence of a casualty loss event and the date at which they receive notice of a liability claim. Changes in the length of time between the loss occurrence date and the claim reporting date affect the actuaries’ ability to predict loss frequency accurately and the amount of IBNR reserves our insurance subsidiaries require. Our insurance subsidiaries generally create a claim file for a policy at the claimant level by type of coverage and generally recognize one count for each claim event. In certain lines of business where it is common for multiple parties to claim damages arising from a single claim event, our insurance subsidiaries recognize one count for each claimant involved in the event. Atlantic States recognizes one count for each claim event, or claimant involved in a multiple-party claim event, related to losses Atlantic States assumes through its participation in its pooling agreement with Donegal Mutual. Our insurance subsidiaries accumulate the claim counts and report them by line of business.

Impact of New Accounting Standa

Impact of New Accounting Standards	3 Months Ended
	Mar. 31, 2022
Impact of New Accounting Standards [Abstract]
Impact of New Accounting Standards	12 - Impact of New Accounting Standards In September 2016, the FASB issued guidance that amends previous guidance on the impairment of financial instruments by adding an impairment model that requires an entity to recognize expected credit losses as an allowance rather than impairments as credit losses are incurred. The intent of this guidance is to reduce complexity and result in a more timely recognition of expected credit losses. In November 2019, the FASB issued guidance that delays the effective date for “smaller reporting companies,” as defined in Item 10(f)(1) of Regulation S-K, to annual and interim reporting periods beginning after December 15, 2022 from December 15, 2019. We are a smaller reporting company and are in the process of evaluating the impact of the adoption of this guidance on our financial position, results of operations and cash flows.

Organization (Policies)

Organization (Policies)	3 Months Ended
	Mar. 31, 2022
Organization [Abstract]
Organization	Donegal Mutual Insurance Company (“Donegal Mutual”) organized us as an insurance holding company on August 26, 1986. Our insurance subsidiaries, Atlantic States Insurance Company (“Atlantic States”), Southern Insurance Company of Virginia (“Southern”), the Peninsula Insurance Group (“Peninsula”), which consists of Peninsula Indemnity Company and The Peninsula Insurance Company and Michigan Insurance Company (“MICO”), and our affiliates write personal and commercial lines of property and casualty coverages exclusively through a network of independent insurance agents in certain Mid-Atlantic, Midwestern, New England, Southern and Southwestern states. At March 31, 2022, we had three segments: our investment function, our commercial lines of insurance and our personal lines of insurance. The commercial lines products of our insurance subsidiaries consist primarily of commercial automobile, commercial multi-peril and workers’ compensation policies. The personal lines products of our insurance subsidiaries consist primarily of homeowners and private passenger automobile policies. At March 31, 2022, Donegal Mutual held approximately 41% of our outstanding Class A common stock and approximately 84% of our outstanding Class B common stock. This ownership provides Donegal Mutual with approximately 70% of the total voting power of our common stock. Our insurance subsidiaries and Donegal Mutual have interrelated operations due to a pooling agreement and other intercompany agreements and transactions. While each company maintains its separate corporate existence, our insurance subsidiaries and Donegal Mutual conduct business together as the Donegal Insurance Group. As such, Donegal Mutual and our insurance subsidiaries share the same business philosophy, the same management, the same employees and the same facilities and offer the same types of insurance products. Atlantic States, our largest subsidiary, participates in a proportional reinsurance agreement, or pooling agreement, with Donegal Mutual. Under the pooling agreement, Donegal Mutual and Atlantic States contribute substantially all of their respective premiums, losses and loss expenses to the underwriting pool, and the underwriting pool, acting through Donegal Mutual, then allocates 80% of the pooled business to Atlantic States. Thus, Donegal Mutual and Atlantic States share the underwriting results of the pooled business in proportion to their respective participation in the underwriting pool. In addition, Donegal Mutual has a 100% quota-share reinsurance agreement with Southern Mutual Insurance Company, or Southern Mutual. Donegal Mutual places its assumed business from Southern Mutual into the underwriting pool. Donegal Mutual completed the merger of Mountain States Mutual Casualty Company, or Mountain States, with and into Donegal Mutual effective May 25, 2017. Donegal Mutual was the surviving company in the merger, and Mountain States’ insurance subsidiaries, Mountain States Indemnity Company and Mountain States Commercial Insurance Company (collectively, the “Mountain States insurance subsidiaries”), became insurance subsidiaries of Donegal Mutual upon completion of the merger. Upon completion of the merger, Donegal Mutual assumed all of the policy obligations of Mountain States and began to market its products together with the Mountain States insurance subsidiaries as the Mountain States Insurance Group in four Southwestern states. Donegal Mutual also entered into a 100% quota-share reinsurance agreement with the Mountain States insurance subsidiaries on the merger date. Beginning with policies effective in 2021, Donegal Mutual began to place the business of the Mountain States Insurance Group into the underwriting pool. The same executive management and underwriting personnel administer products, classes of business underwritten, pricing practices and underwriting standards of Donegal Mutual and our insurance subsidiaries. In addition, as the Donegal Insurance Group, Donegal Mutual and our insurance subsidiaries share a combined business plan to achieve market penetration and underwriting profitability objectives. The products our insurance subsidiaries and Donegal Mutual market are generally complementary, thereby allowing the Donegal Insurance Group to offer a broader range of products to a given market and to expand the Donegal Insurance Group’s ability to service an entire personal lines or commercial lines account. Distinctions within the products of Donegal Mutual and our insurance subsidiaries generally relate to specific risk profiles targeted within similar classes of business, such as preferred tier versus standard tier products, but we do not allocate all of the standard risk gradients to one company. Therefore, the underwriting profitability of the business the individual companies write directly will vary. However, the underwriting pool homogenizes the risk characteristics of all business that Donegal Mutual and Atlantic States write directly. The business Atlantic States derives from the underwriting pool represents a significant percentage of our total consolidated revenues.

Impact of New Accounting Stan_2

Impact of New Accounting Standards (Policies)	3 Months Ended
	Mar. 31, 2022
Impact of New Accounting Standards [Abstract]
Impact of New Accounting Standards	In September 2016, the FASB issued guidance that amends previous guidance on the impairment of financial instruments by adding an impairment model that requires an entity to recognize expected credit losses as an allowance rather than impairments as credit losses are incurred. The intent of this guidance is to reduce complexity and result in a more timely recognition of expected credit losses. In November 2019, the FASB issued guidance that delays the effective date for “smaller reporting companies,” as defined in Item 10(f)(1) of Regulation S-K, to annual and interim reporting periods beginning after December 15, 2022 from December 15, 2019. We are a smaller reporting company and are in the process of evaluating the impact of the adoption of this guidance on our financial position, results of operations and cash flows.

Earnings Per Share (Tables)

Earnings Per Share (Tables)	3 Months Ended
	Mar. 31, 2022
Earnings Per Share [Abstract]
Reconciliation of Numerators and Denominators Used in Basic and Diluted Per Share Computations	The table below presents for the periods indicated a reconciliation of the numerators and denominators we used to compute basic and diluted net income per share for our Class A common stock and our Class B common stock: Three Months Ended March 31, 2022 2021 Class A Class B Class A Class B (in thousands, except per share data) Basic earnings per share: Numerator: Allocation of net income $ 10,986 $ 2,159 $ 8,742 $ 1,788 Denominator: Weighted-average shares outstanding 25,787 5,577 24,768 5,577 Basic earnings per share $ 0.43 $ 0.39 $ 0.35 $ 0.32 Diluted earnings per share: Numerator: Allocation of net income $ 10,986 $ 2,159 $ 8,742 $ 1,788 Denominator: Number of shares used in basic computation 25,787 5,577 24,768 5,577 Weighted-average shares effect of dilutive securities: Director and employee stock options 22 — 128 — Number of shares used in diluted computation 25,809 5,577 24,896 5,577 Diluted earnings per share $ 0.43 $ 0.39 $ 0.35 $ 0.32
Antidilutive Securities Excluded From Computation of Earnings Per Share	We did not include outstanding options to purchase the following number of shares of Class A common stock in our computation of diluted earnings per share because the exercise price of the options exceeded the average market price of our Class A common stock during the applicable periods. Three Months Ended March 31, 2022 2021 Number of options to purchase Class A shares excluded 5,434,934 6,051,359

Investments (Tables)

Investments (Tables)	3 Months Ended
	Mar. 31, 2022
Investments [Abstract]
Amortized Cost and Estimated Fair Values of Fixed Maturities	The amortized cost and estimated fair values of our fixed maturities at March 31, 2022 were as follows: 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 $ 89,848 $ 310 $ 4,139 $ 86,019 Obligations of states and political subdivisions 395,793 5,884 21,439 380,238 Corporate securities 190,105 2,594 5,844 186,855 Mortgage-backed securities 14,945 6 156 14,795 Totals $ 690,691 $ 8,794 $ 31,578 $ 667,907 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 $ 37,003 $ — $ 2,258 $ 34,745 Obligations of states and political subdivisions 57,822 456 1,973 56,305 Corporate securities 219,350 1,307 5,484 215,173 Mortgage-backed securities 219,597 134 9,059 210,672 Totals $ 533,772 $ 1,897 $ 18,774 $ 516,895 The amortized cost and estimated fair values of our fixed maturities at December 31, 2021 were as follows: 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 $ 89,268 $ 1,923 $ 1,015 $ 90,176 Obligations of states and political subdivisions 371,436 17,857 948 388,345 Corporate securities 191,147 11,576 773 201,950 Mortgage-backed securities 16,254 676 — 16,930 Totals $ 668,105 $ 32,032 $ 2,736 $ 697,401 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 $ 32,501 $ 144 $ 461 $ 32,184 Obligations of states and political subdivisions 55,459 2,002 83 57,378 Corporate securities 215,669 6,817 874 221,612 Mortgage-backed securities 219,664 3,001 1,210 221,455 Totals $ 523,293 $ 11,964 $ 2,628 $ 532,629
Amortized Cost and Estimated Fair Value of Fixed Maturities by Contractual Maturity	We show below the amortized cost and estimated fair value of our fixed maturities at March 31, 2022 by contractual maturity. Expected maturities may differ from contractual maturities because issuers of the securities may have the right to call or prepay obligations with or without call or prepayment penalties . Amortized Cost Estimated Fair Value (in thousands) Held to maturity Due in one year or less $ 60,854 $ 62,484 Due after one year through five years 84,257 85,415 Due after five years through ten years 223,309 216,052 Due after ten years 307,326 289,161 Mortgage-backed securities 14,945 14,795 Total held to maturity $ 690,691 $ 667,907 Available for sale Due in one year or less $ 29,090 $ 29,320 Due after one year through five years 148,499 145,592 Due after five years through ten years 105,650 101,917 Due after ten years 30,936 29,394 Mortgage-backed securities 219,597 210,672 Total available for sale $ 533,772 $ 516,895
Cost and Estimated Fair Values of Equity Securities	The cost and estimated fair values of our equity securities at March 31, 2022 were as follows: Cost Gross Gains Gross Losses Estimated Fair Value (in thousands) Equity securities $ 35,307 $ 18,795 $ 56 $ 54,046 The cost and estimated fair values of our equity securities at December 31, 2021 were as follows: Cost Gross Gains Gross Losses Estimated Fair Value (in thousands) Equity securities $ 43,263 $ 20,413 $ 256 $ 63,420
Gross Investment Gains and Losses before Applicable Income Taxes	We present below gross gains and losses from investments and the change in the difference between fair value and cost of investments: Three Months Ended March 31, 2022 2021 (in thousands) Gross realized gains: Fixed maturities $ 234 $ 193 Equity securities 843 73 Real estate 477 — 1,554 266 Gross realized losses: Fixed maturities 69 222 Equity securities 824 — 893 222 Net realized gains 661 44 Gross unrealized gains on equity securities 716 3,204 Gross unrealized losses on equity securities (1,453 ) (779 ) Net investment (losses) gains $ (76 ) $ 2,469
Fixed Maturities with Unrealized Losses	We held fixed maturities with unrealized losses representing declines that we considered temporary at March 31, 2022 as follows: Less Than 12 Months More Than 12 Months Fair Value Unrealized Losses Fair Value Unrealized Losses (in thousands) U.S. Treasury securities and obligations of U.S. government corporations and agencies $ 52,488 $ 2,816 $ 31,710 $ 3,581 Obligations of states and political subdivisions 231,429 19,976 28,289 3,436 Corporate securities 188,463 8,531 25,649 2,797 Mortgage-backed securities 192,115 7,590 14,313 1,625 Totals $ 664,495 $ 38,913 $ 99,961 $ 11,439 We held fixed maturities with unrealized losses representing declines that we considered temporary at December 31, 2021 as follows: Less Than 12 Months More Than 12 Months Fair Value Unrealized Losses Fair Value Unrealized Losses (in thousands) U.S. Treasury securities and obligations of U.S. government corporations and agencies $ 27,691 $ 412 $ 28,426 $ 1,064 Obligations of states and political subdivisions 56,655 899 7,091 132 Corporate securities 92,737 1,610 1,463 37 Mortgage-backed securities 90,006 1,128 2,361 82 Totals $ 267,089 $ 4,049 $ 39,341 $ 1,315

Segment Information (Tables)

Segment Information (Tables)	3 Months Ended
	Mar. 31, 2022
Segment Information [Abstract]
Financial Data by Segment	Financial data by segment for the three months ended March 31, 2022 and 2021 is as follows: Three Months Ended March 31, 2022 2021 (in thousands) Revenues: Premiums earned: Commercial lines $ 124,329 $ 109,226 Personal lines 74,920 78,026 GAAP premiums earned 199,249 187,252 Net investment income 7,859 7,511 Investment (losses) gains (76 ) 2,469 Other 595 738 Total revenues $ 207,627 $ 197,970 Income before income tax expense: Underwriting income (loss): Commercial lines $ 62 $ (8,242 ) Personal lines 4,642 5,037 SAP underwriting income (loss) 4,704 (3,205 ) GAAP adjustments 3,725 5,982 GAAP underwriting income 8,429 2,777 Net investment income 7,859 7,511 Investment (losses) gains (76 ) 2,469 Other 14 (6 ) Income before income tax expense $ 16,226 $ 12,751

Borrowings (Tables)

Borrowings (Tables)	3 Months Ended
	Mar. 31, 2022
Line of Credit Facility [Line Items]
FHLB of Stock Purchased, Collateral Pledged and Assets Related	The table below presents the amount of FHLB of Pittsburgh stock Atlantic States purchased, collateral pledged and assets related to Atlantic States’ membership in the FHLB of Pittsburgh at March 31, 2022. FHLB of Pittsburgh stock purchased and owned $ 1,575,600 Collateral pledged, at par (carrying value $39,728,104) 40,871,156 Borrowing capacity currently available 2,703,399

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	3 Months Ended
	Mar. 31, 2022
Fair Value Measurements [Abstract]
Investments in Available-for-Sale Fixed Maturity and Equity Securities	The following table presents our fair value measurements for our investments in available-for-sale fixed maturity and equity securities at March 31, 2022: 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) (in thousands) U.S. Treasury securities and obligations of U.S. government corporations and agencies $ 34,745 $ — $ 34,745 $ — Obligations of states and political subdivisions 56,305 — 56,305 — Corporate securities 215,173 — 215,173 — Mortgage-backed securities 210,672 — 210,672 — Equity securities 54,046 51,759 2,287 — Total investments in the fair value hierarchy $ 570,941 $ 51,759 $ 519,182 $ — The following table presents our fair value measurements for our investments in available-for-sale fixed maturity and equity securities at December 31, 2021: 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) (in thousands) U.S. Treasury securities and obligations of U.S. government corporations and agencies $ 32,185 $ — $ 32,185 $ — Obligations of states and political subdivisions 57,378 — 57,378 — Corporate securities 221,611 — 221,611 — Mortgage-backed securities 221,455 — 221,455 — Equity securities 63,420 61,130 2,290 — Totals $ 596,049 $ 61,130 $ 534,919 $ —

Liabilities for Losses and Lo_2

Liabilities for Losses and Loss Expenses (Tables)	3 Months Ended
	Mar. 31, 2022
Liability for Losses and Loss Expenses [Abstract]
Summary of Insurance Subsidiaries' Liabilities for Losses and Loss Expenses	We summarize activity in our insurance subsidiaries’ liabilities for losses and loss expenses as follows: Three Months Ended 2022 2021 (in thousands) Balance at January 1 $ 1,077,620 $ 962,007 Less reinsurance recoverable (451,261 ) (404,818 ) Net balance at January 1 626,359 557,189 Incurred related to: Current year 134,432 127,433 Prior years (16,549 ) (8,213 ) Total incurred 117,883 119,220 Paid related to: Current year 40,293 35,584 Prior years 76,088 65,192 Total paid 116,381 100,776 Net balance at end of period 627,861 575,633 Plus reinsurance recoverable 443,726 421,346 Balance at end of period $ 1,071,587 $ 996,979

Organization (Details)

Organization (Details)	3 Months Ended
	Mar. 31, 2022SegmentState
Organization [Abstract]
Number of operating segments | Segment	3
Number of states | State	4
Atlantic States [Member]
Organization [Abstract]
Percentage of share in results of pooled business subsidiary	80.00%
Donegal Mutual Insurance Company [Member]
Organization [Abstract]
Voting power percentage of outstanding common stock	70.00%
Premiums and losses related to certain products	100.00%
Donegal Mutual Insurance Company [Member] | Class A Common Stock [Member]
Organization [Abstract]
Stock ownership percentage held by major shareholder	41.00%
Donegal Mutual Insurance Company [Member] | Class B Common Stock [Member]
Organization [Abstract]
Stock ownership percentage held by major shareholder	84.00%

Earnings Per Share (Details)

Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Earnings Per Share [Abstract]
Minimum percentage of class A common stock declared dividend excess over class B dividend	10.00%
Class A Common Stock [Member]
Numerator: [Abstract]
Allocation of net income	$ 10,986	$ 8,742
Denominator: [Abstract]
Weighted-average shares outstanding (in shares)	25,787,000	24,768,000
Basic earnings per share (in dollars per share)	$ 0.43	$ 0.35
Numerator: [Abstract]
Allocation of net income	$ 10,986	$ 8,742
Denominator: [Abstract]
Number of shares used in basic computation (in shares)	25,787,000	24,768,000
Weighted-average shares effect of dilutive securities [Abstract]
Director and employee stock options (in shares)	22,000	128,000
Number of shares used in diluted computation (in shares)	25,809,000	24,896,000
Diluted earnings per share (in dollars per share)	$ 0.43	$ 0.35
Class B Common Stock [Member]
Numerator: [Abstract]
Allocation of net income	$ 2,159	$ 1,788
Denominator: [Abstract]
Weighted-average shares outstanding (in shares)	5,577,000	5,577,000
Basic earnings per share (in dollars per share)	$ 0.39	$ 0.32
Numerator: [Abstract]
Allocation of net income	$ 2,159	$ 1,788
Denominator: [Abstract]
Number of shares used in basic computation (in shares)	5,577,000	5,577,000
Weighted-average shares effect of dilutive securities [Abstract]
Director and employee stock options (in shares)	0	0
Number of shares used in diluted computation (in shares)	5,577,000	5,577,000
Diluted earnings per share (in dollars per share)	$ 0.39	$ 0.32
Options [Member]
Antidilutive Securities Excluded from Computation of Earnings (Loss) Per Share [Abstract]
Number of options to purchase Class A shares excluded (in shares)	5,434,934	6,051,359

Reinsurance (Details)

Reinsurance (Details) - USD ($)	3 Months Ended
	Mar. 31, 2022	Dec. 31, 2021	Nov. 30, 2021
Reinsurance Transactions [Abstract]
Loss reinsurance agreement contracts retention amount	$ 2,000,000
Return from estimated surplus			$ 3,000,000,000
Receivable from reinsurance claims	0	$ 18,112,800
Property Insurance [Member]
Reinsurance Transactions [Abstract]
Catastrophe reinsurance, set retention amount	2,000,000
Maximum amount of loss coverage under reinsurance agreement of property catastrophe	38,000,000
Liability Insurance [Member]
Reinsurance Transactions [Abstract]
Catastrophe reinsurance, set retention amount	2,000,000
Maximum amount of loss coverage under reinsurance agreement of property catastrophe	73,000,000
Workers' Compensation Insurance [Member]
Reinsurance Transactions [Abstract]
Catastrophe reinsurance, set retention amount	2,000,000
Maximum amount of loss coverage under reinsurance agreement of property catastrophe	$ 18,000,000
Third Party Reinsurance [Member]
Reinsurance Transactions [Abstract]
Percentage of accumulation of losses	100.00%
Catastrophe reinsurance, set retention amount	$ 15,000,000
Maximum amount of loss coverage under reinsurance agreement of property catastrophe	$ 185,000,000
Atlantic States [Member]
Reinsurance Transactions [Abstract]
Percentage of share in results of pooled business subsidiary	80.00%
Donegal Mutual [Member]
Reinsurance Transactions [Abstract]
Percentage of share in results of pooled business owned by third party	20.00%
Percentage of accumulation of losses	100.00%
Catastrophe reinsurance, set retention amount	$ 2,000,000
Maximum amount of loss coverage under reinsurance agreement of property catastrophe	13,000,000
Additional coverage amount	$ 5,000,000

Investments, Amortized Cost and

Investments, Amortized Cost and Estimated Fair Values of Fixed Maturities (Details) - USD ($)	Mar. 31, 2022	Dec. 31, 2021
Held to Maturity [Abstract]
Amortized cost	$ 690,691,302	$ 668,104,568
Gross unrealized gains	8,794,000	32,032,000
Gross unrealized losses	31,578,000	2,736,000
Estimated fair value	667,907,000	697,401,000
Available for Sale [Abstract]
Total available for sale, amortized cost	533,772,000	523,293,000
Gross unrealized gains	1,897,000	11,964,000
Gross unrealized losses	18,774,000	2,628,000
Estimated fair value	516,894,776	532,629,015
U.S. Treasury Securities and Obligations of U.S. Government Corporations and Agencies [Member]
Held to Maturity [Abstract]
Amortized cost	89,848,000	89,268,000
Gross unrealized gains	310,000	1,923,000
Gross unrealized losses	4,139,000	1,015,000
Estimated fair value	86,019,000	90,176,000
Available for Sale [Abstract]
Total available for sale, amortized cost	37,003,000	32,501,000
Gross unrealized gains	0	144,000
Gross unrealized losses	2,258,000	461,000
Estimated fair value	34,745,000	32,184,000
Obligations of States and Political Subdivisions [Member]
Held to Maturity [Abstract]
Amortized cost	395,793,000	371,436,000
Gross unrealized gains	5,884,000	17,857,000
Gross unrealized losses	21,439,000	948,000
Estimated fair value	380,238,000	388,345,000
Available for Sale [Abstract]
Total available for sale, amortized cost	57,822,000	55,459,000
Gross unrealized gains	456,000	2,002,000
Gross unrealized losses	1,973,000	83,000
Estimated fair value	56,305,000	57,378,000
Corporate Securities [Member]
Held to Maturity [Abstract]
Amortized cost	190,105,000	191,147,000
Gross unrealized gains	2,594,000	11,576,000
Gross unrealized losses	5,844,000	773,000
Estimated fair value	186,855,000	201,950,000
Available for Sale [Abstract]
Total available for sale, amortized cost	219,350,000	215,669,000
Gross unrealized gains	1,307,000	6,817,000
Gross unrealized losses	5,484,000	874,000
Estimated fair value	215,173,000	221,612,000
Mortgage-Backed Securities [Member]
Held to Maturity [Abstract]
Amortized cost	14,945,000	16,254,000
Gross unrealized gains	6,000	676,000
Gross unrealized losses	156,000	0
Estimated fair value	14,795,000	16,930,000
Available for Sale [Abstract]
Total available for sale, amortized cost	219,597,000	219,664,000
Gross unrealized gains	134,000	3,001,000
Gross unrealized losses	9,059,000	1,210,000
Estimated fair value	$ 210,672,000	$ 221,455,000

Investments, Summary (Details)

Investments, Summary (Details) - USD ($)	Nov. 30, 2013	Mar. 31, 2022	Mar. 31, 2021	Dec. 31, 2021
Investments [Abstract]
Net unrealized losses arising prior to reclassification date	$ 15,100,000
Amortization of other comprehensive loss		$ 149,475	$ 371,265
Accumulated other comprehensive (loss) income		$ (17,306,674)		$ 3,283,551
Minimum [Member]
Investments [Abstract]
Percentage of which the company held security of any issuer		10.00%		10.00%
Obligations of States and Political Subdivisions [Member]
Investments [Abstract]
Aggregate fair value of bond held		$ 283,600,000		$ 284,900,000
Amortized cost of bond held		296,100,000		272,700,000
Special Revenue Bonds [Member]
Investments [Abstract]
Aggregate fair value of bond held		152,900,000		160,800,000
Amortized cost of bond held		$ 157,500,000		$ 154,200,000
Education Bonds [Member]
Investments [Abstract]
Percentage of investments in special revenue bonds		48.00%		48.00%
Water and Sewer Utility Bonds [Member]
Investments [Abstract]
Percentage of investments in special revenue bonds		35.00%		35.00%
Accumulated Net Unrealized Investment Losses [Member]
Investments [Abstract]
Accumulated other comprehensive (loss) income		$ (5,000,000)		$ (5,200,000)

Investments, Amortized Cost a_2

Investments, Amortized Cost and Estimated Fair Value of Fixed Maturities by Contractual Maturity (Details) - USD ($)	Mar. 31, 2022	Dec. 31, 2021
Held To Maturity [Abstract]
Due in one year or less, amortized cost	$ 60,854,000
Due after one year through five years, amortized cost	84,257,000
Due after five years through ten years, amortized cost	223,309,000
Due after ten years, amortized cost	307,326,000
Mortgage-backed securities, amortized cost	14,945,000
Amortized cost	690,691,302	$ 668,104,568
Available For Sale [Abstract]
Due in one year or less, amortized cost	29,090,000
Due after one year through five years, amortized cost	148,499,000
Due after five years through ten years, amortized cost	105,650,000
Due after ten years, amortized cost	30,936,000
Mortgage-backed securities, amortized cost	219,597,000
Total available for sale, amortized cost	533,772,000	523,293,000
Held To Maturity [Abstract]
Due in one year or less, estimated fair value	62,484,000
Due after one year through five years, estimated fair value	85,415,000
Due after five years through ten years, estimated fair value	216,052,000
Due after ten years, estimated fair value	289,161,000
Mortgage-backed securities, estimated fair value	14,795,000
Total held to maturity, estimated fair value	667,907,000	697,401,000
Available For Sale [Abstract]
Due in one year or less, estimated fair value	29,320,000
Due after one year through five years, estimated fair value	145,592,000
Due after five years through ten years, estimated fair value	101,917,000
Due after ten years, estimated fair value	29,394,000
Mortgage-backed securities, estimated fair value	210,672,000
Total available for sale, estimated fair value	$ 516,894,776	$ 532,629,015

Investments, Cost and Estimated

Investments, Cost and Estimated Fair Value of Equity Securities (Details) - USD ($)	3 Months Ended	12 Months Ended
	Mar. 31, 2022	Dec. 31, 2021
Cost and Estimated Fair Value of Equity Securities [Abstract]
Cost	$ 35,307,000	$ 43,263,000
Gross gains	18,795,000	20,413,000
Gross losses	56,000	256,000
Estimated fair value	$ 54,046,368	$ 63,419,973

Investments, Gross Investment G

Investments, Gross Investment Gains and Losses before Applicable Income Taxes (Details) - USD ($)	3 Months Ended		12 Months Ended
	Mar. 31, 2022	Mar. 31, 2021	Dec. 31, 2021
Net Gains and Losses from Investments [Abstract]
Gross realized gains	$ 1,554,000	$ 266,000
Gross realized losses	893,000	222,000
Gross Realized Gain/Loss on Investments	661,000	44,000
Gross unrealized gains on equity securities	18,795,000		$ 20,413,000
Gross unrealized losses on equity securities	(56,000)		$ (256,000)
Net investment (losses) gains	(76,247)	2,469,054
Fixed Maturities [Member]
Net Gains and Losses from Investments [Abstract]
Gross realized gains	234,000	193,000
Gross realized losses	69,000	222,000
Real Estate [Member]
Net Gains and Losses from Investments [Abstract]
Gross realized gains	477,000	0
Equity Securities [Member]
Net Gains and Losses from Investments [Abstract]
Gross realized gains	843,000	73,000
Gross realized losses	824,000	0
Gross unrealized gains on equity securities	716,000	3,204,000
Gross unrealized losses on equity securities	$ (1,453,000)	$ (779,000)

Investments, Fixed Maturities w

Investments, Fixed Maturities with Unrealized Losses (Details) $ in Thousands	Mar. 31, 2022USD ($)Securities	Dec. 31, 2021USD ($)
Debt Securities, Fair Value and Unrealized Losses by Fixed Maturities [Abstract]
Less than 12 months, fair value	$ 664,495	$ 267,089
Less than 12 months, unrealized losses	38,913	4,049
More than 12 months, fair value	99,961	39,341
More than 12 months, unrealized losses	$ 11,439	1,315
Fixed Maturities [Member]
Debt Securities, Fair Value and Unrealized Losses by Fixed Maturities [Abstract]
Number of fixed maturity securities classified as available for sale | Securities	593
U.S. Treasury Securities and Obligations of U.S. Government Corporations and Agencies [Member]
Debt Securities, Fair Value and Unrealized Losses by Fixed Maturities [Abstract]
Less than 12 months, fair value	$ 52,488	27,691
Less than 12 months, unrealized losses	2,816	412
More than 12 months, fair value	31,710	28,426
More than 12 months, unrealized losses	3,581	1,064
Obligations of States and Political Subdivisions [Member]
Debt Securities, Fair Value and Unrealized Losses by Fixed Maturities [Abstract]
Less than 12 months, fair value	231,429	56,655
Less than 12 months, unrealized losses	19,976	899
More than 12 months, fair value	28,289	7,091
More than 12 months, unrealized losses	3,436	132
Corporate Securities [Member]
Debt Securities, Fair Value and Unrealized Losses by Fixed Maturities [Abstract]
Less than 12 months, fair value	188,463	92,737
Less than 12 months, unrealized losses	8,531	1,610
More than 12 months, fair value	25,649	1,463
More than 12 months, unrealized losses	2,797	37
Mortgage-Backed Securities [Member]
Debt Securities, Fair Value and Unrealized Losses by Fixed Maturities [Abstract]
Less than 12 months, fair value	192,115	90,006
Less than 12 months, unrealized losses	7,590	1,128
More than 12 months, fair value	14,313	2,361
More than 12 months, unrealized losses	$ 1,625	$ 82

Segment Information (Details)

Segment Information (Details) - USD ($)	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Premiums earned: [Abstract]
Premiums earned	$ 199,248,624	$ 187,251,600
Net investment income	7,858,881	7,510,578
Investment (losses) gains	(76,247)	2,469,054
Total revenues	207,626,717	197,969,898
Underwriting income (loss): [Abstract]
Net investment income	7,858,881	7,510,578
Investment (losses) gains	(76,247)	2,469,054
Income before income tax expense	16,226,239	12,750,685
Operating Segments [Member]
Premiums earned: [Abstract]
Premiums earned	199,249,000	187,252,000
Net investment income	7,859,000	7,511,000
Investment (losses) gains	(76,000)	2,469,000
Other	595,000	738,000
Total revenues	207,627,000	197,970,000
Underwriting income (loss): [Abstract]
SAP underwriting income (loss)	4,704,000	(3,205,000)
GAAP adjustments	3,725,000	5,982,000
GAAP underwriting income	8,429,000	2,777,000
Net investment income	7,859,000	7,511,000
Investment (losses) gains	(76,000)	2,469,000
Other	14,000	(6,000)
Income before income tax expense	16,226,000	12,751,000
Commercial Lines [Member] | Operating Segments [Member]
Premiums earned: [Abstract]
Premiums earned	124,329,000	109,226,000
Underwriting income (loss): [Abstract]
SAP underwriting income (loss)	62,000	(8,242,000)
Personal Lines [Member] | Operating Segments [Member]
Premiums earned: [Abstract]
Premiums earned	74,920,000	78,026,000
Underwriting income (loss): [Abstract]
SAP underwriting income (loss)	$ 4,642,000	$ 5,037,000

Borrowings, Line of Credit (Det

Borrowings, Line of Credit (Details) - USD ($)	1 Months Ended	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2022	Aug. 31, 2020
FHLB of Pittsburgh [Member] | Atlantic States [Member]
Federal Home Loan Bank of Stock Purchased, Collateral Pledged and Assets Related [Abstract]
FHLB stock purchased and owned		$ 1,575,600
Collateral pledged, at par (carrying value $39,728,104)		40,871,156
Borrowing capacity currently available		2,703,399
Collateral pledged at carrying value		39,728,104
Lines of Credit [Member] | Manufacturers and Traders Trust Company [Member]
Line of Credit Facility [Abstract]
Unsecured demand line of credit			$ 20,000,000
Outstanding borrowings		0
Line of credit facility remaining borrowing capacity		$ 20,000,000
Lines of Credit [Member] | Manufacturers and Traders Trust Company [Member] | LIBOR [Member]
Line of Credit Facility [Abstract]
Interest rate		2.00%
Lines of Credit [Member] | FHLB of Pittsburgh [Member] | Atlantic States [Member]
Line of Credit Facility [Abstract]
Federal home loan bank, cash advance at fixed rate advances		$ 35,000,000
Fixed interest rate on advance		1.74%
Debt instrument due date	Mar. 31, 2021	Aug. 31, 2024
Debt issued amount	$ 50,000,000
Fixed interest rate	0.83%

Share-Based Compensation (Detai

Share-Based Compensation (Details) - USD ($)	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Share-Based Compensation [Abstract]
Compensation expense in stock compensation plans	$ 244,140	$ 292,795
Income tax benefit of stock compensation plans	51,269	61,487
Unrecognized compensation expense related to nonvested share-based compensation granted under the plan	$ 1,200,000
Weighted average period of unrecognized compensation expense	1 year 9 months 18 days
Cash from option exercises	$ 12,321	4,400,000
Tax benefit for tax deductions related to option exercises	$ 153	$ 149,156

Fair Value Measurements (Detail

Fair Value Measurements (Details) - USD ($)	Mar. 31, 2022	Dec. 31, 2021
Fair Value Measurement Inputs and Valuation Techniques [Abstract]
Available for sale, at fair value	$ 516,894,776	$ 532,629,015
Equity securities, at fair value	54,046,368	63,419,973
U.S. Treasury Securities and Obligations of U.S. Government Corporations and Agencies [Member]
Fair Value Measurement Inputs and Valuation Techniques [Abstract]
Available for sale, at fair value	34,745,000	32,184,000
Obligations of States and Political Subdivisions [Member]
Fair Value Measurement Inputs and Valuation Techniques [Abstract]
Available for sale, at fair value	56,305,000	57,378,000
Mortgage-Backed Securities [Member]
Fair Value Measurement Inputs and Valuation Techniques [Abstract]
Available for sale, at fair value	210,672,000	221,455,000
Recurring Basis [Member]
Fair Value Measurement Inputs and Valuation Techniques [Abstract]
Equity securities, at fair value	54,046	63,420
Total investments in the fair value hierarchy	570,941	596,049
Recurring Basis [Member] | U.S. Treasury Securities and Obligations of U.S. Government Corporations and Agencies [Member]
Fair Value Measurement Inputs and Valuation Techniques [Abstract]
Available for sale, at fair value	34,745	32,185
Recurring Basis [Member] | Obligations of States and Political Subdivisions [Member]
Fair Value Measurement Inputs and Valuation Techniques [Abstract]
Available for sale, at fair value	56,305	57,378
Recurring Basis [Member] | Corporate Securities [Member]
Fair Value Measurement Inputs and Valuation Techniques [Abstract]
Available for sale, at fair value	215,173	221,611
Recurring Basis [Member] | Mortgage-Backed Securities [Member]
Fair Value Measurement Inputs and Valuation Techniques [Abstract]
Available for sale, at fair value	210,672	221,455
Recurring Basis [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member]
Fair Value Measurement Inputs and Valuation Techniques [Abstract]
Equity securities, at fair value	51,759	61,130
Total investments in the fair value hierarchy	51,759	61,130
Recurring Basis [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | U.S. Treasury Securities and Obligations of U.S. Government Corporations and Agencies [Member]
Fair Value Measurement Inputs and Valuation Techniques [Abstract]
Available for sale, at fair value	0	0
Recurring Basis [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Obligations of States and Political Subdivisions [Member]
Fair Value Measurement Inputs and Valuation Techniques [Abstract]
Available for sale, at fair value	0	0
Recurring Basis [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Corporate Securities [Member]
Fair Value Measurement Inputs and Valuation Techniques [Abstract]
Available for sale, at fair value	0	0
Recurring Basis [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Mortgage-Backed Securities [Member]
Fair Value Measurement Inputs and Valuation Techniques [Abstract]
Available for sale, at fair value	0	0
Recurring Basis [Member] | Significant Other Observable Inputs (Level 2) [Member]
Fair Value Measurement Inputs and Valuation Techniques [Abstract]
Equity securities, at fair value	2,287	2,290
Total investments in the fair value hierarchy	519,182	534,919
Recurring Basis [Member] | Significant Other Observable Inputs (Level 2) [Member] | U.S. Treasury Securities and Obligations of U.S. Government Corporations and Agencies [Member]
Fair Value Measurement Inputs and Valuation Techniques [Abstract]
Available for sale, at fair value	34,745	32,185
Recurring Basis [Member] | Significant Other Observable Inputs (Level 2) [Member] | Obligations of States and Political Subdivisions [Member]
Fair Value Measurement Inputs and Valuation Techniques [Abstract]
Available for sale, at fair value	56,305	57,378
Recurring Basis [Member] | Significant Other Observable Inputs (Level 2) [Member] | Corporate Securities [Member]
Fair Value Measurement Inputs and Valuation Techniques [Abstract]
Available for sale, at fair value	215,173	221,611
Recurring Basis [Member] | Significant Other Observable Inputs (Level 2) [Member] | Mortgage-Backed Securities [Member]
Fair Value Measurement Inputs and Valuation Techniques [Abstract]
Available for sale, at fair value	210,672	221,455
Recurring Basis [Member] | Significant Unobservable Inputs (Level 3) [Member]
Fair Value Measurement Inputs and Valuation Techniques [Abstract]
Equity securities, at fair value	0	0
Total investments in the fair value hierarchy	0	0
Recurring Basis [Member] | Significant Unobservable Inputs (Level 3) [Member] | U.S. Treasury Securities and Obligations of U.S. Government Corporations and Agencies [Member]
Fair Value Measurement Inputs and Valuation Techniques [Abstract]
Available for sale, at fair value	0	0
Recurring Basis [Member] | Significant Unobservable Inputs (Level 3) [Member] | Obligations of States and Political Subdivisions [Member]
Fair Value Measurement Inputs and Valuation Techniques [Abstract]
Available for sale, at fair value	0	0
Recurring Basis [Member] | Significant Unobservable Inputs (Level 3) [Member] | Corporate Securities [Member]
Fair Value Measurement Inputs and Valuation Techniques [Abstract]
Available for sale, at fair value	0	0
Recurring Basis [Member] | Significant Unobservable Inputs (Level 3) [Member] | Mortgage-Backed Securities [Member]
Fair Value Measurement Inputs and Valuation Techniques [Abstract]
Available for sale, at fair value	$ 0	$ 0

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2022	Dec. 31, 2021
Operating Loss Carryforwards [Abstract]
Other deferred tax assets, net	$ 32.5	$ 28.1
DGI Parent [Member]
Operating Loss Carryforwards [Abstract]
Valuation allowance related to the portion of operating loss carryforwards	$ 7.9
Earliest Tax Year [Member]
Operating Loss Carryforwards [Abstract]
Tax years open for examination	2016
Latest Tax Year [Member]
Operating Loss Carryforwards [Abstract]
Tax years open for examination	2021

Liabilities for Losses and Lo_3

Liabilities for Losses and Loss Expenses (Details) - USD ($)	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Liability for Claims and Claims Adjustment Expense [Abstract]
Balance at January 1	$ 1,077,620,301	$ 962,007,000
Less reinsurance recoverable	(451,261,000)	(404,818,000)
Net balance at January 1	626,359,000	557,189,000
Incurred related to [Abstract]
Current year	134,432,000	127,433,000
Prior years	(16,549,000)	(8,213,000)
Total incurred	117,883,000	119,220,000
Paid related to [Abstract]
Current year	40,293,000	35,584,000
Prior years	76,088,000	65,192,000
Total paid	116,381,000	100,776,000
Net balance at end of period	627,861,000	575,633,000
Plus reinsurance recoverable	443,726,000	421,346,000
Balance at end of period	$ 1,071,587,385	$ 996,979,000
Percentage of development	2.60%	1.50%