Donegal (DGICA) 10-Q 3 May 24 2024 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2024	May 01, 2024
Entity Listings [Line Items]
Document Type	10-Q
Amendment Flag	false
Document Quarterly Report	true
Document Period End Date	Mar. 31, 2024
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2024
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	false
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		27,816,654
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, 2024	Dec. 31, 2023
Fixed maturities
Held to maturity, at amortized cost (net of allowance for expected credit losses of $1,329,099 and $1,325,847)	$ 683,398,852	$ 679,497,038
Available for sale, at fair value	600,761,425	589,348,243
Equity securities, at fair value	28,883,318	25,902,956
Short-term investments, at cost, which approximates fair value	18,860,030	32,305,408
Total investments	1,331,903,625	1,327,053,645
Cash	19,805,040	23,792,273
Accrued investment income	10,497,341	9,945,714
Premiums receivable	193,160,160	179,591,821
Reinsurance receivable (net of allowance for expected credit losses of $1,026,016 and $1,394,074)	435,505,126	441,431,334
Deferred policy acquisition costs	78,857,108	75,043,404
Deferred tax asset, net	19,483,755	19,532,525
Prepaid reinsurance premiums	179,757,762	168,724,465
Property and equipment, net	2,594,056	2,633,405
Accounts receivable - securities	32,162	1,501,079
Federal income taxes recoverable	7,271,415	8,102,321
Due from affiliate	8,841,178	1,907,527
Goodwill	5,625,354	5,625,354
Other intangible assets	958,010	958,010
Other	15,961	451,011
Total assets	2,294,308,053	2,266,293,888
Liabilities
Losses and loss expenses	1,124,452,191	1,126,156,838
Unearned premiums	634,136,621	599,411,468
Accrued expenses	3,685,534	3,946,974
Reinsurance balances payable	4,016,080	8,758,976
Borrowings under lines of credit	35,000,000	35,000,000
Cash dividends declared to stockholders	0	5,569,992
Other	7,931,153	7,704,286
Total liabilities	1,809,221,579	1,786,548,534
Stockholders' Equity
Preferred stock, $.01 par value, authorized 2,000,000 shares; none issued	0	0
Additional paid-in capital	336,817,945	335,694,478
Accumulated other comprehensive loss	(34,483,112)	(32,881,822)
Retained earnings	223,613,313	217,794,917
Treasury stock, at cost	(41,226,357)	(41,226,357)
Total stockholders' equity	485,086,474	479,745,354
Total liabilities and stockholders' equity	2,294,308,053	2,266,293,888
Class A Common Stock [Member]
Stockholders' Equity
Common stock	308,193	307,646
Class B Common Stock [Member]
Stockholders' Equity
Common stock	$ 56,492	$ 56,492

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - USD ($)	Mar. 31, 2024	Dec. 31, 2023
Fixed maturities
Held to maturity, allowance for expected credit losses	$ 1,329,099	$ 1,325,847
Reinsurance receivable, allowance for expected credit losses	$ 1,026,016	$ 1,394,074
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)	30,819,242	30,764,555
Common stock, shares outstanding (in shares)	27,816,654	27,761,967
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, 2024	Mar. 31, 2023
Revenues:
Net premiums earned	$ 227,748,679	$ 215,233,160
Investment income, net of investment expenses	10,972,327	9,449,078
Net investment gains (losses) (includes ($77,051) and ($2,199,673) accumulated other comprehensive income reclassifications)	2,113,378	(331,189)
Lease income	81,823	89,347
Installment payment fees	224,662	305,375
Total revenues	241,140,869	224,745,771
Expenses:
Net losses and loss expenses	150,896,415	138,105,889
Amortization of deferred policy acquisition costs	39,602,000	37,798,000
Other underwriting expenses	41,739,868	40,611,437
Policyholder dividends	1,054,659	1,343,340
Interest	154,597	152,957
Other expenses, net	444,934	437,715
Total expenses	233,892,473	218,449,338
Income before income tax expense	7,248,396	6,296,433
Income tax expense (includes $16,181 and $461,931 income tax benefit from reclassification items)	1,292,845	1,092,837
Net income	$ 5,955,551	$ 5,203,596
Class A Common Stock [Member]
Net income per share:
Basic (in dollars per share)	$ 0.18	$ 0.16
Diluted (in dollars per share)	0.18	0.16
Class B Common Stock [Member]
Net income per share:
Basic (in dollars per share)	0.16	0.15
Diluted (in dollars per share)	$ 0.16	$ 0.15

Consolidated Statements of In_2

Consolidated Statements of Income (Parenthetical) - USD ($)	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Revenues:
Investment gains (losses)	$ 2,113,378	$ (331,189)
Income tax benefit	1,292,845	1,092,837
Reclassification out of Accumulated Other Comprehensive Income [Member]
Revenues:
Investment gains (losses)	(77,051)	(2,199,673)
Income tax benefit	$ (16,181)	$ (461,931)

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Income - USD ($)	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Consolidated Statements of Comprehensive Income [Abstract]
Net income	$ 5,955,551	$ 5,203,596
Unrealized (loss) income on securities:
Unrealized holding (loss) income during the period, net of income tax (benefit) expense of ($441,850) and $603,390	(1,662,160)	2,269,896
Reclassification adjustment for losses included in net income, net of income tax benefit of $16,181 and $461,931	60,870	1,737,742
Other comprehensive (loss) income	(1,601,290)	4,007,638
Comprehensive income	$ 4,354,261	$ 9,211,234

Consolidated Statements of Co_2

Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($)	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Unrealized (loss) income on securities:
Income tax (benefit) expense on unrealized holding (loss) income arising during the period	$ (441,850)	$ 603,390
Income tax benefit on reclassification adjustment for losses	$ 16,181	$ 461,931

Consolidated Statement of Stock

Consolidated Statement of Stockholders' Equity - USD ($)	Common Stock [Member] Class A Common Stock [Member]	Common Stock [Member] Class A Common Stock [Member] Cumulative Effect, Period of Adoption, Adjustment [Member]	Common Stock [Member] Class B Common Stock [Member]	Common Stock [Member] Class B Common Stock [Member] Cumulative Effect, Period of Adoption, Adjustment [Member]	Additional Paid-In Capital [Member]	Additional Paid-In Capital [Member] Cumulative Effect, Period of Adoption, Adjustment [Member]	Accumulated Other Comprehensive Loss [Member]	Accumulated Other Comprehensive Loss [Member] Cumulative Effect, Period of Adoption, Adjustment [Member]	Retained Earnings [Member]	Retained Earnings [Member] Cumulative Effect, Period of Adoption, Adjustment [Member]	Treasury Stock [Member]	Treasury Stock [Member] Cumulative Effect, Period of Adoption, Adjustment [Member]	Total	Cumulative Effect, Period of Adoption, Adjustment [Member]
Beginning balance at Dec. 31, 2022	$ 301,203		$ 56,492		$ 325,601,647		$ (41,703,747)		$ 240,563,774		$ (41,226,357)		$ 483,593,012
Beginning balance (ASU 2016-13 [Member]) at Dec. 31, 2022		$ 0		$ 0		$ 0		$ 0		$ (1,895,902)		$ 0		$ (1,895,902)
Beginning balance (in shares) at Dec. 31, 2022	30,120,263		5,649,240
Beginning balance (in shares) (ASU 2016-13 [Member]) at Dec. 31, 2022		0		0
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock (stock compensation plans)	$ 350		$ 0		440,746		0		0		0		441,096
Issuance of common stock (stock compensation plans) (in shares)	35,045		0
Share-based compensation	$ 1,431		$ 0		2,218,355		0		0		0		2,219,786
Share-based compensation (in shares)	143,004		0
Net income	$ 0		$ 0		0		0		5,203,596		0		5,203,596
Cash dividends declared	0		0		0		0		(7,057)		0		(7,057)
Grant of stock options	0		0		114,724		0		(114,724)		0		0
Other comprehensive income (loss)	0		0		0		4,007,638		0		0		4,007,638
Ending balance at Mar. 31, 2023	$ 302,984		$ 56,492		328,375,472		(37,696,109)		243,749,687		(41,226,357)		493,562,169
Ending balance (in shares) at Mar. 31, 2023	30,298,312		5,649,240
Beginning balance at Dec. 31, 2023	$ 307,646		$ 56,492		335,694,478		(32,881,822)		217,794,917		(41,226,357)		479,745,354
Beginning balance (in shares) at Dec. 31, 2023	30,764,555		5,649,240
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock (stock compensation plans)	$ 383		$ 0		472,740		0		0		0		473,123
Issuance of common stock (stock compensation plans) (in shares)	38,287		0
Share-based compensation	$ 164		$ 0		522,460		0		0		0		522,624
Share-based compensation (in shares)	16,400		0
Net income	$ 0		$ 0		0		0		5,955,551		0		5,955,551
Cash dividends declared	0		0		0		0		(8,888)		0		(8,888)
Grant of stock options	0		0		128,267		0		(128,267)		0		0
Other comprehensive income (loss)	0		0		0		(1,601,290)		0		0		(1,601,290)
Ending balance at Mar. 31, 2024	$ 308,193		$ 56,492		$ 336,817,945		$ (34,483,112)		$ 223,613,313		$ (41,226,357)		$ 485,086,474
Ending balance (in shares) at Mar. 31, 2024	30,819,242		5,649,240

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($)	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Cash Flows from Operating Activities:
Net income	$ 5,955,551	$ 5,203,596
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Depreciation, amortization and other non-cash items	966,911	1,122,609
Net investment (gains) losses	(2,113,378)	331,189
Changes in assets and liabilities:
Losses and loss expenses	(1,704,647)	2,488,926
Unearned premiums	34,725,153	32,031,102
Premiums receivable	(13,568,339)	(15,699,109)
Deferred acquisition costs	(3,813,704)	(4,019,366)
Deferred income taxes	474,439	355,524
Reinsurance receivable	5,926,208	(5,291,035)
Prepaid reinsurance premiums	(11,033,297)	(9,960,021)
Accrued investment income	(551,627)	(1,322,590)
Due from affiliate	(6,933,651)	(7,651,293)
Reinsurance balances payable	(4,742,896)	(220,377)
Current income taxes	830,906	749,813
Accrued expenses	(261,440)	465,988
Other, net	661,955	734,310
Net adjustments	(1,137,407)	(5,884,330)
Net cash provided by (used in) operating activities	4,818,144	(680,734)
Cash Flows from Investing Activities:
Purchases of fixed maturities, held to maturity	(11,911,672)	(12,092,863)
Purchases of fixed maturities, available for sale	(46,490,362)	(34,354,601)
Purchases of equity securities, available for sale	(786,680)	(3,590,015)
Maturity of fixed maturities:
Held to maturity	8,008,034	6,127,883
Available for sale	30,922,241	12,365,403
Sales of fixed maturities:
Available for sale	2,995,648	748,250
Sales of equity securities, available for sale	0	3,066,129
Net purchases of property and equipment	0	(44,700)
Net sales of short-term investments	13,445,378	29,183,513
Net cash (used in) provided by investing activities	(3,817,413)	1,408,999
Cash Flows from Financing Activities:
Cash dividends paid	(5,578,880)	(5,304,047)
Issuance of common stock	590,916	2,288,494
Net cash used in financing activities	(4,987,964)	(3,015,553)
Net decrease in cash	(3,987,233)	(2,287,288)
Cash at beginning of period	23,792,273	25,123,332
Cash at end of period	19,805,040	22,836,044
Cash paid during period - Interest	156,292	156,346
Net cash paid during period - Taxes	$ 0	$ 0

Organization

Organization	3 Months Ended
	Mar. 31, 2024
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 are Atlantic States Insurance Company (“Atlantic States”), Michigan Insurance Company (“MICO”), the Peninsula Insurance Group (“Peninsula”), which consists of The Peninsula Insurance Company and its wholly owned subsidiary Peninsula Indemnity Company, and Southern Insurance Company of Virginia (“Southern”). Our insurance subsidiaries and their affiliates write commercial and personal lines of property and casualty coverages exclusively through a network of independent insurance agents in certain Mid-Atlantic, Midwestern, New England, At March 31, 2024, 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, 2024, Donegal Mutual held approximately 44% of our outstanding Class A common stock and approximately 84% of our outstanding Class B common stock. This ownership provides Donegal Mutual with approximately 71% 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 (the “ ” In addition, Donegal Mutual has 100% quota-share reinsurance agreements with Mountain States Commercial Insurance Company, Mountain States Indemnity Company and Southern Mutual Insurance Company. Donegal Mutual places its assumed business from these companies 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, 2024
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, 2024 are not necessarily indicative of the results of operations we expect for the year ending December 31, 2024. 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, 2023 that we filed with the Securities and Exchange Commission (“SEC”) on March 6, 2024.

Net Income Per Share

Net Income Per Share	3 Months Ended
	Mar. 31, 2024
Net Income Per Share [Abstract]
Net Income Per Share	3 - Net Income 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 net income per share. The two-class method is an earnings allocation formula that determines net income per share separately for each class of common stock based on dividends we have declared and an allocation of our remaining undistributed net income 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, 2024 2023 Class A Class B Class A Class B (in thousands, except per share data) Basic net income per share: Numerator: Allocation of net income $ 5,039 $ 917 $ 4,387 $ 817 Denominator: Weighted-average shares outstanding 27,811 5,577 27,193 5,577 Basic net income per share $ 0.18 $ 0.16 $ 0.16 $ 0.15 Diluted net income per share: Numerator: Allocation of net income $ 5,039 $ 917 $ 4,387 $ 817 Denominator: Number of shares used in basic computation 27,811 5,577 27,193 5,577 Weighted-average shares effect of dilutive securities: Director and employee stock options 35 — 173 — Number of shares used in diluted computation 27,846 5,577 27,366 5,577 Diluted net income per share $ 0.18 $ 0.16 $ 0.16 $ 0.15 We did not include outstanding options to purchase the following number of shares of Class A common stock in our computation of diluted net income 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, 2024 2023 Number of options to purchase Class A shares excluded 1,693,904 2,307,435

Reinsurance

Reinsurance	3 Months Ended
	Mar. 31, 2024
Reinsurance [Abstract]
Reinsurance	4 - Reinsurance Atlantic States and Donegal Mutual have participated in a pooling agreement since 1986 under which they pool substantially all of their respective premiums, losses and loss expenses, 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. 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 2024: • excess of loss reinsurance, under which Donegal Mutual and our insurance subsidiaries recover losses over a set retention of $3.0 million for all losses other than property and a set retention of $4.0 million for property losses; 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 $25.0 million up to aggregate losses of $175.0 million per occurrence. For property insurance, our insurance subsidiaries have excess of loss reinsurance that provides coverage of $36.0 million per loss over a set retention of $4.0 million. For liability insurance, our insurance subsidiaries have excess of loss reinsurance that provides coverage of $72.0 million per occurrence over a set retention of $3.0 million. For workers’ compensation insurance, our insurance subsidiaries have excess of loss reinsurance that provides coverage of $17.0 million on any one life over a set retention of $3.0 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 $3.0 million up to aggregate losses of $22.0 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 $6.0 million. The purpose of the agreement is to lessen the effects of an accumulation of losses arising from one event to levels that are appropriate given each subsidiary’s size, underwriting profile and surplus. 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, Atlantic States, MICO and Peninsula are required to be members of the Michigan Catastrophic Claims Association (“MCCA”). The MCCA provides reinsurance to Atlantic States, MICO and Peninsula for personal automobile and commercial automobile personal injury claims in the state of Michigan over a set retention. We report reinsurance receivable net of an allowance for expected credit losses. We base the allowance upon our ongoing review of amounts outstanding, historical loss data, changes in reinsurer credit standing and other relevant factors. We use a probability-of-default methodology, which reflects current and forecasted economic conditions, to estimate the allowance for expected credit losses.

Investments

Investments	3 Months Ended
	Mar. 31, 2024
Investments [Abstract]
Investments	5 - Investments The amortized cost and estimated fair values of our fixed maturities at March 31, 2024 were as follows: Carrying Value Allowance for Credit Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value (in thousands) Held to Maturity U.S. Treasury securities and obligations of U.S. government corporations and agencies $ 91,551 $ 55 $ 91,606 $ — $ 9,550 $ 82,056 Obligations of states and political subdivisions 376,569 266 376,835 1,057 50,664 327,228 Corporate securities 202,093 1,001 203,094 246 15,565 187,775 Mortgage-backed securities 13,186 7 13,193 9 447 12,755 Totals $ 683,399 $ 1,329 $ 684,728 $ 1,312 $ 76,226 $ 609,814 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 $ 91,561 $ 79 $ 4,585 $ 87,055 Obligations of states and political subdivisions 41,893 10 4,164 37,739 Corporate securities 208,888 74 13,792 195,170 Mortgage-backed securities 300,874 377 20,454 280,797 Totals $ 643,216 $ 540 $ 42,995 $ 600,761 At March 31, 2024, our holdings of obligations of states and political subdivisions included general obligation bonds with an aggregate fair value of $241.5 million and an amortized cost of $277.9 million. Our holdings at March 31, 2024 also included special revenue bonds with an aggregate fair value of $123.5 million and an amortized cost of $140.8 million. With respect to both categories of those bonds at March 31, 2024, 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 47% and 36%, respectively, of our total investments in special revenue bonds based on the carrying values of these investments at March 31, 2024. Many of the issuers of the special revenue bonds we held at March 31, 2024 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. The amortized cost and estimated fair values of our fixed maturities at December 31, 2023 were as follows: Carrying Value Allowance for Credit Losses Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value (in thousands) Held to Maturity U.S. Treasury securities and obligations of U.S. government corporations and agencies $ 91,518 $ 54 $ 91,572 $ — $ 8,885 $ 82,687 Obligations of states and political subdivisions 376,898 266 377,164 1,449 46,845 331,768 Corporate securities 201,847 1,000 202,847 207 14,805 188,249 Mortgage-backed securities 9,234 6 9,240 — 418 8,822 Totals $ 679,497 $ 1,326 $ 680,823 $ 1,656 $ 70,953 $ 611,526 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value (in thousands) Available for Sale U.S. Treasury securities and obligations of U.S. government corporations and agencies $ 89,367 $ 199 $ 4,147 $ 85,419 Obligations of states and political subdivisions 41,958 12 3,854 38,116 Corporate securities 211,882 100 15,189 196,793 Mortgage-backed securities 286,520 594 18,094 269,020 Totals $ 629,727 $ 905 $ 41,284 $ 589,348 At December 31, 2023, our holdings of obligations of states and political subdivisions included general obligation bonds with an aggregate fair value of $245.1 million and an amortized cost of $278.3 million. Our holdings also included special revenue bonds with an aggregate fair value of $124.8 million and an amortized cost of $140.8 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, 2023. Education bonds and water and sewer utility bonds represented 47% and 35%, respectively, of our total investments in special revenue bonds based on their carrying values at December 31, 2023. Many of the issuers of the special revenue bonds we held at December 31, 2023 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 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 48,577 and $77,032 in other comprehensive (loss) income during the three months ended March 31, 2024 and 2023, respectively. At March 31, 2024 and December 31, 2023, net unrealized losses of $1.2 million and $1.3 million, respectively, remained within accumulated other comprehensive loss. We show below the amortized cost and estimated fair value of our fixed maturities at March 31, 2024 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 $ 42,228 $ 41,549 Due after one year through five years 130,205 121,873 Due after five years through ten years 237,241 216,118 Due after ten years 261,861 217,519 Mortgage-backed securities 13,193 12,755 Total held to maturity $ 684,728 $ 609,814 Available for sale Due in one year or less $ 62,925 $ 61,761 Due after one year through five years 170,058 160,071 Due after five years through ten years 86,138 77,937 Due after ten years 23,221 20,195 Mortgage-backed securities 300,874 280,797 Total available for sale $ 643,216 $ 600,761 The cost and estimated fair values of our equity securities at March 31, 2024 were as follows: Cost Gross Gains Gross Losses Estimated Fair Value (in thousands) Equity securities $ 19,631 $ 9,315 $ 63 $ 28,883 The cost and estimated fair values of our equity securities at December 31, 2023 were as follows: Cost Gross Gains Gross Losses Estimated Fair Value (in thousands) Equity securities $ 18,844 $ 7,059 $ — $ 25,903 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, 2024 2023 (in thousands) Gross realized gains: Fixed maturities $ 4 $ 22 Equity securities — 285 4 307 Gross realized losses: Fixed maturities 81 2,222 Equity securities — 46 81 2,268 Net realized losses (77 ) (1,961 ) Gross unrealized gains on equity securities 2,256 2,202 Gross unrealized losses on equity securities (63 ) (485 ) Fixed maturities - credit impairment charges (3 ) (87 ) Net investment gains (losses) $ 2,113 $ (331 ) We held fixed maturities with unrealized losses representing declines that we considered temporary at March 31, 2024 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 $ 37,188 $ 299 $ 125,533 $ 13,836 Obligations of states and political subdivisions 29,747 251 304,139 54,577 Corporate securities 18,034 431 343,673 28,926 Mortgage-backed securities 58,891 656 187,697 20,245 Totals $ 143,860 $ 1,637 $ 961,042 $ 117,584 We held fixed maturities with unrealized losses representing declines that we considered temporary at December 31, 2023 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 $ 32,224 $ 217 $ 116,538 $ 12,815 Obligations of states and political subdivisions 13,097 68 307,429 50,631 Corporate securities 13,066 324 353,863 29,670 Mortgage-backed securities 46,964 221 178,113 18,291 Totals $ 105,351 $ 830 $ 955,943 $ 111,407 We make estimates concerning the valuation of our investments and, as applicable, the recognition of 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 an available-for-sale 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 security to the present value of the cash flows we expect to collect. If we expect a cash flow shortfall, we consider that a credit loss has occurred. If we determine that a credit loss has occurred, we establish an allowance for credit loss. We then recognize the amount of the allowance in our results of operations, and we recognize the remaining portion of the impairment loss in our other comprehensive income, net of applicable taxes. We regularly review the allowance for credit losses and recognize changes in the allowance in our results of operations. In addition, we may write down securities in an unrealized loss position based on a number of other factors, including when the fair value of an investment is significantly below its cost, when the financial condition of the issuer of a security has deteriorated, the occurrence of industry, issuer or geographic events that have negatively impacted the value of a security and rating agency downgrades. For held-to-maturity debt securities, we make estimates concerning expected credit losses at an aggregated level rather that monitoring individual debt securities for credit losses. We establish an allowance for expected credit losses based on an ongoing review of securities held, historical loss data, changes in issuer credit standing and other relevant factors. We utilize a probability-of-default methodology, which reflects current and forecasted economic conditions, to estimate the allowance for expected credit losses and recognize changes to the allowance in our results of operations. We held 893 debt securities that were in an unrealized loss position at March 31, 2024. Based upon our analysis of general market conditions and underlying factors impacting these debt securities, we considered these declines in value to be temporary. 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, 2024
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, 2024 and 2023 is as follows: Three Months Ended March 31, 2024 2023 (in thousands) Revenues: Premiums earned: Commercial lines $ 132,092 $ 133,187 Personal lines 95,657 82,046 GAAP premiums earned 227,749 215,233 Net investment income 10,972 9,449 Investment gains (losses) 2,113 (331 ) Other 307 395 Total revenues $ 241,141 $ 224,746 Income before income tax expense: Underwriting (loss) gain: Commercial lines $ (10,371 ) $ (7,912 ) Personal lines (532 ) 879 SAP underwriting loss (10,903 ) (7,033 ) GAAP adjustments 5,359 4,407 GAAP underwriting loss (5,544 ) (2,626 ) Net investment income 10,972 9,449 Investment gains (losses) 2,113 (331 ) Other (293 ) (196 ) Income before income tax expense $ 7,248 $ 6,296

Borrowings

Borrowings	3 Months Ended
	Mar. 31, 2024
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, 2024, we had no outstanding borrowings from M&T and had the ability to borrow up to $20.0 million at an interest rate equal to the then-current Term SOFR rate plus 2.11%. 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, 2024. The cash advance carries a fixed interest rate of 1.74% and is due in August 2024 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, 2024. FHLB of Pittsburgh stock purchased and owned $ 1,591,800 Collateral pledged, at par (carrying value $41,087,980) 44,459,589 Borrowing capacity currently available 3,579,560

Share-Based Compensation

Share-Based Compensation	3 Months Ended
	Mar. 31, 2024
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 $286,001 and $251,773 for the three months ended March 31, 2024 and 2023, respectively, with a corresponding income tax benefit of $60,060 and $52,872, respectively. At March 31, 2024, we had $1.6 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, 2024 and 2023 of $ 236,624 and $2.0 million, respectively. We realized actual tax benefits for the tax deductions related to those option exercises of $ 1,719 and $46,188 for the three months ended March 31, 2024 and 2023, respectively.

Fair Value Measurements

Fair Value Measurements	3 Months Ended
	Mar. 31, 2024
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, 2024, 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, 2024, 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 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, 2024: 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 $ 87,055 $ — $ 87,055 $ — Obligations of states and political subdivisions 37,739 — 37,739 — Corporate securities 195,170 — 195,170 — Mortgage-backed securities 280,797 — 280,797 — Equity securities 28,883 26,891 1,992 — Total investments in the fair value hierarchy $ 629,644 $ 26,891 $ 602,753 $ — The following table presents our fair value measurements for our investments in available-for-sale fixed maturity and equity securities at December 31, 2023: 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 $ 85,419 $ — $ 85,419 $ — Obligations of states and political subdivisions 38,116 — 38,116 — Corporate securities 196,793 — 196,793 — Mortgage-backed securities 269,020 — 269,020 — Equity securities 25,903 23,911 1,992 — Totals $ 615,251 $ 23,911 $ 591,340 $ —

Income Taxes

Income Taxes	3 Months Ended
	Mar. 31, 2024
Income Taxes [Abstract]
Income Taxes	10 - Income Taxes At March 31, 2024 and December 31, 2023, respectively, we had no material unrecognized tax benefits or accrued interest and penalties. In 2019, the Internal Revenue Service (“IRS”) began a federal income tax audit of our consolidated tax returns for tax years 2016 to 2018. No material issues have been raised and no adjustments have been proposed as a result of this ongoing audit. We provide a valuation allowance when we believe it is more likely than not that we will not realize some portion of our tax assets. We established a valuation allowance of $8.1 million for our net state operating loss carryforward, which will expire between 2024 and 2043. We have determined that we are not required to establish a valuation allowance for our other deferred tax assets of $39.4 million and $38.4 million at March 31, 2024 and December 31, 2023, respectively, because it is more likely than not that we will realize these deferred tax assets through reversals of existing temporary differences, future taxable income and the implementation of tax planning strategies.

Liabilities for Losses and Loss

Liabilities for Losses and Loss Expenses	3 Months Ended
	Mar. 31, 2024
Liabilities 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. For example, legislative, judicial and regulatory actions may expand coverage definitions, retroactively mandate coverage or otherwise require our insurance subsidiaries to pay losses for damages that their policies explicitly excluded or did not intend to cover. 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 2024 2023 (in thousands) Balance at January 1 $ 1,126,157 $ 1,121,046 Less reinsurance recoverable (437,014 ) (451,184 ) Cumulative effect of adoption of updated accounting guidance for credit losses at January 1 — 1,132 Net balance at January 1 689,143 670,994 Incurred related to: Current year 159,289 146,413 Prior years (8,393 ) (8,307 ) Total incurred 150,896 138,106 Paid related to: Current year 47,886 41,205 Prior years 98,197 98,820 Total paid 146,083 140,025 Net balance at end of period 693,956 669,075 Plus reinsurance recoverable 430,496 454,460 Balance at end of period $ 1,124,452 $ 1,123,535 Our insurance subsidiaries recognized a decrease in their liabilities for losses and loss expenses of prior years of $8.4 million and $8.3 million for the three months ended March 31, 2024 and 2023, 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 2024 development represented 1.2% of the December 31, 2023 net carried reserves and resulted from lower-than-expected loss emergence or severity primarily in the commercial multi-peril, commercial automobile and homeowners lines of business. The majority of the 2024 development related to decreases in the liabilities for losses and loss expenses of prior years for Atlantic States and MICO. The 2023 development represented 1.2% of the December 31, 2022 net carried reserves and resulted primarily from lower-than-expected loss emergence or severity primarily in the commercial automobile, workers’ compensation and commercial multi-peril lines of business. The majority of the 2023 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, 2024. 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.

Allowance for Expected Credit L

Allowance for Expected Credit Losses	3 Months Ended
	Mar. 31, 2024
Allowance for Expected Credit Losses [Abstract]
Allowance for Expected Credit Losses	12 - Allowance for Expected Credit Losses We make estimates with respect to the potential impairment of financial instruments and recognize expected credit losses as an allowance rather than impairments as credit losses are incurred. We have established allowances for expected credit losses with respect to held-to-maturity debt securities and reinsurance recoverable. Held-to-Maturity Fixed-Maturity Securities For held-to-maturity debt securities, we make estimates concerning expected credit losses at an aggregated level rather that monitoring individual debt securities for credit losses. We establish an allowance for expected credit losses based on an ongoing review of securities held, historical loss data, changes in issuer credit standing and other relevant factors. We utilize a probability-of-default methodology, which reflects current and forecasted economic conditions, to estimate the allowance for expected credit losses and recognize changes to the allowance in our results of operations. The following table presents the balances for fixed maturities classified as held-to-maturity, net of the allowance for expected credit losses, at March 31, 2024 and 2023 and changes in the allowance for expected credit losses for the three months ended March 31, 2024 and 2023. At and For the Three Months Ended March 31, 2024 At and For the Three Months Ended March 31, 2023 Held-to- Maturity, Net of Allowance for Expected Credit Losses Allowance for Expected Credit Losses Held-to- Maturity, Net of Allowance for Expected Credit Losses Allowance for Expected Credit Losses (in thousands) Balance at beginning of period $ 679,497 $ 1,326 $ 668,439 $ — Cumulative effect of adoption of updated accounting guidance for credit losses — 1,268 Current period change for expected credit losses 3 87 Balance at end of period $ 683,399 $ 1,329 $ 693,779 $ 1,355 Reinsurance Receivable For reinsurance receivable, we establish an allowance for expected credit losses based upon our ongoing review of amounts outstanding, historical loss data, changes in reinsurer credit standing and other relevant factors. We utilize a probability-of-default methodology, which reflects current and forecasted economic conditions, to estimate the allowance for expected credit losses and recognize changes to the allowance in our results of operations. The following table presents the balances for reinsurance receivable, net of the allowance for expected credit losses, at March 31, 2024 and 2023, and the changes in the allowance for expected credit losses for the three months ended March 31, 2024 and 2023. At and For the Three Months Ended March 31, 2024 At and For the Three Months Ended March 31, 2023 Reinsurance Receivable, Net of Allowance for Expected Credit Losses Allowance for Expected Credit Losses Reinsurance Receivable, Net of Allowance for Expected Credit Losses Allowance for Expected Credit Losses (in thousands) Balance at beginning of period $ 441,431 $ 1,394 $ 456,522 $ — Cumulative effect of adoption of updated accounting guidance for credit losses — 1,132 Current period change for expected credit losses (368 ) 335 Balance at end of period $ 435,505 $ 1,026 $ 460,681 $ 1,467

Impact of New Accounting Standa

Impact of New Accounting Standards	3 Months Ended
	Mar. 31, 2024
Impact of New Accounting Standards [Abstract]
Impact of New Accounting Standards	13 - Impact of New Accounting Standards In September 2016, the FASB issued guidance that amended 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 delayed 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, 2023 from December 15, 2019. We were a smaller reporting company at the time this guidance was issued, and our adoption of this guidance on January 1, 2023 resulted in an after-tax decrease in retained earnings of $1.9 million. The adoption of this guidance did not have a significant impact on our results of operations or cash flows.

Insider Trading Arrangements

Insider Trading Arrangements	3 Months Ended
	Mar. 31, 2024
Insider Trading Arrangements [Line Items]
Rule 10b5-1 Arrangement Adopted	false
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false

Organization (Policies)

Organization (Policies)	3 Months Ended
	Mar. 31, 2024
Organization [Abstract]
Organization	Donegal Mutual Insurance Company (“Donegal Mutual”) organized us as an insurance holding company on August 26, 1986. Our insurance subsidiaries are Atlantic States Insurance Company (“Atlantic States”), Michigan Insurance Company (“MICO”), the Peninsula Insurance Group (“Peninsula”), which consists of The Peninsula Insurance Company and its wholly owned subsidiary Peninsula Indemnity Company, and Southern Insurance Company of Virginia (“Southern”). Our insurance subsidiaries and their affiliates write commercial and personal lines of property and casualty coverages exclusively through a network of independent insurance agents in certain Mid-Atlantic, Midwestern, New England, At March 31, 2024, 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, 2024, Donegal Mutual held approximately 44% of our outstanding Class A common stock and approximately 84% of our outstanding Class B common stock. This ownership provides Donegal Mutual with approximately 71% 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 (the “ ” In addition, Donegal Mutual has 100% quota-share reinsurance agreements with Mountain States Commercial Insurance Company, Mountain States Indemnity Company and Southern Mutual Insurance Company. Donegal Mutual places its assumed business from these companies 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, 2024
Impact of New Accounting Standards [Abstract]
Impact of New Accounting Standards	In September 2016, the FASB issued guidance that amended 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 delayed 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, 2023 from December 15, 2019. We were a smaller reporting company at the time this guidance was issued, and our adoption of this guidance on January 1, 2023 resulted in an after-tax decrease in retained earnings of $1.9 million. The adoption of this guidance did not have a significant impact on our results of operations or cash flows.

Net Income Per Share (Tables)

Net Income Per Share (Tables)	3 Months Ended
	Mar. 31, 2024
Net Income 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, 2024 2023 Class A Class B Class A Class B (in thousands, except per share data) Basic net income per share: Numerator: Allocation of net income $ 5,039 $ 917 $ 4,387 $ 817 Denominator: Weighted-average shares outstanding 27,811 5,577 27,193 5,577 Basic net income per share $ 0.18 $ 0.16 $ 0.16 $ 0.15 Diluted net income per share: Numerator: Allocation of net income $ 5,039 $ 917 $ 4,387 $ 817 Denominator: Number of shares used in basic computation 27,811 5,577 27,193 5,577 Weighted-average shares effect of dilutive securities: Director and employee stock options 35 — 173 — Number of shares used in diluted computation 27,846 5,577 27,366 5,577 Diluted net income per share $ 0.18 $ 0.16 $ 0.16 $ 0.15
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 net income 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, 2024 2023 Number of options to purchase Class A shares excluded 1,693,904 2,307,435

Investments (Tables)

Investments (Tables)	3 Months Ended
	Mar. 31, 2024
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, 2024 were as follows: Carrying Value Allowance for Credit Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value (in thousands) Held to Maturity U.S. Treasury securities and obligations of U.S. government corporations and agencies $ 91,551 $ 55 $ 91,606 $ — $ 9,550 $ 82,056 Obligations of states and political subdivisions 376,569 266 376,835 1,057 50,664 327,228 Corporate securities 202,093 1,001 203,094 246 15,565 187,775 Mortgage-backed securities 13,186 7 13,193 9 447 12,755 Totals $ 683,399 $ 1,329 $ 684,728 $ 1,312 $ 76,226 $ 609,814 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 $ 91,561 $ 79 $ 4,585 $ 87,055 Obligations of states and political subdivisions 41,893 10 4,164 37,739 Corporate securities 208,888 74 13,792 195,170 Mortgage-backed securities 300,874 377 20,454 280,797 Totals $ 643,216 $ 540 $ 42,995 $ 600,761 The amortized cost and estimated fair values of our fixed maturities at December 31, 2023 were as follows: Carrying Value Allowance for Credit Losses Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value (in thousands) Held to Maturity U.S. Treasury securities and obligations of U.S. government corporations and agencies $ 91,518 $ 54 $ 91,572 $ — $ 8,885 $ 82,687 Obligations of states and political subdivisions 376,898 266 377,164 1,449 46,845 331,768 Corporate securities 201,847 1,000 202,847 207 14,805 188,249 Mortgage-backed securities 9,234 6 9,240 — 418 8,822 Totals $ 679,497 $ 1,326 $ 680,823 $ 1,656 $ 70,953 $ 611,526 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value (in thousands) Available for Sale U.S. Treasury securities and obligations of U.S. government corporations and agencies $ 89,367 $ 199 $ 4,147 $ 85,419 Obligations of states and political subdivisions 41,958 12 3,854 38,116 Corporate securities 211,882 100 15,189 196,793 Mortgage-backed securities 286,520 594 18,094 269,020 Totals $ 629,727 $ 905 $ 41,284 $ 589,348
Amortized Cost 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, 2024 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 $ 42,228 $ 41,549 Due after one year through five years 130,205 121,873 Due after five years through ten years 237,241 216,118 Due after ten years 261,861 217,519 Mortgage-backed securities 13,193 12,755 Total held to maturity $ 684,728 $ 609,814 Available for sale Due in one year or less $ 62,925 $ 61,761 Due after one year through five years 170,058 160,071 Due after five years through ten years 86,138 77,937 Due after ten years 23,221 20,195 Mortgage-backed securities 300,874 280,797 Total available for sale $ 643,216 $ 600,761
Cost and Estimated Fair Values of Equity Securities	The cost and estimated fair values of our equity securities at March 31, 2024 were as follows: Cost Gross Gains Gross Losses Estimated Fair Value (in thousands) Equity securities $ 19,631 $ 9,315 $ 63 $ 28,883 The cost and estimated fair values of our equity securities at December 31, 2023 were as follows: Cost Gross Gains Gross Losses Estimated Fair Value (in thousands) Equity securities $ 18,844 $ 7,059 $ — $ 25,903
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, 2024 2023 (in thousands) Gross realized gains: Fixed maturities $ 4 $ 22 Equity securities — 285 4 307 Gross realized losses: Fixed maturities 81 2,222 Equity securities — 46 81 2,268 Net realized losses (77 ) (1,961 ) Gross unrealized gains on equity securities 2,256 2,202 Gross unrealized losses on equity securities (63 ) (485 ) Fixed maturities - credit impairment charges (3 ) (87 ) Net investment gains (losses) $ 2,113 $ (331 )
Fixed Maturities with Unrealized Losses	We held fixed maturities with unrealized losses representing declines that we considered temporary at March 31, 2024 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 $ 37,188 $ 299 $ 125,533 $ 13,836 Obligations of states and political subdivisions 29,747 251 304,139 54,577 Corporate securities 18,034 431 343,673 28,926 Mortgage-backed securities 58,891 656 187,697 20,245 Totals $ 143,860 $ 1,637 $ 961,042 $ 117,584 We held fixed maturities with unrealized losses representing declines that we considered temporary at December 31, 2023 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 $ 32,224 $ 217 $ 116,538 $ 12,815 Obligations of states and political subdivisions 13,097 68 307,429 50,631 Corporate securities 13,066 324 353,863 29,670 Mortgage-backed securities 46,964 221 178,113 18,291 Totals $ 105,351 $ 830 $ 955,943 $ 111,407

Segment Information (Tables)

Segment Information (Tables)	3 Months Ended
	Mar. 31, 2024
Segment Information [Abstract]
Financial Data by Segment	Financial data by segment for the three months ended March 31, 2024 and 2023 is as follows: Three Months Ended March 31, 2024 2023 (in thousands) Revenues: Premiums earned: Commercial lines $ 132,092 $ 133,187 Personal lines 95,657 82,046 GAAP premiums earned 227,749 215,233 Net investment income 10,972 9,449 Investment gains (losses) 2,113 (331 ) Other 307 395 Total revenues $ 241,141 $ 224,746 Income before income tax expense: Underwriting (loss) gain: Commercial lines $ (10,371 ) $ (7,912 ) Personal lines (532 ) 879 SAP underwriting loss (10,903 ) (7,033 ) GAAP adjustments 5,359 4,407 GAAP underwriting loss (5,544 ) (2,626 ) Net investment income 10,972 9,449 Investment gains (losses) 2,113 (331 ) Other (293 ) (196 ) Income before income tax expense $ 7,248 $ 6,296

Borrowings (Tables)

Borrowings (Tables)	3 Months Ended
	Mar. 31, 2024
FHLB of Pittsburgh [Member]
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, 2024. FHLB of Pittsburgh stock purchased and owned $ 1,591,800 Collateral pledged, at par (carrying value $41,087,980) 44,459,589 Borrowing capacity currently available 3,579,560

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	3 Months Ended
	Mar. 31, 2024
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, 2024: 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 $ 87,055 $ — $ 87,055 $ — Obligations of states and political subdivisions 37,739 — 37,739 — Corporate securities 195,170 — 195,170 — Mortgage-backed securities 280,797 — 280,797 — Equity securities 28,883 26,891 1,992 — Total investments in the fair value hierarchy $ 629,644 $ 26,891 $ 602,753 $ — The following table presents our fair value measurements for our investments in available-for-sale fixed maturity and equity securities at December 31, 2023: 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 $ 85,419 $ — $ 85,419 $ — Obligations of states and political subdivisions 38,116 — 38,116 — Corporate securities 196,793 — 196,793 — Mortgage-backed securities 269,020 — 269,020 — Equity securities 25,903 23,911 1,992 — Totals $ 615,251 $ 23,911 $ 591,340 $ —

Liabilities for Losses and Lo_2

Liabilities for Losses and Loss Expenses (Tables)	3 Months Ended
	Mar. 31, 2024
Liabilities 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 2024 2023 (in thousands) Balance at January 1 $ 1,126,157 $ 1,121,046 Less reinsurance recoverable (437,014 ) (451,184 ) Cumulative effect of adoption of updated accounting guidance for credit losses at January 1 — 1,132 Net balance at January 1 689,143 670,994 Incurred related to: Current year 159,289 146,413 Prior years (8,393 ) (8,307 ) Total incurred 150,896 138,106 Paid related to: Current year 47,886 41,205 Prior years 98,197 98,820 Total paid 146,083 140,025 Net balance at end of period 693,956 669,075 Plus reinsurance recoverable 430,496 454,460 Balance at end of period $ 1,124,452 $ 1,123,535

Allowance for Expected Credit_2

Allowance for Expected Credit Losses (Tables)	3 Months Ended
	Mar. 31, 2024
Allowance for Expected Credit Losses [Abstract]
Held-to-Maturity Fixed-Maturity Securities	The following table presents the balances for fixed maturities classified as held-to-maturity, net of the allowance for expected credit losses, at March 31, 2024 and 2023 and changes in the allowance for expected credit losses for the three months ended March 31, 2024 and 2023. At and For the Three Months Ended March 31, 2024 At and For the Three Months Ended March 31, 2023 Held-to- Maturity, Net of Allowance for Expected Credit Losses Allowance for Expected Credit Losses Held-to- Maturity, Net of Allowance for Expected Credit Losses Allowance for Expected Credit Losses (in thousands) Balance at beginning of period $ 679,497 $ 1,326 $ 668,439 $ — Cumulative effect of adoption of updated accounting guidance for credit losses — 1,268 Current period change for expected credit losses 3 87 Balance at end of period $ 683,399 $ 1,329 $ 693,779 $ 1,355
Reinsurance Receivable	The following table presents the balances for reinsurance receivable, net of the allowance for expected credit losses, at March 31, 2024 and 2023, and the changes in the allowance for expected credit losses for the three months ended March 31, 2024 and 2023. At and For the Three Months Ended March 31, 2024 At and For the Three Months Ended March 31, 2023 Reinsurance Receivable, Net of Allowance for Expected Credit Losses Allowance for Expected Credit Losses Reinsurance Receivable, Net of Allowance for Expected Credit Losses Allowance for Expected Credit Losses (in thousands) Balance at beginning of period $ 441,431 $ 1,394 $ 456,522 $ — Cumulative effect of adoption of updated accounting guidance for credit losses — 1,132 Current period change for expected credit losses (368 ) 335 Balance at end of period $ 435,505 $ 1,026 $ 460,681 $ 1,467

Organization (Details)

Organization (Details)	3 Months Ended
	Mar. 31, 2024 Segment
Organization [Abstract]
Number of operating segments	3
Atlantic States [Member]
Organization [Abstract]
Percentage of share in results of pooled business subsidiary	80%
Donegal Mutual Insurance Company [Member]
Organization [Abstract]
Voting power percentage of outstanding common stock	71%
Premiums and losses related to certain products	100%
Donegal Mutual Insurance Company [Member] | Class A Common Stock [Member]
Organization [Abstract]
Stock ownership percentage held by major shareholder	44%
Donegal Mutual Insurance Company [Member] | Class B Common Stock [Member]
Organization [Abstract]
Stock ownership percentage held by major shareholder	84%

Net Income Per Share (Details)

Net Income Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Net Income Per Share [Abstract]
Minimum percentage of class A common stock declared dividend excess over class B dividend	10%
Class A Common Stock [Member]
Numerator [Abstract]
Allocation of net income	$ 5,039	$ 4,387
Denominator [Abstract]
Weighted-average shares outstanding (in shares)	27,811,000	27,193,000
Basic net income per share (in dollars per share)	$ 0.18	$ 0.16
Numerator [Abstract]
Allocation of net income	$ 5,039	$ 4,387
Denominator [Abstract]
Number of shares used in basic computation (in shares)	27,811,000	27,193,000
Weighted-average shares effect of dilutive securities [Abstract]
Director and employee stock options (in shares)	35,000	173,000
Number of shares used in diluted computation (in shares)	27,846,000	27,366,000
Diluted net income per share (in dollars per share)	$ 0.18	$ 0.16
Class B Common Stock [Member]
Numerator [Abstract]
Allocation of net income	$ 917	$ 817
Denominator [Abstract]
Weighted-average shares outstanding (in shares)	5,577,000	5,577,000
Basic net income per share (in dollars per share)	$ 0.16	$ 0.15
Numerator [Abstract]
Allocation of net income	$ 917	$ 817
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 net income per share (in dollars per share)	$ 0.16	$ 0.15
Options [Member]
Antidilutive Securities Excluded from Computation of Earnings (Loss) Per Share [Abstract]
Number of options to purchase Class A shares excluded (in shares)	1,693,904	2,307,435

Reinsurance (Details)

Reinsurance (Details) $ in Millions	3 Months Ended
	Mar. 31, 2024 USD ($)
Reinsurance Transactions [Abstract]
Loss reinsurance agreement contracts retention amount	$ 3
Workers' compensation and retention amount	4
Property Insurance [Member]
Reinsurance Transactions [Abstract]
Catastrophe reinsurance, set retention amount	4
Maximum amount of loss coverage under reinsurance agreement of property catastrophe	36
Liability Insurance [Member]
Reinsurance Transactions [Abstract]
Catastrophe reinsurance, set retention amount	3
Maximum amount of loss coverage under reinsurance agreement of property catastrophe	72
Workers' Compensation Insurance [Member]
Reinsurance Transactions [Abstract]
Catastrophe reinsurance, set retention amount	3
Maximum amount of loss coverage under reinsurance agreement of property catastrophe	$ 17
Third Party Reinsurance [Member]
Reinsurance Transactions [Abstract]
Percentage of accumulation of losses	100%
Catastrophe reinsurance, set retention amount	$ 25
Maximum amount of loss coverage under reinsurance agreement of property catastrophe	$ 175
Atlantic States [Member]
Reinsurance Transactions [Abstract]
Percentage of share in results of pooled business subsidiary	80%
Donegal Mutual [Member]
Reinsurance Transactions [Abstract]
Percentage of share in results of pooled business owned by third party	20%
Percentage of accumulation of losses	100%
Catastrophe reinsurance, set retention amount	$ 3
Maximum amount of loss coverage under reinsurance agreement of property catastrophe	22
Additional coverage amount	$ 6

Investments, Amortized Cost and

Investments, Amortized Cost and Estimated Fair Values of Fixed Maturities (Details) - USD ($)	Mar. 31, 2024	Dec. 31, 2023	Mar. 31, 2023	Dec. 31, 2022
Amortized Cost and Estimated Fair Values of Fixed Maturities [Abstract]
Held to maturity, carrying value	$ 683,398,852	$ 679,497,038	$ 693,779,000	$ 668,439,000
Held to maturity, allowance for credit loss	1,329,099	1,325,847	$ 1,355,000	$ 0
Held to maturity, amortized cost	684,728,000	680,823,000
Held to maturity, gross unrealized gains	1,312,000	1,656,000
Held to maturity, gross unrealized losses	76,226,000	70,953,000
Held to maturity, estimated fair value	609,814,000	611,526,000
Total available for sale, amortized cost	643,216,000	629,727,000
Available for sale, gross unrealized gains	540,000	905,000
Available for sale, gross unrealized losses	42,995,000	41,284,000
Available for sale, estimated fair value	600,761,425	589,348,243
U.S. Treasury Securities and Obligations of U.S. Government Corporations and Agencies [Member]
Amortized Cost and Estimated Fair Values of Fixed Maturities [Abstract]
Held to maturity, carrying value	91,551,000	91,518,000
Held to maturity, allowance for credit loss	55,000	54,000
Held to maturity, amortized cost	91,606,000	91,572,000
Held to maturity, gross unrealized gains	0	0
Held to maturity, gross unrealized losses	9,550,000	8,885,000
Held to maturity, estimated fair value	82,056,000	82,687,000
Total available for sale, amortized cost	91,561,000	89,367,000
Available for sale, gross unrealized gains	79,000	199,000
Available for sale, gross unrealized losses	4,585,000	4,147,000
Available for sale, estimated fair value	87,055,000	85,419,000
Obligations of States and Political Subdivisions [Member]
Amortized Cost and Estimated Fair Values of Fixed Maturities [Abstract]
Held to maturity, carrying value	376,569,000	376,898,000
Held to maturity, allowance for credit loss	266,000	266,000
Held to maturity, amortized cost	376,835,000	377,164,000
Held to maturity, gross unrealized gains	1,057,000	1,449,000
Held to maturity, gross unrealized losses	50,664,000	46,845,000
Held to maturity, estimated fair value	327,228,000	331,768,000
Total available for sale, amortized cost	41,893,000	41,958,000
Available for sale, gross unrealized gains	10,000	12,000
Available for sale, gross unrealized losses	4,164,000	3,854,000
Available for sale, estimated fair value	37,739,000	38,116,000
Corporate Securities [Member]
Amortized Cost and Estimated Fair Values of Fixed Maturities [Abstract]
Held to maturity, carrying value	202,093,000	201,847,000
Held to maturity, allowance for credit loss	1,001,000	1,000,000
Held to maturity, amortized cost	203,094,000	202,847,000
Held to maturity, gross unrealized gains	246,000	207,000
Held to maturity, gross unrealized losses	15,565,000	14,805,000
Held to maturity, estimated fair value	187,775,000	188,249,000
Total available for sale, amortized cost	208,888,000	211,882,000
Available for sale, gross unrealized gains	74,000	100,000
Available for sale, gross unrealized losses	13,792,000	15,189,000
Available for sale, estimated fair value	195,170,000	196,793,000
Mortgage-Backed Securities [Member]
Amortized Cost and Estimated Fair Values of Fixed Maturities [Abstract]
Held to maturity, carrying value	13,186,000	9,234,000
Held to maturity, allowance for credit loss	7,000	6,000
Held to maturity, amortized cost	13,193,000	9,240,000
Held to maturity, gross unrealized gains	9,000	0
Held to maturity, gross unrealized losses	447,000	418,000
Held to maturity, estimated fair value	12,755,000	8,822,000
Total available for sale, amortized cost	300,874,000	286,520,000
Available for sale, gross unrealized gains	377,000	594,000
Available for sale, gross unrealized losses	20,454,000	18,094,000
Available for sale, estimated fair value	$ 280,797,000	$ 269,020,000

Investments, Summary (Details)

Investments, Summary (Details) - USD ($)		3 Months Ended		12 Months Ended
	Nov. 30, 2013	Mar. 31, 2024	Mar. 31, 2023	Dec. 31, 2023
Investments [Abstract]
Net unrealized losses arising prior to reclassification date	$ (15,100,000)
Amortization of other comprehensive loss		$ 48,577	$ 77,032
Accumulated other comprehensive loss		$ (34,483,112)		$ (32,881,822)
Minimum [Member]
Investments [Abstract]
Percentage of which the company held security of any issuer		10%		10%
Obligations of States and Political Subdivisions [Member]
Investments [Abstract]
Aggregate fair value of bond held		$ 241,500,000		$ 245,100,000
Amortized cost of bond held		277,900,000		278,300,000
Special Revenue Bonds [Member]
Investments [Abstract]
Aggregate fair value of bond held		123,500,000		124,800,000
Amortized cost of bond held		$ 140,800,000		$ 140,800,000
Education Bonds [Member]
Investments [Abstract]
Percentage of investments in special revenue bonds		47%		47%
Water and Sewer Utility Bonds [Member]
Investments [Abstract]
Percentage of investments in special revenue bonds		36%		35%
Accumulated Net Unrealized Investment Losses [Member]
Investments [Abstract]
Accumulated other comprehensive loss		$ (1,200,000)		$ (1,300,000)

Investments, Amortized Cost a_2

Investments, Amortized Cost and Estimated Fair Value of Fixed Maturities by Contractual Maturity (Details) - USD ($)	Mar. 31, 2024	Dec. 31, 2023
Held To Maturity [Abstract]
Due in one year or less, amortized cost	$ 42,228,000
Due after one year through five years, amortized cost	130,205,000
Due after five years through ten years, amortized cost	237,241,000
Due after ten years, amortized cost	261,861,000
Mortgage-backed securities, amortized cost	13,193,000
Held to maturity, amortized cost	684,728,000	$ 680,823,000
Available For Sale [Abstract]
Due in one year or less, amortized cost	62,925,000
Due after one year through five years, amortized cost	170,058,000
Due after five years through ten years, amortized cost	86,138,000
Due after ten years, amortized cost	23,221,000
Mortgage-backed securities, amortized cost	300,874,000
Total available for sale, amortized cost	643,216,000	629,727,000
Held To Maturity [Abstract]
Due in one year or less, estimated fair value	41,549,000
Due after one year through five years, estimated fair value	121,873,000
Due after five years through ten years, estimated fair value	216,118,000
Due after ten years, estimated fair value	217,519,000
Mortgage-backed securities, estimated fair value	12,755,000
Total held to maturity, estimated fair value	609,814,000	611,526,000
Available For Sale [Abstract]
Due in one year or less, estimated fair value	61,761,000
Due after one year through five years, estimated fair value	160,071,000
Due after five years through ten years, estimated fair value	77,937,000
Due after ten years, estimated fair value	20,195,000
Mortgage-backed securities, estimated fair value	280,797,000
Total available for sale, estimated fair value	$ 600,761,425	$ 589,348,243

Investments, Cost and Estimated

Investments, Cost and Estimated Fair Value of Equity Securities (Details) - USD ($)	3 Months Ended	12 Months Ended
	Mar. 31, 2024	Dec. 31, 2023
Cost and Estimated Fair Value of Equity Securities [Abstract]
Cost	$ 19,631,000	$ 18,844,000
Gross gains	9,315,000	7,059,000
Gross losses	63,000	0
Estimated fair value	$ 28,883,318	$ 25,902,956

Investments, Gross Investment G

Investments, Gross Investment Gains and Losses before Applicable Income Taxes (Details) - USD ($)	3 Months Ended		12 Months Ended
	Mar. 31, 2024	Mar. 31, 2023	Dec. 31, 2023
Net Gains and Losses from Investments [Abstract]
Gross realized gains	$ 4,000	$ 307,000
Gross realized losses	81,000	2,268,000
Net realized losses	(77,000)	(1,961,000)
Gross unrealized gains on equity securities	9,315,000		$ 7,059,000
Gross unrealized losses on equity securities	(63,000)		$ 0
Net investment gains (losses)	2,113,378	(331,189)
Fixed Maturities [Member]
Net Gains and Losses from Investments [Abstract]
Gross realized gains	4,000	22,000
Gross realized losses	81,000	2,222,000
Credit impairment charges	(3,000)	(87,000)
Equity Securities [Member]
Net Gains and Losses from Investments [Abstract]
Gross realized gains	0	285,000
Gross realized losses	0	46,000
Gross unrealized gains on equity securities		2,202,000
Gross unrealized gains on equity securities	2,256,000
Gross unrealized losses on equity securities		$ (485,000)
Gross unrealized losses on equity securities	$ (63,000)

Investments, Fixed Maturities w

Investments, Fixed Maturities with Unrealized Losses (Details) $ in Thousands	Mar. 31, 2024 USD ($) Securities	Dec. 31, 2023 USD ($)
Debt Securities, Fair Value and Unrealized Losses by Fixed Maturities [Abstract]
Less than 12 months, fair value	$ 143,860	$ 105,351
Less than 12 months, unrealized losses	1,637	830
More than 12 months, fair value	961,042	955,943
More than 12 months, unrealized losses	$ 117,584	111,407
Number of fixed maturity securities classified as available for sale | Securities	893
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	$ 37,188	32,224
Less than 12 months, unrealized losses	299	217
More than 12 months, fair value	125,533	116,538
More than 12 months, unrealized losses	13,836	12,815
Obligations of States and Political Subdivisions [Member]
Debt Securities, Fair Value and Unrealized Losses by Fixed Maturities [Abstract]
Less than 12 months, fair value	29,747	13,097
Less than 12 months, unrealized losses	251	68
More than 12 months, fair value	304,139	307,429
More than 12 months, unrealized losses	54,577	50,631
Corporate Securities [Member]
Debt Securities, Fair Value and Unrealized Losses by Fixed Maturities [Abstract]
Less than 12 months, fair value	18,034	13,066
Less than 12 months, unrealized losses	431	324
More than 12 months, fair value	343,673	353,863
More than 12 months, unrealized losses	28,926	29,670
Mortgage-Backed Securities [Member]
Debt Securities, Fair Value and Unrealized Losses by Fixed Maturities [Abstract]
Less than 12 months, fair value	58,891	46,964
Less than 12 months, unrealized losses	656	221
More than 12 months, fair value	187,697	178,113
More than 12 months, unrealized losses	$ 20,245	$ 18,291

Segment Information (Details)

Segment Information (Details) - USD ($)	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Premiums earned [Abstract]
Premiums earned	$ 227,748,679	$ 215,233,160
Net investment income	10,972,327	9,449,078
Investment gains (losses)	2,113,378	(331,189)
Total revenues	241,140,869	224,745,771
Underwriting (loss) gain [Abstract]
Net investment income	10,972,327	9,449,078
Investment gains (losses)	2,113,378	(331,189)
Income before income tax expense	7,248,396	6,296,433
Operating Segments [Member]
Premiums earned [Abstract]
Premiums earned	227,749,000	215,233,000
Net investment income	10,972,000	9,449,000
Investment gains (losses)	2,113,000	(331,000)
Other	307,000	395,000
Total revenues	241,141,000	224,746,000
Underwriting (loss) gain [Abstract]
SAP underwriting loss	(10,903,000)	(7,033,000)
GAAP adjustments	5,359,000	4,407,000
GAAP underwriting loss	(5,544,000)	(2,626,000)
Net investment income	10,972,000	9,449,000
Investment gains (losses)	2,113,000	(331,000)
Other	(293,000)	(196,000)
Income before income tax expense	7,248,000	6,296,000
Commercial Lines [Member] | Operating Segments [Member]
Premiums earned [Abstract]
Premiums earned	132,092,000	133,187,000
Underwriting (loss) gain [Abstract]
SAP underwriting loss	(10,371,000)	(7,912,000)
Personal Lines [Member] | Operating Segments [Member]
Premiums earned [Abstract]
Premiums earned	95,657,000	82,046,000
Underwriting (loss) gain [Abstract]
SAP underwriting loss	$ (532,000)	$ 879,000

Borrowings, Line of Credit (Det

Borrowings, Line of Credit (Details) - USD ($)	3 Months Ended
	Mar. 31, 2024	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	$ 1,591,800
Collateral pledged, at par (carrying value $41,087,980)	44,459,589
Borrowing capacity currently available	3,579,560
FHLB of Pittsburgh [Member] | Atlantic States [Member] | Asset Pledged as Collateral without Right [Member]
Federal Home Loan Bank of Stock Purchased, Collateral Pledged and Assets Related [Abstract]
Collateral pledged at carrying value	41,087,980
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] | SOFR [Member]
Line of Credit Facility [Abstract]
Interest rate	2.11%
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	Aug. 31, 2024

Share-Based Compensation (Detai

Share-Based Compensation (Details) - USD ($)	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Share-Based Compensation [Abstract]
Compensation expense in stock compensation plans	$ 286,001	$ 251,773
Income tax benefit of stock compensation plans	60,060	52,872
Unrecognized compensation expense related to nonvested share-based compensation granted under the plan	$ 1,600,000
Weighted average period of unrecognized compensation expense	1 year 9 months 18 days
Cash from option exercises	$ 236,624	2,000,000
Tax benefit for tax deductions related to option exercises	$ 1,719	$ 46,188

Fair Value Measurements (Detail

Fair Value Measurements (Details) - USD ($)	Mar. 31, 2024	Dec. 31, 2023
Fair Value Measurement Inputs and Valuation Techniques [Abstract]
Available for sale, at fair value	$ 600,761,425	$ 589,348,243
Equity securities, at fair value	28,883,318	25,902,956
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	87,055,000	85,419,000
Obligations of States and Political Subdivisions [Member]
Fair Value Measurement Inputs and Valuation Techniques [Abstract]
Available for sale, at fair value	37,739,000	38,116,000
Mortgage-Backed Securities [Member]
Fair Value Measurement Inputs and Valuation Techniques [Abstract]
Available for sale, at fair value	280,797,000	269,020,000
Recurring Basis [Member]
Fair Value Measurement Inputs and Valuation Techniques [Abstract]
Equity securities, at fair value	28,883,000	25,903,000
Investments in the fair value hierarchy	629,644,000	615,251,000
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	87,055,000	85,419,000
Recurring Basis [Member] | Obligations of States and Political Subdivisions [Member]
Fair Value Measurement Inputs and Valuation Techniques [Abstract]
Available for sale, at fair value	37,739,000	38,116,000
Recurring Basis [Member] | Corporate Securities [Member]
Fair Value Measurement Inputs and Valuation Techniques [Abstract]
Available for sale, at fair value	195,170,000	196,793,000
Recurring Basis [Member] | Mortgage-Backed Securities [Member]
Fair Value Measurement Inputs and Valuation Techniques [Abstract]
Available for sale, at fair value	280,797,000	269,020,000
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	26,891,000	23,911,000
Investments in the fair value hierarchy	26,891,000	23,911,000
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	1,992,000	1,992,000
Investments in the fair value hierarchy	602,753,000	591,340,000
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	87,055,000	85,419,000
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	37,739,000	38,116,000
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	195,170,000	196,793,000
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	280,797,000	269,020,000
Recurring Basis [Member] | Significant Unobservable Inputs (Level 3) [Member]
Fair Value Measurement Inputs and Valuation Techniques [Abstract]
Equity securities, at fair value	0	0
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	Mar. 31, 2024	Dec. 31, 2023
Operating Loss Carryforwards [Abstract]
Other deferred tax assets, net	$ 39.4	$ 38.4
DGI Parent [Member]
Operating Loss Carryforwards [Abstract]
Valuation allowance related to the portion of operating loss carryforwards	$ 8.1

Liabilities for Losses and Lo_3

Liabilities for Losses and Loss Expenses (Details) - USD ($)	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Liability for Claims and Claims Adjustment Expense [Abstract]
Balance at January 1	$ 1,126,156,838	$ 1,121,046,000
Less reinsurance recoverable	(437,014,000)	(451,184,000)
Cumulative effect of adoption of updated accounting guidance for credit losses at January 1	0	1,132,000
Net balance at January 1	689,143,000	670,994,000
Incurred related to [Abstract]
Current year	159,289,000	146,413,000
Prior years	(8,393,000)	(8,307,000)
Total incurred	150,896,000	138,106,000
Paid related to [Abstract]
Current year	47,886,000	41,205,000
Prior years	98,197,000	98,820,000
Total paid	146,083,000	140,025,000
Net balance at end of period	693,956,000	669,075,000
Plus reinsurance recoverable	430,496,000	454,460,000
Balance at end of period	$ 1,124,452,191	$ 1,123,535,000
Percentage of development	1.20%	1.20%

Allowance for Expected Credit_3

Allowance for Expected Credit Losses, Held-to-Maturity Fixed-Maturity Securities (Details) - USD ($)	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Held-to-Maturity, Net of Allowance for Expected Credit Losses [Abstract]
Balance at beginning of period	$ 679,497,038	$ 668,439,000
Balance at end of period	683,398,852	693,779,000
Allowance for Expected Credit Losses [Abstract]
Balance at beginning of period	$ 1,325,847	$ 0
Accounting Standards Update [Extensible Enumeration]	ASU 2016-13 [Member]	ASU 2016-13 [Member]
Current period change for expected credit losses	$ 3,000	$ 87,000
Balance at end of period	1,329,099	1,355,000
Cumulative Effect, Period of Adoption, Adjustment [Member]
Allowance for Expected Credit Losses [Abstract]
Balance at beginning of period	$ 0	$ 1,268,000

Allowance for Expected Credit_4

Allowance for Expected Credit Losses, Reinsurance Receivable (Details) - USD ($)	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Reinsurance Receivable, Net of Allowance for Expected Credit Losses [Abstract]
Balance at beginning of period	$ 441,431,334	$ 456,522,000
Balance at end of period	435,505,126	460,681,000
Allowance for Expected Credit Losses [Abstract]
Balance at beginning of period	$ 1,394,074	$ 0
Accounting Standards Update [Extensible Enumeration]	ASU 2016-13 [Member]	ASU 2016-13 [Member]
Current period change for expected credit losses	$ (368,000)	$ 335,000
Balance at end of period	1,026,016	1,467,000
Cumulative Effect, Period of Adoption, Adjustment [Member]
Allowance for Expected Credit Losses [Abstract]
Balance at beginning of period	$ 0	$ 1,132,000

Impact of New Accounting Stan_3

Impact of New Accounting Standards (Details) $ in Millions	48 Months Ended
	Dec. 15, 2023 USD ($)
Impact of New Accounting Standard [Abstract]
After tax decrease in retained earnings	$ (1.9)