Donegal Group Inc. Announces Financial Impact From Third Quarter
Storms
MARIETTA, Pa., Oct. 12 /PRNewswire-FirstCall/ -- Donegal Group Inc. (NASDAQ:DGICANASDAQ:DGICB) today reported that it expects cumulative property
losses from severe weather during the third quarter to total approximately $3.2
million, before taxes, which will reduce net income by approximately $2.1
million, or $.15 per share on a diluted basis, for the quarter ended September
30, 2004. The Company expects net income of between $.40 and $.44 per share on
a diluted basis for the third quarter.
The storm losses occurred primarily in the Mid-Atlantic and Southeastern
regions of the Company's operations and were non-coastal in nature. The
estimate of losses includes approximately $60,000 in net losses from Hurricane
Charley, $360,000 from Hurricane Frances, $1.3 million from Hurricane Ivan,
$800,000 from Hurricane Jeanne and $650,000 from a July tornado.
"The unprecedented number of storms in such a short period resulted in a
substantial cumulative effect from events that individually were not as
significant," stated Donald H. Nikolaus, President and CEO of the Donegal
Companies. "However, even in this unusual situation, our approach to limiting
catastrophic losses through underwriting discipline, reinsurance, geographic
spread and careful risk selection helped contain the financial impact on the
Company," continued Nikolaus.
The Company will release its third quarter earnings on Friday, October 22, 2004
and will hold an earnings release conference call on that date at 11:00 A.M. eastern time.
Donegal Group Inc. is a property and casualty insurance holding company whose
insurance subsidiaries offer personal and commercial lines of insurance to
businesses and individuals in six Mid-Atlantic states (Connecticut, Delaware,
Maryland, New Hampshire, New York and Pennsylvania), eight Southeastern states
(Alabama, Georgia, Louisiana, North Carolina, South Carolina, Tennessee,
Virginia and West Virginia) and five Midwestern states (Iowa, Nebraska, Ohio,
Oklahoma and South Dakota).
All statements contained in this release that are not historic facts are based
on current expectations. Such statements are forward-looking (as defined in
the Private Securities Litigation Reform Act of 1995) in nature and involve a
number of risks and uncertainties. Actual results could vary materially.
Among the factors that could cause actual results to vary materially include:
the ability of the Company to maintain profitable operations, the adequacy of
the Company's reserves for losses and loss adjustment expenses, business and
economic conditions in the Company's primary operating areas, competition from
various insurance and non-insurance businesses, terrorism, legal and judicial
developments, changes in regulatory requirements and other risks that are
described from time to time in the periodic reports that the Company files with
the Securities and Exchange Commission. Undue reliance should not be placed on
any such forward-looking statements. DATASOURCE: Donegal Group Inc.
CONTACT: Ralph G. Spontak, Senior Vice President and Chief Financial Officer, Donegal Group Inc., +1-717-426-1931, or fax, +1-717-426-7009 Web site: http://www.donegalgroup.com/
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