Donegal Group Inc. (NASDAQ:DGICA) (Nasdaq:DGICB) today reported its
financial results for the third quarter and first nine months of
2015. Significant developments include:
- Net income and operating income1 for the third quarter of 2015
were lower than the very good results for the third quarter of
2014, largely due to higher weather-related losses in the 2015
period
- Net income and operating income for the first nine months of
2015 improved from the levels for the first nine months of 2014,
primarily due to improved results during the first half of
2015
- Statutory combined ratio1 of 97.4% for the third quarter of
2015, compared to 95.0% for the prior-year third quarter
- 7.5% increase in net premiums written to $158.9 million for the
third quarter of 2015, primarily reflecting continuing growth in
commercial lines
- Book value per share of $15.76 at September 30, 2015, compared
to $15.40 at year-end 2014
|
Three Months
Ended September 30, |
Nine Months Ended
September 30, |
|
2015 |
2014 |
% Change |
2015 |
2014 |
% Change |
|
(dollars in thousands, except
per share amounts) |
|
|
|
|
|
|
|
Income Statement Data |
|
|
|
|
|
|
Net premiums earned |
$ 153,096 |
$ 142,150 |
7.7% |
$ 450,084 |
$ 412,287 |
9.2% |
Investment income, net |
5,399 |
4,299 |
25.6 |
15,505 |
13,529 |
14.6 |
Realized (losses) gains |
(754) |
351 |
NM2 |
683 |
2,297 |
-70.3 |
Total revenues |
159,802 |
149,135 |
7.2 |
472,591 |
434,957 |
8.7 |
Net income |
5,687 |
8,749 |
-35.0 |
19,006 |
10,053 |
89.1 |
Operating income1 |
6,177 |
8,517 |
-27.5 |
18,562 |
8,537 |
117.4 |
|
|
|
|
|
|
|
Per Share Data |
|
|
|
|
|
|
Net income – Class A (diluted) |
$ 0.21 |
$ 0.33 |
-36.4% |
$ 0.69 |
$ 0.38 |
81.6% |
Operating income – Class A (diluted) |
0.22 |
0.32 |
-31.3 |
0.68 |
0.32 |
112.5 |
Book value |
15.76 |
15.43 |
2.1 |
15.76 |
15.43 |
2.1 |
1The "Definitions of Non-GAAP and
Operating Measures" section of this release defines and reconciles
data that the Company prepares on an accounting basis other than
U.S. generally accepted accounting principles ("GAAP"). |
|
|
|
|
|
|
|
2Not meaningful. |
Kevin G. Burke, President and Chief Executive Officer of Donegal
Group Inc., noted, "The objective of Donegal Group's long-term
strategic business plan is to outperform the property and casualty
insurance industry over the long term in terms of service,
profitability and book value growth. While our underwriting results
for the third-quarter of 2015 fell short of the excellent results
we achieved in the third quarter of 2014, we believe the
year-over-year improvement in our financial results for the first
nine months of 2015 clearly shows the meaningful progress we are
making toward our objective. Our progress reflects growth
initiatives that center on our regional business approach and
conservative underwriting philosophy.
"We attribute approximately half of the growth in our net
premiums written for the first nine months of 2015 to additional
net writings from our Michigan Insurance Company subsidiary
('MICO') that resulted from our decision to eliminate MICO's
external quota-share reinsurance agreement effective January 1,
2015. We generated the remainder of the growth organically,
reflecting our expanding position as a well-capitalized insurance
group serving the needs of the independent agency markets within
our operating regions," Mr. Burke added.
"Our commercial lines operations remain an area of focus for
Donegal Group, generating a 12.5% increase in net premiums written
for the first nine months of 2015, including the increased MICO
contribution, and a year-to-date statutory combined ratio of 93.2%.
Our strong emphasis on agency relationships remains an important
factor in our continuing ability to achieve modest commercial lines
renewal premium increases as we maintain our focus on underwriting
profitability. Our agents continue to bring us a steady flow of new
commercial lines business submissions," Mr. Burke said.
Mr. Burke stated, "Weather-related losses in the third quarter
of 2015 affected our personal lines segment more significantly than
our commercial lines segment. In spite of the increased weather
activity, the statutory combined ratio for our personal lines
segment was 99.8% for the first nine months of 2015. We continue to
believe our focus on quality underwriting, our expanding use of
predictive modeling and other underwriting strategies, and our
implementation of rate increases where appropriate will enable us
to maintain profitability in this business segment."
Donald H. Nikolaus, Chairman, further remarked, "Our agents
continue to express their support for Donegal Insurance Group and
their appreciation of our commitment to quality insurance products,
advanced technology tools and services tailored to fit their
specific needs and those of their customers. As a result of their
support, our premium growth rates have remained above industry
averages over the most recent five- and 10-year periods."
Mr. Nikolaus added, "Our premium revenue growth in recent
quarters has enabled the steady expansion of our invested assets.
This expansion has resulted in incremental increases in our
investment income. At September 30, 2015, our book value per share
increased to $15.76, compared to $15.40 at December 31, 2014. The
increase in book value per share reflected our positive earnings
for the first nine months of 2015, offset partially by cash
dividends we declared and slightly lower unrealized gains in our
available-for-sale fixed maturities portfolio at September 30,
2015."
Insurance Operations
Donegal Group is an insurance holding company whose insurance
subsidiaries offer personal and commercial property and casualty
lines of insurance in four Mid-Atlantic states (Delaware, Maryland,
New York and Pennsylvania), three New England states (Maine, New
Hampshire and Vermont), seven Southeastern states (Alabama,
Georgia, North Carolina, South Carolina, Tennessee, Virginia and
West Virginia) and seven Midwestern states (Indiana, Iowa,
Michigan, Nebraska, Ohio, South Dakota and Wisconsin). The
insurance subsidiaries of Donegal Group and Donegal Mutual
Insurance Company conduct business together as the Donegal
Insurance Group.
|
Three Months
Ended September 30, |
Nine Months Ended
September 30, |
|
2015 |
2014 |
% Change |
2015 |
2014 |
% Change |
|
(dollars in thousands) |
|
|
|
|
|
|
|
Net Premiums Written |
|
|
|
|
|
|
Personal lines: |
|
|
|
|
|
|
Automobile |
$ 55,590 |
$ 53,154 |
4.6% |
$ 163,562 |
$ 155,676 |
5.1% |
Homeowners |
33,214 |
32,057 |
3.6 |
91,019 |
86,142 |
5.7 |
Other |
4,715 |
4,463 |
5.6 |
13,763 |
12,846 |
7.1 |
Total personal lines |
93,519 |
89,674 |
4.3 |
268,344 |
254,664 |
5.4 |
Commercial lines: |
|
|
|
|
|
|
Automobile |
18,569 |
15,775 |
17.7 |
58,697 |
50,545 |
16.1 |
Workers' compensation |
22,248 |
20,682 |
7.6 |
76,237 |
69,605 |
9.5 |
Commercial multi-peril |
22,790 |
20,072 |
13.5 |
72,167 |
63,863 |
13.0 |
Other |
1,795 |
1,637 |
9.7 |
5,679 |
5,180 |
9.6 |
Total commercial lines |
65,402 |
58,166 |
12.4 |
212,780 |
189,193 |
12.5 |
Total net premiums written |
$ 158,921 |
$ 147,840 |
7.5% |
$ 481,124 |
$ 443,857 |
8.4% |
The Company's net premiums written increased 7.5% for the third
quarter of 2015 compared to the third quarter of 2014. This
increase represented the combination of 12.4% growth in commercial
lines net premiums written and 4.3% growth in personal lines net
premiums written. The $11.1 million growth in net premiums written
for the third quarter of 2015 compared to the third quarter of 2014
included:
- $4.6 million, or 3.1% of total net premiums written, related to
the termination at the beginning of 2015 of the MICO external
quota-share reinsurance agreement that increased the amount of
business MICO retained.
- $4.6 million in commercial lines premiums, in addition to the
MICO reinsurance change, that the Company attributes primarily to
premium rate and exposure increases as well as new commercial
accounts the Company's insurance subsidiaries have written
throughout their operating regions.
- $1.9 million in personal lines premiums, in addition to the
MICO reinsurance change, that the Company attributes primarily to
premium rate increases the Company has implemented over the past
year and lower reinsurance reinstatement premiums.
For the first nine months of 2015, the Company's net premiums
written increased 8.4% compared to the comparable prior-year
period. This increase included $15.3 million, or 3.5% of total
net premiums written, related to the aforementioned termination of
the MICO quota-share reinsurance agreement.
|
Three Months
Ended |
Nine Months
Ended |
|
September
30, |
September
30, |
|
2015 |
2014 |
2015 |
2014 |
|
|
|
|
|
Statutory Combined
Ratios |
|
|
|
|
Personal Lines: |
|
|
|
|
Automobile |
98.8% |
94.0% |
100.0% |
98.4% |
Homeowners |
108.0 |
97.5 |
101.7 |
99.3 |
Other |
88.2 |
92.7 |
85.0 |
106.3 |
Total personal lines |
101.4 |
95.2 |
99.8 |
99.1 |
Commercial Lines: |
|
|
|
|
Automobile |
118.0 |
107.2 |
106.1 |
111.9 |
Workers' compensation |
79.1 |
89.3 |
89.0 |
92.3 |
Commercial multi-peril |
92.2 |
95.6 |
93.2 |
107.8 |
Total commercial lines |
92.0 |
94.4 |
93.2 |
101.3 |
Total lines |
97.4% |
95.0% |
96.9% |
100.0% |
|
|
|
|
|
GAAP Combined Ratios (Total
Lines) |
|
|
|
|
Loss ratio (non-weather) |
57.2% |
56.3% |
58.6% |
60.3% |
Loss ratio (weather-related) |
9.6 |
7.7 |
7.2 |
9.2 |
Expense ratio |
32.1 |
32.1 |
32.7 |
31.8 |
Dividend ratio |
0.6 |
0.7 |
0.5 |
0.5 |
Combined ratio |
99.5% |
96.8% |
99.0% |
101.8% |
Jeffrey D. Miller, Executive Vice President and Chief Financial
Officer, commented, "Setting aside the uptick in weather-related
losses, we are pleased with the performance of our business
segments during the third quarter of 2015. The statutory combined
ratios for most of our lines of business demonstrated continuing
strength in our core underwriting results and reflected the benefit
of our underwriting initiatives and commitment to rate
adequacy."
Mr. Miller added, "Weather-related losses accounted for
virtually all of the increase in our statutory loss ratio of 66.6%
for the third quarter of 2015, compared to 63.6% for the third
quarter of 2014. While no catastrophe events significantly impacted
our third quarter of 2015 results, we experienced an unusually
large volume of weather-related claims as a result of numerous wind
and hail storms across several of our operating regions."
Weather-related losses of $14.6 million for the third quarter of
2015 contributed 9.6 percentage points to the Company's loss ratio,
compared to the $10.9 million of weather-related losses, or 7.7
percentage points of the Company's loss ratio, for the third
quarter of 2014. Weather-related loss activity in the third quarter
of 2015 exceeded the Company's five-year average for third-quarter
weather losses of $10.8 million. For the first nine months of 2015,
weather-related losses were $32.4 million, which represented an
improvement from the $37.8 million of weather-related losses the
Company incurred for the first nine months of 2014.
Large fire losses, which the Company defines as individual fire
losses in excess of $50,000, for the third quarter of 2015 were
$6.8 million, or 4.4 percentage points of the Company's loss ratio,
in line with the $6.3 million of large fire losses, or 4.4
percentage points of the Company's loss ratio, for the third
quarter of 2014. The Company incurred large fire losses of $23.5
million for the first nine months of 2015, comparing favorably to
the $25.7 million of large fire losses for the first nine months of
2014.
Mr. Miller added, "We attribute the excellent combined ratio for
our workers' compensation line of business during the third quarter
of 2015 to favorable prior-accident-year loss reserve development,
which largely offset adverse loss reserve development for several
other lines of business, and a general absence of large losses
across our operating regions."
Net development of reserves for losses incurred in prior
accident years for all lines of business added 1.0 percentage point
to the Company's loss ratio for the third quarter of 2015, compared
to 1.4 percentage points for the third quarter of 2014. Net
development of reserves for losses incurred in prior accident years
added 1.1 percentage points to the Company's loss ratio for the
nine months ended September 30, 2015, compared to 1.8 percentage
points for the nine months ended September 30, 2014.
The Company's statutory expense ratio1 was 30.2% for the third
quarter of 2015, compared to 30.7% for the third quarter of 2014.
The decrease in the Company's statutory expense ratio reflected
lower underwriting-based incentive costs for the third quarter of
2015.
Investment Operations
Donegal Group's investment strategy is to generate an
appropriate amount of after-tax income from its invested assets
while minimizing credit risk through investment in high-quality
securities. As a result, the Company had 88.7% of its consolidated
investment portfolio invested in diversified, highly rated and
marketable fixed-maturity securities at September 30, 2015.
|
September 30,
2015 |
December 31,
2014 |
|
Amount |
% |
Amount |
% |
|
(dollars in
thousands) |
Fixed maturities, at carrying value: |
|
|
|
|
U.S. Treasury securities and obligations
of U.S. government corporations and agencies |
$ 93,580 |
10.5% |
$ 74,878 |
9.0% |
Obligations of states and political
subdivisions |
363,814 |
41.0 |
377,241 |
45.3 |
Corporate securities |
115,833 |
13.1 |
106,171 |
12.7 |
Mortgage-backed securities |
213,773 |
24.1 |
184,252 |
22.1 |
Total fixed maturities |
787,000 |
88.7 |
742,542 |
89.1 |
Equity securities, at fair value |
35,836 |
4.0 |
30,822 |
3.7 |
Investments in affiliates |
40,110 |
4.5 |
39,284 |
4.7 |
Short-term investments, at cost |
24,596 |
2.8 |
20,293 |
2.5 |
Total investments |
$ 887,542 |
100.0% |
$ 832,941 |
100.0% |
|
|
|
|
|
Average investment yield |
2.4% |
|
2.3% |
|
Average tax-equivalent investment yield |
3.2% |
|
3.1% |
|
Average fixed-maturity duration (years) |
4.4 |
|
4.1 |
|
Net investment income of $5.4 million for the third quarter of
2015 increased 25.6% compared to $4.3 million in net investment
income for the third quarter of 2014. The increase in net
investment income reflected primarily an increase in average
invested assets and a decreased allocation of expenses to our
investment operations for the third quarter of 2015 compared to the
prior-year period. Net realized investment losses were
$754,050 for the third quarter of 2015, compared to net realized
investment gains of $351,269 for the third quarter of 2014. The
Company had no impairments in its investment portfolio that it
considered to be other than temporary during the first nine months
of 2015 or 2014.
Mr. Miller, in commenting on the Company's investment
operations, noted, "Continued premium growth and our ongoing focus
on reinvesting the proceeds of called and maturing securities led
to an increase in invested assets of $54.6 million, or 6.6%, since
the end of 2014. This growth in our invested assets is generating
an increased level of investment income notwithstanding continuing
challenges to maintaining our average portfolio investment yield in
the continuing low interest rate environment. We continue to see
benefits from the allocation of a portion of our portfolio to
dividend-paying equity securities, providing an increased
contribution of dividend income to our net investment income for
the first nine months of 2015 compared to the prior-year
period."
The Company owns 48.2% of the outstanding stock of Donegal
Financial Services Corporation ("DFSC"). DFSC owns all of the
outstanding stock of Union Community Bank. The Company accounts for
its investment in DFSC using the equity method of accounting. The
Company's equity in the earnings of DFSC was $408,405 for the third
quarter of 2015, compared to $476,906 for the third quarter of
2014. Donegal Mutual Insurance Company owns the remaining 51.8% of
the outstanding stock of DFSC.
Definitions of Non-GAAP and Operating
Measures
The Company prepares its consolidated financial statements on
the basis of GAAP. The Company's insurance subsidiaries also
prepare financial statements based on the statutory accounting
principles state insurance regulators prescribe or permit ("SAP").
In addition to using GAAP-based performance measurements, the
Company also utilizes certain non-GAAP financial measures that it
believes provide value in managing its business and for comparison
to the financial results of the insurance companies the Company
regards as its peers. These non-GAAP measures are operating income
(loss) and statutory combined ratio.
Operating income (loss) is a non-GAAP financial measure
investors in insurance companies commonly use. The Company defines
operating income (loss) as net income (loss) excluding after-tax
net realized investment gains or losses. Because the Company's
calculation of operating income (loss) may differ from similar
measures other companies use, investors should exercise caution
when comparing the Company's measure of operating income (loss) to
the measures other companies report.
The following table provides a reconciliation of the Company's
net income to the Company's operating income for the periods
indicated:
|
Three Months
Ended September 30, |
Nine Months Ended
September 30, |
|
2015 |
2014 |
% Change |
2015 |
2014 |
% Change |
|
(dollars in thousands, except
per share amounts) |
|
|
|
|
|
|
|
Reconciliation of Net Income to
Operating Income |
|
|
|
|
|
|
Net income |
$ 5,687 |
$ 8,749 |
-35.0% |
$ 19,006 |
$ 10,053 |
89.1% |
Realized losses (gains) (after tax) |
490 |
(232) |
NM |
(444) |
(1,516) |
-70.7% |
Operating income |
$ 6,177 |
$ 8,517 |
-27.5% |
$ 18,562 |
$ 8,537 |
117.4% |
|
|
|
|
|
|
|
Per Share Reconciliation of Net
Income to Operating Income |
|
|
|
|
|
Net income – Class A (diluted) |
$ 0.21 |
$ 0.33 |
-36.4% |
$ 0.69 |
$ 0.38 |
81.6% |
Realized losses (gains) (after tax) |
0.01 |
(0.01) |
NM |
(0.01) |
(0.06) |
-83.3% |
Operating income – Class A |
$ 0.22 |
$ 0.32 |
-31.3% |
$ 0.68 |
$ 0.32 |
112.5% |
|
|
|
|
|
|
|
Net income – Class B |
$ 0.18 |
$ 0.30 |
-40.0% |
$ 0.63 |
$ 0.35 |
80.0% |
Realized losses (gains) (after tax) |
0.02 |
(0.01) |
NM |
(0.02) |
(0.06) |
-66.7% |
Operating income – Class B |
$ 0.20 |
$ 0.29 |
-31.0% |
$ 0.61 |
$ 0.29 |
110.3% |
Statutory combined ratio is a non-GAAP standard measurement of
underwriting profitability that is based upon amounts determined
under SAP. The statutory combined ratio is the sum of:
- the statutory loss ratio, which is the ratio of calendar-year
incurred losses and loss expenses to premiums earned;
- the statutory expense ratio, which is the ratio of expenses
incurred for net commissions, premium taxes and underwriting
expenses to premiums written; and
- the statutory dividend ratio, which is the ratio of dividends
to holders of workers' compensation policies to premiums
earned.
The statutory combined ratio does not reflect investment income,
federal income taxes or other non-operating income or expense. A
statutory combined ratio of less than 100% generally indicates
underwriting profitability.
Conference Call and Webcast
The Company will hold a conference call and webcast on Friday,
October 23, 2015, beginning at 11:00 A.M. Eastern Time. You may
listen via the Internet by accessing the webcast link on the
Company's web site at http://investors.donegalgroup.com. A replay
of the conference call will also be available via the Company's web
site.
About the Company
Donegal Group is an insurance holding company. The Company's
Class A common stock and Class B common stock trade on the NASDAQ
Global Select Market under the symbols DGICA and DGICB,
respectively. As an effective acquirer of small to medium-sized
"main street" property and casualty insurers, Donegal Group has
grown profitably since its formation in 1986. The Company continues
to seek opportunities for growth while striving to achieve its
longstanding goal of outperforming the property and casualty
insurance industry in terms of service, profitability and growth in
book value.
Safe Harbor
We base all statements contained in this release that are not
historic facts on our current expectations. These statements are
forward-looking in nature (as defined in the Private Securities
Litigation Reform Act of 1995) and involve a number of risks and
uncertainties. Actual results could vary materially. Factors that
could cause actual results to vary materially include: our ability
to maintain profitable operations, the adequacy of the loss and
loss expense reserves of our insurance subsidiaries, business and
economic conditions in the areas in which our insurance
subsidiaries operate, interest rates, competition from various
insurance and other financial businesses, acts of terrorism, the
availability and cost of reinsurance, adverse and catastrophic
weather events, legal and judicial developments, changes in
regulatory requirements, our ability to integrate and manage
successfully the insurance companies we may acquire from time to
time and other risks we describe from time to time in the periodic
reports we file with the Securities and Exchange Commission. You
should not place undue reliance on any such forward-looking
statements. We disclaim any obligation to update such statements or
to announce publicly the results of any revisions that we may make
to any forward-looking statements to reflect the occurrence of
anticipated or unanticipated events or circumstances after the date
of such statements.
Donegal Group Inc. |
Consolidated Statements of
Income |
(unaudited; in thousands,
except share data) |
|
|
Quarter Ended September
30, |
|
2015 |
2014 |
|
|
|
Net premiums earned |
$ 153,096 |
$ 142,150 |
Investment income, net of expenses |
5,399 |
4,299 |
Net realized investment (losses) gains |
(754) |
351 |
Lease income |
179 |
217 |
Installment payment fees |
1,473 |
1,641 |
Equity in earnings of DFSC |
409 |
477 |
Total revenues |
159,802 |
149,135 |
|
|
|
Net losses and loss expenses |
102,234 |
91,004 |
Amortization of deferred acquisition
costs |
25,036 |
22,889 |
Other underwriting expenses |
24,156 |
22,795 |
Policyholder dividends |
886 |
934 |
Interest |
188 |
368 |
Other expenses |
301 |
531 |
Total expenses |
152,801 |
138,521 |
|
|
|
Income before income tax expense |
7,001 |
10,614 |
Income tax expense |
1,314 |
1,865 |
|
|
|
Net income |
$ 5,687 |
$ 8,749 |
|
|
|
Net income per common share: |
|
|
Class A - basic and diluted |
$ 0.21 |
$ 0.33 |
Class B - basic and diluted |
$ 0.18 |
$ 0.30 |
|
|
|
Supplementary Financial Analysts' Data |
|
|
|
|
|
Weighted-average number of shares
outstanding: |
|
Class A - basic |
22,442,240 |
21,175,388 |
Class A - diluted |
22,684,480 |
21,701,648 |
Class B - basic and diluted |
5,576,775 |
5,576,775 |
|
|
|
Net premiums written |
$ 158,921 |
$ 147,840 |
|
|
|
Book value per common share at end of
period |
$ 15.76 |
$ 15.43 |
|
|
|
Annualized return on average equity |
5.2% |
8.5% |
|
|
|
Donegal Group Inc. |
Consolidated Statements of
Income |
(unaudited; in thousands,
except share data) |
|
|
Nine Months Ended
September 30, |
|
2015 |
2014 |
|
|
|
Net premiums earned |
$ 450,084 |
$ 412,287 |
Investment income, net of expenses |
15,505 |
13,529 |
Net realized investment gains |
683 |
2,297 |
Lease income |
569 |
644 |
Installment payment fees |
4,473 |
4,965 |
Equity in earnings of DFSC |
1,277 |
1,235 |
Total revenues |
472,591 |
434,957 |
|
|
|
Net losses and loss expenses |
296,012 |
286,524 |
Amortization of deferred acquisition
costs |
73,872 |
66,233 |
Other underwriting expenses |
73,192 |
64,800 |
Policyholder dividends |
2,492 |
1,936 |
Interest |
909 |
1,177 |
Other expenses |
1,705 |
2,146 |
Total expenses |
448,182 |
422,816 |
|
|
|
Income before income tax expense |
24,409 |
12,141 |
Income tax expense |
5,403 |
2,088 |
|
|
|
Net income |
$ 19,006 |
$ 10,053 |
|
|
|
Net income per common share: |
|
|
Class A - basic |
$ 0.71 |
$ 0.39 |
Class A - diluted |
$ 0.69 |
$ 0.38 |
Class B - basic and diluted |
$ 0.63 |
$ 0.35 |
|
|
|
Supplementary Financial Analysts' Data |
|
|
|
|
|
Weighted-average number of shares
outstanding: |
|
|
Class A - basic |
21,995,952 |
21,004,426 |
Class A - diluted |
22,395,609 |
21,436,188 |
Class B - basic and diluted |
5,576,775 |
5,576,775 |
|
|
|
Net premiums written |
$ 481,124 |
$ 443,857 |
|
|
|
|
|
|
Book value per common share at end of
period |
$ 15.76 |
$ 15.43 |
|
|
|
Annualized return on average equity |
5.9% |
3.3% |
|
|
|
Donegal Group Inc. |
Consolidated Balance
Sheets |
(in thousands) |
|
|
September 30, |
December 31, |
|
2015 |
2014 |
|
(unaudited) |
|
|
|
|
ASSETS |
Investments: |
|
|
Fixed maturities: |
|
|
Held to maturity, at amortized cost |
$ 303,410 |
$ 307,392 |
Available for sale, at fair value |
483,590 |
435,150 |
Equity securities, at fair value |
35,836 |
30,822 |
Investments in affiliates |
40,110 |
39,284 |
Short-term investments, at cost |
24,596 |
20,293 |
Total investments |
887,542 |
832,941 |
Cash |
24,928 |
35,579 |
Premiums receivable |
146,608 |
133,307 |
Reinsurance receivable |
259,890 |
253,636 |
Deferred policy acquisition costs |
53,511 |
48,299 |
Prepaid reinsurance premiums |
117,503 |
115,872 |
Other assets |
40,874 |
39,021 |
Total assets |
$ 1,530,856 |
$ 1,458,655 |
|
|
|
LIABILITIES AND STOCKHOLDERS'
EQUITY |
Liabilities: |
|
|
Losses and loss expenses |
$ 569,146 |
$ 538,258 |
Unearned premiums |
441,318 |
408,646 |
Accrued expenses |
18,828 |
19,430 |
Borrowings under line of credit |
48,000 |
53,500 |
Subordinated debentures |
5,000 |
5,000 |
Other liabilities |
6,997 |
17,686 |
Total liabilities |
1,089,289 |
1,042,520 |
Stockholders' equity: |
|
|
Class A common stock |
235 |
224 |
Class B common stock |
56 |
56 |
Additional paid-in capital |
218,082 |
200,349 |
Accumulated other comprehensive
income |
2,789 |
5,354 |
Retained earnings |
234,411 |
223,254 |
Treasury stock, at cost |
(14,006) |
(13,102) |
Total stockholders' equity |
441,567 |
416,135 |
Total liabilities and stockholders'
equity |
$ 1,530,856 |
$ 1,458,655 |
|
|
|
CONTACT: For Further Information:
Jeffrey D. Miller,
Executive Vice President & Chief Financial Officer
Phone: (717) 426-1931
E-mail: investors@donegalgroup.com
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