Donegal Group Inc. Announces Revised Fourth Quarter and Full Year 2015 Results
March 18 2016 - 9:00AM
Donegal Group Inc. (NASDAQ:DGICA) (NASDAQ:DGICB) today announced
revisions to its previously reported financial results for the
fourth quarter and year ended December 31, 2015.
The revisions relate to the Company’s accounting for its
purchase of 2,000,000 shares of treasury stock in December
2015. After discussing with its independent registered public
accounting firm the facts and circumstances the Company considered
in making judgments based on applicable accounting guidance with
respect to the Company’s accounting for the purchase, the Company
determined that the premium it paid over the fair market value of
the treasury stock should be charged to expense rather than
included in the cost of the treasury stock the Company
purchased.
The revisions result in an increase to the Company’s expenses
and a reduction in the Company’s net income in the amount of $5.8
million for both the fourth quarter and full year of 2015.
The revisions have no income tax effect. As a result of the
revisions, the Company’s earnings per share of its Class A common
stock on a diluted basis decreased by 21 cents for both the fourth
quarter and full year of 2015. The Company’s revised earnings
per share of its Class A common stock on a diluted basis was 77
cents for the full year of 2015, compared to 55 cents for the full
year of 2014.
The revisions do not change the Company’s reported total assets,
total liabilities, total stockholders’ equity or book value per
share at December 31, 2015.
“The revisions to our reported financial results do not include
any changes that impact our reported insurance underwriting results
for 2015, which reflected strong performance across nearly all
lines of business and represented substantial improvement over the
comparable underwriting results for 2014,” said Jeffrey D. Miller,
Executive Vice President and Chief Financial Officer of Donegal
Group Inc.
The Company will include financial statements that contain the
revisions described above in its Form 10-K for the year ended
December 31, 2015, which the Company expects to file with the
Securities and Exchange Commission later today.
About the Company
Donegal Group Inc. is an insurance holding company whose
insurance subsidiaries offer personal and commercial property and
casualty lines of insurance in 21 Mid-Atlantic, Midwestern, New
England and Southern states. The insurance subsidiaries of Donegal
Group Inc. and Donegal Mutual Insurance Company conduct business
together as the Donegal Insurance Group. The Donegal
Insurance Group has an A.M. Best rating of A (Excellent).
The Company’s Class A common stock and Class B common stock
trade on NASDAQ 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.
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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