Donegal Group Inc., a prominent holding company in the U.S. insurance sector, has released its financial performance metrics for the fourth quarter of 2024. The company reported a remarkable net income of $24.0 million, a significant turnaround from a net loss of $2.0 million recorded during the same period last year.
For the entire year of 2024, Donegal Group achieved a net income of $50.9 million, a substantial increase compared to $4.4 million reported in 2023. This upward trend reflects the company’s strategic focus on enhancing operational efficiency and profitability.
In terms of operational performance, the Group’s combined ratio was 92.9% for Q4 2024, showcasing a marked improvement over the 106.8% ratio from Q4 2023. The full year of 2024 also demonstrated progress, with the combined ratio decreasing to 98.6% from 104.4% in 2023.
During the fourth quarter of 2024, Donegal Group experienced a 4.6% rise in net premiums earned, totaling $236.6 million. Conversely, total net premiums written saw a slight decline of 0.6%, amounting to $211.4 million. This reduction in net premiums written can be attributed to a 2.8% growth in commercial lines, offset by a 5.0% decrease in personal lines.
Overall, the Group reported a 6.2% increase in net premiums for the year 2024, reaching $936.7 million. Total net premiums written rose from $895.6 million in 2023 to $942.2 million in 2024, driven by a $19.5 million increase in commercial lines and a $27.1 million growth in personal lines.
Kevin G. Burke, the President and Chief Executive Officer of Donegal Group Inc., expressed his satisfaction with the company’s performance, stating: “We concluded 2024 with strong performance in the fourth quarter that we believe reflected our unrelenting focus in recent years on execution, whether on strategic initiatives to broaden our market capabilities or on profit-improvement measures to enhance our operating performance. As we move into 2025, we are striving to further enhance our performance while also pursuing intentional, strategic premium growth.”
He elaborated on the improvements in the company’s loss ratio, highlighting that it improved significantly compared to the prior-year quarter. This enhancement was largely due to premium rate increases leading to higher net premiums earned, along with various underwriting initiatives implemented in recent years that resulted in reduced claim activity. Burke continued: “Our weather-related loss ratio compared favorably to both the prior-year quarter and our previous five-year average for the fourth quarter of the year. Net development of reserves for claims incurred in prior years had virtually no effect on the loss ratio for the fourth quarter of 2024 or 2023.”
Burke also noted that the company effectively managed the rising costs associated with their major systems modernization project and increased underwriting-based incentive costs by executing targeted expense-reduction strategies across their operations.
In closing, Mr. Burke stated: “We are also actively pursuing new business opportunities across our regional footprint, concentrating primarily on high-quality new commercial middle market and small business accounts, while also seeking strategic new business growth within our personal lines segment. We have refined our state-specific strategies and action plans to meet current market challenges and opportunities. We believe that the successful execution of those actions will allow us to further enhance underwriting performance, drive sustainable measured growth, and strengthen our competitive position with our independent agents, ultimately increasing the value of our stockholders’ investment in Donegal Group Inc.”
Source: Reinsurance News
