Donegal Group Inc. Files 2023 Annual Report on Form 10-K

TL;DR

<b>Donegal Group Inc. has filed its annual 10-K report for the fiscal year ended December 31, 2023.</b>

AI Summary

DONEGAL GROUP INC (DGICB) filed a Annual Report (10-K) with the SEC on March 6, 2024. Donegal Group Inc. filed its 2023 Form 10-K on March 6, 2024. The filing covers the fiscal year ending December 31, 2023. The company's principal business is Fire, Marine & Casualty Insurance. Donegal Group Inc. is incorporated in Delaware. The company's principal executive offices are located in Marietta, Pennsylvania.

Why It Matters

For investors and stakeholders tracking DONEGAL GROUP INC, this filing contains several important signals. This 10-K filing provides a comprehensive overview of Donegal Group Inc.'s financial performance, operations, and risk factors for the fiscal year 2023, which is crucial for investors to assess the company's health and future prospects. The filing details the company's position in the Fire, Marine & Casualty Insurance sector, offering insights into its competitive landscape and regulatory environment.

Risk Assessment

Risk Level: medium — DONEGAL GROUP INC shows moderate risk based on this filing. The company operates in the insurance industry, which is subject to significant regulatory oversight and market fluctuations, as indicated by its SIC code and the nature of its business.

Analyst Insight

Investors should review the detailed financial statements and risk factors in the 10-K to understand Donegal Group Inc.'s performance and potential challenges in the insurance market.

Key Numbers

• 2023-12-31 — Fiscal Year End (Conformed Period of Report)
• 2024-03-06 — Filing Date (Filed as of Date)
• 6331 — SIC Code (Standard Industrial Classification)

Key Players & Entities

• Donegal Group Inc. (company) — Filer
• Marietta, PA (location) — Business Address
• DE (location) — State of Incorporation
• 2023 (date) — Fiscal Year End
• 2024-03-06 (date) — Filing Date

FAQ

Industry Context

Donegal Group Inc. operates within the Fire, Marine & Casualty Insurance industry, a sector characterized by significant underwriting risks and regulatory compliance requirements.

Regulatory Implications

As an insurance company, Donegal Group Inc. is subject to state-specific insurance regulations and solvency requirements, which can impact its operations and financial stability.

What Investors Should Do

1. Analyze the financial statements for revenue, net income, and key balance sheet items.
2. Review the Management's Discussion and Analysis (MD&A) for insights into operational performance and strategic initiatives.
3. Examine the risk factors section for potential threats to the company's business and financial condition.

Key Dates

• 2023-12-31: Fiscal Year End — Covers the full fiscal year's financial performance.
• 2024-03-06: Filing Date — Indicates when the annual report was submitted to the SEC.

Year-Over-Year Comparison

This is the initial filing of the 2023 Form 10-K, providing the latest annual financial and operational data for Donegal Group Inc.

Key Financial Figures

• $219.0 m — ur other insurance subsidiaries totaled $219.0 million, $199.2 million and $186.6 millio
• $199.2 million — ce subsidiaries totaled $219.0 million, $199.2 million and $186.6 million for 2023, 2022 and 2
• $186.6 million — aled $219.0 million, $199.2 million and $186.6 million for 2023, 2022 and 2021, respectively.
• $3.0 million — phic occurrence over a set retention of $3.0 million ($2.0 million for 2022 and 2021) for ea
• $2.0 million — e over a set retention of $3.0 million ($2.0 million for 2022 and 2021) for each participati
• $6.0 million — ubsidiary, with a combined retention of $6.0 million ($5.0 million for 2022 and 2021) for a
• $5.0 million — h a combined retention of $6.0 million ($5.0 million for 2022 and 2021) for a catastrophe in
• $301.5 million — urance subsidiaries have increased from $301.5 million in 2006 to $882.1 million in 2023, a co
• $882.1 million — ncreased from $301.5 million in 2006 to $882.1 million in 2023, a compound annual growth rate

Filing Documents

• ef20015339_10k.htm (10-K) — 4735KB
• ef20015339_ex10-22.htm (EX-10.22) — 107KB
• ef20015339_ex21.htm (EX-21) — 6KB
• ef20015339_ex23-1.htm (EX-23.1) — 3KB
• ef20015339_ex31-1.htm (EX-31.1) — 6KB
• ef20015339_ex31-2.htm (EX-31.2) — 6KB
• ef20015339_ex32-1.htm (EX-32.1) — 3KB
• ef20015339_ex32-2.htm (EX-32.2) — 4KB
• ef20015339_ex97-1.htm (EX-97.1) — 23KB
• image0.jpg (GRAPHIC) — 2KB
• image00001.jpg (GRAPHIC) — 276KB
• image1.jpg (GRAPHIC) — 174KB
• image2.jpg (GRAPHIC) — 4KB
• 0001140361-24-011762.txt (&nbsp;) — 22809KB
• dgica-20231231.xsd (EX-101.SCH) — 96KB
• dgica-20231231_cal.xml (EX-101.CAL) — 117KB
• dgica-20231231_def.xml (EX-101.DEF) — 574KB
• dgica-20231231_lab.xml (EX-101.LAB) — 1355KB
• dgica-20231231_pre.xml (EX-101.PRE) — 831KB
• ef20015339_10k_htm.xml (XML) — 5212KB

Business

Business 1 Item 1A.

Risk Factors

Risk Factors 27 Item 1B. Unresolved Staff Comments 41 Item 1C. Cybersecurity 41 Item 2.

Properties

Properties 42 Item 3.

Legal Proceedings

Legal Proceedings 42 Item 4. Mine Safety Disclosures 42 PART II Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 43 Item 6. [Reserved] 44 Item 7.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 45 Item 7A.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 62 Item 8.

Financial Statements and Supplementary Data

Financial Statements and Supplementary Data 64 Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 108 Item 9A.

Controls and Procedures

Controls and Procedures 108 Item 9B. Other Information 109 PART III Item 10. Directors, Executive Officers and Corporate Governance 111 Item 11.

Executive Compensation

Executive Compensation 111 Item 12.

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 111 Item 13. Certain Relationships and Related Transactions, and Director Independence 111 Item 14. Principal Accounting Fees and Services 111 PART IV Item 15. Exhibits, Financial Statement Schedules 112 Item 16. Form 10-K Summary 115 (i) Index PART I Item 1. Business. Introduction Donegal Group Inc., or DGI, is an insurance holding company whose insurance subsidiaries and affiliates offer property and casualty insurance in 23 Mid-Atlantic, Midwestern, New England, Southern and Southwestern A common stock and our Class B common stock trade on the NASDAQ Global Select Market under the symbols "DGICA" and "DGICB," respectively. Donegal Mutual Insurance Company, or Donegal Mutual, organized us as an insurance holding company on August 26, 1986. At December 31, 2023, Donegal Mutual held approximately 44% of our outstanding Class A common stock and approximately 84% of our outstanding Class B common stock. Donegal Mutual's ownership provides Donegal Mutual with approximately 71% of the combined voting power of our outstanding shares of Class A common stock and our outstanding shares of Class B common stock. Our insurance subsidiaries and Donegal Mutual have interrelated operations due to an intercompany pooling agreement and other intercompany agreements and transactions we describe in Note 3 of the Notes to Consolidated Financial Statements. While maintaining the separate corporate existence of each company, our insurance subsidiaries conduct business together with Donegal Mutual and its insurance subsidiaries as the Donegal Insurance Group. The Donegal Insurance Group is not a legal entity, is not an

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View this 10-K filing on SEC EDGAR