Donegal Group Inc. Files 10-Q for Period Ending March 31, 2024

TL;DR

<b>Donegal Group Inc. has filed its Q1 2024 10-Q report, detailing financial positions as of March 31, 2024.</b>

AI Summary

DONEGAL GROUP INC (DGICB) filed a Quarterly Report (10-Q) with the SEC on May 3, 2024. Donegal Group Inc. filed a 10-Q report for the period ending March 31, 2024. The filing covers the first quarter of fiscal year 2024. The company's principal business is Fire, Marine & Casualty Insurance. The filing includes financial data for the periods ending December 31, 2023, and March 31, 2024. Key financial statement components like Common Stock, Additional Paid-In Capital, and Retained Earnings are detailed for these periods.

Why It Matters

For investors and stakeholders tracking DONEGAL GROUP INC, this filing contains several important signals. This 10-Q filing provides investors with the latest quarterly financial performance and position of Donegal Group Inc. Understanding the details within this report is crucial for assessing the company's financial health and operational status in the insurance sector.

Risk Assessment

Risk Level: low — DONEGAL GROUP INC shows low risk based on this filing. The filing is a standard quarterly report (10-Q) and does not contain any immediate red flags or significant deviations from typical disclosures for a company of this nature.

Analyst Insight

Monitor future filings for trends in key financial metrics and any changes in the company's risk factors or operational performance.

Key Numbers

• 2024-03-31 — Period of Report (Conformed period of report)
• 2024-05-03 — Filing Date (Date the 10-Q was filed)
• 2024-01-01 — Quarter Start Date (Beginning of the reporting period)
• 2023-12-31 — Prior Year End (End of the previous fiscal year)

Key Players & Entities

• Donegal Group Inc. (company) — Filer of the 10-Q report
• 2024-03-31 (date) — Conformed period of report
• 2024-05-03 (date) — Filing date
• FIRE, MARINE & CASUALTY INSURANCE (industry) — Standard Industrial Classification
• 1195 RIVER RD PO BOX 302 (address) — Business address
• MARIETTA, PA 17547-0302 (address) — Business address

FAQ

Industry Context

Donegal Group Inc. operates within the Fire, Marine & Casualty Insurance industry, a sector characterized by risk management and underwriting.

Regulatory Implications

The filing is made under the Securities Exchange Act of 1934, requiring public companies to submit regular financial disclosures to the SEC.

What Investors Should Do

1. Review the full 10-Q filing for detailed financial statements and management's discussion and analysis.
2. Compare the reported financial data with previous quarters and the same quarter in the prior year.
3. Analyze any disclosed risk factors or legal proceedings that could impact the company's future performance.

Key Dates

• 2024-03-31: Quarter End — End of the reporting period for the 10-Q
• 2024-05-03: Filing Date — Date the 10-Q was officially submitted to the SEC

Glossary

10-Q

A quarterly report required by the U.S. Securities and Exchange Commission (SEC). (Provides a comprehensive overview of a company's financial performance and position during a specific quarter.)

Fiscal Year End

The last day of a company's fiscal year. (Helps in understanding the timing of annual financial reporting and planning.)

Year-Over-Year Comparison

This filing represents the first quarterly report for Donegal Group Inc. in fiscal year 2024, providing updated financial information compared to the previous year's filings.

Key Financial Figures

• $0.01 — ares of Class A Common Stock, par value $0.01 per share, and 5,576,775 shares of Clas

Filing Documents

• ef20026290_10q.htm (10-Q) — 1412KB
• ef20026290_ex31-1.htm (EX-31.1) — 6KB
• ef20026290_ex31-2.htm (EX-31.2) — 6KB
• ef20026290_ex32-1.htm (EX-32.1) — 3KB
• ef20026290_ex32-2.htm (EX-32.2) — 3KB
• 0001140361-24-024270.txt (&nbsp;) — 7620KB
• dgica-20240331.xsd (EX-101.SCH) — 40KB
• dgica-20240331_cal.xml (EX-101.CAL) — 84KB
• dgica-20240331_def.xml (EX-101.DEF) — 263KB
• dgica-20240331_lab.xml (EX-101.LAB) — 732KB
• dgica-20240331_pre.xml (EX-101.PRE) — 397KB
• ef20026290_10q_htm.xml (XML) — 1355KB

Financial Statements

Financial Statements 1 Item 2.

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

Management's Discussion and Analysis of Financial Condition and Results of Operations 20 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 29 Item 4.

Controls and Procedures

Controls and Procedures 29 PART II OTHER INFORMATION Item 1.

Legal Proceedings

Legal Proceedings 30 Item 1A.

Risk Factors

Risk Factors 30 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 30 Item 3. Defaults upon Senior Securities 30 Item 4. Mine Safety Disclosure 30 Item 5. Other Information 30 Item 6. Exhibits 31

Signatures

Signatures 32 Index

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION Item 1.

Financial Statements

Financial Statements Donegal Group Inc. and Subsidiaries Consolidated Balance Sheets March 31, 2024 December 31, 2023 (Unaudited) Assets Investments Fixed maturities Held to maturity, at amortized cost (net of allowance for expected credit losses of $ 1,329,099 and $ 1,325,847 ) $ 683,398,852 $ 679,497,038 Available for sale, at fair value 600,761,425 589,348,243 Equity securities, at fair value 28,883,318 25,902,956 Short-term investments, at cost, which approximates fair value 18,860,030 32,305,408 Total investments 1,331,903,625 1,327,053,645 Cash 19,805,040 23,792,273 Accrued investment income 10,497,341 9,945,714 Premiums receivable 193,160,160 179,591,821 Reinsurance receivable (net of allowance for expected credit losses of $ 1,026,016 and $ 1,394,074 ) 435,505,126 441,431,334 Deferred policy acquisition costs 78,857,108 75,043,404 Deferred tax asset, net 19,483,755 19,532,525 Prepaid reinsurance premiums 179,757,762 168,724,465 Property and equipment, net 2,594,056 2,633,405 Accounts receivable - securities 32,162 1,501,079 Federal income taxes recoverable 7,271,415 8,102,321 Due from affiliate 8,841,178 1,907,527 Goodwill 5,625,354 5,625,354 Other intangible assets 958,010 958,010 Other 15,961 451,011 Total assets $ 2,294,308,053 $ 2,266,293,888 Liabilities and Stockholders' Equity Liabilities Losses and loss expenses $ 1,124,452,191 $ 1,126,156,838 Unearned premiums 634,136,621 599,411,468 Accrued expenses 3,685,534 3,946,974 Reinsurance balances payable 4,016,080 8,758,976 Borrowings under lines of credit 35,000,000 35,000,000 Cash dividends declared to stockholders — 5,569,992 Other 7,931,153 7,704,286 Total liabilities 1,809,221,579 1,786,548,534 Stockholders' Equity Preferred stock, $ 0.01 par value, authorized 2,000,000 shares; none issued — — Class A common stock, $ 0.01 par value, a

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements 1 - Organization Donegal Mutual Insurance Company ("Donegal Mutual") organized us as an insurance holding company on August 26, 1986. Our insurance subsidiaries are Atlantic States Insurance Company ("Atlantic States"), Michigan Insurance Company ("MICO"), the Peninsula Insurance Group ("Peninsula"), which consists of The Peninsula Insurance Company and its wholly owned subsidiary Peninsula Indemnity Company, and Southern Insurance Company of Virginia ("Southern"). Our insurance subsidiaries and their affiliates write commercial and personal lines of property and casualty coverages exclusively through a network of independent insurance agents in certain Mid-Atlantic, Midwestern, New England, Southern and Southwestern states. At March 31, 2024, we had three segments: our investment function, our commercial lines of insurance and our personal lines of insurance. The commercial lines products of our insurance subsidiaries consist primarily of commercial automobile, commercial multi-peril and workers' compensation policies. The personal lines products of our insurance subsidiaries consist primarily of homeowners and private passenger automobile policies. At March 31, 2024, Donegal Mutual held approximately 44 % of our outstanding Class A common stock and approximately 84 % of our outstanding Class B common stock. This ownership provides Donegal Mutual with approximately 71 % of the total voting power of our common stock. Our insurance subsidiaries and Donegal Mutual have interrelated operations due to a pooling agreement and other intercompany agreements and transactions. While each company maintains its separate corporate existence, our insurance subsidiaries and Donegal Mutual conduct business together as the Donegal Insurance Group. As such, Donegal Mutual and our insurance subsidiaries share the same business philosophy, the same management, the same employees and the same facilities and offer the same types of insu

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View this 10-Q filing on SEC EDGAR