Donegal Group Inc. Files Q2 2024 10-Q Report

TL;DR

Donegal Group's Q2 10-Q is in. Check financials for Class A & B shares.

AI Summary

Donegal Group Inc. filed its 10-Q for the period ending June 30, 2024. The filing covers the second quarter and first half of the fiscal year. Key financial data and operational details for this period are presented, including information on common stock classes A and B.

Why It Matters

This filing provides investors with a detailed look at Donegal Group's financial performance and position as of the end of the second quarter of 2024, crucial for understanding the company's health and future prospects.

Risk Assessment

Risk Level: low — This is a routine quarterly filing providing standard financial disclosures.

Key Numbers

• 20240630 — Reporting Period End Date (Indicates the end of the fiscal quarter for which financial data is reported.)
• 20240807 — Filing Date (The date the 10-Q report was officially submitted to the SEC.)

Key Players & Entities

• Donegal Group Inc. (company) — Filer of the 10-Q report
• 20240630 (date) — End of the reporting period
• 1195 River Rd (location) — Company's business and mailing address
• Marietta, PA (location) — City and State of the company's address
• 7174261931 (phone_number) — Company's business phone number

FAQ

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

• ef20029672_10q.htm (10-Q) — 1832KB
• ef20029672_ex31-1.htm (EX-31.1) — 6KB
• ef20029672_ex31-2.htm (EX-31.2) — 6KB
• ef20029672_ex32-1.htm (EX-32.1) — 3KB
• ef20029672_ex32-2.htm (EX-32.2) — 3KB
• 0001140361-24-036147.txt ( ) — 8764KB
• dgica-20240630.xsd (EX-101.SCH) — 40KB
• dgica-20240630_cal.xml (EX-101.CAL) — 84KB
• dgica-20240630_def.xml (EX-101.DEF) — 261KB
• dgica-20240630_lab.xml (EX-101.LAB) — 694KB
• dgica-20240630_pre.xml (EX-101.PRE) — 396KB
• ef20029672_10q_htm.xml (XML) — 1743KB

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 25 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 35 Item 4.

Controls and Procedures

Controls and Procedures 35 PART II OTHER INFORMATION Item 1.

Legal Proceedings

Legal Proceedings 37 Item 1A.

Risk Factors

Risk Factors 37 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 37 Item 3. Defaults upon Senior Securities 37 Item 4. Mine Safety Disclosure 37 Item 5. Other Information 37 Item 6. Exhibits 38

Signatures

Signatures 39 Index

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION Item 1.

Financial Statements

Financial Statements Donegal Group Inc. and Subsidiaries Consolidated Balance Sheets June 30, 2024 December 31, 2023 (Unaudited) Assets Investments Fixed maturities Held to maturity, at amortized cost (net of allowance for expected credit losses of $ 1,353,571 and $ 1,325,847 ) $ 690,580,051 $ 679,497,038 Available for sale, at fair value 604,168,056 589,348,243 Equity securities, at fair value 32,455,954 25,902,956 Short-term investments, at cost, which approximates fair value 16,570,667 32,305,408 Total investments 1,343,774,728 1,327,053,645 Cash 24,225,596 23,792,273 Accrued investment income 10,323,445 9,945,714 Premiums receivable 203,813,652 179,591,821 Reinsurance receivable (net of allowance for expected credit losses of $ 932,350 and $ 1,394,074 ) 440,857,671 441,431,334 Deferred policy acquisition costs 80,926,482 75,043,404 Deferred tax asset, net 19,710,757 19,532,525 Prepaid reinsurance premiums 186,323,040 168,724,465 Property and equipment, net 2,555,448 2,633,405 Accounts receivable - securities 1,052 1,501,079 Federal income taxes recoverable 6,322,318 8,102,321 Due from affiliate 9,819,685 1,907,527 Goodwill 5,625,354 5,625,354 Other intangible assets 958,010 958,010 Other 15,961 451,011 Total assets $ 2,335,253,199 $ 2,266,293,888 Liabilities and Stockholders' Equity Liabilities Losses and loss expenses $ 1,147,418,755 $ 1,126,156,838 Unearned premiums 653,579,467 599,411,468 Accrued expenses 3,511,439 3,946,974 Reinsurance balances payable 3,935,320 8,758,976 Borrowings under lines of credit 35,000,000 35,000,000 Cash dividends declared to stockholders — 5,569,992 Other 7,732,351 7,704,286 Total liabilities 1,851,177,332 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, autho

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 June 30, 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 June 30, 2024, Donegal Mutual held approximately 43 % 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 insuran

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