Donegal Group Inc. Files Q3 2024 10-Q

TL;DR

DONEGAL GROUP INC FILED ITS Q3 2024 10-Q. FINANCIALS ARE IN.

AI Summary

Donegal Group Inc. filed its 10-Q for the period ending September 30, 2024. The filing details the company's financial performance and position during the third quarter of 2024. Key financial data and operational updates are provided, reflecting the company's activities in the fire, marine, and casualty insurance sector.

Why It Matters

This filing provides investors and analysts with the latest financial performance data for Donegal Group Inc., crucial for understanding the company's health and future prospects in the insurance market.

Risk Assessment

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

Key Numbers

• 20240930 — Reporting Period End Date (Indicates the end of the fiscal quarter for which financial data is reported.)
• 20241106 — Filing Date (The date the 10-Q was officially submitted to the SEC.)
• 1231 — Fiscal Year End (Specifies the end date of the company's annual fiscal year.)

Key Players & Entities

• Donegal Group Inc. (company) — Filer of the 10-Q
• 1195 River Rd, PO Box 302, Marietta, PA 17547-0302 (location) — Company business address
• 232424711 (identifier) — IRS Number
• 000-15341 (identifier) — SEC File 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

• ef20034566_10q.htm (10-Q) — 2016KB
• ef20034566_ex31-1.htm (EX-31.1) — 6KB
• ef20034566_ex31-2.htm (EX-31.2) — 6KB
• ef20034566_ex32-1.htm (EX-32.1) — 3KB
• ef20034566_ex32-2.htm (EX-32.2) — 3KB
• 0001140361-24-045419.txt ( ) — 9061KB
• dgica-20240930.xsd (EX-101.SCH) — 40KB
• dgica-20240930_cal.xml (EX-101.CAL) — 84KB
• dgica-20240930_def.xml (EX-101.DEF) — 262KB
• dgica-20240930_lab.xml (EX-101.LAB) — 697KB
• dgica-20240930_pre.xml (EX-101.PRE) — 397KB
• ef20034566_10q_htm.xml (XML) — 1799KB

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 23 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 33 Item 4.

Controls and Procedures

Controls and Procedures 34 PART II OTHER INFORMATION Item 1.

Legal Proceedings

Legal Proceedings 35 Item 1A.

Risk Factors

Risk Factors 35 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 35 Item 3. Defaults upon Senior Securities 35 Item 4. Mine Safety Disclosure 35 Item 5. Other Information 35 Item 6. Exhibits 36

Signatures

Signatures 37 Index

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION Item 1.

Financial Statements

Financial Statements Donegal Group Inc. and Subsidiaries Consolidated Balance Sheets September 30, 2024 December 31, 2023 (Unaudited) Assets Investments Fixed maturities Held to maturity, at amortized cost (net of allowance for expected credit losses of $ 1,483,475 and $ 1,325,847 ) $ 694,662,557 $ 679,497,038 Available for sale, at fair value 622,840,325 589,348,243 Equity securities, at fair value 35,957,068 25,902,956 Short-term investments, at cost, which approximates fair value 15,804,785 32,305,408 Total investments 1,369,264,735 1,327,053,645 Cash 28,650,774 23,792,273 Accrued investment income 10,810,293 9,945,714 Premiums receivable 194,253,985 179,591,821 Reinsurance receivable (net of allowance for expected credit losses of $ 942,804 and $ 1,394,074 ) 434,077,660 441,431,334 Deferred policy acquisition costs 78,484,456 75,043,404 Deferred tax asset, net 16,287,979 19,532,525 Prepaid reinsurance premiums 185,363,903 168,724,465 Property and equipment, net 2,517,163 2,633,405 Accounts receivable - securities — 1,501,079 Federal income taxes recoverable 2,375,684 8,102,321 Due from affiliate 17,399,612 1,907,527 Goodwill 5,625,354 5,625,354 Other intangible assets 958,010 958,010 Other 56,421 451,011 Total assets $ 2,346,126,029 $ 2,266,293,888 Liabilities and Stockholders' Equity Liabilities Losses and loss expenses $ 1,134,852,442 $ 1,126,156,838 Unearned premiums 646,870,410 599,411,468 Accrued expenses 2,987,398 3,946,974 Reinsurance balances payable 3,389,828 8,758,976 Borrowings under lines of credit 35,000,000 35,000,000 Cash dividends declared to stockholders — 5,569,992 Other 9,655,905 7,704,286 Total liabilities 1,832,755,983 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, aut

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, Southern and Southwestern states. At September 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 September 30, 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 insurance

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