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DGICA

Donegal Group Inc.

DGICA

Donegal Group Inc. • NASDAQ
$20.13 ▼ -1.80% (-0.37)
Market Cap $719.92 M
52w High $21.12
52w Low $14.17
Dividend Yield 0.72%
P/E 8.25
Volume 53.84K
Outstanding Shares 35.76M

Income Statement

Period Revenue Operating Expense Net Income Net Profit Margin Earnings Per Share EBITDA
Q3-2025 $245.919M ▼ $40.936M ▲ $20.08M ▲ 8.165% ▲ $0.56 ▲ $26.107M ▲
Q2-2025 $247.148M ▲ $36.306M ▼ $16.866M ▼ 6.824% ▼ $0.47 ▼ $21.674M ▼
Q1-2025 $245.174M ▼ $42.749M ▼ $25.205M ▲ 10.281% ▲ $0.71 ▼ $32.514M ▲
Q4-2024 $249.954M ▼ $220.287M ▲ $24.002M ▲ 9.603% ▲ $0.73 ▲ $30.931M ▲
Q3-2024 $251.737M $44.7M $16.752M 6.654% $0.5 $21.759M

Balance Statement

Period Cash & Short-term Total Assets Total Liabilities Total Equity
Q3-2025 $512.383M ▲ $2.422B ▲ $1.794B ▼ $627.442M ▲
Q2-2025 $468.201M ▲ $2.408B ▲ $1.802B ▲ $605.669M ▲
Q1-2025 $435.515M ▲ $2.368B ▲ $1.784B ▼ $584.723M ▲
Q4-2024 $401.92M ▲ $2.336B ▼ $1.79B ▼ $545.776M ▲
Q3-2024 $376.682M $2.346B $1.833B $513.37M

Cash Flow Statement

Period Net Income Cash From Operations Cash From Investing Cash From Financing Net Change Free Cash Flow
Q3-2025 $20.08M ▲ $22.352M ▲ $-37.18M ▼ $-4.037M ▼ $-18.866M ▼ $22.352M ▲
Q2-2025 $16.866M ▼ $12.131M ▼ $-18.784M ▼ $-225.719K ▼ $-6.878M ▼ $12.131M ▼
Q1-2025 $25.205M ▲ $25.75M ▼ $-14.922M ▲ $561.77K ▼ $11.389M ▼ $25.75M ▼
Q4-2024 $24.002M ▲ $28.202M ▲ $-25.348M ▼ $21.421M ▲ $24.275M ▲ $28.202M ▲
Q3-2024 $16.752M $12.741M $-6.74M $-1.575M $4.425M $12.741M

Revenue by Products

Product Q1-2025
Commercial Lines Segment
Commercial Lines Segment
 $140.00M ▲
Personal Lines Segment
Personal Lines Segment
 $100.00M ▲

Five-Year Company Overview

Income Statement

Income Statement Donegal’s revenue has been inching up steadily over the past several years, which suggests the business is gradually expanding its premium base. Profitability, however, has been bumpy: some years were near break-even while others generated solid earnings. The most recent year shows a clear rebound in profits after a softer stretch, pointing to better underwriting discipline and pricing. Overall, the trend is toward improvement, but with a history of earnings volatility that is typical for regional property and casualty insurers exposed to weather and competitive pricing cycles.

Balance Sheet

Balance Sheet The balance sheet looks conservative and relatively stable. Total assets have grown slowly over time, and shareholder equity has been rebuilding after a flat period, which indicates retained value in the business. Debt sits at a modest level compared with the company’s size, supporting the picture of a cautious funding approach. Cash on hand is not large but appears adequate for day-to-day needs when combined with the company’s liquid investment portfolio, which is common for an insurer with a conservative investment strategy.

Cash Flow

Cash Flow Cash generation from operations has been consistently positive, even in weaker earnings years, which is a good sign for the underlying health of the insurance operations. The level of cash flow has drifted down from earlier peaks but remains solid and generally aligned with reported profits. With essentially no heavy capital spending requirements, most operating cash effectively becomes free cash flow, giving the company flexibility to support growth initiatives, strengthen the balance sheet, or return capital, depending on management’s priorities.

Competitive Edge

Competitive Edge Donegal operates as a regional property and casualty carrier focused on “main street” individuals and small to mid-sized businesses. Its core edge comes from long-standing relationships with independent agents, local market knowledge, and a conservative underwriting stance rather than sheer scale. This relationship-driven model can foster loyalty and more profitable business over time, but it also means the company competes against much larger national carriers with broader product suites and marketing budgets. The conservative investment portfolio and underwriting discipline support resilience, though catastrophe events and intense price competition remain ongoing structural risks.

Innovation and R&D

Innovation and R&D Instead of betting on cutting-edge, in-house inventions, Donegal is methodically modernizing its technology by adopting proven platforms and partnering with specialized firms. It is upgrading core policy and claims systems, using tools like Guidewire and external partners to streamline underwriting, automate routine work, and improve straight-through processing. The company has also overhauled its data infrastructure to enable real-time analytics across claims, underwriting, and marketing, and it is experimenting with customer-facing tools like text-based claims communication and value-added legal services. This is a practical, execution-focused innovation strategy designed to make the company faster, more accurate, and easier to do business with, rather than radically changing its business model.

Summary

Donegal Group looks like a steady, regionally focused insurer that has worked through a patch of uneven profitability and is now showing clearer signs of earnings improvement. The balance sheet is conservative, with modest leverage and a focus on high-quality investments, and cash flows have been consistently positive. Competitively, the company relies on deep agent relationships, local expertise, and disciplined underwriting rather than scale, which can be a strength in its chosen niches but limits its ability to match the breadth and pricing power of national players. Its technology and data modernization efforts are central to its strategy and could further enhance underwriting quality and customer experience if executed well. Overall, the story is one of gradual, disciplined improvement rather than rapid transformation, with the key variables being underwriting performance, catastrophe exposure, and successful delivery of its tech and expense initiatives.

NEWS

October 30, 2025 · 6:30 AM UTC

Donegal Group Inc. Announces Third Quarter and First Nine Months of 2025 Results

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October 16, 2025 · 3:00 PM UTC

Donegal Group Inc. Announces Quarterly Dividend

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October 6, 2025 · 12:56 PM UTC

Donegal Group Inc. Announces Release Date for Third Quarter 2025 Results

Read more