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DGICB

Donegal Group Inc.

DGICB

Donegal Group Inc. • NASDAQ
$16.27 ▼ -7.06% (-1.24)
Market Cap $596.36 M
52w High $20.46
52w Low $13.19
Dividend Yield 0.65%
P/E 6.67
Volume 190
Outstanding Shares 36.65M

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 Revenue has grown at a steady, measured pace over the past five years, showing that Donegal is gradually expanding its business rather than chasing rapid, risky growth. Profitability has been bumpy: results hovered around break-even in the middle of the period but improved meaningfully in the most recent year, with earnings recovering from prior weakness. That suggests underwriting and pricing actions are starting to work, but the track record still shows some vulnerability to adverse loss trends or weather events, which is typical for a regional property and casualty insurer.

Balance Sheet

Balance Sheet The balance sheet looks conservative and relatively stable. Total assets have inched upward over time, while shareholder equity has also generally strengthened, indicating that the company has been able to rebuild and add to its capital base after softer years. Debt levels are modest compared with the size of the business, and cash on hand is small but consistent with an insurance model that holds most resources in investment portfolios rather than idle cash. Overall, the balance sheet supports ongoing operations but does not appear excess-capital rich.

Cash Flow

Cash Flow Cash generation from operations has been positive every year, even when accounting profits were weak. There was a dip in operating cash flow in the second-to-last year, but it rebounded in the most recent period, aligning with better earnings. With very low capital spending needs, most operating cash effectively flows through as free cash flow, which is a structural advantage of the insurance model. This pattern points to a business that, while cyclical and exposed to claims volatility, has a fairly resilient cash engine over time.

Competitive Edge

Competitive Edge Donegal operates as a regional property and casualty insurer, relying heavily on long-standing relationships with independent agents. This network, combined with local market focus and underwriting discipline, gives it a defensible niche against much larger national carriers. The company’s willingness to exit less profitable segments and maintain pricing discipline supports underwriting quality, though it can limit growth during highly competitive periods. At the same time, Donegal faces the usual pressures of the sector: intense price competition, exposure to severe weather events, and the need to keep up with rapid technology changes among bigger, better-funded rivals.

Innovation and R&D

Innovation and R&D The company is leaning into technology as a key differentiator. It is modernizing core systems, expanding its data and analytics capabilities, and experimenting with artificial intelligence to improve underwriting, claims handling, and efficiency. Partnerships with specialized firms for AI-based property assessment and underwriting workflow optimization show a pragmatic, partner-driven approach rather than trying to build everything in-house. These initiatives could improve risk selection and lower expenses over time, but they come with short-term cost burdens and execution risk—investors should watch whether the promised efficiency and underwriting gains actually materialize in margins and loss ratios.

Summary

Donegal Group appears to be a steady, regionally focused insurer that has navigated a tough few years with only modest balance-sheet strain and has recently returned to healthier profitability and cash flow. Its strengths lie in disciplined underwriting, entrenched independent agent relationships, and an increasingly modern technology stack aimed at sharpening risk selection and lowering costs. The main risks are the inherent volatility of property and casualty insurance, competitive pricing pressure, and the need to successfully execute on its multi-year technology and expense initiatives. Overall, the company looks like a cautiously managed insurer trying to upgrade itself into a more data-driven, efficient operator while preserving its traditional distribution strengths.

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