MARIETTA, PA — Donegal Group Inc. (NASDAQ: DGICA) (NASDAQ: DGICB) reported financial results for the fourth quarter and full year ended December 31, 2025, showing lower quarterly earnings but improved full-year profitability compared with 2024.
For the fourth quarter, net income declined to $17.2 million, or 47 cents per diluted Class A share, from $24.0 million, or 70 cents per diluted Class A share, a year earlier. Net premiums earned fell 4.1% to $226.9 million.
The company’s combined ratio — a key measure of underwriting profitability in which a figure below 100% indicates an underwriting profit — was 96.3% for the quarter, compared with 92.9% in the fourth quarter of 2024.
For the full year, net income rose 56.0% to $79.3 million, or $2.18 per diluted Class A share, compared with $50.9 million, or $1.53 per diluted Class A share, in 2024. Net premiums earned decreased 1.7% to $921.2 million.
The combined ratio improved to 95.4% for 2025 from 98.6% in 2024. Return on average equity increased to 13.4% from 9.9%, and book value per share rose to $17.33 at year-end 2025 from $15.36 a year earlier.
Kevin G. Burke, president and chief executive officer, said the results reflected “the favorable impact of numerous strategic decisions and intentional actions over the past several years.”
Burke said the company’s focus for 2026 includes pursuing “modest premium growth” through independent agency partners in targeted geographies and lines of business.
In the fourth quarter, the loss ratio increased to 61.1% from 59.8% a year earlier, reflecting higher large fire losses and unfavorable prior-year reserve development, partially offset by lower core loss ratios in both commercial and personal lines.
Weather-related losses totaled $8.2 million in the quarter, representing 3.6 percentage points of the loss ratio, compared with $7.7 million, or 3.3 percentage points, in the prior-year quarter.
For the full year, the loss ratio declined to 61.3% from 64.5% in 2024. The core loss ratio, which excludes weather-related losses, large fire losses and prior-year reserve development, improved to 51.4% from 54.0%.
Net investment income increased 17.5% to $14.2 million in the fourth quarter and rose 17.2% to $52.6 million for the full year, driven by higher average invested assets and higher yields. Net investment losses were $1.7 million in the fourth quarter, compared with minimal gains in the same period of 2024.
At December 31, 2025, total investments were $1.50 billion, with 94.5% invested in fixed-maturity securities. Total assets stood at $2.39 billion, and stockholders’ equity totaled $640.4 million.
Donegal Group also said it declared regular quarterly cash dividends of $0.1825 per Class A share and $0.165 per Class B share on December 18, 2025, payable February 17, 2026 to stockholders of record as of February 3, 2026.
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