MARIETTA, Pa., July 30, 2018 (GLOBE NEWSWIRE) -- Donegal Group Inc. (NASDAQ:DGICA) and (NASDAQ:DGICB) today reported its financial results for the second quarter and first half of 2018.  The Company will hold a live conference call on Tuesday, July 31, 2018 at 11:00AM Eastern Time to discuss these results.  You may listen to the webcast of this conference call by accessing the event link at http://investors.donegalgroup.com.

Significant items included:

  • Net loss of $790,000, or 3 cents per Class A share, for the second quarter of 2018, compared to a net loss of $2.3 million, or 8 cents per Class A share, for the second quarter of 2017, with both periods reflecting higher than average weather-related losses

  • Second quarter of 2018 results included an after-tax restructuring charge of $1.3 million, or 5 cents per Class A share, related to a restructuring charge for severance costs the Company incurred in connection with the closure of its Salisbury, Maryland branch office

  • Net premiums earned of $185.7 million for the second quarter of 2018 increased 6.1% compared to the prior-year second quarter

  • Net premiums written1 increased 2.7% to $195.9 million for the second quarter of 2018 compared to the prior-year second quarter

  • Combined ratio of 105.6% for the second quarter of 2018, compared to 106.4% for the prior-year second quarter

  • Book value per share of $14.85 at June 30, 2018, compared to $15.95 at year-end 2017
            
 Three Months Ended June 30, Six Months Ended June 30,
  2018   2017  % Change  2018   2017 % Change
 (dollars in thousands, except per share amounts)
            
Income Statement Data           
Net premiums earned$  185,714  $  175,015  6.1% $  367,479  $  344,171 6.8%
Investment income, net   6,342     5,650  12.3      12,721     11,405 11.5  
Net realized investment gains    1,517     1,097  38.3      599     3,646   (83.6)
Total revenues   195,790     183,581  6.7      385,118     362,552 6.2  
Net (loss) income   (790)    (2,319)   (65.9)    (18,968)    2,786 NM2
Non-GAAP operating (loss) income1   (536)    (3,032)   (82.3)    (18,108)    416 NM
            
Per Share Data           
Net (loss) income – Class A (diluted)$  (0.03) $  (0.08)   (62.5) $  (0.68) $  0.10 NM
Net (loss) income – Class B   (0.03)    (0.08)   (62.5)    (0.63)    0.09 NM
Non-GAAP operating (loss) income – Class A (diluted)   (0.02)    (0.11)   (81.8)    (0.65)    0.02 NM
Non-GAAP operating (loss) income – Class B   (0.02)    (0.11)   (81.8)    (0.60)    0.01 NM
Book value   14.85     16.23    (8.5)    14.85     16.23   (8.5)
            
            

1The “Definitions of Non-GAAP and Operating Measures” section of this release defines and reconciles data that the Company prepares on an accounting basis other than U.S. generally accepted accounting principles (“GAAP”).

2Not meaningful.

Management Commentary

Kevin G. Burke, President and Chief Executive Officer of Donegal Group Inc., noted, “Throughout the second quarter of 2018, Donegal Group continued to focus on improving underwriting performance while also completing a significant corporate initiative.  On June 12, 2018, we announced that we had entered into an agreement with Northwest Bancshares, Inc. for the sale of Donegal Financial Services Corporation and Union Community Bank.  We currently expect to close on this transaction in the first quarter of 2019.  We plan to utilize the proceeds from this sale to support our strategic goals as we focus on our core property and casualty insurance business.”

Mr. Burke continued, “We are confident that our entire team is fully engaged in addressing the challenges we encountered in the first quarter of 2018, which included adverse reserve development primarily related to higher-than-expected loss severity in our personal and commercial automobile lines of business.  Our automobile combined ratios for the second quarter of 2018 reflected our expectations for a continuation of elevated loss severity trends in these business lines, but we did not incur any additional material reserve development for losses incurred in prior years.  We have implemented, and will continue to implement, automobile rate increases in all of the states in which we are actively writing business.  In addition, we have implemented predictive analytical scoring for all commercial automobile policy renewals in order to further refine our underwriting and pricing, and we are in the process of extensively re-underwriting all commercial automobile policy renewals in several underperforming states.  To this point, market conditions have allowed us to achieve steady net written premium gains without a meaningful decline in policy retention rates throughout the majority of our regional markets.  We expect the higher premium rates and enhanced implementation of technological advancements to yield incremental profit improvement over time as our net premiums earned reflect more appropriate pricing for automobile risks throughout all of our marketing regions.”

Jeffrey D. Miller, Executive Vice President and Chief Financial Officer, commented, “Weather-related losses totaled approximately $17.7 million for the second quarter of 2018, representing an improvement over the $20.1 million of weather-related losses for the second quarter of 2017 but reflecting an increase compared to the previous five-year average for second quarter weather-related losses of $12.3 million. The higher-than-average losses resulted from a series of wind and hail events in the Company’s operating regions during the second quarter of 2018.  None of the losses from wind and hail events exceeded the Company’s $5.0 million third-party catastrophe reinsurance retention.”  

Mr. Miller continued, “Our workers’ compensation line of business continued to perform well during the second quarter of 2018, as indicated by the statutory combined ratio1 of 92.9% in this line of business.  We achieved that favorable ratio despite an increase in loss severity, primarily due to several unusually severe reported claims we incurred during the period.  We were also pleased that our commercial multi-peril line of business returned to profitability, as the 91.2% second quarter 2018 statutory combined ratio demonstrated.  The favorable results in commercial multi-peril and workers’ compensation helped us to achieve overall underwriting profitability in our commercial segment for the quarter.”

Management Conclusion and Outlook

Mr. Burke concluded, “Our core values include fostering a conservative underwriting culture and pricing discipline, continuing our investment in technology and maintaining a conservative investment approach to deliver value to all of our stockholders.  We believe that our management team has made considerable progress on key initiatives to improve our underwriting performance, and we expect more favorable results for the remainder of 2018.”

Insurance Operations

Donegal Group is an insurance holding company whose insurance subsidiaries offer personal and commercial property and casualty lines of insurance in four Mid-Atlantic states (Delaware, Maryland, New York and Pennsylvania), three New England states (Maine, New Hampshire and Vermont), seven Southern states (Alabama, Georgia, North Carolina, South Carolina, Tennessee, Virginia and West Virginia) and eight Midwestern states (Illinois, Indiana, Iowa, Michigan, Nebraska, Ohio, South Dakota and Wisconsin). Donegal Mutual Insurance Company and the insurance subsidiaries of Donegal Group conduct business together as the Donegal Insurance Group.

             
 Three Months Ended June 30, Six Months Ended June 30, 
  2018  2017 % Change  2018  2017 % Change 
 (dollars in thousands) 
             
Net Premiums Earned            
Personal lines$  101,162 $  95,921 5.5% $  200,701 $  188,458 6.5% 
Commercial lines   84,552    79,094 6.9      166,778    155,713   7.1   
Total net premiums earned$  185,714 $  175,015 6.1% $  367,479 $  344,171 6.8% 
             
Net Premiums Written            
Personal lines:            
Automobile$  66,511 $  65,699 1.2% $  131,417 $  126,991 3.5% 
Homeowners   35,030    35,311   (0.8)    61,587    60,902   1.1   
Other   5,119    5,378   (4.8)    9,921    10,106   (1.8) 
Total personal lines   106,660    106,388   0.3      202,925    197,999   2.5   
Commercial lines:            
Automobile   27,857    25,889   7.6      58,103    52,724   10.2   
Workers' compensation   26,566    27,749   (4.3)    59,696    61,233   (2.5) 
Commercial multi-peril   29,710    27,967   6.2      61,895    57,997   6.7   
Other   5,156    2,779   85.5      8,586    5,320   61.4   
Total commercial lines   89,289    84,384   5.8      188,280    177,274   6.2   
Total net premiums written$  195,949 $  190,772 2.7% $  391,205 $  375,273 4.2% 
             
             

Net Premiums Written

The 2.7% increase in the Company’s net premiums written for the second quarter of 2018 compared to the second quarter of 2017, as shown in the table above, represents the combination of 5.8% growth in commercial lines net premiums written and 0.3% growth in personal lines net premiums written. The $5.2 million growth in net premiums written for the second quarter of 2018 compared to the second quarter of 2017 included:

  • $4.9 million in commercial lines premiums that the Company attributes to a combination of new policy growth and a continuation of modest renewal premium increases.  In addition, the increase in other commercial lines net premiums written reflects a modification to third-party reinsurance coverage related to umbrella liability policies effective March 1, 2018.
  • $272,000 in personal lines premiums that the Company attributes to premium rate increases the Company has implemented over the past four quarters, partially offset by net attrition as a result of underwriting measures the Company’s insurance subsidiaries implemented to slow new policy growth and to increase pricing on renewal policies.

Underwriting Performance

The Company evaluates the performance of its commercial lines and personal lines segments primarily based upon the underwriting results of its insurance subsidiaries as determined under statutory accounting practices.  The following table presents comparative details with respect to the Company’s GAAP and statutory combined ratios for the three and six months ended June 30, 2018 and 2017:

          
  Three Months Ended Six Months Ended 
  June 30, June 30, 
  2018 2017 2018 2017 
          
GAAP Combined Ratios (Total Lines)       
Loss ratio (non-weather) 63.6% 61.6% 71.3% 60.4% 
Loss ratio (weather-related) 9.5   11.5   8.3   10.0   
Expense ratio 31.8   32.6   32.1   32.9   
Dividend ratio 0.7   0.7   0.7   0.6   
Combined ratio 105.6% 106.4% 112.4% 103.9% 
          
Statutory Combined Ratios         
Personal lines:         
Automobile 109.7% 108.9% 113.8% 106.8% 
Homeowners 113.9   122.3   112.8   114.3   
Other 93.6   126.0   107.3   107.9   
Total personal lines 110.3   114.1   113.2   109.2   
Commercial lines:         
Automobile 116.0   107.6   143.5   107.3   
Workers' compensation 92.9   87.4   88.1   84.1   
Commercial multi-peril 91.2   93.4   103.8   99.5   
Total commercial lines 97.5   92.8   108.5   93.6   
Total lines 104.5% 104.5% 111.0% 102.1% 
          
          

Loss Ratio

For the second quarters of both 2018 and 2017, the Company’s loss ratio was 73.1%.  Weather-related losses contributed 9.5 percentage points to the Company’s loss ratio for the second quarter of 2018, compared to 11.5 percentage points of the Company’s loss ratio for the second quarter of 2017.  Workers compensation losses in excess of $50,000 were $7.1 million in the second quarter of 2018, compared to $3.8 million in the second quarter of 2017.

Large fire losses, which the Company defines as individual fire losses in excess of $50,000, were $6.7 million for the second quarter of 2018, or 3.6 percentage points of the Company’s loss ratio.  That amount was modestly lower than the large fire losses of $7.6 million for the second quarter of 2017, or 4.3 percentage points of the Company’s loss ratio.  The Company noted a modest decrease in the impact of both homeowners and commercial fire losses in the second quarter of 2018.

Development of reserves for losses incurred in prior accident years had virtually no impact on the Company’s loss ratio for the second quarter of 2018, compared to 3.3 percentage points of the Company’s loss ratio for the second quarter of 2017.  During the first quarter of 2018, the Company received new information on previously-reported commercial automobile and personal automobile claims and determined that its actuarial assumptions did not fully anticipate recent changes in severity and reporting trends. The Company attributed these trends to increased litigation and delays in reporting information with respect to the severity of claims.  As a result, the Company’s actuaries increased their projections of the ultimate cost of prior-year commercial automobile and personal automobile losses and added $7.4 million to our reserves for personal automobile claims and $18.8 million to our reserves for commercial automobile claims.  As a result of the reserve strengthening actions in the first quarter of 2018, development of reserves for losses incurred in prior accident years added 7.1 percentage points to the Company’s loss ratio for the first half of 2018, compared to 2.4 percentage points to the Company's loss ratio for the first half of 2017.

The Company’s expense ratio was 31.8% for the second quarter of 2018, compared to 32.6% for the second quarter of 2017.  The Company attributes the decrease to a reduction in underwriting-based incentive costs for the second quarter of 2018 compared to the prior-year quarter, partially offset by a $1.9 million restructuring charge in the second quarter of 2018 for employee termination costs associated with the consolidation of certain operations and closing of the branch office of The Peninsula Insurance Company.  The Company expects to achieve annualized expense savings of approximately $3.7 million as a result of implementing the Peninsula consolidation. While the Company expects net proceeds from the sale of Peninsula’s branch office real estate, the Company does not have definitive purchase arrangements and cannot estimate such proceeds at this time.

Investment Operations

Donegal Group’s investment strategy is to generate an appropriate amount of after-tax income on its invested assets while minimizing credit risk through investment in high-quality securities. As a result, the Company had invested 89.6% of its consolidated investment portfolio in diversified, highly rated and marketable fixed-maturity securities at June 30, 2018.

         
 June 30, 2018 December 31, 2017 
 Amount % Amount % 
 (dollars in thousands) 
Fixed maturities, at carrying value:        
U.S. Treasury securities and obligations of U.S.        
  government corporations and agencies$  116,296  11.5% $  115,786  11.5% 
Obligations of states and political subdivisions   247,693  24.5      269,698  26.8   
  Corporate securities   237,636  23.5      213,764  21.2   
  Mortgage-backed securities   304,176  30.1      306,353  30.5   
Total fixed maturities   905,801  89.6      905,601  90.0   
Equity securities, at fair value   53,602  5.3      50,445  5.0   
Investments in affiliates   39,451  3.9      38,774  3.9   
Short-term investments, at cost   11,787  1.2      11,050  1.1   
Total investments$  1,010,641  100.0% $  1,005,870  100.0% 
         
Average investment yield 2.5%    2.4%   
Average tax-equivalent investment yield 2.7%    2.9%   
Average fixed-maturity duration (years)   5.2       5.2    
         
         

Net investment income of $6.3 million for the second quarter of 2018 increased 12.3% compared to $5.6 million in net investment income for the second quarter of 2017. The increase in net investment income reflected primarily an increase in average invested assets relative to the prior-year second quarter.

Net realized investment gains were $1.5 million for the second quarter of 2018, compared to $1.1 million for the second quarter of 2017.

The Company owns 48.2% of the outstanding stock of Donegal Financial Services Corporation (“DFSC”). DFSC owns all of the outstanding stock of Union Community Bank (“UCB”). The Company accounts for its investment in DFSC using the equity method of accounting. Donegal Mutual Insurance Company (“DMIC”) owns the remaining 51.8% of the outstanding stock of DFSC.  On June 12, 2018, the Company and DMIC announced that the Company and DMIC had entered into an agreement to sell DFSC and UCB to Northwest Bancshares, Inc. (“Northwest”) for approximately $85.0 million in a combination of cash and Northwest common stock.  Immediately prior to the closing of the merger, DFSC will pay a dividend of approximately $30.0 million to the Company and DMIC.  Thus, the total proceeds to the Company and DMIC will be approximately $115.0 million.  As the owner of 48.2% of DFSC’s common stock, the Company will receive a dividend payment from DFSC of approximately $14.5 million and consideration from Northwest that will range in value from $38.9 million to $43.0 million.  The Company anticipates that it will realize an after-tax gain, net of transaction-related expenses, within a range of $8.9 million and $12.5 million, or approximately $.32 to $.45 per Class A common share, upon closing of the transaction expected in the first quarter of 2019.

Definitions of Non-GAAP and Operating Measures

The Company prepares its consolidated financial statements on the basis of GAAP. The Company’s insurance subsidiaries also prepare financial statements based on statutory accounting principles state insurance regulators prescribe or permit (“SAP”). In addition to using GAAP-based performance measurements, the Company also utilizes certain non-GAAP financial measures that it believes provide value in managing its business and for comparison to the financial results of its peers. These non-GAAP measures are net premiums written, operating income or loss and statutory combined ratio.

Net premiums written and operating income or loss are non-GAAP financial measures investors in insurance companies commonly use. The Company defines net premiums written as the amount of full-term premiums the Company records for policies effective within a given period less premiums the Company cedes to reinsurers. The Company defines operating income or loss as net income or loss excluding after-tax net realized investment gains or losses and after-tax restructuring charges. Because the Company’s calculation of operating income or loss may differ from similar measures other companies use, investors should exercise caution when comparing the Company’s measure of operating income or loss to the measure other companies use.

The following table provides a reconciliation of the Company's net premiums earned to the Company's net premiums written for the periods indicated:

            
 Three Months Ended June 30, Six Months Ended June 30,
  2018  2017 % Change  2018  2017 % Change
 (dollars in thousands)
            
Reconciliation of Net Premiums           
Earned to Net Premiums Written           
Net premiums earned$  185,714 $  175,015 6.1% $  367,479 $  344,171 6.8%
Change in net unearned premiums   10,235    15,757 (35.0)    23,726    31,102 (23.7)
Net premiums written$  195,949 $  190,772 2.7% $  391,205 $  375,273 4.2%
            
            

The following table provides a reconciliation of the Company's net (loss) income to the Company's operating (loss) income for the periods indicated:

             
 Three Months Ended June 30, Six Months Ended June 30, 
  2018   2017  % Change  2018   2017  % Change 
 (dollars in thousands, except per share amounts) 
             
Reconciliation of Net (Loss) Income            
to Non-GAAP Operating (Loss) Income            
Net (loss) income $  (790) $  (2,319) (65.9%) $  (18,968) $  2,786  NM 
Realized gains (after tax)   (1,001)    (713) 40.4     (395)    (2,370) (83.3%) 
Restructuring charge (after tax)   1,255     -   NM    1,255     -   NM 
Non-GAAP operating (loss) income$  (536) $  (3,032) (82.3%) $  (18,108) $  416  NM 
             
Per Share Reconciliation of Net            
(Loss) Income to Non-GAAP Operating (Loss) Income            
Net (loss) income – Class A (diluted)$  (0.03) $  (0.08) (62.5%) $  (0.68) $  0.10  NM 
Realized gains (after tax)   (0.04)    (0.03) 33.3     (0.02)    (0.08) (75.0%) 
Restructuring charge (after tax)   0.05     -   NM    0.05     -   NM 
Non-GAAP operating (loss) income – Class A$  (0.02) $  (0.11) (81.8%) $  (0.65) $  0.02  NM 
             
Net (loss) income – Class B$  (0.03) $  (0.08) (62.5%) $  (0.63) $  0.09  NM 
Realized gains (after tax)   (0.03)    (0.03) 0.0     (0.01)    (0.08) (87.5%) 
Restructuring charge (after tax)   0.04     -   NM    0.04     -   NM 
Non-GAAP operating (loss) income – Class B$  (0.02) $  (0.11) (81.8%) $  (0.60) $  0.01  NM 
             
             

The statutory combined ratio is a non-GAAP standard measurement of underwriting profitability that is based upon amounts determined under SAP. The statutory combined ratio is the sum of:

  • the statutory loss ratio, which is the ratio of calendar-year incurred losses and loss expenses to premiums earned;

  • the statutory expense ratio, which is the ratio of expenses incurred for net commissions, premium taxes and underwriting expenses to premiums written; and

  • the statutory dividend ratio, which is the ratio of dividends to holders of workers’ compensation policies to premiums earned.

The statutory combined ratio does not reflect investment income, federal income taxes or other non-operating income or expense. A statutory combined ratio of less than 100% generally indicates underwriting profitability.

Conference Call and Webcast

The Company will hold a conference call and webcast on Tuesday, July 31, 2018, beginning at 11:00 A.M. Eastern Time. You may listen via the Internet by accessing the webcast link on the Company’s website at http://investors.donegalgroup.com. A replay of the conference call will also be available via the Company’s website.

About the Company

Donegal Group is an insurance holding company. The Company’s Class A common stock and Class B common stock trade on the NASDAQ Global Select Market under the symbols DGICA and DGICB, respectively. As an effective acquirer of small to medium-sized “main street” property and casualty insurers, Donegal Group has grown profitably over the last three decades. The Company continues to seek opportunities for growth while striving to achieve its longstanding goal of outperforming the property and casualty insurance industry in terms of service, profitability and book value growth.

Safe Harbor

We base all statements contained in this release that are not historic facts on our current expectations. These statements are forward-looking in nature (as defined in the Private Securities Litigation Reform Act of 1995) and involve a number of risks and uncertainties. Actual results could vary materially. Factors that could cause actual results to vary materially include: adverse and catastrophic weather events, our ability to maintain profitable operations, the adequacy of the loss and loss expense reserves of our insurance subsidiaries, business and economic conditions in the areas in which our insurance subsidiaries operate, interest rates, competition from various insurance and other financial businesses, terrorism, the availability and cost of reinsurance, legal and judicial developments, changes in regulatory requirements, our ability to integrate and manage successfully the insurance companies we may acquire from time to time and other risks we describe in the periodic reports we file with the Securities and Exchange Commission. You should not place undue reliance on any such forward-looking statements. We disclaim any obligation to update such statements or to announce publicly the results of any revisions that we may make to any forward-looking statements to reflect the occurrence of anticipated or unanticipated events or circumstances after the date of such statements.

 
Donegal Group Inc.
Consolidated Statements of Income
(unaudited; in thousands, except share data)
      
   Quarter Ended June 30,
    2018   2017 
      
Net premiums earned$  185,714  $  175,015 
Investment income, net of expenses   6,342     5,650 
Net realized investment gains   1,517     1,097 
Lease income   123     128 
Installment payment fees   1,306     1,304 
Equity in earnings of DFSC   788     387 
 Total revenues   195,790     183,581 
      
Net losses and loss expenses   135,754     128,006 
Amortization of deferred acquisition costs   30,579     28,700 
Other underwriting expenses   28,492     28,259 
Policyholder dividends   1,214     1,212 
Interest    566     383 
Other expenses   518     417 
 Total expenses   197,123     186,977 
      
Loss before income tax expense (benefit)   (1,333)    (3,396)
Income tax benefit   (543)    (1,077)
      
Net loss $  (790) $  (2,319)
      
Net loss per common share:   
 Class A - basic $  (0.03) $  (0.09)
 Class A - diluted$  (0.03) $  (0.08)
 Class B - basic and diluted$  (0.03) $  (0.08)
      
Supplementary Financial Analysts' Data   
      
Weighted-average number of shares   
 outstanding:   
 Class A - basic   22,685,964     21,704,733 
 Class A - diluted   22,887,365     22,497,195 
 Class B - basic and diluted   5,576,775     5,576,775 
      
Net premiums written$  195,949  $  190,772 
      
Book value per common share   
 at end of period$  14.85  $  16.23 
      

 

Donegal Group Inc.
Consolidated Statements of Income
(unaudited; in thousands, except share data)
      
   Six Months Ended June 30
    2018   2017
      
Net premiums earned$  367,479  $  344,171
Investment income, net of expenses   12,721     11,405
Net realized investment gains   599     3,646
Lease income   246     270
Installment payment fees   2,653     2,440
Equity in earnings of DFSC   1,420     620
 Total revenues   385,118     362,552
      
Net losses and loss expenses   292,337     242,439
Amortization of deferred acquisition costs   60,244     56,383
Other underwriting expenses   57,815     56,749
Policyholder dividends   2,516     2,047
Interest    1,030     747
Other expenses   1,044     859
 Total expenses   414,986     359,224
      
(Loss) income before income tax (benefit) expense   (29,868)    3,328
Income tax (benefit) expense   (10,900)    542
      
Net (loss) income$  (18,968) $  2,786
      
Net (loss) income per common share:   
 Class A - basic $  (0.68) $  0.11
 Class A - diluted$  (0.68) $  0.10
 Class B - basic and diluted$  (0.63) $  0.09
      
Supplementary Financial Analysts' Data   
      
Weighted-average number of shares   
 outstanding:   
 Class A - basic   22,650,899     21,625,240
 Class A - diluted   23,139,596     22,561,519
 Class B - basic and diluted   5,576,775     5,576,775
      
Net premiums written$  391,205  $  375,273
      
Book value per common share   
 at end of period$  14.85  $  16.23
      

 

Donegal Group Inc.
Consolidated Balance Sheets
(in thousands)
      
   June 30, December 31,
    2018   2017 
   (unaudited)  
      
ASSETS
Investments:   
 Fixed maturities:   
  Held to maturity, at amortized cost$  385,822  $  366,655 
  Available for sale, at fair value   519,979     538,946 
 Equity securities, at fair value   53,602     50,445 
 Investments in affiliates   39,451     38,774 
 Short-term investments, at cost   11,787     11,050 
    Total investments   1,010,641     1,005,870 
Cash    53,652     37,833 
Premiums receivable   169,221     160,406 
Reinsurance receivable   311,645     298,343 
Deferred policy acquisition costs   64,609     60,290 
Prepaid reinsurance premiums   143,727     135,033 
Other assets   51,844     40,145 
  Total assets$  1,805,339  $  1,737,920 
      
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities:    
 Losses and loss expenses$  747,630  $  676,672 
 Unearned premiums   535,877     503,457 
 Accrued expenses   24,120     28,034 
 Borrowings under lines of credit   60,000     59,000 
 Subordinated debentures   5,000     5,000 
 Other liabilities   13,041     17,061 
  Total liabilities   1,385,668     1,289,224 
Stockholders' equity:   
 Class A common stock   257     256 
 Class B common stock   56     56 
 Additional paid-in capital   258,666     255,401 
 Accumulated other comprehensive loss   (17,974)    (2,684)
 Retained earnings   219,892     236,893 
 Treasury stock   (41,226)    (41,226)
  Total stockholders' equity   419,671     448,696 
  Total liabilities and stockholders' equity$  1,805,339  $  1,737,920 
      

 

For Further Information:
Jeffrey D. Miller, Executive Vice President & Chief Financial Officer
Phone: (717) 426-1931
E-mail: investors@donegalgroup.com