Donegal Group Q1 2025 Financials Show Earnings Growth and Dividend Hike

Donegal Group Inc. reported its first quarter financial results for 2025, showing a positive performance compared to the same period in 2024. The company's net premiums earned increased by 2.2% to $232.7 million, indicating steady growth in its underwriting activities. The combined ratio improved significantly to 91.6% from 102.4%, reflecting better underwriting profitability and cost management.

Net income rose sharply to $25.2 million, or $0.71 per diluted Class A share, compared to $6.0 million, or $0.18 per diluted Class A share, in the first quarter of 2024. This substantial increase demonstrates enhanced operational efficiency and favorable claims experience. However, net investment income saw a shift with net investment losses of $0.4 million after tax, compared to net gains of $1.7 million in the prior year quarter, slightly impacting overall profitability.

In addition to financial results, Donegal Group announced a quarterly cash dividend increase. The Class A common stock dividend was raised by 5.8% to $0.1825 per share, and the Class B common stock dividend increased by 6.5% to $0.165 per share, reflecting confidence in the company’s ongoing cash flow generation and capital position.

For the fourth quarter of 2024, the company reported net premiums earned growth of 4.6% to $236.6 million and a combined ratio improvement to 92.9%, reversing a net loss in the same quarter the previous year. The full-year results demonstrate progressive improvement in underwriting results and financial stability.

Donegal Group’s consistent premium growth, improving combined ratios, and shareholder dividend increases suggest a strengthening position in the property and casualty insurance market. The results indicate effective risk selection, pricing strategies, and cost controls amidst competitive industry conditions.

Investors and insurance market analysts will note the company’s ability to maintain profitability while managing underwriting and investment challenges. The company’s proactive approach to capital return through dividend increases may also influence market perception and shareholder value moving forward.