<span item_type="fundamental" item_id="1a8d9f10b8a179ed08a9931e9b0fde31" counter_id="ST/US/DGICB" env="prod"></span><span item_type="announcement" item_id="643155582165716225" env="prod"></span><p>Revenue: As of FY2026 Q1, the actual value is USD 236 M.</p><p>EPS: As of FY2026 Q1, the actual value is USD 0.31.</p><p>EBIT: As of FY2026 Q1, the actual value is USD 14.46 M.</p><p></p><h3>Financial Summary</h3><h4>Net Premiums Earned</h4><p>Total net premiums earned for Donegal Group Inc. decreased by 4.9% to $221.4 million for the first quarter of 2026, compared to $232.7 million for the first quarter of 2025 <span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/800457/000117184326002875/exh_991.htm"></span>. Commercial lines net premiums earned increased by 2.0% to $139.0 million in Q1 2026, from $136.2 million in Q1 2025 <span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/800457/000117184326002875/exh_991.htm"></span>. Personal lines net premiums earned decreased by 14.6% to $82.4 million in Q1 2026, from $96.5 million in Q1 2025 <span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/800457/000117184326002875/exh_991.htm"></span>.</p><h4>Net Premiums Written</h4><p>Total net premiums written decreased by 3.2% to $239.3 million for the first quarter of 2026, compared to $247.1 million for the first quarter of 2025 <span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/800457/000117184326002875/exh_991.htm"></span>. Commercial lines net premiums written increased by 2.2% to $164.1 million in Q1 2026, from $160.6 million in Q1 2025, primarily due to new business writings, solid retention, and continued renewal premium increases in lines other than workers’ compensation <span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/800457/000117184326002875/exh_991.htm"></span>. Specifically, commercial automobile net premiums written increased by 7.5% to $60.8 million in Q1 2026, from $56.5 million in Q1 2025 <span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/800457/000117184326002875/exh_991.htm"></span>. Workers’ compensation net premiums written decreased by 6.5% to $26.9 million in Q1 2026, from $28.8 million in Q1 2025 <span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/800457/000117184326002875/exh_991.htm"></span>. Commercial multi-peril net premiums written decreased by 0.3% to $60.6 million in Q1 2026, from $60.8 million in Q1 2025 <span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/800457/000117184326002875/exh_991.htm"></span>. Other commercial lines net premiums written increased by 8.6% to $15.8 million in Q1 2026, from $14.5 million in Q1 2025 <span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/800457/000117184326002875/exh_991.htm"></span>. Personal lines net premiums written decreased by 13.1% to $75.2 million in Q1 2026, from $86.5 million in Q1 2025, primarily due to lower new business writings, partially offset by modest renewal premium rate increases and solid retention <span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/800457/000117184326002875/exh_991.htm"></span>. Personal automobile net premiums written decreased by 16.8% to $45.9 million in Q1 2026, from $55.2 million in Q1 2025 <span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/800457/000117184326002875/exh_991.htm"></span>. Homeowners net premiums written decreased by 6.4% to $26.9 million in Q1 2026, from $28.8 million in Q1 2025 <span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/800457/000117184326002875/exh_991.htm"></span>. Other personal lines net premiums written decreased by 6.7% to $2.3 million in Q1 2026, from $2.5 million in Q1 2025 <span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/800457/000117184326002875/exh_991.htm"></span>.</p><h4>Net Income and Non-GAAP Operating Income</h4><p>Net income was $11.5 million for the first quarter of 2026, a 54.3% decrease from $25.2 million in the first quarter of 2025 <span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/800457/000117184326002875/exh_991.htm"></span>. Non-GAAP operating income was $11.9 million for the first quarter of 2026, a 53.5% decrease from $25.6 million in the first quarter of 2025 <span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/800457/000117184326002875/exh_991.htm"></span>.</p><h4>Return on Average Equity</h4><p>Annualized return on average equity was 7.1% for the first quarter of 2026, compared to 17.8% for the first quarter of 2025 <span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/800457/000117184326002875/exh_991.htm"></span>.</p><h4>Book Value Per Share</h4><p>Book value per share was $17.54 at March 31, 2026, an 8.0% increase from $16.24 at March 31, 2025, and up from $17.33 at December 31, 2025 <span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/800457/000117184326002875/exh_991.htm"></span>.</p><h4>Total Revenues</h4><p>Total revenues decreased by 3.7% to $236.0 million for the first quarter of 2026, compared to $245.2 million for the first quarter of 2025 <span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/800457/000117184326002875/exh_991.htm"></span>.</p><h4>Investment Operations</h4><p>Net investment income increased by 19.2% to $14.3 million for the first quarter of 2026, from $12.0 million in the first quarter of 2025, reflecting an increase in average investment yield and higher average invested assets <span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/800457/000117184326002875/exh_991.htm"></span>. Net investment losses were - $0.5 million for the first quarter of 2026, similar to - $0.5 million for the first quarter of 2025, attributed to a decrease in the market value of equity securities <span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/800457/000117184326002875/exh_991.htm"></span>. The average investment yield was 3.8% at March 31, 2026, up from 3.6% at December 31, 2025 <span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/800457/000117184326002875/exh_991.htm"></span>. At March 31, 2026, 95.3% of the consolidated investment portfolio was invested in diversified, highly rated, and marketable fixed-maturity securities <span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/800457/000117184326002875/exh_991.htm"></span>.</p><h4>Underwriting Performance (GAAP Combined Ratios)</h4><p>The GAAP combined ratio for total lines was 99.8% for the first quarter of 2026, compared to 91.6% for the first quarter of 2025 <span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/800457/000117184326002875/exh_991.htm"></span>. The loss ratio increased to 64.1% in Q1 2026, from 56.7% in Q1 2025 <span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/800457/000117184326002875/exh_991.htm"></span>. The core loss ratio was 53.4% in Q1 2026, a modest improvement from 54.2% in Q1 2025 <span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/800457/000117184326002875/exh_991.htm"></span>. Weather-related losses accounted for 7.8 percentage points of the loss ratio in Q1 2026 ($17.2 million), significantly higher than 3.7 percentage points ($8.6 million) in Q1 2025, and above the five-year first-quarter average of 4.5 percentage points <span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/800457/000117184326002875/exh_991.htm"></span>. Large fire losses were 5.5 percentage points of the loss ratio in Q1 2026 ($12.2 million), higher than 3.3 percentage points ($7.7 million) in Q1 2025, due to increased frequency and severity <span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/800457/000117184326002875/exh_991.htm"></span>. Net favorable development of reserves for losses incurred in prior accident years decreased the loss ratio by 2.6 percentage points ($5.7 million) in Q1 2026, compared to 4.5 percentage points ($10.5 million) in Q1 2025 <span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/800457/000117184326002875/exh_991.htm"></span>. The expense ratio was 35.4% in Q1 2026, up from 34.6% in Q1 2025, primarily reflecting the impact of lower net premiums earned, with systems modernization project costs representing approximately 1.6 percentage points of the expense ratio <span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/800457/000117184326002875/exh_991.htm"></span>. The dividend ratio remained at 0.3% for both Q1 2026 and Q1 2025 <span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/800457/000117184326002875/exh_991.htm"></span>.</p><h4>Underwriting Performance (Statutory Combined Ratios)</h4><p>The statutory combined ratio for commercial lines was 104.6% in Q1 2026, compared to 94.7% in Q1 2025 <span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/800457/000117184326002875/exh_991.htm"></span>. Specific ratios were: commercial automobile at 92.0% in Q1 2026 vs 91.4% in Q1 2025; workers’ compensation at 112.9% in Q1 2026 vs 117.6% in Q1 2025; and commercial multi-peril at 113.9% in Q1 2026 vs 90.3% in Q1 2025 <span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/800457/000117184326002875/exh_991.htm"></span>. The statutory combined ratio for personal lines was 85.7% in Q1 2026, compared to 83.6% in Q1 2025 <span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/800457/000117184326002875/exh_991.htm"></span>. Personal automobile was 80.5% in Q1 2026 vs 85.0% in Q1 2025, and homeowners was 94.6% in Q1 2026 vs 83.8% in Q1 2025 <span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/800457/000117184326002875/exh_991.htm"></span>. The total statutory combined ratio was 97.9% in Q1 2026, compared to 90.3% in Q1 2025 <span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/800457/000117184326002875/exh_991.htm"></span>.</p><h4>Outlook/Guidance</h4><p>多尼戈尔集团-B (Donegal Group Inc.) expects the decline in personal lines net premiums written to gradually taper over 2026 as actions taken to slow the decline take effect <span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/800457/000117184326002875/exh_991.htm"></span>. The company anticipates the expense ratio impact of allocated costs related to the systems modernization project to be 1.4 percentage points for the full year of 2026, gradually subsiding over the next several years <span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/800457/000117184326002875/exh_991.htm"></span>. Management believes the company is well positioned to build value by maintaining underwriting and pricing discipline, pursuing new high-quality accounts, and retaining existing accounts at adequate pricing levels amidst a softening market <span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/800457/000117184326002875/exh_991.htm"></span>.</p>

Donegal-B | 8-K: FY2026 Q1 Revenue: USD 236 M