Donegal Group’s Q3 Net Income Rises 14% to $8.7M

Donegal Group Inc. in Marietta, Pennsylvania, today posted $8.749 million net income for the company’s 2014 third quarter, a 14.3 percent increase from $7.654 million net income one year ago.

Total net premiums written for the third quarter were $147.840 million, an 8.2 percent increase from $136.630 million a year ago. Net premiums written for personal lines for the third quarter were $89.674 million, up 5.7 percent from a year ago. Net premiums written for commercial lines were $58.166 million, up 12.3 percent from one year ago.

The GAAP combined ratio for the third quarter was 96.8 percent, improving from 97.6 percent a year ago.

Net investment income for the third quarter was $4.299 million, down 7 percent from $4.624 million one year ago.

“Donegal Group achieved strong underwriting results during the third quarter of 2014, contributing to net income that ranked among the best quarterly earnings we have achieved over the past five years,” said Kevin G. Burke, Donegal Group’s executive vice president and chief operating officer who is currently serving as acting chief executive officer while CEO Donald H. Nikolaus is on a temporary medical leave of absence.

Burke said that continuing through the 2014 third quarter, Donegal Group has been successful in obtaining commercial renewal premium increases in the mid-single-digit percentage range, which has contributed to the company’s net written premium growth.

“We also continue to attract new business as we expand the distribution of our commercial lines products across our regions, appoint new commercially focused agents and commit additional resources to supporting all of our agency relationships,” said Burke.

Burke also said the company’s personal lines in recent years have focused on improving profitability, and that the company is continuing to realize growth in net premiums earned due to premium rate increases implemented throughout the past year.

Topics Profit Loss