Donegal Group reported second-quarter 2026 results with net income of $22.3 million (diluted Class A EPS $0.60) and total revenues of $241.1 million. The company posted a GAAP combined ratio of 95.6% for the quarter, improved from 97.7% a year earlier, and book value per share rose to $17.98 at June 30, 2026. Net investment income increased to $14.5 million and non-GAAP operating income was $19.7 million for the quarter.

Financial Highlights

  • Total revenues: $241.1 million for the three months ended June 30, 2026.
  • Net income: $22.3 million for the quarter; diluted net income per Class A share $0.60 (Class B diluted $0.55).
  • Non-GAAP operating income: $19.7 million for the quarter (adjusted for after-tax investment gains).
  • Net investment income: $14.5 million for the quarter; net investment gains $3.3 million.
  • Book value per share: $17.98 at June 30, 2026 (up from $16.62 at June 30, 2025).

Business Highlights

  • Net premiums earned decreased 4.0% year-over-year to $222.6 million for Q2 2026; six-month net premiums earned were $443.9 million, down 4.4% year-over-year.
  • Commercial lines net premiums written grew 0.8% year-over-year for the quarter, driven by improved new business production despite lower renewal increases and retention.
  • Personal lines continued to decline: personal lines net premiums written fell 9.7% in the quarter as management works to slow and reverse attrition through pricing and agent engagement initiatives.
  • Underwriting performance benefited from favorable core loss ratios, lower-than-average weather-related losses and favorable prior-year reserve development, partially offset by a moderate increase in large fire losses.
  • Investment portfolio remained concentrated in high-quality fixed maturities (95% of portfolio); average investment yield increased to 3.8% and contributed to higher net investment income.

Original SEC Filing:

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