US primary holding company Donegal Group posted a net income of $2.0 million, compared to a net loss of $8.2 million in the prior year quarter.
Net premiums earned increased 5.9% to $216.3 million, compared to $204.1 million from Q2’22.
At the same time, net premiums written were $226.5 million, a 3.7% increase compared to $218.4 million from the same period last year.
The company also reported a combined ratio of 104.7%, compared to 105.0% from Q2’22.
Moreover, Donegal Group’s net investment income of $10.2 million for the quarter was a 23.8% increase compared to $8.2 million from the second quarter of 2022.
“We are continuing to navigate through a challenging time for the insurance industry as we respond to the ongoing effects of elevated loss cost inflation. During the quarter, we intentionally slowed our new business growth in personal lines, a strategic decision due to the ongoing inflationary increases in the cost and duration of automobile and property repairs seen across the industry,” said Kevin G. Burke, President and Chief Executive Officer.
“Personal lines premium growth of 14.8% was primarily driven by rating actions, with average renewal rate increases of 13.6% for the second quarter. For our commercial lines segment, we have continued the rollout of modernized commercial automobile, umbrella and businessowners products with enhanced straight-through processing capabilities for our agents. After a successful initial rollout in three states in the first quarter of 2023, we have launched the enhanced products and agency portal in the remaining 19 states where we offer commercial lines for policies effective beginning August 1.”
“Commercial premium retention and rate increases remained strong during the second quarter, but they were more than offset by policy attrition in several states we are exiting or have targeted for profit improvement and the effect of reinsurance reinstatement premiums resulting from utilization of reinsurance for several large property losses. Renewal rate increases averaged 10.1% for commercial lines other than workers’ compensation for the second quarter of 2023.”
“We remain confident in our ability to grow our business profitably as we continue to execute numerous strategies over the next few years,” Burke continued.
