US primary holding company Donegal Group has announced its financial results for the fourth quarter of 2024, reporting a net income of $24.0 million, compared to a net loss of $2.0 million from the prior year quarter.
For the full year of 2024, the Group reported an increased net income of $50.9 million, compared to the $4.4 million reported in 2023.
The firm also reported a combined ratio of 92.9% in Q4 2024, an improvement compared to Q4 2023’s 106.8%. The full year 2024 also saw an improved combined ratio, to 98.6% from the 104.4% in 2023.
In Q4 2024, net premiums earned increased 4.6% to $236.6 million. Total net premiums written decreased 0.6%, to $ 211.4 million.
This decrease in net premiums written represents the combination of 2.8% growth in commercial lines net premiums written and a 5.0% decrease in personal lines net premiums written.
Donegal reported a 6.2% increase in 2024’s net premiums, to $936.7 million. Total net premiums written went from $ 895.6 million in 2023 to $942.2 million in 2024, the y-o-y increase included $19.5 million growth in commercial lines and $27.1 million growth in personal lines.
Kevin G. Burke, President and Chief Executive Officer of Donegal Group Inc., stated: “We concluded 2024 with strong performance in the fourth quarter that we believe reflected our unrelenting focus in recent years on execution, whether on strategic initiatives to broaden our market capabilities or on profit-improvement measures to enhance our operating performance. As we move into 2025, we are striving to further enhance our performance while also pursuing intentional, strategic premium growth.”
“For the fourth quarter of 2024, our loss ratio improved substantially compared to the prior-year quarter, as premium rate increases contributed to higher net premiums earned and numerous underwriting initiatives we implemented in recent years resulted in lower claim activity.
He continued: “Our weather-related loss ratio compared favorably to both the prior-year quarter and our previous five-year average for the fourth quarter of the year. Net development of reserves for claims incurred in prior years had virtually no effect on the loss ratio for the fourth quarter of 2024 or 2023.
“We effectively mitigated the higher costs associated with our major systems modernization project and higher underwriting-based incentive costs by implementing targeted expense-reduction strategies across our operations.”
Mr. Burke concluded: “We are also actively pursuing new business opportunities across our regional footprint, concentrating primarily on high quality new commercial middle market and small business accounts, while also seeking strategic new business growth within our personal lines segment.
“We have refined our state-specific strategies and action plans to meet current market challenges and opportunities. We believe that the successful execution of those actions will allow us to further enhance underwriting performance, drive sustainable measured growth and strengthen our competitive position with our independent agents, ultimately increasing the value of our stockholders’ investment in Donegal Group Inc.”
