Donegal Group Inc., a US insurance holding company, has reported a net income of $79.3 million for full year 2025, up 56% compared to $50.9 million in 2024, alongside an improved combined ratio of 95.4% versus 98.6%.
For the year, net premiums earned totalled $921.2 million, down 1.7% from $936.7 million in 2024.
Net premiums written declined 4% to $904.8 million from $942.3 million, representing 2.9% growth in commercial lines net premiums written and a 13.6% decrease in personal lines net premiums written.
Donegal’s 2025 combined ratio reflected a lower loss ratio of 61.3%, down from 64.5%, while the expense ratio was 33.8% compared to 33.7% in the previous year.
Net investment income increased 17.2% to $52.6 million from $44.9 million, primarily due to higher average invested assets and an increase in the average investment yield. The company also reported net investment gains of $0.6 million, compared to $5.0 million in 2024.
Total revenues amounted to $978 million, down 1.2% from $989.6 million.
In the fourth quarter of 2025 alone, net income declined 28.4% to $17.2 million from $24 million in Q4’24.
Net premiums earned stood at $226.9 million, down 4.1% compared to $236.6 million.
Net premiums written fell 3.4% to $204.3 million from $211.4 million, representing the combination of 3.2% growth in commercial lines net premiums written and a 12.7% decrease in personal lines.
Donegal’s Q4’25 combined ratio was 96.3%, compared to 92.9% in the prior year quarter. The loss ratio increased to 61.1% from 59.8% and the expense ratio rose to 34.9% from 32.8%.
Net investment income increased 17.5% to $14.2 million from $12.1 million, with net investment losses of $1.7 million, versus minimal net investment gains for Q4’24.
Total revenues for the quarter were $240.1 million, down 3.9% from $250 million.
Kevin G. Burke, President and Chief Executive Officer of Donegal Group Inc., said, “We are pleased with our solid operating performance in the fourth quarter and full year of 2025 that reflected the favourable impact of numerous strategic decisions and intentional actions over the past several years. Our focus for 2026 is the pursuit of modest premium growth through our independent agency partners in geographies and classes of business we have identified as attractive. We remain committed to our strategic plan that includes capitalising on opportunities for profitable growth as a contributor to sustained excellent financial performance.
“In our commercial lines business segment, we achieved solid underlying results for the fourth quarter of 2025, which were masked somewhat by the impact of a few large fires and a late-reported prior-year casualty loss. Due in large part to a refinement in our commercial underwriting appetite, we missed our 2025 business plan target for new business writings. For 2026, we have actively engaged our agents in the development of detailed growth plans and the introduction of new compensation incentives to encourage increased submissions of new quality accounts.
“In our personal lines business segment, we achieved continued excellent profitability and are making good progress on the incremental conversion of remaining legacy policies to our new platform that will be completed in June 2027. We expect the decline in personal lines premiums we experienced during 2025 will subside gradually throughout 2026 as we take measured steps to increase our new business success rate, while striving to maintain a targeted level of profitability in this segment in line with our long-term strategic and financial objectives.
“We believe that we are well positioned as a regional insurance group to provide excellent service to our independent agents and policyholders, as we continue to make prudent investments in talent, systems and capabilities. Building upon the strong foundation laid over the past several years, we are executing strategies that we believe will enhance the value of our stockholders’ investment over time.”
