Donegal Group Inc., a US-based property and casualty insurance holding company, has reported its financial results for the second quarter and first half of 2026, with net premiums earned for the second quarter of 2026 decreasing by 4% to $222.6 million compared with the same period in 2025.
Donegal reported second-quarter net income of $22.3 million, or 60 cents per diluted Class A share, compared with $16.9 million, or 46 cents per diluted Class A share, in the second quarter of 2025.
The company said net investment gains after tax of $2.6 million, or 7 cents per diluted Class A share, were included in net income, compared with $1.2 million, or 3 cents per diluted Class A share, in the prior-year period.
For the first six months of 2026, Donegal Group Inc. reported net premiums earned of $443.9 million, compared with $464.5 million during the first half of 2025, representing a decrease of 4.4%. Investment income, net, increased to $28.8 million from $24.5 million, while net investment gains rose to $2.8 million from $1.1 million.
The company reported a combined ratio of 95.6%, compared with 97.7% in the second quarter of the previous year.
Donegal reported an annualised return on average equity of 13.6% for the second quarter of 2026, compared with 11.3% for the same quarter in 2025.
Donegal reported total revenues of $477.1 million for the six months ended 30 June 2026, compared with $492.0 million for the same period in 2025. Net income for the first half of 2026 was $33.8 million, compared with $42.1 million in the first half of 2025.
Kevin G. Burke, President and Chief Executive Officer of Donegal Group Inc., commented: “Our net premiums earned for the second quarter of 2026 reflected a continuation of challenging trends and market conditions we experienced last quarter. Against that backdrop, we are pleased to report solid quarterly results that provided further growth in our book value to $17.98 per share at June 30, 2026, compared to $17.54 at the end of the first quarter of 2026.
“Net premiums written1 for our commercial lines business segment grew by 0.8% compared to the prior-year quarter, resulting primarily from improved new business production that was mostly offset by lower renewal premium increases and retention levels.”
He continued: “As expected, we experienced a continuing decline in our personal lines net premiums written that we expect will gradually taper over the course of 2026 as actions we have taken to slow and eventually reverse the decline take effect. We remain committed to maintaining underwriting and pricing discipline as we pursue new, high-quality accounts and seek to retain existing accounts at adequate pricing levels.
“On the whole, our underwriting results for the second quarter of 2026 were solid, which we primarily attribute to favourable core loss ratios in both our commercial and personal lines segments, lower-than-average weather-related losses and favourable prior-year reserve development, offset partially by a moderate increase in large fire losses. Solid underwriting performance and enhanced investment income allowed us to continue growing our book value in the second quarter.
“While we face a softening phase of the insurance cycle, we have established a strong foundation over the past several years, and we continue to believe that the effective ongoing execution of our strategies will enhance stockholder value over time. For example, we are beginning to realise benefits from our ongoing emphasis on enhanced engagement with our independent agents as a means of attracting profitable growth opportunities.”
