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April 24, 2025 Newswires
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DGICA Q1'25 Investor Presentation FINAL

U.S. Markets via PUBT

First Quarter 2025

Investor Presentation

April 24, 2025

Kevin G. Burke

President and Chief Executive Officer

Jeffrey D. Miller

Executive Vice President and Chief Financial Officer

Company Overview

Donegal Group Inc. is an insurance holding company whose insurance subsidiaries and

affiliates offer commercial and personal lines of property and casualty insurance to businesses and individuals in certain Mid-Atlantic, Midwestern, Southeand Southwestestates through approximately 2,100 independent insurance agencies.

The Company offers full lines of commercial products (approx. 58% of 2024 NPW) and personal products (approx. 42% of 2024 NPW), including commercial multi-peril,

automobile, homeowners, workers' compensation and other coverages.

www.donegalgroup.com

3

Strategies to Provide Value to Stakeholders

Achieving sustained

Strategically modernizing

Capitalizing on

Providing superior

our operations and

experiences to our agents,

excellent financial

opportunities to grow

processes to transform our

policyholders and

performance

profitably

business

employees

Maintaining underwriting

Implementing new

Continuing expansion

Ensuring "ease of doing

systems to streamline

within existing markets

business" through

discipline and premium

business processes and

through independent

automated agency

rate adequacy

workflows and enhance

agents

portals and interfaces

data analytics

Utilizing data analytics

Expanding focus on

State-specific strategies

Responsive claims

and predictive modeling

for growth or reduction of

process excellence to

tools to inform risk

premiums, agency

service, underwriting and

identify opportunities for

selection and pricing

distribution and

customer support

operational efficiencies

decisions

enhanced profit

Continued emphasis on growing commercial lines while

maintaining a profitable book of personal lines

www.donegalgroup.com

4

Significant Benefits to Shareholders from Mutual Relationship

  • Pooling agreementfosters an environment of continuity and maintains superior employee relations in which the business can grow.
  • Shared combined business plan to enhance market penetration and underwriting profitability.
  • Product offerings arecomplementary, offering a broad range of products that expands our ability to service accounts.

1Because of the different relative voting power of Class A common stock and Class B common stock, public stockholders hold approximately 30% of the aggregate voting power of the combined classes and Donegal Mutual holds approximately 70% of the aggregate voting power of the combined classes.

www.donegalgroup.com

Rated A (Excellent)

by A.M. Best

5

Valuation vs. Multi-Line Insurers

Peer Average 2.13x

1.53

1.21

0.96

0.42

DGICA: Price and Book Value as of 3/31/2025.

Price-to-Book Multiple

4.28

3.22

2.82

2.47

2.15 2.21

1.89 1.91

1.66

Peer Data Source: FactSet; Price as of 3/31/2025 and Book Value as of latest reported quarter as of 4/17/2025.

www.donegalgroup.com

6

Mix of Commercial and Personal Lines

Net Premiums Written

by Line of Business

Year Ended December 31, 2024

Other Personal

1.1%

Commercial Auto

Homeowners

19.6%

Workers' Comp

14.9%

11.0%

Personal Auto

Comm Multi-Peril

25.8%

22.7%

Other Commercial 4.9%

Commercial Lines

Commercial Auto

Commercial Multi-Peril

Workers' Comp

Other Commercial

Personal Lines

Personal Automobile

Homeowners

Other Personal

58% of NPW

42% of NPW

www.donegalgroup.com

7

Continued Emphasis on Growth in Commercial Lines

115,000

105,000

95,000

85,000

75,000

89.7%

91.0%

89.2%

86.4%

85.5%

85.4%

86.6%

86.2%

85.4%

86.8%

87.2%

84.4%

106,686

105,549

99,210

99,325

100,075

97,878

96,316

96,562

91,254

92,334

89,971

87,051

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

2024

In-Force Policy Count

Retention Levels

100.0%

95.0%

90.0%

85.0%

80.0%

75.0%

70.0%

65.0%

60.0%

55.0%

50.0%

Strategic Initiatives to Increase Long-Term Profitability

    • Strategic non-renewal actions in Georgia and Alabama completed in 2024.
  • Intentional underwriting actions to non-renew underperforming individual accounts/classes of business.
    • Conservatively underwriting new business premium.

www.donegalgroup.com

8

First Quarter 2025 - Overview

Modest Growth

Net Premiums

Earned

$232.7M

2.2%

vs. Q1'24

Excellent Underwriting Results

High-Quality Investment

Portfolio

Loss Ratio

Expense Ratio

Net Investment

Avg.

Investment

Income

Yield

56.7%

34.6%

$12.0M

3.4%

9.6 pts

1.1 pts

9.2%

10 bps

vs. Q1'24

vs. Q1'24

vs. Q1'24

vs. Q1'24

Percentage change is reflective of Better/(Worse)

Premium growth primarily attributable to strong average renewal premium increases,

offset partially by lower new business volume and planned attrition.

www.donegalgroup.com

9

Financial Results - First Quarter 2025

(dollars in thousands, except per share data)

Q1'25

Q1'24

Change

Net Premiums Written

$247,092

$251,442

(1.7%)

Net Premiums Earned

$232,702

$227,749

2.2%

Better/(Worse)

Loss Ratio

56.7%

66.3%

9.6 pts

Core

54.2%

58.7%

4.5 pts

Weather

3.7%

4.7%

1.0 pt

Large Fire Losses

3.3%

6.6%

3.3 pts

Prior Accident Year Development

(4.5%)

(3.7%)

0.8 pts

Adverse (Favorable)

Expense Ratio

34.6%

35.7%

1.1 pts

Dividend Ratio

0.3%

0.4%

0.1 pts

Combined Ratio

91.6%

102.4%

10.8 pts

Net Investment Income

$11,984

$10,972

9.2%

Net Income

$25,205

$5,956

323.2%

Per Share - Class A (Diluted)

$0.71

$0.18

294.4%

Book Value Per Share

$16.24

$14.53

11.8%

www.donegalgroup.com

10

First Quarter 2025 - Results by Line of Business

  • Continued renewal premium increases averaging ~10.6%, excluding workers' compensation.
  • Commercial lines net premiums written increased 3.3% primarily attributable to solid retention and a continuation of renewal premium increases in lines other than workers' compensation, offset partially by lower new business writings.
  • Personal lines net premiums written decreased 9.9%, primarily attributable to planned attrition due to lower new business writings and non-renewal actions, offset partially by a continuation of renewal premium rate increases and solid retention.

Net Premiums Written

Statutory Combined Ratio

($ in millions)

Q1'25

Q1'24

Change

Q1'25

Q1'24

Change

Better/(Worse)

Better/(Worse)

Commercial Lines - Total

$160.6

$155.5

3.3%

94.7%

101.6%

6.9 pts

Automobile

$56.5

$53.5

5.6%

91.4%

99.6%

8.2 pts

Workers' Compensation

$28.8

$31.1

(7.5)%

117.6%

111.2%

(6.4) pts

Commercial Multi-peril

$60.8

$57.5

5.7%

90.3%

102.7%

12.4 pts

Other

$14.5

$13.4

8.6%

80.8%

82.2%

1.4 pts

Personal Lines - Total

$86.5

$95.9

(9.9)%

83.6%

100.3%

16.7 pts

Automobile

$55.2

$61.4

(10.1)%

85.0%

99.8%

14.8 pts

Homeowners

$28.8

$31.8

(9.4)%

83.8%

102.9%

19.1 pts

Other

$2.5

$2.8

(11.2)%

56.6%

85.2%

28.6 pts

Total Lines

$247.1

$251.4

(1.7)%

90.3%

101.2%

10.9 pts

Certain components may not foot due to rounding.

www.donegalgroup.com

11

Attachments

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Disclaimer

Donegal Group Inc. published this content on April 24, 2025, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on April 24, 2025 at 11:20 UTC.

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