Donegal Investor Presentation - April 2023 - Insurance News | InsuranceNewsNet

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April 27, 2023 Newswires
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Donegal Investor Presentation – April 2023

U.S. Regulated Equity Markets (Alternative Disclosure) via PUBT

First Quarter 2023 Investor Presentation

April 27, 2023

Kevin G. Burke

President and Chief Executive Officer

Jeffrey D. Miller

Executive Vice President and Chief Financial Officer

Safe Harbor

We base all statements contained in this release that are not historic facts on our current expectations. Such statements are forward-looking in nature (as defined in the Private Securities Litigation Reform Act of 1995) and necessarily involve risks and uncertainties. Forward-looking statements we make may be identified by our use of words such as "will," "expect," "intend," "plan," "anticipate," "believe," "seek," "estimate" and similar expressions. Our actual results could vary materially from our forward-looking statements. The factors that could cause our actual results to vary materially from the forward-looking statements we have previously made include, but are not limited to, adverse litigation and other trends that could increase our loss costs (including labor shortages and escalating medical, automobile and property repair costs), adverse and catastrophic weather events (including from changing climate conditions), our ability to maintain profitable operations (including our ability to underwrite risks effectively and charge adequate premium rates), prolonged economic challenges resulting from the COVID-19 pandemic, the adequacy of the loss and loss expense reserves of our insurance subsidiaries, the availability and successful operation of the information technology systems our insurance subsidiaries utilize, the successful development of new information technology systems to allow our insurance subsidiaries to compete effectively, business and economic conditions in the areas in which we and our insurance subsidiaries operate, interest rates, competition from various insurance and other financial businesses, terrorism, the availability and cost of reinsurance, legal and judicial developments including those related to COVID-19 business interruption coverage exclusions, changes in regulatory requirements, our ability to attract and retain independent insurance agents, changes in our A.M. Best rating and the other risks that we describe from time to time in our filings with the Securities and Exchange Commission. We disclaim any obligation to update such statements or to announce publicly the results of any revisions that we may make to any forward-looking statements to reflect the occurrence of anticipated or unanticipated events or circumstances after the date of such statements.

Reconciliations of non-GAAP data are included in the financial supplement section of this presentation.

www.donegalgroup.com

2

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 24 Mid-Atlantic, Midwestern, New England, Southeand

Southwestestates through approximately 2,300 independent insurance agencies.

The Company offers full lines of commercial products (approx. 62% of 2022 NPW) and

personal products (approx. 38% of 2022 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

Delivering a superior

our operations and

excellent financial

opportunities to grow

experience to our agents

processes to transform our

performance

profitably

and policyholders

business

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 29% of the aggregate voting power of the combined classes and Donegal Mutual holds approximately 71% of the aggregate voting power of the combined classes.

www.donegalgroup.com

Rated A (Excellent)

by A.M. Best

5

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Disclaimer

Donegal Group Inc. published this content on 27 April 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 27 April 2023 10:41:42 UTC.

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