Donegal Investor Presentation - October 2022 - Insurance News | InsuranceNewsNet

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October 27, 2022 Newswires
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Donegal Investor Presentation – October 2022

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

Third Quarter 2022

Investor Presentation

October 27, 2022

Kevin G. Burke

President and Chief Executive Officer

Jeffrey D. Miller

Executive Vice President and Chief Financial Officer

Forward-Looking Statement

We base all statements contained in this presentation 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, prolonged economic challenges resulting from the COVID-19 pandemic, 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, our ability to maintain profitable operations (including our ability to underwrite risks effectively and charge adequate premium rates), 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 2021 NPW) and personal products (approx. 38% of 2021 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

our operations and

excellent financial

processes to transform our

performance

business

Maintaining underwriting

Implementing new

systems to streamline

discipline and premium

business processes and

rate adequacy

workflows and enhance

data analytics

Utilizing data analytics

Expanding focus on

and predictive modeling

process excellence to

tools to inform risk

identify opportunities for

selection and pricing

operational efficiencies

decisions

Capitalizing on

Delivering a superior

opportunities to grow

experience to our agents

profitably

and policyholders

Continuing expansion

Ensuring "ease of doing

within existing markets

business" through

through independent

automated agency

agents

portals and interfaces

State-specific strategies

Responsive claims

for growth or reduction of

premiums, agency

service, underwriting and

distribution and

customer support

enhanced profit

Continued shift to a higher proportion of commercial 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, public stockholders hold approximately 29% if the aggregate voting power of the combined classes. Donegal Mutual holds approximately 71% of the aggregate voting power of the combined class.

www.donegalgroup.com

Rated A (Excellent)

by A.M. Best

5

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Donegal Group Inc. published this content on 27 October 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 27 October 2022 10:38:56 UTC.

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