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February 17, 2022 Newswires
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Earnings Document

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

Fourth Quarter & Full Year 2021

Investor Presentation

February 17, 2022

Safe Harbor

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, the availability and cost of labor and materials, adverse and catastrophic weather events, our ability to maintain profitable operations, 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, adverse litigation and other industry trends that could increase our loss costs, changes in regulatory requirements, changes in our A.M. Best rating, our ability to integrate and manage successfully the companies we may acquire from time to time 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 personal and commercial 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.

DONEGAL GROUP INC.

Kevin G. Burke

Jeffrey D. Miller

President and

Executive Vice President and

Chief Executive Officer

Chief Financial Officer

Corporate Headquarters

Marietta, Pennsylvania

NASDAQ Tickers

DGICA & DGICB

DGICA Share Description

25.8 million shares outstanding

(one-tenth of a vote per share)

DGICB Share Description

5.6 million shares outstanding

(one vote per share)

CURRENT FIGURES FOR DGICA

as of December 31, 2021 unless otherwise noted

Stock Price

$14.29

52-WeekRange (as of 2/1/2022)

$13.48 - $16.48

Annualized Dividend Yield

4.5%

Book Value Per Share

$16.95

Price-to-Book Value

0.84x

www.DonegalGroup.com

3

Strategies to Provide Value to Stakeholders

Achieving

sustained excellent

financial

performance

Maintaining

underwriting discipline

and premium rate

adequacy

Utilizing data analytics

and predictive

modeling tools to

inform risk selection and pricing decisions

Strategically

modernizing our operations and processes to transform our business

Implementing new

systems to streamline business processes and workflows and enhance data analytics

Expanding focus on process excellence to identify opportunities for operational efficiencies

Capitalizing on opportunities to grow profitably

Continuing expansion within existing markets through independent agents

State-specific

strategies for growth or reduction of premiums, agency distribution and enhanced profit

Delivering a

superior

experience to our

agents and

policyholders

Ensuring "ease of

doing business"

through automated agency portals and interfaces

Responsive claims service, underwriting and customer support

Continuing to shift our business mix to a higher proportion of commercial lines

where we believe we will continue to have opportunities to achieve profitable, sustainable long-term growth

www.DonegalGroup.com

4

Significant Benefits to Shareholders from Mutual Relationship

  • Pooling agreement fosters an environment of continuity and maintains superior employee relations in which the business can grow.
  • Shared combined business plan toenhance market penetration and underwriting profitability.
  • Product offerings arecomplementary, offering a broad range of products that expands our ability to service accounts.
  • Donegal Mutual held approximately41% of our outstanding Class A common stock and approximately 84% of our outstanding Class B common stock with approximately 70% of combined voting power as of December 31, 2021.

www.DonegalGroup.com

5

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Disclaimer

Donegal Group Inc. published this content on 17 February 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 17 February 2022 21:10:49 UTC.

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