Earnings Document
Fourth Quarter 2022
Investor Presentation
President and Chief Executive Officer
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
Reconciliations of non-GAAP data are included in the financial supplement section of this presentation.
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Company Overview
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.
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Strategies to Provide Value to Stakeholders
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Achieving sustained |
Strategically modernizing |
Capitalizing on |
Delivering a superior |
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our operations and |
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excellent financial |
opportunities to grow |
experience to our agents |
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processes to transform our |
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performance |
profitably |
and policyholders |
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business |
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Maintaining underwriting |
Implementing new |
Continuing expansion |
Ensuring "ease of doing |
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systems to streamline |
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within existing markets |
business" through |
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discipline and premium |
business processes and |
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through independent |
automated agency |
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rate adequacy |
workflows and enhance |
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agents |
portals and interfaces |
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data analytics |
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Utilizing data analytics |
Expanding focus on |
State-specific strategies |
Responsive claims |
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and predictive modeling |
for growth or reduction of |
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process excellence to |
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tools to inform risk |
premiums, agency |
service, underwriting and |
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identify opportunities for |
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selection and pricing |
distribution and |
customer support |
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operational efficiencies |
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decisions |
enhanced profit |
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Continued shift to a higher proportion of commercial lines while maintaining a
profitable book of personal lines
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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.
Rated A (Excellent)
by
5
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