Donegal Group announces quarterly results
Donegal Group announces quarterly results | Insurance Business America
Insurance News
Donegal Group announces quarterly results
President, CEO talks “renewed emphasis” on executing on strategies
Insurance News
By
Terry Gangcuangco
Donegal Group, whose subsidiaries specialize in property and casualty lines of insurance, has released its earnings report for the first three months of 2024.
Here are some of the key results for the quarter:
Metric
Q1 2024
Q1 2023
Net premiums earned
$227.75 million
$215.23 million
Investment income, net
$10.97 million
$9.45 million
Total revenues
$241.14 million
$224.75 million
Net income
$5.96 million
$5.20 million
Operating income
$4.29 million
$5.47 million
Commenting on the numbers, president and chief executive Kevin G. Burke said: “We entered 2024 with a renewed emphasis on executing on clearly defined strategies that include targeted new business growth, multiple initiatives to enhance our underwriting performance, and further modernization of our operations for greater effectiveness and efficiency.
“Additionally, we committed to a multi-year expense management initiative that is strategically designed to mitigate the 2024 peak impact of allocated expenses associated with the technology advancements Donegal Mutual Insurance Company has implemented in recent years.
The CEO went on to highlight that net premium growth in Q1 was predominantly driven by ongoing renewal premium increases that were supported by commercial lines new business acquisitions that fit within the framework of the group’s refined underwriting criteria.
“While the increase in commercial new business writings is notable, it was largely offset by planned attrition from regions earmarked for exit or profit enhancement pursuant to our state-specific strategies,” Burke noted further.
“In the first quarter of 2024, our underwriting profitability reflected the impact of average weather-related losses, higher severity of large fire losses than we experienced in recent quarterly periods, and atypical workers’ compensation reserve development related to prior-year losses.
“We expect that the underwriting enhancements actively underway, in conjunction with an accelerating earned premium impact of rate increases we implemented over the past year will result in further improvement in our underwriting results as the year progresses.”
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