Donegal Group posts 9.1% increase in NPW, CR sits at 103%

Donegal Group, the US primary holding company, has posted a 9.1% increase in net premiums written (NPW) in the second quarter of 2024, climbing to $247.2 million, compared to last year’s $226.5 million.

According to the firm, the increase in NPW represents the combination of a 7.1% growth seen in commercial lines NPW, as well as 12.1% growth in personal lines NPW.

At the same time, Donegal Group reported a net income of $4.2 million for Q2 2024, compared to $2.0 million from the prior year quarter.

Moreover, for Q2 2024, the firm posted a loss ratio of 70.6%, compared to 69.9% from the previous year.

For the commercial lines segment, Donegal Group’s core loss ratio of 54.8% for the second quarter of 2024 increased modestly from 54.0% for the second quarter of 2023. While, for the personal lines segment, the core loss ratio of 55.3% for the second quarter of 2024 decreased from 56.5% for the second quarter of 2023, which the firm noted was largely due to the favorable impact of premium rate increases on net earned premiums for that segment.

All in all, the company posted a combined ratio of 103.0%, a slight improvement from last year’s 104.7%.

In addition, weather-related losses were $24.7 million for the second quarter of 2024, compared to $19.7 million, for the second quarter of 2023.

Donegal Group noted that weather-related loss activity for the Q2 2024  was significantly higher than their previous five-year average of $17.3 million  for second-quarter weather-related losses.

Looking at the company’s results for the first half of 2024, NPW sits at $498.6 million, representing a 7.5% increase from $463.8 million from the prior year period.

Net income for H124 sits at $10.1 million, representing a 40.4% increase from H123’s $7.2 million.

And lastly, the company’s combined ratio for H124 sits at 102.7%, compared to the prior year’s 103.0%.

“We continued to execute successfully on several important objectives during the second quarter of 2024 that we expect will further enhance our financial performance in future periods,” commented Kevin G. Burke, President and Chief Executive Officer of Donegal Group Inc.

Adding: “During the quarter, we achieved net premiums written growth of 9.1%, reflecting ongoing strong renewal premium rate increases and policy retention. We are actively controlling personal lines new business writings given our strategy to emphasize commercial lines growth. We are executing on various strategic initiatives, including enhancing our small commercial underwriting capabilities, to achieve higher levels of new business within the commercial lines segment.

“While carefully pursuing profitable top-line growth, we are also actively managing our geographic risk concentrations. This ongoing initiative served us well in mitigating the weather-related loss impact to our results during a quarter marked by severe convective storm activity, including the highest number of tornadoes reported in the first half of the year since 2011.”

He concluded: “Our core loss ratio for the second quarter of 2024 remained constant relative to the prior-year period but improved sequentially by 3.7 percentage points from the first quarter of 2024 as net premiums earned reflected higher impact of recent premium rate increases. Despite peak impact during 2024 from expenses related to our systems modernization project, our expense ratio declined by 2.3 percentage points compared to the prior-year quarter due primarily to ongoing expense reduction initiatives. While we have more work to do, we are confident in our ability to execute our business strategies and create long-term value for our stockholders.”

The post Donegal Group posts 9.1% increase in NPW, CR sits at 103% appeared first on ReinsuranceNe.ws.