Donegal Group Inc (NASDAQ: DGICA) is a property and casualty insurance company that underwrites personal and commercial lines policies across 21 states in the Mid-Atlantic, Midwestern, Southern, and Southwestern United States. Revenue comes from earned premiums on policies sold through a network of approximately 2,000 independent insurance agencies, supplemented by investment income on the float generated from policyholder premiums. Donegal Group operates as part of the broader Donegal Insurance Group, which includes Donegal Mutual Insurance Company as a related entity participating in a pooling agreement. As of FY2025, the combined loss ratio for the insurance subsidiaries was 61.3%, down from 64.5% in FY2024, with personal lines improving materially to a 60.0% loss ratio from 68.0% in FY2024. The company distributes two classes of common stock, Class A and Class B, and Donegal Mutual actively repurchased shares of both classes during late 2025 at prices of $19.73 per Class A share and $17.50 per Class B share.
- Revenue model
- Earned premiums from personal and commercial lines property and casualty insurance policies, distributed through approximately 2,000 independent insurance agencies across 21 states (as of December 31, 2025). Underwriting results are supplemented by investment income on premium float.
- Products and services
- Personal lines insurance: personal automobile, homeowners, and other personal lines policies. Commercial lines insurance: commercial multi-peril, commercial automobile, workers' compensation, and umbrella liability policies. Reinsurance is purchased to manage exposure on large single risks or geographically concentrated risks.
- Customers and end markets
- Personal lines and commercial lines policyholders across 21 states. Personal automobile loss ratio was 57.7% in FY2025 (vs. 68.5% in FY2024). Homeowners loss ratio was 66.0% in FY2025 (vs. 66.7% in FY2024). Commercial multi-peril loss ratio was 56.4% in FY2025 (vs. 57.5% in FY2024). Weather-related losses were $56.9 million, or 6.2 percentage points of the loss ratio, in FY2025.
- Value-chain role
- Primary insurance carrier and underwriter. Products are distributed exclusively through independent agents. The company centralizes processing and administrative functions across its insurance subsidiaries to control expenses and uses technology, including Guidewire policy administration, billing, and claims systems, to automate underwriting, claims, and billing. An 'account selling' strategy targets multiple policies per customer to diversify risk.
- Geographic exposure
- 21 states as of December 31, 2025: Arizona, Colorado, Delaware, Georgia, Illinois, Indiana, Iowa, Maryland, Michigan, Nebraska, New Mexico, North Carolina, Ohio, Pennsylvania, South Carolina, South Dakota, Tennessee, Texas, Utah, Virginia, and Wisconsin. Donegal Mutual also directly writes business in five Southwestern states (Arizona, Colorado, New Mexico, Texas, and Utah) included in the pooling agreement.
