Donegal Group Inc. (NASDAQ: DGICA) and (NASDAQ: DGICB) have reported their financial results for the second quarter and first half of 2024. The company's net income for the second quarter of 2024 was $4.2 million, or 13 cents per diluted Class A share, compared to $2.0 million, or 6 cents per diluted Class A share in the second quarter of 2023. Net premiums earned increased by 8.3% to $234.3 million, while net premiums written increased by 9.1% to $247.2 million.
The combined ratio for the second quarter of 2024 was 103.0%, an improvement from 104.7% in the second quarter of 2023. The net income included after-tax net investment gains of $0.6 million, compared to $2.0 million in the same period last year.
The company's book value per share was $14.48 at June 30, 2024, compared to $14.68 in the previous year. The annualized return on average equity was 3.4%, compared to 1.6% in the second quarter of 2023.
In terms of net premiums earned, the company saw growth from both its commercial lines, which increased by 2.8%, and personal lines, which increased by 16.8% in the second quarter of 2024 compared to the same period in 2023.
Furthermore, the net premiums written for the second quarter of 2024 increased by 9.1% compared to the same period in 2023. This increase was primarily attributed to new business writings, strong premium retention, and a continuation of renewal premium increases in both commercial and personal lines.
The loss ratio for the second quarter of 2024 increased to 70.6%, compared to 69.9% for the second quarter of 2023. The expense ratio decreased to 31.9% for the second quarter of 2024, compared to 34.2% for the second quarter of 2023.
Additionally, the company's investment strategy led to a net investment income of $11.1 million for the second quarter of 2024, which was a 9.0% increase compared to the same period in 2023.
Today the company's shares have moved 0.2% to a price of $14.03. Check out the company's full 8-K submission here.
