Donegal Group Inc. (NASDAQ:DGICA) and (NASDAQ:DGICB) recently released its financial results for the fourth quarter and full year ended December 31, 2025. The company reported a 4.1% decrease in net premiums earned for the fourth quarter of 2025 compared to the same period in 2024, totaling $226.9 million. Additionally, the combined ratio for the fourth quarter of 2025 was 96.3%, up from 92.9% in the fourth quarter of 2024. Net income for the fourth quarter of 2025 was $17.2 million, down from $24.0 million in the fourth quarter of 2024.
For the full year of 2025, net premiums earned decreased by 1.7% to $921.2 million compared to 2024. The combined ratio for the full year of 2025 was 95.4% compared to 98.6% for 2024. Net income for the full year of 2025 was $79.3 million, up from $50.9 million in 2024. The return on average equity also saw an increase, reaching 13.4% in 2025 compared to 9.9% in 2024.
The company's book value per share at December 31, 2025, was $17.33, marking an increase from $15.36 at year-end 2024.
In terms of net premiums written, there was a 3.4% decrease for the fourth quarter of 2025 compared to the same period in 2024, totaling $204.3 million. The decrease included a 3.2% growth in commercial lines net premiums written and a 12.7% decrease in personal lines net premiums written.
The company's loss ratio for the fourth quarter of 2025 increased to 61.1% from 59.8% in the fourth quarter of 2024. However, the core loss ratio decreased to 50.3% from 52.3% for the same periods. For the full year of 2025, the loss ratio decreased to 61.3% from 64.5% in 2024, with the core loss ratio decreasing to 51.4% from 54.0% in 2024.
The expense ratio was 34.9% for the fourth quarter of 2025, up from 32.8% for the fourth quarter of 2024. For the full year of 2025, the expense ratio was 33.8%, compared to 33.7% for 2024.
In terms of investment operations, Donegal Group had invested 94.5% of its consolidated investment portfolio in diversified, highly rated, and marketable fixed-maturity securities at December 31, 2025.
Kevin G. Burke, President and Chief Executive Officer of Donegal Group Inc., expressed satisfaction with the company's operating performance in the fourth quarter and full year of 2025, attributing it to strategic decisions and intentional actions taken over the past several years. He emphasized a focus on modest premium growth through independent agency partners in identified geographies and business classes for 2026.
Following these announcements, the company's shares moved -0.66%, and are now trading at a price of $19.45. For the full picture, make sure to review DONEGAL GROUP INC's 8-K report.
