Donegal Group Inc. Announces Second Quarter Earnings
MARIETTA, Pa., July 23, 2010 (GLOBE NEWSWIRE) -- Donegal Group Inc. (Nasdaq:DGICA) (Nasdaq:DGICB) today reported that its net income for the quarter ended June 30, 2010 was $1,739,728, or $.07 per share of Class A common stock on a diluted basis, compared to $4,387,624, or $.18 per share of Class A common stock on a diluted basis, for the second quarter of 2009. Catastrophe and other weather-related losses impacted pre-tax second quarter results by approximately $10 million after reinsurance. The catastrophe losses were to the result of a number of wind and hail events in the Company's Mid-Atlantic and Midwestern regions.
Revenues for the second quarter of 2010 were $101,525,354, an increase of 7.1% over the second quarter of 2009, with net premiums earned of $93,002,409, an increase of 6.2% over the year-earlier period. Net premiums written for the second quarter of 2010 were $102,345,786, representing a 9.4% increase over net premiums written for the second quarter of 2009, consisting of a 13.7% increase in commercial lines writings and a 7.4% increase in personal lines writings. Net premiums written for the second quarter of 2010 also included $2.5 million in premiums assumed from Southern Mutual Insurance Company, accounting for 2.7% of the overall increase.
The Company's combined ratio was 106.4% for the second quarter of 2010, reflecting the impact of the previously mentioned weather-related losses and an increased number of fire losses compared to the second quarter of 2009. The Company's combined ratio was 101.8% for the second quarter of 2009.The Company's expense ratio was 32.6% for the second quarter of 2010, compared to 31.0% for the second quarter of 2009, with the increase attributable to increased acquisition costs related to current period premium growth. Net investment income was $4,968,490 for the second quarter of 2010, compared to $5,266,161 for the second quarter of 2009. The impact of lower market interest rates during the second quarter of 2010 offset investment income attributable to an increase in average invested assets compared to the year earlier period. The Company had no other-than-temporary impairments in its investment portfolio. Net realized investment gains from the sale of securities were $1,965,091 for the second quarter of 2010, compared to $445,140 for the year-earlier period.
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