Donegal Group Inc. Announces Significantly Improved Fourth Quarter And Full Year 2012 Results

MARIETTA, Pa., Feb. 22, 2013 (GLOBE NEWSWIRE) -- Donegal Group Inc. (Nasdaq:DGICA) (Nasdaq:DGICB) today reported its financial results for the fourth quarter and full year 2012. Highlights include:
  • Net income of $23.1 million for the full year 2012 and $6.2 million for the fourth quarter of 2012 represented significant improvements from the comparable periods in 2011
  • 9.3% increase in full year net premiums written to $496.4 million, reflecting organic growth, rate increases and the continuing benefits of our past acquisitions
  • 99.8% statutory combined ratio 1 for the full year 2012, improved significantly from 107.9% for the full year 2011
  • Operating income 1 of $5.1 million for the fourth quarter of 2012, primarily attributable to improved underwriting results, compared to an operating loss of $4.3 million for the prior-year fourth quarter
  • Book value per share of $15.63 at year-end 2012, compared to $15.01 at year-end 2011
     
  Three Months Ended December 31, Year Ended December 31,
  2012 2011 % Change 2012 2011 % Change
  (dollars in thousands, except per share amounts)
 
Income Statement Data            
Net premiums earned  $ 121,824  $ 114,177 6.7%  $ 475,002  $ 431,470 10.1%
Investment income, net  5,445  5,165 5.4   20,169  20,858 -3.3 
Realized gains  1,709  5,134 -66.7   6,859  12,281 -44.1 
Total revenues  131,904  127,215 3.7   514,983  475,018 8.4 
Net income (loss)  6,220  (879) NM 2  23,093  453 NM
Operating income (loss)  5,092  (4,267) NM  18,565  (7,653) NM
             
Per Share Data            
Net income (loss) – Class A (diluted)  $ 0.25  $ (0.03) NM   $ 0.91  $ 0.02 NM
Net income (loss) – Class B  0.22  (0.03) NM   0.83  0.01 NM
Operating income (loss) – Class A (diluted)  0.20  (0.17) NM   0.73  (0.30) NM
Operating income (loss) – Class B  0.18  (0.16) NM   0.67  (0.28) NM
Book value  15.63  15.01 4.1   15.63  15.01 4.1 
             

1The "Definitions of Non-GAAP and Operating Measures" section of this release defines and reconciles data that the Company has not prepared in accordance with U.S. generally accepted accounting principles ("GAAP").

2Not meaningful.

Donald H. Nikolaus, President and Chief Executive Officer of Donegal Group Inc., noted, "For each quarter of 2012, we reported substantially improved results from the year-earlier quarter, and the dramatic improvement in our full year 2012 results compared to 2011 reflected that consistent progress. This trend reinforces our belief that we are on the correct path and that the continuing implementation of our business strategies will allow us to attain our long-term objectives of outperforming the property and casualty insurance industry in terms of service, profitability and growth in book value."

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