Donegal Group Inc. Announces First Quarter 2013 Results

MARIETTA, Pa., April 17, 2013 (GLOBE NEWSWIRE) -- Donegal Group Inc. (Nasdaq:DGICA) (Nasdaq:DGICB) today reported its financial results for the first quarter of 2013. Highlights include:
  • Net income of $6.5 million for the first quarter of 2013, compared to $8.0 million for first quarter of 2012, with the decrease primarily attributable to increased large fire losses and lower realized investment gains
  • 9.2% increase in net premiums written to $132.5 million, reflecting strong organic growth in commercial lines and the continued impact of premium rate increases
  • 98.0% statutory combined ratio 1 for the first quarter of 2013, compared to 96.9% for the first quarter of 2012
  • Operating income 1 of $5.6 million for the first quarter of 2013, compared to operating income of $6.5 million for the first quarter of 2012
  • Book value per share of $15.72 at March 31, 2013, compared to $15.63 at year-end 2012
   
  Three Months Ended March 31,
  2013 2012 % Change
  (dollars in thousands, except per share amounts)
 
Income Statement Data      
Net premiums earned  $ 124,702  $ 114,692 8.7%
Investment income, net  4,815  5,090 -5.4 
Realized gains  1,341  2,310 -41.9 
Total revenues  133,873  125,348 6.8 
Net income   6,475  8,010 -19.2 
Operating income   5,591  6,509 -14.1 
       
Per Share Data      
Net income – Class A (diluted)  $ 0.25  $ 0.31 -19.4%
Net income – Class B  0.23  0.29 -20.7 
Operating income – Class A (diluted)  0.22  0.26 -15.4 
Operating income – Class B  0.20  0.24 -16.7 
Book value  15.72  15.28 2.9 
       

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").

Donald H. Nikolaus, President and Chief Executive Officer of Donegal Group Inc., noted, "Donegal Group remains focused on the implementation of business strategies that 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. During the first quarter of 2013, we continued to see benefits from many of the same initiatives that drove our improved performance in 2012."

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