Donegal Group Inc.
- Open
- 18.91
- Day high
- 19.25
- Day low
- 18.74
- Prev close
- 18.86
- Volume
- 49K
- Mkt cap
- $710M
- P/E (TTM)
- 10.5
- EPS (TTM)
- $1.83
- P/B
- 1.1
- P/S
- 0.7
- Yield
- 3.86%
- Per share
- $0.74
- ▲Insiders net buying $2.4M over the last 3 months (16 open-market buys, 0 sales)
- 🏛Institutions mixed (13F)
Donegal Group Inc. (DGICA) is a Financial Services company listed on NASDAQ. The stock is down 4% over the past year. Over the trailing 3 months, insiders filed 16 open-market buys and 0 sales (SEC Form 4).
Donegal Group Inc. (DGICA) financials & analyst ratings
Fundamentals (TTM)
Source: exchange market data + company filings. Figures are trailing-twelve-month or as most recently reported. For informational purposes only — not investment advice.
DGICA earnings date, history & EPS estimates
| Report date | EPS est | EPS actual | Surprise | Revenue | Rev. surprise |
|---|---|---|---|---|---|
| Apr 30, 2026 | $0.40 | $0.32 | -20.0% | $239M | -3.4% |
| Feb 19, 2026 | $0.79 | $0.50 | -36.7% | $240M | +11.1% |
| Oct 30, 2025 | $0.51 | $0.52 | +2.0% | $246M | +1.4% |
| Jul 24, 2025 | $0.36 | $0.43 | +19.4% | $247M | +1.1% |
| Apr 24, 2025 | $0.36 | $0.72 | +100.0% | $245M | -1.7% |
| Feb 20, 2025 | $0.30 | $0.69 | +130.0% | $250M | -2.0% |
| Oct 24, 2024 | $0.10 | $0.46 | +360.0% | $252M | +0.8% |
| Jul 25, 2024 | $0.07 | $0.11 | +57.1% | $247M | +2.0% |
| Apr 25, 2024 | $0.23 | $0.13 | -43.5% | $241M | +1.9% |
| Feb 22, 2024 | $0.23 | $-0.11 | -147.8% | $239M | +2.3% |
| Oct 26, 2023 | $0.08 | $0.01 | -87.5% | $234M | +1.7% |
| Jul 27, 2023 | $0.20 | $0.06 | -69.8% | $229M | +0.3% |
DGICA insider trading activity (SEC Form 4)
| Date | Insider | Type | Shares | Price |
|---|---|---|---|---|
| Jun 15, 2026 | DONEGAL MUTUAL INSURANCE CO10 percent owner | Buy | 9,682 | $17.62 |
| Jun 15, 2026 | DONEGAL MUTUAL INSURANCE CO10 percent owner | Buy | 9,900 | $17.56 |
| Jun 4, 2026 | DONEGAL MUTUAL INSURANCE CO10 percent owner | Buy | 8,500 | $17.03 |
| Jun 4, 2026 | DONEGAL MUTUAL INSURANCE CO10 percent owner | Buy | 10,000 | $16.62 |
| Jun 2, 2026 | DONEGAL MUTUAL INSURANCE CO10 percent owner | Buy | 8,500 | $17.10 |
| May 29, 2026 | DONEGAL MUTUAL INSURANCE CO10 percent owner | Buy | 8,500 | $16.98 |
| May 28, 2026 | DONEGAL MUTUAL INSURANCE CO10 percent owner | Buy | 8,500 | $17.33 |
| May 26, 2026 | DONEGAL MUTUAL INSURANCE CO10 percent owner | Buy | 8,500 | $17.48 |
| May 20, 2026 | DONEGAL MUTUAL INSURANCE CO10 percent owner | Buy | 8,500 | $17.43 |
| May 20, 2026 | DONEGAL MUTUAL INSURANCE CO10 percent owner | Buy | 8,328 | $17.48 |
| May 19, 2026 | DONEGAL MUTUAL INSURANCE CO10 percent owner | Buy | 8,500 | $17.16 |
| May 15, 2026 | DONEGAL MUTUAL INSURANCE CO10 percent owner | Buy | 8,500 | $16.86 |
| May 13, 2026 | DONEGAL MUTUAL INSURANCE CO10 percent owner | Buy | 8,500 | $17.18 |
| May 11, 2026 | DONEGAL MUTUAL INSURANCE CO10 percent owner | Buy | 8,077 | $17.13 |
| May 11, 2026 | DONEGAL MUTUAL INSURANCE CO10 percent owner | Buy | 8,500 | $17.06 |
Source: DGICA SEC Form 4 filings, latest Jun 15, 2026. For informational purposes only — not investment advice.
See the full DGICA insider & 13F page →Donegal Group Inc. company profile
Overview
Donegal Group Inc. (NASDAQ:DGICA) is a Pennsylvania-based insurance holding company that has been providing property and casualty insurance to businesses and individuals since its incorporation in 1986. The company went public in 2003 and operates primarily in the Mid-Atlantic, Midwestern, New England, Southern, and Southwestern regions of the United States. Donegal distributes its insurance products through approximately 2,300 independent insurance agencies and has undergone significant strategic transformation in recent years, including systems modernization, geographic portfolio optimization, and disciplined underwriting initiatives to improve profitability.
Business
Donegal Group operates in the property and casualty insurance industry, which provides financial protection against losses from accidents, natural disasters, theft, and liability claims. Property insurance covers physical assets like homes and businesses, while casualty insurance protects against legal liability for injuries or damages caused to others. The company operates through three main business segments: Commercial Lines of Insurance represents the largest segment, offering coverage to businesses including commercial automobile policies that protect against liability and vehicle damage, commercial multi-peril policies that combine liability and property damage coverage, and workers' compensation insurance that provides benefits to employees injured on the job. This segment focuses on small to middle-market businesses and has been the company's growth driver. Personal Lines of Insurance provides coverage to individual consumers, primarily through private passenger automobile insurance that protects against liability and vehicle damage from accidents, and homeowners insurance that covers residential properties and contents against perils like fire, lightning, windstorm, and theft, while also providing personal liability protection. Investment Function manages the company's investment portfolio, generating income from premiums collected before claims are paid. This segment invests in bonds, stocks, and other securities to generate returns that supplement underwriting profits. The company has been strategically exiting certain geographic markets (Georgia, Alabama, Maine, and New Hampshire) while strengthening its presence in core profitable regions. Revenue distribution is approximately balanced between commercial and personal lines, with investment income providing additional revenue streams.
Revenue model
Donegal Group generates revenue through insurance premium collection and investment income. The primary revenue source comes from selling insurance policies where customers pay premiums in exchange for coverage against specified risks. The company collects premiums upfront and pays claims as they occur, creating a timing difference that allows for investment of the premium float. The business model depends on achieving a combined ratio below 100%, where the sum of claims paid (loss ratio) and operating expenses (expense ratio) is less than premiums collected. When the combined ratio exceeds 100%, the company relies on investment income to achieve overall profitability. Donegal has implemented aggressive rate increases averaging 9-13% annually to improve this metric. Paying customers include individual consumers purchasing auto and homeowners insurance, and businesses buying commercial coverage through independent insurance agents who receive commissions for sales and renewals. Several factors significantly impact the company's margins. Catastrophic weather events like hurricanes and severe storms can cause large losses that dramatically affect quarterly results. Social and economic inflation increases claim costs, particularly for auto liability and workers' compensation. Interest rate environments directly affect investment income, with rising rates benefiting the company's conservative bond portfolio. Competition from larger insurers can pressure pricing power, while regulatory changes in insurance laws can affect coverage requirements and pricing flexibility. The company's expense management initiatives and systems modernization efforts are designed to reduce the expense ratio and improve operational efficiency over time.
Competitive moat
Donegal Group operates in a commoditized industry with limited sustainable competitive advantages. The company's primary moat comes from its established relationships with approximately 2,300 independent insurance agents who provide distribution reach and local market knowledge. These relationships create switching costs and provide access to customers that would be expensive to acquire directly. The company's regional focus and local market expertise in specific geographic areas provides some defensive positioning against larger national competitors. Donegal's emphasis on small commercial business insurance allows it to serve a market segment that may receive less attention from major insurers focused on larger accounts. However, the moat is relatively weak and vulnerable to disruption. The insurance industry faces increasing competition from direct-to-consumer digital insurers, InsurTech companies leveraging technology for better pricing and customer experience, and well-capitalized national carriers that can undercut pricing. The company's dependence on independent agents also creates vulnerability if these distribution partners shift business to competitors offering better terms or technology platforms. Regulatory barriers to entry provide some protection, as insurance companies must meet capital requirements and obtain state licenses. Additionally, the company's ongoing systems modernization efforts and data analytics capabilities may provide temporary advantages in risk selection and pricing accuracy, though these technological improvements can be replicated by competitors over time. The company's strategic exit from unprofitable markets and focus on disciplined underwriting represents an attempt to create a more defensible position, but success depends on execution and market conditions remaining favorable.
Risks & safety
Donegal Group demonstrates strong financial stability with minimal solvency risk based on current metrics. • Liquidity position: Strong with $64.3 million in cash and short-term investments, current ratio of 29.1x, and positive operating cash flow of $25.7 million in Q1 2025 • Debt levels: Very low debt-to-equity ratio of 6.0%, indicating conservative capital structure with minimal financial leverage risk • Solvency: Total assets of $2.37 billion exceed total liabilities of $1.78 billion by $585 million, providing substantial cushion • Valuation metrics: Trading at attractive levels with P/E ratio of 6.95x, P/B ratio of 1.20x, and EV/EBITDA of 5.2x, suggesting the stock may be undervalued relative to earnings and book value • Profitability trends: Return on equity of 4.3% with improving combined ratios indicating operational improvements • Other considerations: Insurance float provides additional financial flexibility, recent record quarterly earnings demonstrate improving operational performance, and conservative investment strategy reduces portfolio risk
Recent development
Over the past few years, Donegal Group has undergone significant strategic transformation focused on profitability improvement and operational modernization. The company completed a major systems modernization project called "Project Nautilus" that involved transitioning from legacy systems to cloud-based infrastructure with enhanced data analytics capabilities. This multi-year initiative culminated in 2024 with the deployment of new commercial and personal lines software platforms. Geographic portfolio optimization has been a key strategic initiative, with the company completing its exit from commercial lines in Georgia and Alabama, and planning to non-renew policies in Maine and New Hampshire in 2025. These moves were designed to reduce exposure to unprofitable markets and weather-related catastrophic losses while focusing resources on core profitable regions. The company has implemented aggressive rate increase programs, achieving average premium increases of 9-13% annually across most lines of business. Combined with enhanced underwriting discipline and risk selection tools, including AI-enhanced aerial imagery for property evaluation and sophisticated fire risk analysis, these efforts have significantly improved combined ratios from over 104% in 2022-2023 to 91.6% in Q1 2025. Expense reduction initiatives have been ongoing, with the company targeting a 2-percentage point reduction in expense ratios by 2025. This includes organizational restructuring from six to four regional operations and leveraging technology improvements to increase operational efficiency. The company has also been gradually increasing its equity investment allocation by 42% to take advantage of market opportunities while maintaining its conservative investment approach focused on high-quality securities.
DGICA company profile · for informational purposes only — not investment advice.
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