US primary holding company Donegal Group has announced its financial results for the third quarter of 2024, reporting a net income of $16.8 million, compared to net loss of $0.8 million from the prior year quarter.
During the quarter, the company recorded $24.4 million in weather-related losses, compared to $25.7 million from the third quarter of 2023. In fact, the company noted that weather-related loss activity for Q3’24 was higher than the firm’s previous five-year average of $18.8 million, for third-quarter weather-related losses.
Donegal Group also confirmed that its insurance subsidiaries incurred $6.0 million in net losses from Hurricane Helene, which caused widespread destruction and fatalities across the Southeastern United States in late September 2024.
In addition, the firm also saw its net premiums written increase 5.9% to $232.2 million, compared to the $219.1 million figure reported in Q3’23.
According to Donegal, this improved figure represents the combination of 6.4% growth in commercial lines net premiums written and 5.4% growth in personal lines net premiums written.
From the commercial lines segment, this included a $7.6 million increase that the company attributes primarily towards new business writings, strong premium retention, and a continuation of renewal premium increases in lines other than workers’ compensation.
For the personal lines segment, this included a $5.4 million increase, which Donegal attributes primarily towards a continuation of renewal premium rate increases and strong policy retention, offset partially by planned attrition due to non-renewal actions.
Kevin G. Burke, President and Chief Executive Officer of Donegal Group Inc, commented: “We are pleased that many of the strategic initiatives we implemented in recent years contributed to significant improvement in our financial results for the third quarter of 2024.
“With the exit from commercial lines markets in Georgia and Alabama essentially completed at the end of the second quarter of 2024, solid new business writings, rate achievement and retention levels led to a 6.4% increase in commercial lines net premiums written for the third quarter of 2024. Our personal lines net premiums written growth rate for the third quarter was 5.4%, primarily attributable to strong rate increases and policy retention that were partially offset by intentional strategic actions to slow growth and further improve profitability.”
He added: “Despite higher-than-average weather-related losses during the quarter, primarily attributable to Hurricane Helene in late September, our combined ratio improved significantly to 96.4%, compared to 104.5% for the prior-year quarter. Our core loss ratios improved across all of our major lines of business. We attribute that improvement to the favorable impact of numerous ongoing underwriting initiatives and higher net premiums earned from renewal rate increases that we implemented over the past two years.”
He concluded: “We have growing confidence that the continuing execution of our strategies will deliver sustained excellent financial performance.”
