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www.donegalgroup.com Second Quarter 2026 Investor Presentation July 30, 2026 Kevin G. Burke President and Chief Executive Officer Jeffrey D. Miller Executive Vice President and Chief Financial Officer
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www.donegalgroup.com Safe Harbor We base all statements contained in this release that are not historic facts on our current expectations. Such statements are forward-looking in nature (as defined in the Private Securities Litigation Reform Act of 1995) and necessarily involve risks and uncertainties. Forward-looking statements we make may be identified by our use of words such as “will,” “expect,” “intend,” “plan,” “anticipate,” “believe,” “seek,” “estimate” and similar expressions. Our actual results could vary materially from our forward-looking statements. The factors that could cause our actual results to vary materially from the forward-looking statements we have previously made include, but are not limited to, adverse litigation and other industry trends that could increase our loss costs (including distracted driving, higher rates of litigation, higher judicial awards and escalating medical, automobile and property repair costs, including due to tariffs), adverse and catastrophic weather events and other natural disasters (including from changing climate conditions), man-made disasters (such as terrorism), our ability to maintain profitable operations (including our ability to underwrite risks effectively and charge adequate premium rates), the adequacy of the loss and loss expense reserves of our insurance subsidiaries, the successful operation (including cost, security and availability) of the information technology systems our insurance subsidiaries utilize, the successful development and deployment of new technologies (including artificial intelligence, data modernization and cloud migration) to allow our insurance subsidiaries to compete effectively, the loss or significant restriction of the use of specific rating attributes, analytical models or technologies our insurance subsidiaries use in their pricing and underwriting, increases in assessments pursuant to guaranty fund laws, business and economic conditions in the areas in which we and our insurance subsidiaries operate (including from pandemics), interest rates and other factors impacting the investment portfolios of our insurance subsidiaries, competition from various insurance and other financial businesses (including changes in consumer preferences for insurance distribution channels), the availability and cost of reinsurance, legal and judicial developments, changes in regulatory requirements, our ability to attract and retain independent insurance agents (and their ability to maintain adequate levels of premium volume and quality), changes in our A.M. Best rating and the other risks that we describe from time to time in our filings with the Securities and Exchange Commission. We disclaim any obligation to update such statements or to announce publicly the results of any revisions that we may make to any forward-looking statements to reflect the occurrence of anticipated or unanticipated events or circumstances after the date of such statements. Reconciliations of non-GAAP data are included in the financial supplement section of this presentation. 2
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www.donegalgroup.com Donegal Group Inc. is an insurance holding company whose insurance subsidiaries and affiliates offer property and casualty insurance to businesses and individuals in certain Mid-Atlantic, Midwestern, Southern and Southwestern states through approximately 2,000 independent insurance agencies. The Company offers full lines of commercial products (approx. 62% of 2025 NPW) and personal products (approx. 38% of 2025 NPW), including commercial multi-peril, automobile, homeowners, workers' compensation and other coverages. Company Overview 3
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www.donegalgroup.com Strategies to Provide Value to Stakeholders Continued emphasis on growing commercial lines while maintaining a profitable book of personal lines Achieving sustained excellent financial performance Maintaining underwriting discipline and premium rate adequacy Utilizing data analytics and predictive modeling tools to inform risk selection and pricing decisions Advancing our operational and digital capabilities Streamlining and standardizing processes, leveraging digital tools to enhance insights and efficiencies Execute automated legacy policy conversion plan and migrate key applications and data to the cloud Capitalizing on opportunities to grow profitably Continuing expansion within existing markets through independent agents State-specific strategies for growth of premiums, agency engagement and targeted underwriting portfolio mix Providing superior experiences to our agents, policyholders and employees Ensuring “ease of doing business” through automated agency portals and interfaces Responsive claims service, underwriting and customer support 4
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www.donegalgroup.com Significant Benefits to Shareholders from Mutual Relationship • Pooling agreement fosters an environment of continuity and maintains superior employee relations in which the business can grow. • Shared combined business plan to enhance market penetration and underwriting profitability. • Product offerings are complementary, offering a broad range of products that expands our ability to service accounts. 1Because of the different relative voting power of Class A common stock and Class B common stock, public stockholders hold approximately 29% of the aggregate voting power of the combined classes and Donegal Mutual holds approximately 71% of the aggregate voting power of the combined classes. 5 Rated A (Excellent) by A.M. Best
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www.donegalgroup.com Mix of Commercial and Personal Lines Commercial Auto 21.9% Workers' Comp 10.2% Comm Multi-Peril 24.5% Other Commercial 5.7% Personal Auto 23.0% Homeowners 13.6% Other Personal 1.1% Net Premiums Written by Line of Business Year Ended December 31, 2025 Personal Lines Personal Automobile Homeowners Other Personal Commercial Lines Commercial Auto Commercial Multi-Peril Workers’ Comp Other Commercial 62% of NPW 38% of NPW 6
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www.donegalgroup.com 0.39 0.60 1.06 1.42 1.71 1.79 1.82 1.96 2.07 2.10 2.19 2.49 2.70 Valuation vs. Multi-Line Insurers Price-to-Book Multiple Peer Average 1.72x 7 DGICA: Price and Book Value as of 6/30/2026. Peer Data Source: FactSet; Price as of 6/30/2026 and Book Value as of latest reported quarter as of 7/24/2026.
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www.donegalgroup.com Second Quarter 2026 – Overview Modest Decline in Premiums Underwriting Results Benefited From Lower Weather-related Losses High-Quality Investment Portfolio Net Premiums Earned $222.6M (4.0)% vs. Q2’25 Loss Ratio 59.5% 5.6 pts vs. Q2’25 Expense Ratio 35.8% (3.6) pts vs. Q2’25 Net Investment Income $14.5M 15.6% vs. Q2’25 Avg. Investment Yield 3.8% 30 bps vs. Q2’25 Modest growth in Commercial Lines was offset by reduced activity in Personal Lines. Percentage change is reflective of Better/(Worse) 8
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www.donegalgroup.com Financial Results – Second Quarter 2026 (dollars in thousands, except per share data) Q2’26 Q2’25 Change Net Premiums Written $226,412 $233,813 (3.2)% Net Premiums Earned $222,574 $231,775 (4.0)% Better/(Worse) Loss Ratio 59.5% 65.1% 5.6 pts Core 51.0% 50.1% (0.9) pts Weather 5.3% 11.1% 5.8 pts Large Fire Losses 6.7% 5.2% (1.5) pts Prior Accident Year Development Adverse/(Favorable) (3.5)% (1.3)% 2.2 pts Expense Ratio 35.8% 32.2% (3.6) pts Dividend Ratio 0.3% 0.4% 0.1 pts Combined Ratio 95.6% 97.7% 2.1 pts Net Investment Income $14,491 $12,540 15.6% Net Income $22,306 $16,866 32.3% Per Share – Class A (Diluted) $0.60 $0.46 30.4% Book Value Per Share $17.98 $16.62 8.2% 9
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www.donegalgroup.com Second Quarter 2026 - Results by Line of Business ($ in millions) Net Premiums Written Statutory Combined Ratio Q2’26 Q2’25 Change Better/(Worse) Q2’26 Q2’25 Change Better/(Worse) Commercial Lines – Total $146.1 $144.9 0.8% 100.9% 101.0% 0.1 pts Automobile $54.6 $50.6 8.0% 91.1% 97.7% 6.6 pts Workers’ Compensation $20.6 $24.2 (15.1)% 105.4% 104.9% (0.5) pts Commercial Multi-peril $54.0 $56.5 (4.4)% 108.7% 97.5% (11.2) pts Other $16.9 $13.6 24.5% 100.2% 119.8% 19.6 pts Personal Lines - Total $80.3 $88.9 (9.7)% 82.3% 91.7% 9.4 pts Automobile $45.5 $52.7 (13.7)% 83.6% 79.3% (4.3) pts Homeowners $32.3 $33.6 (3.7)% 81.8% 115.1% 33.3 pts Other $2.5 $2.6 (4.4)% 63.5% 55.2% (8.3) pts Total Lines $226.4 $233.8 (3.2)% 94.2% 97.4% 3.2 pts Certain components may not foot due to rounding. • Net premiums written decreased 3.2% (Commercial Lines +0.8%; Personal Lines -9.7%), with lower retention and renewal premium increases offset partially by modestly higher new business writings. • Commercial lines renewal premium increases averaged 7.8%, excluding workers’ compensation (11.1% for Q2 2025). • Personal lines renewal premium increases averaged 3.6% (5.9% for Q2 2025). 10
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www.donegalgroup.com Short-Term Securities 1.8% Treasury and Agency 6.2% Corporate 25.7% Mortgage Backed Securities (MBS) 29.4% Taxable and Tax- Exempt Municipals 33.8% Equity 3.2% Conservative Investment Strategy • Quarterly net investment income increased 15.6% to $14.5 million. • Investment portfolio emphasizes on high- quality fixed-income securities. • “Laddering” structure provides additional measure of liquidity. • Q2 2026 reinvestment rate of ~5.45% exceeded rate received on maturing assets by ~100 basis points. $1.5 Billion in Invested Assets As of June 30, 2026 11 May not foot due to rounding.
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www.donegalgroup.com Investment Thesis • Well-established regional insurance group with a diverse book of business including both commercial and personal lines • Continuing the optimization of our mix of business with emphasis on commercial lines while strategically stabilizing personal lines to maintain a profitable book of business that will increase stockholder value over time • Focusing on achieving sustained excellent financial performance, advancing our operational and digital capabilities, capitalizing on opportunities to grow profitably and providing superior experiences to our agents, policyholders and employees • Maintaining our highly responsive service levels as a key underlying force that contributes to solid growth in our commercial lines of business 12
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www.donegalgroup.com Contact Information Investor Relations Contact Jeremy Hellman Vice President, The Equity Group Phone: (212) 836-9626 jhellman@theequitygroup.com 13 Transfer Agent Computershare Trust Company, N.A. P.O. Box 43006 Providence, RI 02940 Phone: 800-317-4445 www.computershare.com
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www.donegalgroup.com Definitions of Non-GAAP Financial Measures We prepare our consolidated financial statements on the basis of GAAP. Our insurance subsidiaries also prepare financial statements based on statutory accounting principles state insurance regulators prescribe or permit (“SAP”). In addition to using GAAP-based performance measurements, we also utilize certain non-GAAP financial measures that we believe provide value in managing our business and for comparison to the financial results of our peers. These non-GAAP measures are net premiums written, operating income or loss and statutory combined ratio. Net premiums written and operating income or loss are non-GAAP financial measures investors in insurance companies commonly use. We define net premiums written as the amount of full-term premiums our insurance subsidiaries record for policies effective within a given period less premiums our insurance subsidiaries cede to reinsurers. We define operating income or loss as net income or loss excluding after-tax net investment gains or losses, after-tax restructuring charges and other significant non-recurring items. Because our calculation of operating income or loss may differ from similar measures other companies use, investors should exercise caution when comparing our measure of operating income or loss to the measure of other companies.
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www.donegalgroup.com Supplemental Information: Reconciliations Reconciliation of net premiums earned to net premiums written: Reconciliation of net income to non-GAAP operating income: 2026 2025 % Change 2026 2025 % Change Reconciliation of Net Premiums E arned to Net Premiums Written Net premiums earned 222,574$ 231,775$ -4.0% 443,932$ 464,476$ -4.4% Change in net unearned premiums 3,838 2,038 88.3 21,770 16,429 32.5 Net premiums written 226,412$ 233,813$ -3.2% 465,702$ 480,905$ -3.2% Three Months E nded June 30, Six Months E nded June 30, (dollars in thousands) 2026 2025 % Change 2026 2025 % Change Reconciliation of Net Income to Non-GAAP Operating Income Net income 22,306$ 16,866$ 32.3% 33,816$ 42,071$ -19.6% Investment gains (after tax) (2,609) (1,219) 114.0 (2,229) (847) 163.2 Non-GAAP operating income 19,697$ 15,647$ 25.9% 31,587$ 41,224$ -23.4% Per Share Reconciliation of Net Income to Non-GAAP Operating Income Net income – Class A (diluted) 0.60$ 0.46$ 30.4% 0.91$ 1.17$ -22.2% Investment gains (after tax) (0.07) (0.03) 133.3 (0.06) (0.03) 100.0 Non-GAAP operating income – Class A 0.53$ 0.43$ 23.3% 0.85$ 1.14$ -25.4% Net income – Class B 0.55$ 0.43$ 27.9% 0.84$ 1.08$ -22.2% Investment gains (after tax) (0.06) (0.03) 100.0 (0.05) (0.02) 150.0 Non-GAAP operating income – Class B 0.49$ 0.40$ 22.5% 0.79$ 1.06$ -25.5% (dollars in thousands, except per share amounts) Three Months E nded June 30, Six Months E nded June 30,
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www.donegalgroup.com Supplemental Information: GAAP Loss Ratio Components Certain components may not foot due to rounding. Workers' Commercial Automobile Compensation Multi-peril Other Total Automobile Homeowners Other Total Second Quarter 2026 Loss ratio - core losses 55.6% 77.2% 45.4% 46.8% 54.0% 57.9% 27.6% 37.5% 45.8% Loss ratio - weather-related losses 1.9% 0.0% 6.0% 3.2% 3.4% 1.9% 19.5% 9.3% 8.8% Loss ratio - large fire losses 0.5% 0.0% 18.1% 12.7% 8.5% 0.1% 9.3% 0.0% 3.6% Loss ratio - net prior-year reserve development -2.3% -11.3% -1.2% 2.9% -2.7% -5.5% -3.7% -10.2% -5.0% Loss ratio 55.7% 65.9% 68.3% 65.6% 63.2% 54.4% 52.7% 36.6% 53.2% Second Quarter 2025 Loss ratio - core losses 62.2% 71.3% 38.8% 60.3% 54.5% 53.4% 27.5% 31.1% 43.3% Loss ratio - weather-related losses 1.6% 0.0% 12.0% 4.6% 5.7% 3.4% 46.4% 12.0% 19.3% Loss ratio - large fire losses 0.8% 0.0% 11.0% 4.7% 5.0% 0.0% 15.3% 0.0% 5.6% Loss ratio - net prior-year reserve development -0.3% -3.1% -1.1% 17.6% 0.6% -4.3% -3.2% -10.9% -4.1% Loss ratio 64.3% 68.2% 60.7% 87.2% 65.8% 52.5% 86.0% 32.2% 64.1% Commercial Lines Personal Lines
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www.donegalgroup.com Supplemental Information: GAAP Loss Ratio Components Certain components may not foot due to rounding. Workers' Commercial Automobile Compensation Multi-peril Other Total Automobile Homeowners Other Total First Half 2026 Loss ratio - core losses 60.0% 78.0% 45.3% 47.5% 55.8% 57.9% 27.5% 48.5% 46.2% Loss ratio - weather-related losses 1.1% 0.0% 9.9% 4.4% 4.7% 1.3% 22.6% 12.4% 9.6% Loss ratio - large fire losses 0.5% 0.0% 15.8% 7.4% 7.1% 0.1% 11.5% 0.0% 4.4% Loss ratio - net prior-year reserve development -4.7% -7.0% 0.9% 6.9% -1.7% -6.3% -3.1% -16.0% -5.4% Loss ratio 56.9% 71.0% 71.9% 66.2% 65.9% 53.0% 58.5% 44.9% 54.8% First Half 2025 Loss ratio - core losses 64.7% 72.7% 43.0% 50.6% 56.4% 56.2% 29.4% 42.0% 46.0% Loss ratio - weather-related losses 0.9% 0.0% 8.7% 3.7% 4.1% 1.9% 29.8% 9.0% 12.3% Loss ratio - large fire losses 1.0% 0.0% 10.2% 2.8% 4.6% 0.0% 10.5% 0.0% 3.8% Loss ratio - net prior-year reserve development -5.2% 2.1% -4.6% 10.2% -2.2% -4.1% -2.3% -19.6% -3.9% Loss ratio 61.4% 74.8% 57.3% 67.3% 62.9% 54.0% 67.4% 31.4% 58.2% Commercial Lines Personal Lines