MARIETTA, Pa., April 25, 2024 (GLOBE NEWSWIRE) -- Donegal Group Inc. (NASDAQ:DGICA) and (NASDAQ:DGICB) today reported its financial results for the first quarter of 2024. Significant Items for First Quarter of 2024 (all comparisons to first quarter of 2023): Net premiums earned increased 5.8% to $227.7 million Net premiums written1 increased 6.0% to $251.4 million Combined ratio of 102.4%, compared to 101.2% Net income of $6.0 million, or $0.18 per diluted Class A share, compared to $5.2 million, or $0.16 per diluted Class A share Annualized return on average equity of 4.9%, compared to 4.3% Book value per share of $14.53 at March 31, 2024, compared to $15.01 Financial Summary   Three Months Ended March 31,     2024       2023     % Change   (dollars in thousands, except per share amounts)             Income Statement Data       Net premiums earned $ 227,749     $ 215,233     5.8 % Investment income, net   10,972       9,449     16.1   Net investment gains (losses)   2,113       (331 )   NM2 Total revenues   241,141       224,746     7.3   Net income   5,956       5,204     14.5   Non-GAAP operating income1   4,286       5,465     -21.6   Annualized return on average equity   4.9 %     4.3 %   0.6 pts             Per Share Data         Net income – Class A (diluted) $ 0.18     $ 0.16     12.5 % Net income – Class B   0.16       0.15     6.7   Non-GAAP operating income – Class A (diluted)   0.13       0.17     -23.5   Non-GAAP operating income – Class B   0.12       0.15     -20.0   Book value   14.53       15.01     -3.2               1The "Definitions of Non-GAAP Financial Measures" section of this release defines and reconciles data that we prepare on an accounting basis other than U.S. generally accepted accounting principles ("GAAP"). 2Not meaningful. Management Commentary "We entered 2024 with a renewed emphasis on executing on clearly defined strategies that include targeted new business growth, multiple initiatives to enhance our underwriting performance and further modernization of our operations for greater effectiveness and efficiency. Additionally, we committed to a multi-year expense management initiative that is strategically designed to mitigate the 2024 peak impact of allocated expenses associated with the technology advancements Donegal Mutual Insurance Company has implemented in recent years," said Kevin G. Burke, President and Chief Executive Officer. "Our net premium growth in the first quarter of 2024 was predominantly fueled by ongoing renewal premium increases that were supported by commercial lines new business acquisitions that fit within the framework of our refined underwriting criteria. While the increase in commercial new business writings is notable, it was largely offset by planned attrition from regions earmarked for exit or profit enhancement pursuant to our state-specific strategies." He continued, "In the first quarter of 2024, our underwriting profitability reflected the impact of average weather-related losses, higher severity of large fire losses than we experienced in recent quarterly periods and atypical workers' compensation reserve development related to prior-year losses. We expect that the underwriting enhancements actively underway, in conjunction with an accelerating earned premium impact of rate increases we implemented over the past year will result in further improvement in our underwriting results as the year progresses. We remain steadfast in our commitments to achieve sustained excellent financial performance and to capitalize on opportunities for profitable growth as the means of creating long-term shareholder value." Insurance Operations Donegal Group is an insurance holding company whose insurance subsidiaries and affiliates offer property and casualty lines of insurance in three Mid-Atlantic states (Delaware, Maryland and Pennsylvania), two New England states (Maine and New Hampshire), five Southern states (Georgia, North Carolina, South Carolina, Tennessee and Virginia), eight Midwestern states (Illinois, Indiana, Iowa, Michigan, Nebraska, Ohio, South Dakota and Wisconsin) and five Southwestern states (Arizona, Colorado, New Mexico, Texas and Utah). Donegal Mutual Insurance Company and the insurance subsidiaries of Donegal Group conduct business together as the Donegal Insurance Group.   Three Months Ended March 31,     2024     2023   % Change   (dollars in thousands)             Net Premiums Earned       Commercial lines $ 132,092   $ 133,187   -0.8 % Personal lines   95,657     82,046   16.6   Total net premiums earned $ 227,749   $ 215,233   5.8 %             Net Premiums Written       Commercial lines:         Automobile $ 53,514   $ 52,069   2.8 % Workers' compensation   31,074     33,201   -6.4   Commercial multi-peril   57,503     55,850   3.0   Other   13,403     15,213   -11.9   Total commercial lines   155,494     156,333   -0.5   Personal lines:         Automobile   61,381     49,981   22.8   Homeowners   31,759     28,189   12.7   Other   2,808     2,801   0.2   Total personal lines   95,948     80,971   18.5   Total net premiums written $ 251,442   $ 237,304   6.0 %                         Net Premiums Written The 6.0% increase in net premiums written for the first quarter of 2024 compared to the first quarter of 2023, as shown in the table above, represents the combination of a 0.5% decrease in commercial lines net premiums written and 18.5% growth in personal lines net premiums written. The $14.1 million increase in net premiums written for the first quarter of 2024 compared to the first quarter of 2023 included: Commercial Lines: $0.9 million decrease that we attribute primarily to planned attrition in regions we are exiting or executing ongoing profit improvement initiatives as part of our state-specific strategies, offset partially by modest new business writings, strong premium retention, and a continuation of renewal premium increases in lines other than workers' compensation. Personal Lines: $15.0 million increase that we attribute primarily to a continuation of renewal premium rate increases and strong policy retention. Underwriting Performance We evaluate the performance of our commercial lines and personal lines segments primarily based upon the underwriting results of our insurance subsidiaries as determined under statutory accounting practices. The following table presents comparative details with respect to the GAAP and statutory combined ratios1 for the three months ended March 31, 2024 and 2023:   Three Months Ended   March 31,   2024     2023           GAAP Combined Ratios (Total Lines) Loss ratio - core losses 58.7 %   56.5 % Loss ratio - weather-related losses 4.7     6.5   Loss ratio - large fire losses 6.6     5.1   Loss ratio - net prior-year reserve development -3.7     -3.9   Loss ratio 66.3     64.2   Expense ratio 35.7     36.4   Dividend ratio 0.4     0.6   Combined ratio 102.4 %   101.2 %         Statutory Combined Ratios   Commercial lines:     Automobile 99.6 %   96.2 % Workers' compensation 111.2     86.2   Commercial multi-peril 102.7     114.8