Donegal annual profit surges as underwriting discipline offsets premium attrition

Donegal Group (NASDAQ:DGICA), the Marietta, Pennsylvania-based property and casualty insurer, reported fourth-quarter results that showcased a significant year-over-year jump in annual profitability, even as strategic non-renewals in its personal lines segment led to a dip in quarterly premiums.

The company posted fourth-quarter net income of $17.2 million, or 43 cents per share.

Excluding non-recurring costs, adjusted earnings were 46 cents per share.

While the results reflect a solid operational performance, the quarterly bottom line was tempered by a planned 13.9% decline in personal lines net premiums earned, part of a broader "strategic attrition" strategy to exit less profitable geographies.

For the full year 2025, Donegal's net income reached $79.3 million, or $2.01 per share—a substantial increase from the $50.9 million reported in the previous year.

Total revenue for the year stood at $977.4 million.

Management highlighted an improved full-year combined ratio of 95.4%, down from 98.6%, signaling better underwriting efficiency despite higher weather-related losses earlier in the year.