A regional Allstate or Travelers for property and casualty insurance.

Like a smaller, regional version of Progressive or Nationwide for home and business insurance.

• Private Passenger Automobile Insurance: Provides coverage for liability and physical damage to personal vehicles.
• Homeowners Insurance: Offers protection against property damage to homes and personal belongings, along with liability coverage.
• Commercial Automobile Insurance: Covers liability and physical damage for vehicles used in business operations.
• Commercial Multi-Peril (CMP) Insurance: Delivers comprehensive package policies for businesses, combining property, general liability, and other coverages.
• Workers' Compensation Insurance: Provides benefits to employees for work-related injuries or illnesses, including medical expenses and lost wages.
• Other Personal and Commercial Lines Insurance: Includes various specialized policies like dwelling fire, boat, personal and commercial umbrella, general liability, and professional liability.

Donegal Group Inc. (symbol: DGICA) is a regional property and casualty insurance company that underwrites and markets personal and commercial lines of insurance through a network of independent insurance agents.

Due to the nature of its business as a diversified insurer serving a broad market, Donegal Group Inc. does not have a few specific "major customer companies" that represent a significant portion of its revenue. Instead, its customer base is highly fragmented and diversified across many policyholders.

The company primarily sells insurance policies to a wide range of individuals and businesses. Its customers can be categorized as follows:

1. Individuals and Households: These customers purchase personal lines of insurance such as private passenger automobile, homeowners, and personal umbrella policies to protect their personal assets and liabilities.
2. Small to Medium-sized Commercial Businesses: This broad category includes businesses across various industries (e.g., retail, service, contractors, light manufacturing) that purchase commercial lines of insurance such as commercial automobile, general liability, commercial property, and workers' compensation policies.
3. Farm Owners and Agricultural Businesses: Donegal also provides specialized insurance products tailored to the unique needs of the agricultural sector, including farm owners' policies and related coverages for farming operations and agribusinesses.

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Kevin G. Burke President and Chief Executive Officer

Jeffrey D. Miller Executive Vice President and Chief Financial Officer

W. Daniel DeLamater Executive Vice President and Chief Operating Officer

Jeffery T. Hay Executive Vice President and Chief Underwriting Officer

Sanjay Pandey Executive Vice President and Chief Information Officer

The rise of insurtech companies represents a clear emerging threat. These digital-first insurers leverage advanced technology, artificial intelligence, and direct-to-consumer models to offer a simplified, faster, and often more personalized insurance experience. Companies like Lemonade, Hippo, and Root are directly challenging the traditional insurance distribution model that Donegal Group relies on, which is primarily through independent agencies. This technological disruption and shift in consumer preference toward digital channels could erode Donegal's market share, particularly among younger, tech-savvy customers seeking convenience and efficiency in purchasing and managing their insurance policies.

Donegal (symbol: DGICA) operates as an insurance holding company, providing personal and commercial lines of property and casualty insurance to businesses and individuals primarily across the Mid-Atlantic, Midwestern, New England, and Southern states of the United States.

Addressable Markets for Donegal's Main Products and Services (U.S. Region)

• U.S. Personal Lines Insurance Market: The U.S. personal lines insurance market, which includes homeowners, farmowners, and private auto insurance, reached approximately $534.92 billion in direct annual premiums in 2024.
  • Specifically, private auto direct premiums written totaled approximately $358.77 billion in 2024.
  • Homeowners direct premiums written climbed to approximately $169.55 billion in 2024.
• U.S. Commercial Lines Insurance Market: The U.S. commercial insurance market was valued at approximately $294.6 billion in 2024. This market is projected to reach approximately $489.1 billion by 2033, demonstrating a compound annual growth rate (CAGR) of 5.20% from 2025 to 2033.
  • For context, commercial auto direct premiums written were approximately $70.94 billion in 2024.
  • Workers' compensation direct premiums written were approximately $55.42 billion in 2024.
  • A combination of commercial property lines (allied lines, fire, and commercial multi-peril non-liability) reached approximately $103.97 billion in direct premiums in 2024.

1. Growth in Commercial Lines Premiums: Donegal Group is strategically emphasizing and growing its commercial lines business. In the third quarter of 2025, commercial lines net premiums written increased by 3.4%, aligning with the company's long-term strategy to expand this segment.
2. Implementation of Premium Rate Increases: The company has been successful in implementing premium rate increases across its insurance products. For instance, commercial lines renewal premium increases averaged 11.0% (excluding workers' compensation), which helps to offset other factors like lower new business volume and planned attrition, directly contributing to higher net premiums earned.
3. Enhanced Investment Income: While not a direct driver of insurance premiums, significant growth in net investment income contributes substantially to Donegal's overall financial strength and profitability. In Q3 2025, net investment income increased by 28.8% due to higher average investment yields. This strong investment performance can support underwriting capacity and reinvestment into growth initiatives.
4. Operational Modernization and Data Analytics: Donegal is strategically modernizing its operations and processes, including implementing new systems to streamline business workflows and enhance data analytics. These improvements are expected to lead to better risk selection, more efficient pricing, and ultimately support profitable growth in premium volume by making the company more competitive and operationally efficient. The expense impact of this modernization is projected to decline, further supporting profitability.
5. Expansion within Existing Markets: The company is focused on capitalizing on opportunities to grow profitably and continuing its expansion within its existing markets through its established network of independent insurance agents. This strategy aims to increase market penetration and customer acquisition in its current operating regions.

Inbound Investments

• Donegal Mutual Insurance Company, the parent company, has consistently made large-scale purchases of Donegal Group's Class A common stock, demonstrating aggressive stake expansion and strategic decision-making at the parent company level.
• These purchases began on July 30, 2024, and continued almost daily into 2025.
• Notable single-day purchases by Donegal Mutual include 150,432 shares for $2.32 million on October 31, 2024, and 270,000 shares for $4.46 million on December 6, 2024.
• More recently, on November 4, 2025, Donegal Mutual Insurance Co. acquired 8,000 shares of Class A Common Stock for approximately $149,704.

Capital Expenditures

• Capital expenditures by Donegal Group Inc. were reported as immaterial or very low in recent years.
• The company recorded capital expenditures of -$0 million in 2024, -$0.04 million in 2022, and -$0.09 million in 2020.
• As of September 30, 2021, the company had no material commitments for capital expenditures.