Donegal Group A Inc

Donegal Group Inc. reported net income of $22.3 million, or 60 cents per diluted Class A share, for the second quarter of 2026, up from $16.9 million, or 46 cents per diluted Class A share, in the prior-year period. Net premiums earned decreased 4.0% to $222.6 million, while the combined ratio improved to 95.6% from 97.7%. The company attributed the solid underwriting results to favorable core loss ratios, lower weather-related losses, and favorable prior-year reserve development, partially offset by higher large fire losses. Book value per share rose to $17.98 at June 30, 2026, compared to $16.62 a year earlier, and the company declared a regular quarterly cash dividend of $0.1925 per Class A share and $0.175 per Class B share, payable on August 14, 2026.

Donegal Group has declared a quarterly dividend of $0.175 per share. The dividend carries a forward yield of 3.04 percent and is payable on August 14 to shareholders of record as of July 31, with the ex-dividend date also set for July 31.

Donegal Group's 4.4% dividend yield is considered one of the safest in regional insurance, supported by a 33.6% earnings payout ratio and 25 consecutive years without a cut. CEO Kevin Burke and four other executives simultaneously bought shares near $17.25 on May 15, signaling rare synchronized insider confidence. The stock trades at book value with a near-zero beta, holding steady even as the VIX spiked to 31 during March 2026 volatility. Net investment income rose 19.2% in the first quarter of 2026 to $14.3 million, more than covering the quarterly dividend outlay on its own. The company's shareholders' equity increased 11.01% year-over-year to $649.1 million, and the Class A dividend was most recently raised by 5.5% in April 2026.