Donegal Q1 net income falls 54% on higher losses

Donegal

30/04/2026 11:50

Overview

U.S. property and casualty insurer's Q1 revenue fell 3.7% yr/yr

Net income for Q1 dropped 54% from prior year

Results impacted by higher weather-related and large fire losses

Outlook

Company expects personal lines net premiums written decline to taper over course of 2026

Donegal expects expense ratio impact from systems modernization costs to subside over several years

Company sees competitive market conditions persisting in insurance sector

Result Drivers

WEATHER AND FIRE LOSSES - Co said higher weather-related and large fire losses drove up the loss ratio and reduced profitability

PERSONAL LINES DECLINE - Co attributed 13.1% drop in personal lines net premiums written to lower new business writings, partly offset by modest renewal premium increases and solid retention

EXPENSE RATIO IMPACT - Higher expense ratio reflected lower net premiums earned and costs allocated from systems modernization project

Company press release: ID:nGNX37YYLy

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Revenue
Miss
$236 mln
$240.92 mln (2 Analysts)
Q1 Net Income
$11.51 mln
Q1 Combined Ratio
99.80%
Q1 Expense Ratio
35.40%


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 1 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

The average consensus recommendation for the property & casualty insurance peer group is "buy"

Wall Street's median 12-month price target for Donegal Group Inc is $20.00, about 13.4% above its April 29 closing price of $17.63

The stock recently traded at 8 times the next 12-month earnings vs. a P/E of 10 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)