Donegal Group’s Profit Jumps to $23M for Full-Year 2012
Donegal Group, a property/casualty insurance holding company based in Marietta, Penn., reported $6.22 million net income for the 2012 fourth quarter, in contrast to a loss of $879,000 during the fourth-quarter of 2011. The net income for the full-year 2012 was $23.09 million, up from $453,000 income for the full-year 2011.
Net written premiums for the 2012 fourth quarter were $114.70 million, up 6.5 percent compared to $107.70 million during the 2011 fourth quarter. For the full-year 2012, net written premiums were $496.45 million, up 9.3 percent from $454.05 million for 2011.
Investment income for the 2012 fourth quarter was $5.45 million, up 5.4 percent compared to the prior-year period. The full-year investment income for 2012 was $20.17 million, down 3.3 percent compared to 2011.
The GAAP combined ratio for the 2012 fourth quarter was 101.7 percent, improving from 113.2 percent for the 2011 fourth quarter. The GAAP combined ratio for the full-year 2012 was 101.6 percent, improving from 110.6 percent for 2011.
Sandy Losses ‘Relatively Modest’
Donegal Group stated that although the company experienced losses from the Superstorm Sandy catastrophe event, no other major weather events affected the company’s results for the fourth quarter of 2012.
The company said the 2012 fourth-quarter impact from Superstorm Sandy was “a relatively modest” $3.1 million in net incurred losses and reinsurance reinstatement premiums of $1.0 million.
The company stated that results for the fourth quarter of 2012 also benefited from a lower number of reported claims in its casualty lines of business. Partially offsetting the lower number of reported claims were workers’ compensation claims in the fourth quarter that totaled $2.4 million.
CEO Donald H. Nikolaus said, “For each quarter of 2012, we reported substantially improved results from the year-earlier quarter, and the dramatic improvement in our full year 2012 results compared to 2011 reflected that consistent progress.”
Nikolaus said the top-line growth continued to represent a healthy combination of premiums from strong organic growth in the commercial lines of insurance, the benefits of the premium rate increases implemented over the past several years and the Michigan Insurance Company (“MICO”) acquisition.
“We have achieved solid growth by writing new commercial lines accounts across our operating regions, and we intend to focus even more resources on commercial lines opportunities to leverage the steady firming of commercial lines premiums in our regional markets,” Nikolaus said.