Pennsylvania-based Donegal Group Inc. has reported net income for the quarter ended March 31, 2005 of $8,417,088, or $.46 per share on a diluted basis, compared to $6,286,636, or $.35 per share on a diluted basis, before extraordinary item, for the quarter ended March 31, 2004.
Net income for the quarter ended March 31, 2004 was $11,732,306, or $.65 per share on a diluted basis, which included an extraordinary gain of $5,445,670, or $.30 per share on a diluted basis, related to an acquisition.
The company’s first quarter results were characterized by solid premium growth and continued excellent underwriting results, with the company posting a combined ratio of 90.6% for the first quarter of 2005 compared to a combined ratio of 92.7% for the comparable period in 2004.
The company’s loss ratio for the first quarter of 2005 improved to 57.9% compared to 64.4% for the first quarter of 2004, benefiting from continued pricing improvements and from a relative absence of severe weather in the first quarter of 2005.
The company’s expense ratio decreased to 32.2% for the first quarter of 2005 compared to 32.5% for the fourth quarter of 2004, but was up from 27.8% in the first quarter of 2004, which was favorably impacted
by the purchase accounting for the acquisitions in that quarter. The
company’s workers’ compensation policy dividend ratio in the first quarter of 2005 remained unchanged from a year earlier at 0.5%.
“We are pleased that operating results were improved in both the personal lines and commercial lines sectors, with commercial lines benefiting from improved loss ratios in the workers’ compensation area,” stated Donald Nikolaus, president and CEO. “The acquisitions completed in 2004 have continued to perform well and the identification of other solid acquisition candidates continues to be a high priority for the company.”
Was this article valuable?
Here are more articles you may enjoy.