DGICA Earnings Prediction
The chart below shows how DGICA performed 10 days before and after its earnings report, based on data from the past quarters. Typically, DGICA sees a -3.60% change in stock price 10 days leading up to the earnings, and a -1.09% change 10 days following the report. On the earnings day itself, the stock moves by +1.00%. This data can give you a slight idea of what to expect for the next quarter's release.
DGICA Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
251.74M
7.61%
2.01%
Gross Margin
--
--
--
Operating Margin
8.25%
2391.67%
294.74%
Net Margin
6.65%
2055.88%
295.83%
EPS
0.50
2600.00%
316.67%
No Data Available
DGICA Earnings Analysis
Donegal Group Inc Corporation (DGICA.O) Earnings Conference Call
Positive
Quarterly Earnings Milestone: 1. Record Quarterly Earnings: Achieved net income of $16.8 million, or $0.51 per Class A share, marking the highest quarterly earnings since 2020.
Net Premiums Increase: 2. Increased Net Premiums: Net premiums earned rose by 6% to $238 million, with net premiums written increasing by 5.9% due to strong premium rate increases and retention.
Combined Ratio Improvement: 3. Improved Combined Ratio: The combined ratio improved to 96.4%, down from 104.5% in the prior-year quarter, driven by a decrease in the loss ratio.
Effective Pricing Strategies: 4. Strong Rate Increases: Achieved average rate increases of 12.6% in total, and 13.6% when excluding workers’ compensation, reflecting effective pricing strategies.
Commercial Lines Premium Growth: 5. Growth in Commercial Lines: Net premiums written in commercial lines increased by 6.4%, supported by new business in targeted geographies and strong retention rates.
Negative
Weather-Related Loss Impact: 1. High Weather-Related Losses: Weather-related losses totaled $24.4 million, accounting for 10.3 percentage points of the loss ratio, which was higher than the five-year average of 9.4 percentage points for the same quarter.
Catastrophe Loss Impact: 2. Significant Catastrophe Losses: The company incurred $6 million in net losses from Hurricane Helene, reflecting the full aggregate reinsurance retention amount under their property catastrophe reinsurance agreement.
Policy Count Decline: 3. Decline in Policies-in-Force: Personal lines policies-in-force decreased by 7.3% compared to the prior-year period, indicating a reduction in customer base amid profitability challenges.
Expense Ratio Increase: 4. Increased Expense Ratio: The expense ratio rose to 34.5% for Q3 2024, up from 34.1% in the same quarter of the previous year, primarily due to higher underwriting-based incentives.
Workers' Compensation Challenges: 5. Negative Trends in Workers' Compensation: Workers' compensation loss frequency continues to follow a negative trend, with recent observations of indemnity severity increases due to wage inflation, indicating ongoing challenges in this segment.
DGICA FAQs
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DGICA Earning Call Sentiment
Donegal Group (DGICA) Q3 2024 Earnings Call Transcript
1.0x
00:00
00:00
DGICA.O
0.07%Positive
The earnings call summary presents mixed signals: strong financial metrics with improved net income and premiums, but challenges like weather-related losses, expense ratio increases, and competitive market pressures. The lack of guidance and shareholder return plans may concern investors. The Q&A section shows cautious optimism but lacks specific revenue targets, adding uncertainty. Overall, the sentiment is neutral, as positive financial performance is balanced by risks and uncertainties, leading to a likely neutral stock price movement in the short term.