Donegal Group Inc. (NASDAQ:DGICA), a property and casualty insurance company with a market capitalization of $559 million, saw a significant stock purchase by Donegal Mutual Insurance Co., according to a recent SEC filing. The mutual insurance company acquired a total of 19,522 shares of Class A Common Stock over two days, with transactions taking place on December 4 and December 5. According to InvestingPro data, the stock has shown strong momentum with a 30% gain over the past six months. The shares were purchased at prices ranging from $16.5428 to $16.7189 per share, amounting to a total value of $324,709. Following these transactions, Donegal Mutual Insurance Co. holds 12,776,126 shares of Class A Common Stock. The company maintains a solid 4.1% dividend yield and has raised its dividend for 24 consecutive years. For deeper insights into insider trading patterns and comprehensive financial analysis, InvestingPro subscribers can access the detailed Pro Research Report, one of 1,400+ available for top US stocks.
In other recent news, Donegal Group reported a net income of $16.8 million, or $0.51 per Class A share, in its Third Quarter 2024 Earnings Call. This performance was achieved despite facing $6 million in pre-tax catastrophe losses due to Hurricane Helene. The company also reported a 6% increase in net premiums earned, which rose to $238 million, and an improved combined ratio of 96.4%.
Donegal Group has shown resilience with a strategic focus on small business growth, software enhancements, and geographic diversification. The company completed strategic exits from commercial policies in Georgia and Alabama and plans for software enhancements to improve policy management by January 2025.
Recent developments also include growth in net premiums written in commercial lines by 6.4% and in personal lines by 5.4%. Donegal Group is aligning strategies for growth across regions with a cohesive business plan for 2025, and working on securing rate increases to mitigate inflation and claims costs. The company is also focusing on disciplined expense reduction to improve the expense ratio by two points by the end of 2025.
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