William Albert Folmar, Sr. Vice President at Donegal Group Inc. (NASDAQ:), reported a significant transaction involving the company’s Class A Common Stock. On December 6, 2024, Folmar exercised options to acquire 15,000 shares at $15.80 each, totaling approximately $237,000. Subsequently, he sold the same number of shares at $16.672 per share, resulting in a total sale value of around $250,080. Following these transactions, Folmar holds 927 shares of the company’s stock.The transaction comes as DGICA trades near its 52-week high of $17, having gained nearly 29% over the past six months. With a market capitalization of $559 million and a dividend yield of 4.18%, the company has maintained 24 consecutive years of dividend growth. InvestingPro analysis suggests DGICA is currently trading below its Fair Value, with 12 additional real-time insights available to subscribers.
In other recent news, Donegal Group reported a significant net income of $16.8 million, or $0.51 per Class A share, in their Third Quarter 2024 Earnings Call, despite facing $6 million in pre-tax catastrophe losses due to Hurricane Helene. The company’s net premiums earned rose to $238 million, marking a 6% increase, and the combined ratio improved to 96.4%. These developments demonstrate the resilience of Donegal Group’s strategic focus on small business growth, software enhancements, and geographic diversification, despite industry challenges and severe weather impacts.
Donegal Group has also completed strategic exits from commercial policies in Georgia and Alabama, and plans to introduce software enhancements to improve policy management by January 2025. The company’s net premiums written in commercial lines grew by 6.4%, and personal lines by 5.4%. Additionally, the statutory combined ratio for personal lines improved significantly to 104.7%.
Looking ahead, Donegal Group is aligning strategies for growth across regions with a cohesive business plan for 2025. The company is working on securing rate increases to mitigate inflation and claims costs, and is focusing on disciplined expense reduction to improve the expense ratio by two points by the end of 2025. Further updates on the company’s performance and strategies will be provided in the year-end call.
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