Dennis Joseph Bixenman, a director at Donegal Group Inc. (NASDAQ:DGICA), has recently sold a significant portion of his holdings in the company. According to a filing with the Securities and Exchange Commission, Bixenman sold 12,500 shares of Class A Common Stock on November 27, with prices ranging from $16.34 to $16.4335, totaling approximately $204,670. The sale comes as DGICA trades near its 52-week high of $16.70, having gained nearly 29% over the past six months. InvestingPro analysis suggests the stock is currently slightly undervalued, with additional insights available in the comprehensive Pro Research Report.
The transactions also included the exercise of options, where Bixenman acquired 12,500 shares at prices between $14.98 and $15.80, totaling around $193,810. Following these transactions, Bixenman holds 7,655 shares of the company directly. Notably, DGICA has maintained consistent dividend payments for 24 consecutive years, trading at a P/E ratio of 19.5, reflecting investor confidence in the company's steady performance.
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, despite facing $6 million in pre-tax catastrophe losses due to Hurricane Helene. The company's net premiums earned saw a 6% increase, reaching $238 million, and the combined ratio improved to 96.4%. Amid industry challenges, Donegal Group's strategic focus on small business growth, software enhancements, and geographic diversification has shown resilience.
Donegal Group also completed strategic exits from commercial policies in Georgia and Alabama and announced plans for 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%, with the statutory combined ratio for personal lines significantly improving to 104.7%.
Despite some bearish highlights such as a decline in policies-in-force in personal lines by 7.3% due to targeted non-renewals, the company's investment income increased by 2.8% to $10.8 million, with an average yield of 3.28%. The book value per share rose to $15.22, reflecting investment gains, and equity holdings increased by 39% compared to the end of 2023. As part of its future plans, Donegal Group is aligning strategies for growth across regions with a cohesive business plan for 2025, focusing on securing rate increases and disciplined expense reduction to improve the expense ratio by two points by the end of 2025.
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