Jeffrey Dean Miller, the Executive Vice President and Chief Financial Officer of Donegal Group Inc. (NASDAQ:DGICA), recently sold a significant portion of his holdings in the company. On December 6, Miller sold 85,000 shares of Class A Common Stock at an average price of $16.672 per share, amounting to a total transaction value of approximately $1.42 million. The transaction comes as DGICA trades near its 52-week high of $17, having gained nearly 29% over the past six months. According to InvestingPro analysis, the stock appears slightly undervalued at current levels.
In addition to the sale, Miller exercised options to acquire 45,000 shares at $15.80 per share and another 40,000 shares at $14.98 per share. These option exercises totaled $1,310,200. After these transactions, Miller holds 22,613 shares of Class A Common Stock directly. Indirectly, through a 401(k) plan, he owns an additional 39,285 shares of Class A Common Stock and 478 shares of Class B Common Stock. The $558.6M market cap company stands out for its 24-year consecutive dividend growth streak and currently offers a 4.18% dividend yield. InvestingPro subscribers can access 12 additional investment tips and a comprehensive Pro Research Report for deeper insights into DGICA's financial health and growth prospects.
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 from Hurricane Helene. The company's net premiums earned rose to $238 million, a 6% increase, and the combined ratio improved to 96.4%. Donegal Group also highlighted its strategic focus on small business growth and software enhancements, alongside geographic diversification.
The company completed strategic exits from commercial policies in Georgia and Alabama, and plans software enhancements to improve policy management in January 2025. Donegal Group's net premiums written in commercial lines grew by 6.4%, and personal lines by 5.4%. The statutory combined ratio for personal lines showed significant improvement, reaching 104.7%.
These are recent developments that show Donegal Group's resilience amid industry challenges and severe weather impacts. The company is aligning strategies for growth across regions, working on securing rate increases to mitigate inflation and claims costs, and focusing on disciplined expense reduction. Future expectations from analysts suggest an improved expense ratio by two points by the end of 2025.
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