Donegal Group Inc. (NASDAQ:DGICA), a $544 million market cap insurance company with a strong track record of 24 consecutive years of dividend payments, recently reported a significant stock acquisition by its major shareholder, Donegal Mutual Insurance Co. According to a filing with the Securities and Exchange Commission, Donegal Mutual Insurance Co. acquired 7,817 shares of Donegal Group's Class A Common Stock at an average price of $16.2876 per share, totaling approximately $127,320. Following this transaction, Donegal Mutual Insurance Co. now holds 13,152,372 shares of Class A Common Stock and 4,708,570 shares of Class B Common Stock, maintaining its position as a ten percent owner of the company. The stock has shown strong momentum with a 31% gain over the past six months, and InvestingPro analysis indicates the company maintains a GOOD overall financial health score. For detailed insights and additional analysis, investors can access the comprehensive Pro Research Report, available exclusively on InvestingPro.
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 comes despite the company facing $6 million in pre-tax catastrophe losses due to Hurricane Helene. The company's net premiums earned rose by 6% to $238 million, with a marked improvement in the combined ratio to 96.4%. On the other hand, Donegal Group announced director Scott A. Berlucchi's decision to retire and not seek re-election at the 2025 annual stockholders meeting. The company has not yet announced a successor or provided details regarding potential changes to the board's composition following Berlucchi's departure. Donegal Group also completed strategic exits from commercial policies in Georgia and Alabama, with plans for software enhancements to improve policy management set for January 2025. Analysts noted that Donegal Group is aligning strategies for growth across regions with a cohesive business plan for 2025, focusing on disciplined expense reduction. These are among the recent developments for Donegal Group.
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