Donegal Mutual Insurance Co, a major stakeholder in Donegal Group Inc (NASDAQ:DGICA), has increased its holdings in the company. The $553 million market cap insurance provider, which has maintained dividend payments for 24 consecutive years, saw its stock surge nearly 31% over the past six months. According to a recent SEC filing, the company purchased a total of 18,529 shares of Class A Common Stock over two consecutive days. The transactions, executed on December 11 and December 12, 2024, were completed at prices ranging from $16.3699 to $16.424 per share, amounting to a total investment of $303,848.
Following these acquisitions, Donegal Mutual Insurance Co now holds 13,144,555 shares of Class A Common Stock. Additionally, the company maintains a holding of 4,708,570 shares of Class B Common Stock, as per the filing.
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 rose by 6% to $238 million, demonstrating resilience in the face of industry challenges.
Additionally, Donegal Group announced the retirement of director Scott A. Berlucchi, who will not seek re-election at the 2025 annual stockholders meeting. The company has yet to announce a successor or provide details regarding potential changes to the board's composition following Berlucchi's departure.
In terms of strategic developments, Donegal Group 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 the company is aligning strategies for growth across regions with a cohesive business plan for 2025, focusing on disciplined expense reduction.
These recent developments reflect Donegal Group's strategic focus on growth and efficiency, despite facing industry challenges and severe weather impacts.
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