U.S. insurance holding company Donegal Group Inc. reported full-year net profit of $79.3 million in 2025, an increase of 56% from $50.9 million in 2024, and the combined ratio also improved to 95.4% from 98.6% in 2024.
Net premium income totaled $921.2 million this year, down 1.7% from $936.7 million in 2024.
Net written premiums decreased by 4%, from US$942.3 million to US$904.8 million. Net written premiums of commercial lines increased by 2.9%, and net written premiums of personal lines decreased by 13.6%.
Donegal’s 2025 combined ratio reflects a lower loss ratio, falling from 64.5% to 61.3%, while the expense ratio was 33.8% compared with 33.7% in the previous year.
Net investment income increased 17.2% from $44.9 million to $52.6 million, primarily due to an increase in average invested assets and an increase in average investment yield. The company also reported net investment income of $0.6 million, compared with $5 million in 2024.
Total revenue was US$978 million, down 1.2% from US$989.6 million.
In the fourth quarter of 2025 alone, net profit fell 28.4% to $17.2 million from $24 million in the fourth quarter of 2024.
Net premium income was US$226.9 million, a decrease of 4.1% from US$236.6 million.
Net written premiums decreased by 3.4%, from US$211.4 million to US$204.3 million. Net written premiums of commercial lines increased by 3.2%, and net written premiums of personal lines decreased by 12.7%.
Donegal’s combined ratio for 4Q25 was 96.3%, compared with 92.9% for the same period last year. The loss rate increased from 59.8% to 61.1%, and the expense ratio increased from 32.8% to 34.9%.
Net investment income increased 17.5% to $14.2 million from $12.1 million, and net investment losses were $1.7 million, while net investment income in Q4 2024 was minimal.
Total revenue for the quarter was $240.1 million, down 3.9% from $250 million.
“We are pleased with our solid operating results for the fourth quarter and full year 2025, which reflect the favorable impact of numerous strategic decisions and intentional actions over the past several years,” said Kevin G. Burke, Donegal Group President and Chief Executive Officer. “Our focus in 2026 is to pursue modest premium growth through independent agency partners in geographies and business classes that we believe are attractive. We remain committed to our strategic plan, which includes leveraging profitable growth opportunities and contributing to sustainable growth.” Excellent financial results.
“In our commercial lines segment, we delivered solid underlying results in the fourth quarter of 2025, but these results were somewhat overshadowed by the impact of several fires and late-reported prior-year casualty losses. In large part due to improvements in our commercial underwriting appetite, we failed to meet our business plan targets for new business writing in 2025. For 2026, we are actively engaging our agents on detailed growth plans and introducing new compensation incentives to encourage more submissions of new premium accounts.
“In our personal lines business, we continue to achieve excellent profitability and are making good progress in the gradual conversion of our remaining legacy policies to the new platform, which will be completed in June 2027. We expect the decline in personal lines premiums in 2025 to fade in 2026 as we take prudent steps to improve the success rate of new business while working to maintain targeted profitability levels in this segment consistent with our long-term strategic and financial objectives.
“We believe that as we continue to make prudent investments in our people, systems and capabilities, we are well-positioned as a regional insurance group to provide excellent service to our independent agents and policyholders. Building on the strong foundation we have laid over the past few years, we are executing on strategies that we believe will, over time, enhance the value of our shareholder investments.”
