In a recent filing with the Securities and Exchange Commission, Donegal Group (NASDAQ:DGICA) Inc. (NASDAQ:DGICA, NASDAQ:DGICB) disclosed that director Scott A. Berlucchi will retire and not seek re-election at the 2025 annual stockholders meeting. Berlucchi, who has been a part of the board, informed the company of his decision in a letter dated December 6, 2024.
According to the filing, Berlucchi will continue to serve on the board for the remainder of his term, which concludes with the company's 2025 annual meeting. The company stated that his decision not to stand for re-election was not due to any disagreements with Donegal Group's operations, policies, or practices.
Donegal Group Inc., headquartered in Marietta, Pennsylvania, operates in the insurance sector under the Fire, Marine, and Casualty Insurance classification. The company is incorporated in Delaware and has been a fixture in the insurance industry, with a market capitalization of $557 million. According to InvestingPro data, the company has maintained and raised its dividend for 24 consecutive years, currently offering a 4.24% yield.
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's management and board will likely address the transition in due course as part of their regular governance and planning processes.
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 is a significant achievement considering the $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 noteworthy improvement in the combined ratio to 96.4%. Donegal Group's strategic focus on small business growth, software enhancements, and geographic diversification has shown resilience despite industry challenges and severe weather impacts.
The company 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 have noted that Donegal Group is aligning strategies for growth across regions with a cohesive business plan for 2025, focusing on disciplined expense reduction to improve the expense ratio by two points by the end of 2025.
However, it's worth noting that the company faced $6 million in pre-tax catastrophe losses from Hurricane Helene, and policies-in-force in personal lines declined by 7.3% due to targeted non-renewals. Despite these challenges, Donegal Group appears to be navigating through industry challenges with a strategic focus on growth and efficiency.
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