Donegal (DGICA)
NASDAQ:DGICA
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Earnings Data
Report Date
Jul 23, 2026After Close (Confirmed)
Period Ending
2026 (Q2)Consensus EPS Forecast
0.42Last Year’s EPS
0.43Same Quarter Last Year
Based on 1 Analysts Ratings
Earnings Call Summary
Earnings Call Sentiment|Neutral
The call presented a mix of positive strategic and financial developments alongside meaningful near-term underwriting headwinds. Positives include a strong investment income increase (+19%), improved yields, continued technology modernization with a cloud migration and Gen AI plans, solid core underwriting metrics, strong personal lines profitability (statutory combined ratio 85.7%) and healthy retention rates (commercial 82.3%, personal 88.7%). Negatives were driven primarily by elevated weather and fire losses that doubled the weather impact year-over-year, a higher combined ratio (99.8% vs 91.6% prior year), a commercial underwriting loss (statutory combined 104.6%), a 13.1% decline in personal premiums written, and a ~54% drop in after-tax net income to $11.5 million. Overall, management emphasized disciplined underwriting, targeted growth, expense control and long-term investments to address these challenges.Company Guidance
Improved Investment Income and Yields
Net investment income of $14.3 million for Q1 2026, a 19% increase versus $12.0 million in Q1 2025. Average tax-equivalent yield rose to 3.94% from 3.50% (increase of 44 bps). Invested $63 million in the quarter at a 5.39% yield; received $44 million of portfolio cash flow yielding 4.67%. Projected $135 million of bond cash flow over next 12 months at a current average yield of 4.45%. Book value per share increased to $17.54, up 1.2% from $17.33 at 12/31/2025.
Commercial Lines New Business Growth and Pricing Discipline
Commercial net premiums written increased 2.2% in Q1 2026. Real commercial retention rate of 82.3%. Commercial rate and exposure increases (excl. workers' comp) steady at 9% for the quarter. Management maintained underwriting and pricing discipline and achieved new business aligned with targeted, higher-profitability classes.
Strong Personal Lines Profitability and Retention
Personal lines produced an excellent statutory combined ratio of 85.7% in Q1 2026. Real personal retention rate was 88.7%. Personal new business written totaled $1.6 million, up nearly 25% vs Q4 2025 and nearly 70% vs Q1 2025. Personal auto loss ratio improved by 3.6 percentage points vs prior-year quarter.
Core Underwriting Metrics Show Underlying Improvement
Core loss ratio (excluding weather, large fires and prior-year reserve development) improved to 53.4% from 54.2% in Q1 2025 (0.8 percentage point improvement). Commercial core loss ratio declined 0.7 percentage points and personal lines core loss ratio declined 2.2 percentage points vs prior year quarter, reflecting solid underlying underwriting performance.
Progress on Technology Modernization and Strategic Initiatives
Completed modernization foundation and began migration of Guidewire claims and billing to Guidewire Cloud (phase 1 started Feb; claims and billing targeted early 2027). Plans to co-develop and deploy Gen AI solutions integrated into core systems. Launched WriteBiz Express quoting enhancements for contractors; further agency experience improvements planned.
Capital Management and Dividend Increase
Company announced an increase in its quarterly cash dividend, signaling confidence in capital position and future performance despite near-term underwriting headwinds.
DGICA Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed
DGICA Earnings-Related Price Changes
Report Date | Price 1 Day Before | Price 1 Day After | Percentage Change |
|---|---|---|---|
Apr 30, 2026 | $17.43 | $16.63 | -4.60% |
Feb 19, 2026 | $18.40 | $17.36 | -5.64% |
Oct 30, 2025 | $18.02 | $17.82 | -1.13% |
Jul 24, 2025 | $17.76 | $16.67 | -6.16% |
Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.
FAQ
When does Donegal (DGICA) report earnings?
Donegal (DGICA) is schdueled to report earning on Jul 23, 2026, After Close (Confirmed).
What is Donegal (DGICA) earnings time?
Donegal (DGICA) earnings time is at Jul 23, 2026, After Close (Confirmed).
Where can I see when companies are reporting earnings?
You can see which companies are reporting today on our designated earnings calendar.
What companies are reporting earnings today?
You can see a list of the companies which are reporting today on TipRanks earnings calendar.
What is DGICA EPS forecast?
DGICA EPS forecast for the fiscal quarter 2026 (Q2) is 0.42.