William Albert Folmar, senior vice president of Donegal Group Inc. (NASDAQ: ), announced a significant transaction involving the company’s Class A common stock. On December 6, 2024, Folmar exercised options to purchase 15,000 shares at $15.80 each, for a total of approximately $237,000. He subsequently sold the same number of shares at $16,672 per share, for a total sale value of approximately $250,080. Following these transactions, Folmar owns 927 shares of the company’s stock. The transaction comes as DGICA is trading at a 52-week high of $17, having gained nearly 29% over the past six months. With a market capitalization of $559 million and a dividend yield of 4.18%, the company has maintained its dividend growth for 24 consecutive years. InvestingPro’s analysis suggests that DGICA is currently trading below fair value, with 12 additional real-time options available to subscribers.
In other recent news, Donegal Group reported a solid net income of $16.8 million, or $0.51 per Class A share, in its Q3 2024 profit call, despite a pre-disaster loss of $6 million due to Hurricane Helen . The company’s net premiums increased to $238 million, an increase of 6%, and the combined ratio improved to 96.4%. These developments demonstrate the persistence of Donegal Group’s strategic focus on small business growth, software enhancements and geographic diversification despite industry challenges and severe weather impacts.
Donegal Group has also completed strategic exits from commercial policies in Georgia and Alabama and plans to implement software enhancements to improve policy management by January 2025. The company’s net premiums written in commercial lines increased by 6.4% and personal lines by 5.4%. In addition, the statutory combined ratio for personal lines improved significantly to 104.7%.
Going forward, Donegal Group is aligning regional growth strategies with a coherent 2025 business plan. The company is working on securing rate hikes to reduce inflation and loss costs and is focusing on disciplined cost cutting to improve the expense ratio by two points. until the end of 2025. Additional updates on the company’s performance and strategies will be provided during the year-end conference call.
This article was created with the support of artificial intelligence and reviewed by an editor. See our T&C for more information.