UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

(Mark One)

☒	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2026

☐	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to .

Commission file number 0-15341

Donegal Group Inc.

(Exact name of registrant as specified in its charter)

Delaware		23-2424711
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification No.)

1195 River Road, P.O. Box 302, Marietta, PA 17547

(Address of principal executive offices) (Zip code)

(717) 426-1931

(Registrant’s telephone number, including area code)

Not applicable

(Former name, former address and former fiscal year, if changed since last report)

Indicate by check mark whether registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act. (Check one):

	Large accelerated filer ☐	Accelerated filer ☑	Non-accelerated filer ☐	Smaller reporting company ☐
	Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

Securities registered pursuant to Section 12(b) of the Act:

Title of Each Class	Trading Symbols	Name of Each Exchange on Which Registered

Class A Common Stock, $.01 par value	DGICA	The NASDAQ Global Select Market

Class B Common Stock, $.01 par value	DGICB	The NASDAQ Global Select Market

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date: 31,472,828 shares of Class A Common Stock, par value $0.01 per share, and 5,576,775 shares of Class B Common Stock, par value $0.01 per share, outstanding on May 1, 2026.

DONEGAL GROUP INC.

INDEX TO FORM 10-Q REPORT

		Page
PART I	FINANCIAL INFORMATION
Item 1.	Financial Statements	1
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	22
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	31
Item 4.	Controls and Procedures	31

PART II	OTHER INFORMATION
Item 1.	Legal Proceedings	32
Item 1A.	Risk Factors	32
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	32
Item 3.	Defaults upon Senior Securities	32
Item 4.	Mine Safety Disclosure	32
Item 5.	Other Information	32
Item 6.	Exhibits	33
Signatures		34

Index

PART I. FINANCIAL INFORMATION

Item 1.

Financial Statements

Donegal Group Inc. and Subsidiaries

Consolidated Balance Sheets

	March 31, 2026			December 31, 2025
	(Unaudited)
Assets
Investments
Fixed maturities
Held to maturity, at amortized cost (net of allowance for expected credit losses of $1,274,490 and $1,312,903)	$	783,951,953		$	776,447,347
Available for sale, at fair value		649,110,503			640,722,775
Equity securities, at fair value		45,105,813			44,370,358
Short-term investments, at cost, which approximates fair value		26,016,894			38,712,341
Total investments		1,504,185,163			1,500,252,821
Cash		35,501,229			26,785,845
Accrued investment income		11,978,051			10,914,235
Premiums receivable		197,327,411			180,803,918
Reinsurance receivable (net of allowance for expected credit losses of $401,773 and $374,883)		418,091,102			398,582,136
Deferred policy acquisition costs		71,995,952			68,669,982
Deferred tax asset, net		14,843,359			13,287,301
Prepaid reinsurance premiums		179,320,225			171,083,219
Property and equipment, net		2,292,226			2,329,491
Federal income taxes recoverable		940,090			4,028,034
Due from affiliate		5,712,446			3,299,188
Goodwill		5,625,354			5,625,354
Other intangible assets		958,010			958,010
Other		9,918			9,918
Total assets	$	2,448,780,536		$	2,386,629,452
Liabilities and Stockholders’ Equity
Liabilities
Losses and loss expenses	$	1,129,814,963		$	1,100,049,937
Unearned premiums		617,210,414			591,040,451
Accrued expenses		2,311,032			2,220,800
Reinsurance balances payable		3,141,996			3,484,130
Borrowings under lines of credit		35,000,000			35,000,000
Cash dividends declared to stockholders		—			6,647,482
Accounts payable - securities		4,350,228			—
Other		7,859,267			7,768,573
Total liabilities		1,799,687,900			1,746,211,373
Stockholders’ Equity
Preferred stock, $.01 par value, authorized 2,000,000 shares; none issued		—			—
Class A common stock, $.01 par value, authorized 50,000,000 shares, issued 34,440,977 and 34,385,129 shares and outstanding 31,438,389 and 31,382,541 shares		344,410			343,852
Class B common stock, $.01 par value, authorized 10,000,000 shares, issued 5,649,240 shares and outstanding 5,576,775 shares		56,492			56,492
Additional paid-in capital		393,244,272			391,811,397
Accumulated other comprehensive loss		(12,407,401	)		(8,295,743	)
Retained earnings		309,081,220			297,728,438
Treasury stock, at cost		(41,226,357	)		(41,226,357	)
Total stockholders’ equity		649,092,636			640,418,079
Total liabilities and stockholders’ equity	$	2,448,780,536		$	2,386,629,452

See accompanying notes to consolidated financial statements.

Index

Donegal Group Inc. and Subsidiaries

Consolidated Statements of Income

(Unaudited)

	Three Months Ended March 31,
	2026			2025
Revenues:
Net premiums earned	$	221,357,442		$	232,701,889
Investment income, net of investment expenses		14,287,065			11,983,574
Net investment losses (includes $70,854 and $57,103 accumulated other comprehensive income reclassifications)		(479,224	)		(470,861	)
Lease income		74,218			76,827
Installment payment fees		756,733			882,195
Total revenues		235,996,234			245,173,624
Expenses:
Net losses and loss expenses		141,999,594			132,033,147
Amortization of deferred policy acquisition costs		36,297,000			39,231,000
Other underwriting expenses		42,014,492			41,194,994
Policyholder dividends		651,707			759,389
Interest		333,025			333,045
Other expenses, net		577,453			461,100
Total expenses		221,873,271			214,012,675
Income before income tax expense		14,122,963			31,160,949
Income tax expense (includes $14,879 and $11,992 income tax expense from reclassification items)		2,612,359			5,955,775
Net income	$	11,510,604		$	25,205,174
Net income per share:
Class A common stock - basic	$	0.32		$	0.72
Class A common stock - diluted	$	0.31		$	0.71
Class B common stock - basic and diluted	$	0.29		$	0.65

Donegal Group Inc. and Subsidiaries

Consolidated Statements of Comprehensive Income

(Unaudited)

	Three Months Ended March 31,
	2026			2025
Net income	$	11,510,604		$	25,205,174
Other comprehensive (loss) income, net of tax
Unrealized (loss) income on securities:
Unrealized holding (loss) income during the period, net of income tax (benefit) expense of ($1,078,094) and $1,800,510		(4,055,683	)		6,773,356
Reclassification adjustment for gains included in net income, net of income tax expense of $14,879 and $11,992		(55,975	)		(45,111	)
Other comprehensive (loss) income		(4,111,658	)		6,728,245
Comprehensive income	$	7,398,946		$	31,933,419

See accompanying notes to consolidated financial statements.

Index

Donegal Group Inc. and Subsidiaries

Consolidated Statement of Stockholders’ Equity

(Unaudited)

Three Months Ended March 31, 2026

	Class A Shares		Class B Shares		Class A Amount		Class B Amount		Additional Paid-In Capital		Accumulated Other Comprehensive Loss			Retained Earnings			Treasury Stock			Total Stockholders’ Equity
Balance, December 31, 2025		34,385,129		5,649,240	$	343,852	$	56,492	$	391,811,397	$	(8,295,743	)	$	297,728,438		$	(41,226,357	)	$	640,418,079
Issuance of common stock (stock compensation plans)		39,583		—		395		—		723,690		—			—			—			724,085
Share-based compensation		16,265		—		163		—		559,026		—			—			—			559,189
Net income		—		—		—		—		—		—			11,510,604			—			11,510,604
Cash dividends declared		—		—		—		—		—		—			(7,663	)		—			(7,663	)
Grant of stock options

SEC Form 10-Q filed by Donegal Group Inc.