Donegal Group Inc. (DGICB) has reported an 179.94 percent jump in profit for the quarter ended Dec. 31, 2016. The company has earned $5.55 million in the quarter, compared with $1.98 million for the same period last year. Revenue during the quarter grew 8.18 percent to $177.20 million from $163.80 million in the previous year period. Net premium earned for the quarter increased 8.63 percent or $13.42 million to $168.98 million.
Total expenses move up Benefits, losses and expenses for the quarter were at $170.36 million, or 100.82 percent of premium earned from $160.61 million or 103.25 percent of premium earned in the last year period. Operating income for the quarter was $6.84 million, compared with $3.18 million in the previous year period.
Meanwhile, income from fees and commission for the quarter declined 12.34 percent or $0.17 million to $1.19 million. The company has recorded a gain on investments of $0.32 million in the quarter compared with a gain of $1.25 million for the previous year period.
Kevin G. Burke, president and chief executive officer of Donegal Group Inc., stated, "Donegal Group reported strong fourth quarter and full year of 2016 underwriting results, highlighted by increases in both net income and operating income, with annual earnings per diluted Class A share increasing by 50.6% compared to the prior year. We achieved a 9.5% increase in net premiums written for the fourth quarter of 2016 and an 8.5% increase for the full year of 2016, marking the seventh consecutive year in which we achieved growth in net premiums written of at least 7.0% over the previous year. Our ability to maintain a consistent, healthy rate of growth has provided opportunities to achieve our operating objectives while maintaining a stable capital base."
Assets outpace liabilities growth Total assets increased 5.55 percent or $85.30 million to $1,623.13 million on Dec. 31, 2016. On the other hand, total liabilities were at $1,184.52 million as on Dec. 31, 2016, up 4.88 percent or $55.07 million from year-ago.
Return on assets stood at 0.37 percent in the quarter, up 0.22 from 0.14 percent in the last year period. At the same time, return on equity was at 1.27 percent in the quarter, up 0.78 from 0.49 percent in the last year period.
Investments move up marginally Investments stood at $945.52 million as on Dec. 31, 2016, up 4.96 percent or $44.70 million from year-ago.
Meanwhile, reinsurance recoverables moved up 1.27 percent or $3.30 million over the year to $263.03 million on Dec. 31, 2016.
Total debt was at $74 million as on Dec. 31, 2016, down 13.95 percent or $12 million from year-ago. Shareholders equity stood at $438.62 million as on Dec. 31, 2016, up 7.40 percent or $30.23 million from year-ago. As a result, debt to equity ratio went down 4 basis points to 0.17 percent in the quarter from 0.21 percent in the last year period.
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