Donegal Group is a cheaply valued property and casualty insurer with notable insider buying and a 4.1% dividend, but it trades above the analyst target with slipping revenue and weak quality.
Thesis pillars
- Weak Quality Slipping Revenue→Stable
- Price Above Analyst Target→Stable
- Notable Insider Buying→Stable
- +2 more pillars — see the Why tab for full reasoning
Pillars as of Oct 24, 2026, based on the 10-K filed Mar 6, 2026
Donegal Group, Inc. (DGICA) Stock Analysis
Range Bound setup · Inst Constrain edge
Financial Services · Insurance - Property & Casualty
Sell if holding. Engine safety override at $18.63: Quality below floor (3.2 < 4.0) triggers a hard block regardless of the otherwise-positive setup — overall score 5.5/10. Specifically: Below-average business quality.
Donegal Group is a property and casualty insurance holding company whose subsidiaries, led by 80%-pool-participant Atlantic States, write commercial and personal lines insurance in 21 Mid-Atlantic, Midwestern, Southern, and Southwestern states through about 2,000 independent... Read more
Sell if holding. Engine safety override at $18.63: Quality below floor (3.2 < 4.0) triggers a hard block regardless of the otherwise-positive setup — overall score 5.5/10. Specifically: Below-average business quality. Chart setup: RSI 51 mid-range, Bollinger mid-band. Score 5.5/10, moderate confidence.
Passes 5/8 gates (positive momentum, clean insider activity, earnings proximity no date, semi cycle peak clear, materials cycle peak clear). Fails on favorable risk/reward ratio and SEC filing concern. Suitability: speculative.
About Donegal Group, Inc.
About Donegal Group, Inc.
Donegal Group's insurance subsidiaries wrote $921.2 million in net premiums earned during 2025, up from $301.5 million in 2006, across three segments -- investment, commercial lines, and personal lines -- sold through roughly 2,000 independent agencies in 21 Mid-Atlantic, Midwestern, Southern, and Southwestern states. A substantial portion of that business is concentrated in Pennsylvania, Michigan, Delaware, Maryland, and Virginia, and the company posted a 2025 GAAP combined ratio of 95.4%, better than the industry's 95.0% average. Donegal Mutual Insurance Company, the company's controlling affiliate, holds approximately 70% of the combined voting power of DGI's Class A and Class B common stock.
Donegal Group earns underwriting profit and investment income through its insurance subsidiaries, led by Atlantic States Insurance Company, which receives an 80% allocation of the pooled premiums, losses, and expenses it shares with affiliate Donegal Mutual under a proportional reinsurance pooling agreement dating to 1986; the business Atlantic States derives from that pool represents a significant percentage of DGI's total consolidated revenues. Commercial lines products consist primarily of commercial automobile, commercial multi-peril, and workers' compensation policies, while personal lines are led by homeowners and private passenger automobile coverage. Donegal Mutual also provides catastrophe and liability reinsurance to DGI's subsidiaries above a $3.0 million per-company retention, and the company invests a high percentage of assets in diversified, investment-grade fixed-maturity securities, keeping only about 3.0% of its portfolio in equities as of December 31, 2025.
Show full overview
Donegal's underwriting results concentrate on a handful of Mid-Atlantic states rather than a broad national footprint: the 10-K states that the company and Donegal Mutual conduct business in a limited number of states, with a concentration of business in Pennsylvania, Michigan, Delaware, Maryland, and Virginia, and that any single catastrophe or adverse condition affecting those states could adversely affect results. The company has already exited commercial lines in Georgia and Alabama and is winding down its legacy farm product line (about $6 million in premiums) rather than modernize it, reinforcing that its five core states -- not the full 21-state license footprint -- carry the underwriting weight that determines DGI's results in any given catastrophe year.
See also: Financial Services · Insurance - Property & Casualty
From Donegal Group, Inc.'s most recent 10-K filing, extracted July 6, 2026.
Recent developments
updated 2026-10-29Recent Developments — Donegal Group, Inc.
Latest news
- NEWS Donegal Gr Q3 Adj. EPS $0.50 Beats $0.43 Estimate, Sales $237.658M Beat $236.811M Estimate — benzinga Oct 29, 2026 positive
- NEWS Donegal Insurance Expands Partnership with ZestyAI for AI-Powered Property Risk Assessment — fiscal.ai Oct 24, 2026 positive
- NEWS Donegal Gr Q2 Adj. EPS $0.53 Beats $0.42 Estimate, Sales $241.119M Beat $238.198M Estimate — benzinga Jul 30, 2026 positive
- NEWS Keefe, Bruyette & Woods Maintains Market Perform on Donegal Group, Raises Price Target to $20 — benzinga Jul 8, 2026 positive
Generated 2026-10-29T11:53:50Z.
Upcoming dated catalysts
Thesis
Key Metrics
Quality Signals
Options Flow
Concentration Risks(10-K Item 1A)
- MEDIUMGeographicPennsylvania, Michigan, Delaware, Maryland and Virginia10-K Item 1A: 'A substantial portion of their business consists of private passenger and commercial automobile, homeowners, commercial multi-peril and workers' compensation insurance in Pennsylvania, Michigan, Delaware, Maryland and Virginia.'
- MEDIUMcounterpartyDonegal Mutual underwriting pool10-K Item 1: 'The business Atlantic States derives from the underwriting pool represents a significant percentage of our total consolidated revenues.'
Material Events(8-K, last 90d)
- 2026-06-17Item 4.01HIGHThe Audit Committee dismissed KPMG as Donegal Group's independent registered public accounting firm effective June 11, 2026; KPMG's reports for 2025 and 2024 contained no adverse opinion, disclaimer, qualification, or reported disagreements. No successor auditor named in the excerpt.SEC filing →
Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results. How we score · Editorial policy
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Rating Breakdown
1 floor-breaker
Quality below the gate floor. Component breakdown shows what dragged the score down.static
Price Targets
Position Sizing
Risk Alerts
Earnings
Verdict History
Frequently Asked Questions
Sell if holding. Engine safety override at $18.63: Quality below floor (3.2 < 4.0) triggers a hard block regardless of the otherwise-positive setup — overall score 5.5/10. Specifically: Below-average business quality. Chart setup: RSI 51 mid-range, Bollinger mid-band. Prior stop was $17.69. Score 5.5/10, moderate confidence.
Analyst target $17.85 reached (−4.2% from $18.63); no take-profit level is published. Prior stop was $17.69. Stop-loss: $17.69.
Target reached (-4.2% upside); Quality below floor (3.2 < 4.0).
Donegal Group, Inc. trades at a P/E of 9.7 (forward 9.9). TrendMatrix value score: 7.3/10. Verdict: Sell.
11 analysts cover DGICA with a consensus score of 4.0/5. Average price target: $21.
What does Donegal Group, Inc. do?Donegal Group is a property and casualty insurance holding company whose subsidiaries, led by 80%-pool-participant...
Donegal Group is a property and casualty insurance holding company whose subsidiaries, led by 80%-pool-participant Atlantic States, write commercial and personal lines insurance in 21 Mid-Atlantic, Midwestern, Southern, and Southwestern states through about 2,000 independent agencies. Net premiums earned reached $921.2 million in 2025, with business substantially concentrated in Pennsylvania, Michigan, Delaware, Maryland, and Virginia, and controlling affiliate Donegal Mutual holding approximately 70% of DGI's combined voting power.