Donegal Group Inc. (DGICB, Financial) filed Quarterly Report for the period ended 2012-09-30.
Donegal Group Inc has a market cap of $472.73 million; its shares were traded at around $0 with a P/E ratio of 39.23 and P/S ratio of 1. The dividend yield of Donegal Group Inc stocks is 2.39%.
Net Realized Investment Gains. Net realized investment gains for the third quarter of 2012 were $1.3 million, compared to $2.5 million for the third quarter of 2011. The net realized investment gains for the third quarters of 2012 and 2011 resulted primarily from strategic sales of fixed maturities within our investment portfolio. We did not recognize any impairment losses in our investment portfolio during the third quarter of 2012 or 2011.
Net Premiums Earned. Our insurance subsidiaries net premiums earned for the first nine months of 2012 were $353.2 million, an increase of $35.9 million, or 11.3%, compared to $317.3 million for the first nine months of 2011, reflecting increases in net premiums written during 2012 and 2011. Our insurance subsidiaries earn premiums and recognize them as revenue over the terms of their policies, which are one year or less in duration. Therefore, increases or decreases in net premiums earned generally reflect increases or decreases in net premiums written in the preceding 12-month period compared to the comparable period one year earlier.
Net Realized Investment Gains. Net realized investment gains for the first nine months of 2012 were $5.2 million, compared to $7.2 million for the first nine months of 2011. The net realized investment gains for the first nine months of 2012 resulted primarily from strategic sales of fixed maturities within our investment portfolio. The net realized investment gains for 2011 resulted primarily from the previously planned periodic sales of a portion of our holdings of an equity security that we obtained in an initial public offering and for which a selling restriction expired in April 2011. We did not recognize any impairment losses in our investment portfolio during the first nine months of 2012 or 2011.
We have historically generated sufficient net positive cash flow from our operations to fund our commitments and add to our investment portfolio, thereby increasing future investment returns. The impact of the pooling agreement between Donegal Mutual and Atlantic States has historically been cash-flow positive because of the consistent underwriting profitability of the pool. Donegal Mutual and Atlantic States settle their respective obligations to each other under the pool monthly, thereby resulting in cash flows substantially similar to the cash flows that would result from the underwriting of direct business. We have not experienced any unusual variations in the timing of claim payments associated with the loss reserves of our insurance subsidiaries. We maintain significant liquidity in our investment portfolio in the form of readily marketable fixed maturities, equity securities and short-term investments. We structure our fixed-maturity investment portfolio following a laddering approach, so that projected cash flows from investment income and principal maturities are evenly distributed from a timing perspective, thereby providing an additional measure of liquidity to meet our obligations should an unexpected variation occur in the future. The net cash flows our operating activities provided in the first nine months of 2012 and 2011 were $13.5 million and $18.1 million, respectively, with the change in cash flows due primarily to an increase in our insurance subsidiaries claim settlements during the first nine months of 2012 compared to the prior-year period.
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Donegal Group Inc has a market cap of $472.73 million; its shares were traded at around $0 with a P/E ratio of 39.23 and P/S ratio of 1. The dividend yield of Donegal Group Inc stocks is 2.39%.
Highlight of Business Operations:
Net Premiums Earned. Our insurance subsidiaries net premiums earned for the third quarter of 2012 were $120.9 million, an increase of $12.4 million, or 11.4%, compared to $108.5 million for the third quarter of 2011, reflecting increases in net premiums written during 2012 and 2011. Our insurance subsidiaries earn premiums and recognize them as revenue over the terms of their policies, which are one year or less in duration. Therefore, increases or decreases in net premiums earned generally reflect increases or decreases in net premiums written in the preceding 12-month period compared to the comparable period one year earlier.Net Realized Investment Gains. Net realized investment gains for the third quarter of 2012 were $1.3 million, compared to $2.5 million for the third quarter of 2011. The net realized investment gains for the third quarters of 2012 and 2011 resulted primarily from strategic sales of fixed maturities within our investment portfolio. We did not recognize any impairment losses in our investment portfolio during the third quarter of 2012 or 2011.
Net Premiums Earned. Our insurance subsidiaries net premiums earned for the first nine months of 2012 were $353.2 million, an increase of $35.9 million, or 11.3%, compared to $317.3 million for the first nine months of 2011, reflecting increases in net premiums written during 2012 and 2011. Our insurance subsidiaries earn premiums and recognize them as revenue over the terms of their policies, which are one year or less in duration. Therefore, increases or decreases in net premiums earned generally reflect increases or decreases in net premiums written in the preceding 12-month period compared to the comparable period one year earlier.
Net Realized Investment Gains. Net realized investment gains for the first nine months of 2012 were $5.2 million, compared to $7.2 million for the first nine months of 2011. The net realized investment gains for the first nine months of 2012 resulted primarily from strategic sales of fixed maturities within our investment portfolio. The net realized investment gains for 2011 resulted primarily from the previously planned periodic sales of a portion of our holdings of an equity security that we obtained in an initial public offering and for which a selling restriction expired in April 2011. We did not recognize any impairment losses in our investment portfolio during the first nine months of 2012 or 2011.
We have historically generated sufficient net positive cash flow from our operations to fund our commitments and add to our investment portfolio, thereby increasing future investment returns. The impact of the pooling agreement between Donegal Mutual and Atlantic States has historically been cash-flow positive because of the consistent underwriting profitability of the pool. Donegal Mutual and Atlantic States settle their respective obligations to each other under the pool monthly, thereby resulting in cash flows substantially similar to the cash flows that would result from the underwriting of direct business. We have not experienced any unusual variations in the timing of claim payments associated with the loss reserves of our insurance subsidiaries. We maintain significant liquidity in our investment portfolio in the form of readily marketable fixed maturities, equity securities and short-term investments. We structure our fixed-maturity investment portfolio following a laddering approach, so that projected cash flows from investment income and principal maturities are evenly distributed from a timing perspective, thereby providing an additional measure of liquidity to meet our obligations should an unexpected variation occur in the future. The net cash flows our operating activities provided in the first nine months of 2012 and 2011 were $13.5 million and $18.1 million, respectively, with the change in cash flows due primarily to an increase in our insurance subsidiaries claim settlements during the first nine months of 2012 compared to the prior-year period.
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