Donegal Group Inc. (DGICB)
For informational purposes only. Not financial advice. Analysis by Sedat ANAK, Founder & Editor-in-Chief | AI-powered analysis. Data sourced from SEC filings and institutional-grade financial providers. Editorially reviewed. Not financial advice.
Donegal Group Inc. (DGICB) trades at $23.21 with AI Score 92/100 (Grade A+). Donegal Group Inc. is an insurance holding company providing property and casualty insurance to individuals and businesses. Market cap: $695.26M, Sector: Financial services.
Price live · AI analysis from Mar 16, 2026Analyst Coverage for DGICB: DGICB does not currently have published analyst price targets in our coverage universe. This is common for smaller-cap names with limited Wall Street coverage. In the absence of analyst consensus, our AI model evaluates DGICB against Financial Services peers across nine fundamental dimensions and assigns a relatively strong fundamental profile based on the underlying data.
DGICB: 1/1 perspectives are bullish.
How is this calculated? →Donegal Group Inc. (DGICB) Financial Services Profile
Donegal Group Inc. provides property and casualty insurance across the Mid-Atlantic, Midwestern, New England, Southern, and Southwestern regions. Operating through independent agencies, the company offers personal and commercial lines, including auto, homeowners, and workers' compensation policies. With a focus on regional markets, Donegal maintains a significant presence in the insurance sector.
What Is the Investment Thesis for DGICB?
Donegal Group Inc. presents a compelling investment case due to its established regional presence and diversified product offerings in the property and casualty insurance market. With a P/E ratio of 6.68 and a dividend yield of 4.30%, the company offers potential value and income. A key value driver is the company's focus on independent insurance agencies, fostering strong customer relationships and localized market expertise. Growth catalysts include expansion within existing regional markets and strategic product development to meet evolving customer needs. However, investors may want to evaluate potential risks such as regulatory changes and competitive pressures from larger national insurers. Monitoring the company's ability to maintain its profit margin of 8.1% and manage its beta of 0.00 will be crucial in assessing its long-term performance.
Based on FMP financials and quantitative analysis
DGICB Key Highlights
- Market capitalization of $695.26M indicates a mid-sized player in the property and casualty insurance sector.
- P/E ratio of 6.68 suggests the company may be undervalued compared to its earnings.
- Profit margin of 8.1% demonstrates the company's ability to generate profit from its revenue.
- Gross margin of 30.5% reflects the efficiency of the company's underwriting and claims management processes.
- Dividend yield of 4.30% provides an attractive income stream for investors.
Who Are DGICB's Competitors?
DGICB is benchmarked below against 8 industry peers on price, market cap, and our AI MoonshotScore.
| Company | Price | Change | Market Cap | AI Score |
|---|---|---|---|---|
| ACIC American Coastal Insurance Corporation | $11.39 | -1.30% | $552.00M | 87 |
| AII American Integrity Insurance Group, Inc. | $18.89 | -2.00% | $369.97M | 94 |
| CRD-A Crawford & Company | $11.38 | +0.04% | $560.43M | 43 |
| GAIN Gladstone Investment Corporation | $15.63 | +0.43% | $622.29M | 37 |
| HRTG Heritage Insurance Holdings, Inc. | $27.11 | -0.02% | $822.94M | 96 |
| BZLYF Beazley plc | $17.30 | +0.00% | $10.23B | 70 |
| DIISY Direct Line Insurance Group plc | $18.00 | +15.16% | $5.85B | 66 |
| SKWD Skyward Specialty Insurance Group, Inc. | $59.63 | -2.91% | $2.42B | 64 |
AI Score by Stock Expert AI · Price data: FMP / Yahoo Finance
What Are DGICB's Key Strengths?
- Established regional presence
- Strong agency network
- Diversified product portfolio
- Experienced management team
What Are DGICB's Weaknesses?
- Limited geographic reach compared to national insurers
- Dependence on independent agencies for distribution
- Exposure to regional economic fluctuations
- Smaller market capitalization compared to larger competitors
What Could Drive DGICB Stock Higher?
- Expansion of agency network in existing regional markets to increase market penetration.
- Development and launch of new insurance products tailored to emerging risks and customer needs.
- Implementation of digital technologies to enhance operational efficiency and customer experience.
- Strategic partnerships and acquisitions to expand geographic reach and diversify product offerings.
What Are the Key Risks for DGICB?
- Financial-distress signal — its Altman Z-Score of -25.06 sits in the distress zone (elevated bankruptcy risk).
- Increased competition from larger national insurers with greater resources and brand recognition.
- Regulatory changes and compliance costs impacting profitability and operational efficiency.
- Economic downturns and market volatility affecting premium revenue and investment income.
- Natural disasters and catastrophic events leading to significant claims and financial losses.
- Dependence on independent agencies for distribution, which may limit control over sales and marketing efforts.
What Are the Growth Opportunities for DGICB?
- Expansion within Existing Regional Markets: Donegal Group Inc. can leverage its established presence in the Mid-Atlantic, Midwestern, New England, Southern, and Southwestern regions to further penetrate these markets. By increasing its agency network and tailoring products to local needs, Donegal can capture a larger market share. This expansion strategy can drive revenue growth and enhance brand recognition. The timeline for this growth opportunity is ongoing, with continuous efforts to strengthen regional market positions.
- Strategic Product Development: Donegal Group Inc. can develop new and innovative insurance products to meet the evolving needs of its customer base. This includes offering specialized coverage options, incorporating technological advancements, and addressing emerging risks such as cyber threats and climate change. By diversifying its product portfolio, Donegal can attract new customers and increase customer retention. The timeline for this growth opportunity is ongoing, with continuous efforts to innovate and adapt to market trends.
- Digital Transformation: Donegal Group Inc. can invest in digital technologies to enhance its operations, improve customer experience, and drive efficiency. This includes implementing online portals, mobile apps, and data analytics tools. By embracing digital transformation, Donegal can streamline processes, reduce costs, and enhance its competitive advantage. The timeline for this growth opportunity is ongoing, with continuous efforts to modernize its technology infrastructure.
- Strategic Partnerships and Acquisitions: Donegal Group Inc. can pursue strategic partnerships and acquisitions to expand its geographic reach, diversify its product offerings, and enhance its market position. This includes partnering with other insurance companies, technology providers, and distribution channels. By leveraging strategic partnerships and acquisitions, Donegal can accelerate its growth and create synergies. The timeline for this growth opportunity is ongoing, with continuous evaluation of potential opportunities.
- Enhanced Underwriting and Claims Management: Donegal Group Inc. can improve its underwriting and claims management processes to reduce losses, increase profitability, and enhance customer satisfaction. This includes leveraging data analytics, implementing risk management strategies, and streamlining claims processing. By enhancing its underwriting and claims management capabilities, Donegal can improve its financial performance and strengthen its competitive advantage. The timeline for this growth opportunity is ongoing, with continuous efforts to optimize its operations.
What Opportunities Does DGICB Have?
- Expansion into new geographic markets
- Development of new and innovative insurance products
- Investment in digital technologies
- Strategic partnerships and acquisitions
What Threats Does DGICB Face?
- Increased competition from national insurers
- Regulatory changes and compliance costs
- Economic downturns and market volatility
- Natural disasters and catastrophic events
What Are DGICB's Competitive Advantages?
- Established regional presence in the Mid-Atlantic, Midwestern, New England, Southern, and Southwestern regions.
- Strong relationships with approximately 2,300 independent insurance agencies.
- Diversified product portfolio of personal and commercial lines of insurance.
- Experienced management team with expertise in the property and casualty insurance industry.
What Does DGICB Do?
Donegal Group Inc., incorporated in 1986 and headquartered in Marietta, Pennsylvania, operates as an insurance holding company offering property and casualty insurance products to both individuals and businesses. The company functions through three primary segments: Investment Function, Personal Lines of Insurance, and Commercial Lines of Insurance. Its personal lines include private passenger automobile and homeowners policies, protecting against liability, property damage, and various perils. The commercial lines provide commercial automobile, multi-peril, and workers' compensation policies, catering to the specific needs of businesses. Donegal Group distributes its insurance products through a network of approximately 2,300 independent insurance agencies. This distribution model allows the company to maintain a strong regional presence and personalized service. The company's geographic focus spans the Mid-Atlantic, Midwestern, New England, Southern, and Southwestern regions of the United States. Donegal Group Inc. has established itself as a key player in the regional property and casualty insurance market by focusing on customer service through its independent agency network and offering a diversified product portfolio to meet the evolving needs of its customer base.
What Products and Services Does DGICB Offer?
- Provides personal lines of insurance, including private passenger automobile and homeowners policies.
- Offers commercial lines of insurance, including commercial automobile, multi-peril, and workers' compensation policies.
- Protects against liability for bodily injury and property damage arising from automobile accidents.
- Covers damage to residences and their contents from perils like fire, lightning, windstorm, and theft.
- Provides benefits to employees for injuries sustained during employment through workers' compensation policies.
- Markets insurance products through approximately 2,300 independent insurance agencies.
- Operates in the Mid-Atlantic, Midwestern, New England, Southern, and Southwestern regions.
How Does DGICB Make Money?
- Generates revenue through premiums collected from insurance policies.
- Manages risk by underwriting policies and assessing potential losses.
- Invests a portion of premiums to generate investment income.
- Distributes insurance products through a network of independent insurance agencies.
What Industry Does DGICB Operate In?
Donegal Group Inc. operates within the competitive property and casualty insurance industry. The market is characterized by evolving customer needs, regulatory changes, and technological advancements. Donegal competes with both national and regional players, including ACIC, AII, CRD-A, GAIN, and HRTG. The industry is experiencing growth driven by increasing demand for insurance products and services, particularly in emerging markets. Companies are focusing on digital transformation and data analytics to enhance underwriting, claims management, and customer experience. Donegal's regional focus and independent agency network provide a competitive advantage in building customer relationships and localized market expertise.
Who Are DGICB's Key Customers?
- Individuals seeking personal lines of insurance, such as auto and homeowners coverage.
- Businesses requiring commercial lines of insurance, including commercial auto and multi-peril coverage.
- Employees who are covered by workers' compensation policies.
- Independent insurance agencies that distribute Donegal Group's products.
How Donegal Group Inc. Is Valued
Donegal Group Inc. carries a market capitalization of $695.26M, placing it in the small-cap category. Relative to its peer group, DGICB's quantitative score of 92/100 is above the peer average of 71/100.
Company Profile
Donegal Group Inc. operates in the Insurance - Property & Casualty industry within the Financial Services sector. It is headquartered in Marietta, US. The company is led by CEO Kevin Gerard Burke. DGICB has traded publicly since 1986.
ROE 10%Key Financial Metrics
Return on equity for Donegal Group Inc. stands at 10.4%, a gauge of how efficiently it converts shareholder capital into profit. Return on assets is 2.7%, showing how much profit it generates from its asset base. DGICB trades at a trailing price-to-earnings ratio of 10.47, below the Financial Services sector average of ~18x. Its free cash flow yield is 9.3%, a gauge of the cash the business throws off relative to its market value. A current ratio of 0.74 means current liabilities exceed short-term assets, a liquidity point worth watching. Its earnings yield is 9.6%, the inverse of the P/E and a quick read on earnings relative to price.
F-Score 6/9Financial Health
Donegal Group Inc.'s Piotroski F-Score is 6/9, a 9-point checklist of profitability, leverage and efficiency — a middling fundamental profile. Its Altman Z-Score of -25.06 places it in the distress zone, a signal of elevated financial risk.
FY2026 estForward Outlook
Wall Street analysts project Donegal Group Inc. revenue of about $897.5M for fiscal 2026, with EPS near $1.73.
DGICB Financials
Fundamental Snapshot
Based on FMP financials and quantitative analysis · FY 2025
Bull Case vs Bear Case
Bull Case
- Established regional presence
- Strong agency network
- Diversified product portfolio
- Experienced management team
Bear Case
- Limited geographic reach compared to national insurers
- Dependence on independent agencies for distribution
- Exposure to regional economic fluctuations
- Smaller market capitalization compared to larger competitors
AI-generated arguments based on insider flow, news sentiment and technicals — not financial advice · July 2026
DGICB Latest News
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Earnings Scheduled For February 20, 2025
benzinga · Feb 20, 2025
DGICB Analyst Consensus
Consensus Rating
Aggregated Buy/Hold/Sell recommendations from Benzinga, Yahoo Finance, and Finnhub for DGICB.
Price Targets
Wall Street price target analysis for DGICB.
DGICB MoonshotScore
What does this score mean?
The MoonshotScore rates DGICB's growth potential on a scale of 0-100 across multiple factors including innovation, market disruption, financial health, and momentum.
Leadership: Kevin Gerard Burke
Unknown
Information on Kevin Gerard Burke's background is not available in the provided data. Without specific details, a comprehensive background summary cannot be accurately generated. Further research would be needed to provide details on his career history, education, and previous roles.
Track Record: Information on Kevin Gerard Burke's track record is not available in the provided data. Without specific details, a comprehensive track record summary cannot be accurately generated. Further research would be needed to provide details on key achievements, strategic decisions, and company milestones under his leadership.
Donegal Group Inc. Financial Services Stock: Key Questions Answered
What does Donegal Group Inc. do?
Donegal Group Inc. is an insurance holding company that provides property and casualty insurance to individuals and businesses. The company operates through three segments: Investment Function, Personal Lines of Insurance, and Commercial Lines of Insurance. It offers a range of insurance products, including private passenger automobile, homeowners, commercial automobile, multi-peril, and workers' compensation policies. Donegal distributes its products through a network of approximately 2,300 independent insurance agencies across the Mid-Atlantic, Midwestern, New England, Southern, and Southwestern regions.
What are the main risks for DGICB?
Donegal Group Inc. faces several risks, including increased competition from larger national insurers, regulatory changes and compliance costs, economic downturns and market volatility, and natural disasters and catastrophic events. The company's dependence on independent agencies for distribution also poses a risk, as it may limit control over sales and marketing efforts. Effective risk management and mitigation strategies are crucial for Donegal to maintain its financial stability and competitive position.
How does Donegal Group Inc. manage its investment portfolio?
Donegal Group Inc. manages its investment portfolio through its Investment Function segment. While specific details on the investment strategy are not provided, insurance companies typically invest premiums to generate investment income. This income helps offset underwriting losses and contributes to overall profitability. The investment portfolio is likely diversified across various asset classes, including fixed income securities, equities, and real estate. Risk management is a critical aspect of investment portfolio management to ensure the company meets its financial obligations.
What is Donegal Group Inc.'s approach to claims management?
Donegal Group Inc.'s approach to claims management is crucial for maintaining customer satisfaction and controlling costs. While specific details are not provided, insurance companies typically have a dedicated claims department responsible for processing and settling claims. Efficient claims management involves prompt and fair handling of claims, accurate assessment of damages, and effective fraud detection. Investing in technology and data analytics can help streamline claims processing and improve accuracy. Donegal's claims management practices directly impact its financial performance and reputation.
What are the key factors to evaluate for DGICB?
Donegal Group Inc. (DGICB) holds an AI score of 92/100 (high). Not financial advice.
How frequently does DGICB data refresh on this page?
DGICB prices update in real time during U.S. market hours. Fundamentals refresh after quarterly filings; analyst ratings and AI insights update daily; news is aggregated continuously.
What has driven DGICB's recent stock price performance?
Donegal Group Inc. (DGICB) moves on earnings results, analyst revisions, sector rotation, and market sentiment. Notable catalyst: Established regional presence. See the News tab for the latest drivers. Past performance does not predict future results.
Should investors consider DGICB overvalued or undervalued right now?
Valuing Donegal Group Inc. (DGICB) requires multiple metrics. Compare P/E, P/S, and EV/EBITDA against sector peers for a full view.
Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.
Official Resources
Data provided for informational purposes only.
- AI analysis pending for DGICB, limiting the depth of insights.
- Lack of specific details on CEO's background and track record.
- Limited information on investment portfolio management and claims management practices.