DGICA

Financial Services

Donegal Group Inc. · Insurance - Property & Casualty · $640M

UQS Score — Balanced Preset
47.7
Below Average

Donegal Group Inc. scores 47.7/100 using the Balanced preset.

UQS vs Financial Services Sector
DGICA
47.7
Sector avg
39.7
Quality
Neutral
Moat
Weak
Growth
Weak
Risk
Good
Valuation
Attractive

What is Donegal Group Inc.?

Donegal Group Inc. is a regional property and casualty insurance holding company serving both individuals and businesses across multiple U.S. regions. It distributes products through a broad network of independent agencies.

Donegal Group earns revenue by underwriting personal and commercial lines of property and casualty insurance. Its personal lines cover private passenger auto and homeowners policies, while its commercial lines include commercial auto, multi-peril, and workers' compensation products. The company distributes through roughly 2,300 independent agencies and also manages an investment portfolio as a third operating segment.

Incorporated in 1986 and headquartered in Marietta, Pennsylvania, Donegal Group has built a regional presence across Mid-Atlantic, Midwestern, New England, Southern, and Southwestern markets.

  • Personal auto and homeowners insurance
  • Commercial automobile and multi-peril policies
  • Workers' compensation coverage
  • Investment income from insurance reserves

Is DGICA a Good Stock to Buy?

UQS Score rates DGICA as Below Average overall, reflecting meaningful headwinds across several key quality dimensions.

The Risk pillar stands out as the clearest positive, suggesting the company maintains a relatively measured exposure profile compared to many small-cap insurance peers. Valuation is rated Attractive, meaning the stock does not appear richly priced relative to its fundamentals.

Both the Moat and Growth pillars are rated Weak, pointing to limited competitive differentiation and constrained earnings expansion — meaningful concerns for long-term investors.

See the full pillar breakdown and underlying financial metrics by signing up for a UQS Pro account. Sign up free →

Past performance does not guarantee future results. UQS Score is based on fundamental data and is not a buy/sell recommendation.

Does DGICA pay dividends?

Yes — Donegal Group Inc. pays a dividend.

Donegal Group pays a regular dividend, which is common among established regional insurers that generate relatively predictable underwriting and investment income. The dividend reflects management's commitment to returning capital to shareholders, though investors should weigh payout sustainability against the company's Weak Growth profile before relying on it as a primary return driver.

When does DGICA report earnings?

Donegal Group reports earnings on a quarterly cadence, consistent with standard practice for U.S.-listed insurance companies.

Results in recent periods have reflected the broader pressures facing regional property and casualty insurers, including elevated loss costs and competitive pricing dynamics. The company's investment segment provides a partial offset to underwriting variability.

For the most current quarterly results and guidance, visit Donegal Group's investor relations page directly.

DGICA Price History

+41.6% over 5Y

Monthly close, adjusted for stock splits and dividend reinvestment.

Return Calculator

What if I invested in Donegal Group Inc.?

$
Today it would be worth
$13,354
That's a +33.5% total return, or +6.0% annualized.

Based on Donegal Group Inc.'s historical closing prices, adjusted for stock splits and dividend reinvestment. Past performance does not guarantee future results. This is for informational purposes only and is not financial advice.

DGICA Long-term Outlook

The UQS Growth pillar is rated Weak, suggesting limited near-term expansion in premiums or earnings relative to sector peers. The Good Risk rating offers some reassurance that the balance sheet is not overly stretched, but the Weak Moat rating implies Donegal may struggle to defend margins if competitive or catastrophe pressures intensify. The Attractive Valuation label indicates the market has already discounted many of these concerns.

Growth drivers

  • Gradual premium rate increases across personal and commercial lines
  • Stable investment income from a conservatively managed portfolio
  • Potential geographic expansion through its independent agency network

Key risks

  • Elevated catastrophe losses in core Mid-Atlantic and regional markets
  • Limited pricing power given a Weak Moat rating
  • Slow earnings growth constraining dividend growth over time

DGICA vs Peers

Donegal Group operates in a fragmented regional P&C insurance market alongside a range of specialty and technology-driven carriers.

ACICDGICA scores lower
American Coastal Insurance Corporation

American Coastal focuses heavily on coastal property risk, giving it a more concentrated geographic and peril exposure than Donegal's diversified regional book.

ROOTSimilar UQS
Root, Inc.

Root pursues a technology-first, telematics-driven auto insurance model that contrasts sharply with Donegal's traditional independent-agency distribution approach.

BOWDGICA scores lower
Bowhead Specialty Holdings Inc.

Bowhead targets excess and surplus lines specialty risks, occupying a different market niche than Donegal's standard personal and commercial lines focus.

Frequently Asked Questions

What does Donegal Group do?

Donegal Group is a property and casualty insurance holding company. It writes personal lines — including auto and homeowners policies — and commercial lines such as workers' compensation and multi-peril coverage. Products are sold through a network of approximately 2,300 independent agencies across several U.S. regions.

Does DGICA pay dividends?

Yes, Donegal Group pays a regular dividend. This is consistent with its profile as an established regional insurer generating relatively steady underwriting and investment income. Investors should review the company's investor relations page for the current dividend rate and payment schedule.

When does DGICA report earnings?

Donegal Group follows a standard quarterly earnings cadence for U.S.-listed companies. Specific dates are not covered by our data source — check the company's investor relations page or financial calendar for upcoming reporting dates.

Is DGICA a good stock to buy?

UQS Score rates DGICA as Below Average, driven by Weak Moat and Growth pillars. The Attractive Valuation and Good Risk ratings offer partial offsets. Whether it suits your portfolio depends on your risk tolerance and investment goals — the full UQS pillar breakdown is available to Pro members.

Is DGICA overvalued?

The UQS Valuation pillar for DGICA is rated Attractive, suggesting the stock is not considered expensive relative to its fundamentals. This may reflect the market pricing in the company's limited growth prospects and competitive challenges rather than a hidden bargain.

How does DGICA compare to its competitors?

Compared to peers like Root and Bowhead, Donegal operates a more traditional regional model relying on independent agents rather than technology platforms or specialty niches. This approach offers stability but may limit growth relative to more differentiated competitors.

What is DGICA's market cap bracket?

Donegal Group is classified as a small-cap company. This places it among smaller regional insurers rather than the large national carriers that dominate the property and casualty sector.

Who founded Donegal Group?

Donegal Group Inc. was incorporated in 1986 and is affiliated with Donegal Mutual Insurance Company, which has roots in the Pennsylvania farming community dating back to the late nineteenth century. Detailed founding history is available through the company's official website.

Is DGICA a long-term quality investment?

As a long-term quality indicator, the UQS Score rates DGICA as Below Average. The Weak Growth and Moat pillars suggest limited durable competitive advantage, which is an important consideration for investors with a long time horizon. The Good Risk rating does provide some stability context.

What is the main competitive advantage of Donegal Group?

Donegal's primary advantage lies in its established regional relationships — particularly its deep network of independent agencies across the Mid-Atlantic and surrounding regions. However, the UQS Moat pillar rates this advantage as Weak, suggesting it may not be sufficient to consistently outperform peers.

Unlock Full DGICA Analysis

Sign in to unlock the detailed analysis behind the UQS Score.

  • View the exact UQS Score and all five pillar scores for DGICA
  • Access underlying financial metrics driving the Quality and Growth ratings
  • Compare DGICA side-by-side with regional P&C insurance peers
  • Screen for Attractive-Valuation small-cap insurers across the sector
  • Get the complete analyst-style breakdown available to Pro members
Analyze DGICA in Detail →

Pro Analysis

DGICA — Score History

4045505560Apr 2Apr 12Apr 22May 2May 12May 22May 24v5
Score changes· 14 most recent
DateUQSQualityMoatGrowthRiskValueChange
May 21, 202647.850.025.024.663.697.20.0
May 19, 202647.850.025.024.663.697.10.0
May 18, 202647.850.025.024.663.697.20.0
May 16, 202647.850.025.024.963.697.20.0
May 14, 202647.850.025.024.963.697.0-0.1
May 11, 202647.950.025.025.363.696.9+0.2
May 10, 202647.750.025.025.363.695.4+1.5
May 9, 202646.250.025.016.563.697.1-1.7
May 7, 202647.950.025.025.363.696.8-1.7
May 4, 202649.655.525.025.363.699.0-0.1

DGICA — Pillar Breakdown

Quality

50.0/100 (25%)

Donegal Group Inc. has average quality metrics, with room for improvement in margins or capital efficiency.

Return on EquityModerate

Profitability relative to shareholders' equity.

Operating ProfitabilityWeak

Ability to convert revenue into operating profit.

Net ProfitabilityWeak

Bottom-line profit as a share of revenue.

Cash GenerationStrong

Free cash flow relative to market value.

Growth

24.6/100 (20%)

Donegal Group Inc. faces growth headwinds with declining or stagnant revenue trends.

Recent Revenue TrendWeak

Revenue trajectory over the last twelve months.

3Y Revenue CAGRWeak

Compound annual revenue growth rate over 3 years.

EPS GrowthStrong

Year-over-year earnings per share growth.

Forward Revenue OutlookWeak

Analyst consensus for future revenue growth.

Forward EPS GrowthWeak

Analyst consensus for future earnings growth.

Risk

63.6/100 (15%)

Donegal Group Inc. maintains a reasonable risk profile with manageable debt levels.

Debt/EquityStrong

Total debt relative to shareholder equity.

Current RatioWeak

Short-term liquidity — ability to pay near-term obligations.

Interest CoverageStrong

Earnings capacity relative to interest payments.

Valuation

96.7/100 (15%)

Donegal Group Inc. appears attractively valued relative to its earnings, cash flows, and sector peers.

Earnings YieldStrong

Inverse of forward P/E — higher yield means cheaper stock.

Price to Free Cash FlowStrong

How many years of FCF the market cap represents.

EV/EBITDA vs SectorStrong

Enterprise value multiple relative to sector median.

Moat

25/100 (25%)

Donegal Group Inc. operates in a highly competitive environment with limited sustainable advantages. The Moat pillar evaluates competitive advantages across five dimensions: Switching Costs, Network Effects, Cost Advantage, Intangible Assets, and Scale & Ecosystem. Sign in to customize moat ratings for DGICA.

Score Composition

Quality
50.0×25%12.5
Growth
24.6×20%4.9
Risk
63.6×15%9.5
Valuation
96.7×15%14.5
Moat
25.0×25%6.3
Total
47.7Below Average

Financial Data

More Stock Analysis

How is the DGICA UQS Score Calculated?

The UQS (Unified Quality Score) for Donegal Group Inc. is calculated using a proprietary 6-pillar framework with 29 financial metrics. Each pillar evaluates a different dimension on a 0–100 scale, then combines into a single weighted score. Scoring thresholds are calibrated per sector. Momentum is an optional Pro toggle — without it, you get the 5-pillar / 25-metric core shown below.

Quality (25%) measures profitability and capital efficiency — ROIC, ROE, margins, GP/Assets, and FCF Yield.

Moat (25%) assesses Donegal Group Inc.'s competitive advantages across switching costs, network effects, cost advantages, intangible assets, and ecosystem scale.

Growth (20%) tracks revenue trajectory and earnings momentum, combining historical results with analyst forward estimates.

Risk (15%) is inversely scored — lower leverage and strong balance sheet health result in higher scores.

Valuation (15%) measures whether Donegal Group Inc. is fairly priced using earnings yield, price-to-FCF, PEG ratio, and EV/EBITDA relative to sector peers.

Six investor-inspired presets are available, each with different pillar weights: Balanced, Buffett, Munger, Lynch, Cathie Wood, and Graham. The public score shown here uses the Balanced preset. Learn more in our FAQ.