Donegal Group, an insurance holding company, has reported that its revenues for the first quarter of 2008 were $89.79 million, an increase of 7.3% over the revenues recorded during the comparable period in 2007.
The net income for the quarter increased 22.5% to $6.72 million, or $0.27 per share of Class A common stock on a diluted basis, over the net income of $5.49 million, or $0.22 per share of Class A common stock on a diluted basis, reported for the same quarter of 2007.
The company said that it has achieved these results primarily through increased net premiums earned as well as an increase in net realized investment gains, which were partially offset by higher losses and loss expenses from claim activity attributable to active winter weather patterns in the company’s operating areas.
The net investment income improved 3.4% to $5.69 million for the period from $5.50 million posted in the corresponding period of 2007.
Donald Nikolaus, president and CEO of Donegal Group, said: Our first quarter results were impacted by a very active winter storm season, but we are pleased to report a solid increase in premium writings during the quarter, enhanced by the pooling change and reinsurance cost savings.