Good morning, and thank you for joining us today. This morning, Donegal Group Inc. issued its fourth quarter and full year 2025 earnings release, outlining its results. The release and a supplemental investor presentation are available in the Investor Relations section of Donegal Group Inc.’s website at www.donegalgroup.com. Please be advised that today's conference was prerecorded and all participants are in listen-only mode. Speaking today will be President and Chief Executive Officer Kevin Burke, Chief Financial Officer Jeffrey D. Miller, Chief Underwriting Officer Jeffrey T. Hay, Chief Operating Officer W. Dan DeLamater, and Chief Investment Officer V. Anthony Viozzi. Please be aware that statements made during this call that are not historical facts are forward-looking statements and necessarily involve risks and uncertainties that could cause actual results to vary materially. These factors can be found in Donegal Group Inc.’s filings with the Securities and Exchange Commission including its Annual Report on Form 10-Ks and Quarterly Reports on Form 10-Q. The company disclaims any obligation to update or publicly announce the results of any revisions that they may make to any forward-looking statements to reflect the occurrence of anticipated or unanticipated events or circumstances after the date of such statements. With that, it is my pleasure to turn it over to Mr. Kevin Burke. Kevin?

Thank you, and welcome, everyone, to our fourth quarter earnings webcast. We are pleased to provide an update today on our quarterly and full year operating results, along with key accomplishments in 2025, and areas of focus for 2026. We ended 2025 with a solid fourth quarter. The combined ratio of 96.3% reflected excellent underwriting profitability despite the impact of lower net premiums earned and a few large claims that prevented us from matching the record quarterly net income we achieved in 2024. We enjoyed a continuation of relatively favorable weather in our operating regions for the fourth quarter, resulting in a weather loss ratio that was lower than the fourth quarter average for the past five years. Similar to the first nine months of 2025, our core loss ratio for the fourth quarter remained below our target level, driven by excellent underlying results within our personal lines segment. For the full year of 2025, net income of $79,300,000 represents the highest amount we have achieved. While we celebrate these results, we also recognize the need for quality premium growth in order to achieve economies of scale, and sustain excellent financial performance over the long term. Jeffrey T. Hay and W. Dan DeLamater will provide further details about our plans to increase levels of premium growth. Our 2026 business plan includes strategies for engagement with our independent agents, and several initiatives that we expect will generate higher levels of new business submissions, particularly in commercial lines where we are actively pursuing quality mid-market and small business accounts that meet our underwriting criteria. As we shared last quarter, we completed all of the development for the multiyear systems transformation project that we started back in 2018 to replace our legacy systems. We are continuing to follow a phased schedule for the…

Thanks, Kevin. I will begin my comments with a discussion of the fourth quarter results compared to 2024, and then provide highlights of the results for the full year compared to 2024. For the 2025 quarter, net premiums earned of $226,900,000 decreased 4.1%. Net premiums written decreased by 3.4% following similar trend lines we described throughout 2025, as lower new business volume was offset partially by premium rate increases and solid retention levels. A 12.7% decrease in personal lines net premiums written was offset partially by 3.2% growth in commercial lines. Rate increases achieved during 2025 averaged 5.9% in total and 6.6% excluding workers’ compensation. The combined ratio was 96.3% for the 2025 quarter compared to 92.9% for the prior-year quarter. The increase reflected a 1.3 percentage point increase in the loss ratio and a 2.1 percentage point increase in the expense ratio. We monitor the loss ratio impact of several components. Starting with the core loss ratio, which excludes the impact of weather-related losses, large fire losses, and net development of reserves for losses incurred in prior accident years, we experienced a two percentage point improvement in the core loss ratio. There was a 2.7 percentage point decrease in the commercial lines core loss ratio and a 1.6 percentage point decrease in the personal lines core loss ratio. Weather-related losses totaled $8,200,000 or 3.6 percentage points of the loss ratio for the 2025 quarter, increasing modestly from $7,700,000 or 3.3 percentage points for the prior-year quarter. The quarterly weather claim impact was lower than the previous five-year average for the fourth quarter of 5.2 percentage points. Our insurance subsidiaries did not incur losses from any catastrophic weather events in the 2025 or 2024 quarters. In terms of weather impact by segment, commercial property losses from severe weather totaled $2,400,000…

results this quarter and for the full year of 2025. And I continue to be confident that this improvement is not the product of random volatility in our results, but a direct outcome of the strategies and diligent action plans we have put in place over several years to transform our underwriting discipline. Within our commercial lines of business, net premiums written increased modestly by 3.2 percentage points for the 2025 quarter, and by 2.9 percentage points for the full year as the market has selectively softened for new business we continue to stand firm, maintaining underwriting and pricing discipline and executing on targeted geographic and class strategies. With that, I am pleased to report that in the fourth quarter, we experienced continued success in new business writings and strong retention on desired business. The commercial lines new business aligns with our targeted geographic and class strategies that I have mentioned in previous calls, with the majority of new business written in our highly targeted classes with higher expected profitability. Our overall commercial rate and exposure increase excluding workers’ compensation remained steady at 9.7% for the fourth quarter and at 10.6% for the full year. We are generally rate adequate across our lines of business. As we strive to retain quality accounts, we also continue to emphasize driving rate in areas where the intersections of class, line of business, and geography continue to present challenges. Now shifting to commercial lines loss trends in the fourth quarter, we continue to experience upward pressure on liability severity for both commercial auto liability and general liability coverages within our commercial multiperil line of business. Overall, property severity and frequency trend lines across all coverages remain relatively favorable. Fourth quarter 2025 impact from large fires increased nearly six percentage points on the commercial multiperil…

Thank you, Jeff.

I will start my discussion of our operational performance for 2025 by providing an update on the expense management initiatives we have discussed in previous calls. I will then touch briefly on the high-level results of our business planning process for 2026 and our alignment on several tangible focus areas for the year ahead. We operated at an expense ratio of 34.9% for the 2025 quarter. Compared to our expense ratio of 32.8% for the 2024 quarter, the increase was a break from the downward trajectory we achieved over the past five quarters. This increase in expense ratio was not related to spending beyond our budget. In fact, our team achieved targeted spending reductions for 2025. One of the primary factors that elevated our expense ratio for the fourth quarter was a $3,100,000 increase in performance-based incentives for our agents, mostly related to higher amounts incurred for agency profit sharing. While this might seem counterintuitive considering that our loss ratio was less favorable for the 2025 quarter compared to the prior-year period, agency profit-sharing compensation is determined by individual agency experience, which resulted in a disproportionate comparative outcome for the quarter. Another primary driver of the increase in our fourth quarter expense ratio was lower premium volume that resulted from writing less new business and needing lower overall rate increases to rate adequacy than originally planned for the year. Despite that top-line miss versus plan, we remain pleased with our organizational focus on budget discipline and our ongoing commitment to realizing efficiencies from our recent systems and process modernization efforts. For the full year of 2025, we performed at a 33.8% expense ratio, compared to 33.7% for the full year of 2024, with the reduction in net earned premiums representing the overriding factor behind the slight uptick in that annual…

Thanks, Dan. Throughout 2025, our investing approach focused on

strategically increasing our bond portfolio yield and optimizing our portfolio mix. We were able to take advantage of higher market rates and move into more favorable asset classes that we expect will continue to perform well in the future. We had a strong 2025 as net investment income was up 17.5% resulting in $14,200,000 versus $12,100,000 for the 2024 quarter. The strong quarterly performance coupled with actions taken in the prior quarters of 2025 allowed us to achieve a 17.2% increase to full year 2025 net investment income of $52,600,000 compared to $44,900,000 for 2024. The average tax-equivalent yield for the 2025 quarter increased to 3.95%, compared to 3.58% for the 2024 quarter. In addition to actively managing the bond portfolio during the first nine months of 2025, we accelerated yield enhancement through strategic bond swaps in the fourth quarter. Proceeds from bonds that matured, were called, or were sold as part of swap strategies during the quarter totaled $155,000,000, yielding an average of 3.74%. Those funds were reinvested at an average yield of 5.17%, with the 140 basis point improvement projected to boost annual investment income by $2,200,000 going forward. We intentionally extended duration to 5.5 years to lock in what we viewed to be attractive yields for a longer term horizon. We are now investing new money at yields north of 5% and we anticipate the ongoing favorable market environment will provide modest additional bond swap opportunities in the near term. The net investment loss of $1,700,000 for the 2025 quarter reflected the losses we intentionally realized on bond sales, offset partially by a gain in the market value of our equity portfolio during the quarter. For the full year of 2025, we realized a net investment gain of $600,000 compared to $5,000,000 for the full year of 2024. We attribute the year-over-year change to the losses we realized on strategic bond sales in 2025 in order to boost investment income in future periods by amounts that will far exceed the one-time realized losses. At 12/31/2025, our book value increased to $17.33, which was a 12.8% improvement over $15.36 as of 12/31/2024. The increase was driven primarily by net income and an increase in the market value of our available-for-sale bond portfolio, partially offset by cash dividends declared during the year. In closing, we are projecting about $100,000,000 in portfolio cash flow over the next twelve months with a current average yield of 4.4%. Our current reinvestment rate is around 5.25%, providing opportunity for further enhancement in investment income. We continue to optimize our portfolio mix as market opportunities arise. To that end, we are currently emphasizing tax-exempt bonds, mortgage-backed securities, and non-agency structured notes where we find rates most attractive. With that, I will now turn it back to Kevin for closing remarks.

Thank you, Tony. As we reflect on our accomplishments in 2025 and consider the challenges ahead in 2026, I want to express my appreciation for the devoted team of Donegal professionals who are fully engaged in executing our strategies and fulfilling our mission. I also want to recognize the dedication of our independent agency partners, who reciprocate our loyal commitment to them by submitting quality new business to us and entrusting us to serve the insurance needs of their customers. We look forward to continuing to enhance those relationships through increased engagement in the year ahead. And finally, I am grateful for the ongoing support of our stockholders, and we look forward to providing further updates to you in future calls. Thank you.

Thank you, Kevin. While we requested and received questions in advance of today's call, we have worked answers to these questions into our prepared remarks. We will now open for questions. If there are any additional questions, please feel free to reach out to us. This now concludes the Donegal Group Inc. fourth quarter 2025 earnings webcast. You may now disconnect.