Donegal Group Inc (DGICA) 2026 Q1 法說會逐字稿

Good morning, and thank you for joining us today. This morning, Donegal Group issued its first-quarter 2026 earnings release outlining its results. The release and a supplemental investor presentation are available in the Investor Relations section of Donegal's website at www.donegalgroup.com. (Operator Instructions)

早安，感謝各位今天加入我們。今天上午，Donegal Group 發布了其 2026 年第一季財報新聞稿，概述其業績表現。該新聞稿及補充投資人簡報可於 Donegal 官網 www.donegalgroup.com 的投資人關係（Investor Relations）專區取得。（接線員指示）

Speaking today will be President and Chief Executive Officer, Kevin Burke; Chief Financial Officer, Jeff Miller; Chief Underwriting Officer, Jeff Hay; Chief Operating Officer, Dan DeLamater; and Chief Investment Officer Tony Viozzi.

今天出席發言的有總裁兼執行長 Kevin Burke；財務長 Jeff Miller；核保長 Jeff Hay；營運長 Dan DeLamater；以及投資長 Tony 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's filings with the Securities and Exchange Commission, including its annual report on Form 10-K 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.

請注意，本次電話會議中所提及、非屬歷史事實之陳述均為前瞻性陳述，且必然涉及風險與不確定性，可能導致實際結果出現重大差異。相關因素可見於 Donegal Group 向美國證券交易委員會（SEC）提交之文件，包括其 Form 10-K 年報及 Form 10-Q 季報。公司不承擔任何義務更新或公開宣布其可能對任何前瞻性陳述所作之修訂結果，以反映該等陳述日期之後發生的預期或非預期事件或情況。

With that, it is my pleasure to turn it over to Mr. Kevin Burke. Kevin?

接下來，我很榮幸把時間交給 Kevin Burke 先生。Kevin？

Thank you, and welcome, everyone. We are pleased to provide an update today on our quarterly results and areas of focus for 2026.

謝謝，歡迎各位。我們很高興今天就本季業績以及 2026 年的重點工作向各位提供最新進展。

Our underwriting results for the first quarter of 2026 lagged the unusually favorable results for the first quarter of 2025, largely due to higher-than-average weather-related losses and the impact of several large fire and casualty losses during the quarter. In spite of the unusual loss activity, we are pleased that our core loss ratios reflected solid underlying performance within both the Commercial and Personal Line segments.

我們 2026 年第一季的核保結果落後於 2025 年第一季異常亮眼的表現，主要原因是天候相關損失高於平均水準，以及本季發生數起大型火災與意外（casualty）損失的影響。儘管損失活動異常，我們仍很高興看到，商業險與個人險兩大部門的核心損失率反映出穩健的基本面表現。

We are navigating through softening insurance market conditions, maintaining underwriting and pricing discipline while also pursuing new business at adequate pricing levels. We have developed specific action plans and assigned clear ownership and accountabilities as we strive to generate new business and retain quality accounts. We have tools in place to monitor progress at a very granular level while executing a renewed engagement strategy with our independent agents to strengthen alignment and solicit increased opportunities for us to gain market share within our clearly defined geographic and class of business appetite.

我們正因應保險市場環境轉趨疲軟，在維持核保與定價紀律的同時，也以足夠的定價水準積極拓展新業務。我們已制定具體行動計畫，並明確指派負責人與責任歸屬，以期在爭取新業務並留住優質客戶方面取得成果。我們已建置工具，以非常細緻的層級監控執行進度，同時對獨立代理人推動重新強化的互動策略，以加強一致性並爭取更多機會，讓我們在明確界定的地理區域與業務類別承保偏好範圍內提升市占率。

We mentioned in our last call that the successful modernization of our policy systems has provided a solid foundation for the next phase in our technology transformation, which is the migration of our on-premises Guidewire claims, billing, and policy administration systems to the Guidewire Cloud platform. Moving these core systems to the cloud platform will increase our agility and speed to market and provide enhanced tools and capabilities to empower our business users and enable future growth. We began the first phase of the migration program in February, in which our claims and billing applications will move to the cloud platform in early 2027.

我們在上次電話會議中提到，保單系統的成功現代化已為我們下一階段的科技轉型奠定穩固基礎，也就是將我們內部部署（on-premises）的 Guidewire 理賠、帳務（billing）與保單管理系統遷移至 Guidewire Cloud 雲端平台。將這些核心系統移轉至雲端平台將提升我們的敏捷性與上市速度，並提供更強化的工具與能力，以賦能業務使用者並支持未來成長。我們已於 2 月啟動遷移計畫的第一階段，理賠與帳務應用將於 2027 年初移轉至雲端平台。

We are excited about the opportunity and ability to co-develop and launch new GenAI solutions to production as part of our claims systems cloud migration, leveraging the significant investments Guidewire and other strategic partners are making to deliver GenAI tools that will be integrated within our core business systems to drive enhanced insights and operational efficiencies. We expect to further leverage the successful outcomes we achieved in this first phase to expedite the implementation of GenAI solutions that will further enhance our underwriting, pricing, and risk selection capabilities when we move into the next phase of the program in 2027.

我們對於在理賠系統雲端遷移過程中，共同開發並將新的生成式 AI（GenAI）解決方案上線至正式環境的機會與能力感到振奮；我們將運用 Guidewire 與其他策略夥伴的重大投資，導入可整合至核心業務系統的 GenAI 工具，以帶來更深入的洞察與營運效率提升。我們預期將進一步運用第一階段所取得的成功成果，加速導入 GenAI 解決方案；當我們於 2027 年進入計畫下一階段時，這些方案將進一步強化我們的核保、定價與風險篩選能力。

At this point, I'll turn the call over to Jeff Miller for a review of our financial results for the quarter.

接下來，我把電話會議交給 Jeff Miller，請他回顧本季的財務結果。

Thanks, Kevin.

謝謝你，Kevin。

Starting with premium revenues for the first quarter of 2026, net premiums earned decreased 4.9% to $221.4 million. Net premiums written decreased by 3.2%, with lower premium rate increases and retention levels offset partially by an increase in new business volume. A 13.1% decrease in Personal Lines net premiums written was offset partially by 2.2% growth in Commercial Lines.

先從 2026 年第一季的保費收入談起，已賺保費（net premiums earned）下降 4.9% 至 2.214 億美元。淨簽單保費（net premiums written）下降 3.2%，較低的保費調升幅度與續保率，部分被新業務量增加所抵銷。個人險淨簽單保費下降 13.1%，部分被商業險 2.2% 的成長所抵銷。

Rate increases achieved during the first quarter of 2026 averaged 5.6% in total and 6.4% when excluding workers' compensation. The combined ratio was 99.8% for the first quarter of 2026, compared to 91.6% for the prior-year quarter, reflecting higher impacts from weather and large fires and lesser benefit of net favorable development of reserves for losses incurred in prior accident years.

2026 年第一季達成的費率調升平均合計為 5.6%；若排除勞工補償險（workers' compensation），則為 6.4%。2026 年第一季綜合比率（combined ratio）為 99.8%，相較去年同期為 91.6%，反映天候與大型火災影響較高，以及前期事故年度損失準備金淨有利發展（net favorable development）帶來的利益較少。

Excluding the effect of those specific loss ratio components, the core loss ratio improved to 53.4% compared to 54.2% for the prior-year quarter, reflecting a continuation of solid underlying underwriting performance. Compared to the prior-year quarter, we achieved a 0.7-percentage-point decrease in the Commercial Lines' core loss ratio and a 2.2-percentage-point decrease in the Personal Lines' core loss ratio. A continuation of excellent Personal Lines segment performance with an 85.7% statutory combined ratio was largely offset by an underwriting loss in our Commercial Lines segment that resulted in a statutory combined ratio of 104.6% for that segment.

若排除上述特定損失率組成項目的影響，核心損失率改善至 53.4%，相較去年同期為 54.2%，顯示穩健的基本核保表現持續延伸。相較去年同期，商業險核心損失率下降 0.7 個百分點，個人險核心損失率下降 2.2 個百分點。個人險部門表現持續優異，法定綜合比率（statutory combined ratio）為 85.7%；但商業險部門出現核保損失，使該部門法定綜合比率為 104.6%，在很大程度上抵銷了個人險的優異表現。

Drilling down into the loss ratio components, weather-related losses of $17.2 million were 7.8 percentage points of the loss ratio for the first quarter of 2026 or double the $8.6 million or 3.7 percentage points for the first quarter of 2025. Extremely low temperatures for extended periods during the quarter throughout the majority of our operating regions resulted in water damage losses from frozen plumbing lines, and severe windstorm activity also contributed to the elevated claim volume.

進一步拆解損失率組成，天候相關損失為 1,720 萬美元，占 2026 年第一季損失率 7.8 個百分點；相較之下，2025 年第一季為 860 萬美元，占 3.7 個百分點，約為其兩倍。本季在我們多數營運區域出現長時間極低溫，導致管線結冰造成的水損理賠；此外，嚴重風暴活動亦推升理賠件數。

Commercial property losses from severe weather totaled $7.6 million and contributed 13.9 percentage points to the quarterly commercial multi-peril loss ratio, compared to 5.4 percentage points of the loss ratio for that line of business in the first quarter of 2025. The weather impact to the homeowners line was $8 million, or 25.6 percentage points of the homeowners loss ratio, which was also substantially higher than the 13.7 percentage points in the prior year quarter.

嚴重天候造成的商業財產損失合計 760 萬美元，使本季商業綜合險（commercial multi-peril）損失率增加 13.9 個百分點；相較之下，2025 年第一季該業務線損失率增加 5.4 個百分點。天候對住宅險（homeowners）業務線的影響為 800 萬美元，占住宅險損失率 25.6 個百分點，也明顯高於去年同期的 13.7 個百分點。

In total, the quarterly weather claim impact was well above the previous five-year average for the first quarter of 4.5 percentage points. Despite the elevated weather losses, our insurance subsidiaries did not incur losses from any single event during the first quarter of 2026 or 2025 that exceeded their individual $3 million catastrophe reinsurance retention with Donegal Mutual.

整體而言，本季天候理賠影響遠高於過去五年第一季平均的 4.5 個百分點。儘管天候損失偏高，我們的保險子公司在 2026 年或 2025 年第一季並未因任何單一事件產生超過各自向 Donegal Mutual 承擔之 300 萬美元巨災再保自留額（catastrophe reinsurance retention）的損失。

Large fire losses, which we define as over $50,000 in damages, contributed 5.5 percentage points to the loss ratio for the first quarter of 2026, which was higher than the 3.3 percentage points for the prior year quarter, and reflected increases in both commercial and homeowners fire losses. Our insurance subsidiaries experienced $5.7 million of net favorable development of reserves for losses incurred in prior accident years, representing a 2.6-percentage-point reduction in the loss ratio for the first quarter of 2026, compared to $10.5 million, or a 4.5-percentage-point reduction in the loss ratio for the prior year quarter.

大型火災損失（我們定義為損害金額超過 50,000 美元）使 2026 年第一季損失率增加 5.5 個百分點，高於去年同期的 3.3 個百分點，反映商業與住宅火災損失均有所增加。我們的保險子公司就前期事故年度所發生損失之準備金出現 570 萬美元的淨有利發展，使 2026 年第一季損失率降低 2.6 個百分點；相較之下，去年同期為 1,050 萬美元，降低 4.5 個百分點。

Specific line of business detail for the first quarter of 2026 included favorable development, a $3.5 million for commercial auto, $3.4 million for personal auto, $800,000 for homeowners, $600,000 for workers' compensation, and $500,000 for other personal lines, offset partially by unfavorable development of $1.7 million for commercial multi-peril and $1.4 million for other commercial lines, which was primarily umbrella liability.

2026 年第一季各業務線的具體明細包括：商業汽車險有利發展 350 萬美元、個人汽車險 340 萬美元、住宅險 80 萬美元、勞工補償險 60 萬美元，以及其他個人險 50 萬美元；部分被不利發展所抵銷，包括商業綜合險 170 萬美元及其他商業險 140 萬美元，後者主要為超額責任險（umbrella liability）。

The expense ratio of 35.4% for the first quarter of 2026 increased modestly compared to 34.6% for the prior year quarter. The increase primarily reflected the impact of lower net premiums earned for the current quarter. In summary, the modest underwriting income for the first quarter of 2026, combined with $14.3 million of net investment income, resulted in after-tax net income of $11.5 million, compared to $25.2 million for the first quarter of 2025.

2026 年第一季的費用率為 35.4%，較去年同期的 34.6% 小幅上升。此增幅主要反映本季已賺淨保費較低所帶來的影響。總結而言，2026 年第一季承保利益小幅，加上 1,430 萬美元的淨投資收益，使稅後淨利達 1,150 萬美元，較 2025 年第一季的 2,520 萬美元為低。

To provide more details about our Commercial and Personal Lines segment results and related initiatives, I will turn the call over to Jeff Hay.

為提供更多關於我們商業險與個人險部門業績及相關措施的細節，我將把電話會議交給 Jeff Hay。

Thank you, Jeff.

謝謝你，Jeff。

As Jeff mentioned, higher-than-average weather-related losses and large fire losses had an outsized impact on both Commercial and Personal Lines results for the first quarter of 2026. Through the diligence of our underwriting teams and the intentional strategies we've put into place, we were pleased to achieve new business growth in both segments of our business in alignment with our 2026 business plan and a continuation of strong underlying performance.

如 Jeff 所提及，2026 年第一季高於平均的天候相關損失與大型火災損失，對商業險與個人險的業績皆造成了不成比例的影響。在承保團隊的勤勉努力以及我們刻意推動的策略之下，我們很高興兩個業務部門的新業務成長皆符合 2026 年營運計畫，並延續強勁的基本面表現。

Within Commercial Lines, net premiums written increased by 2.2 percentage points for the first quarter of 2026. As market competition for new business has intensified, we have continued to stand firm, maintaining underwriting and pricing discipline and executing on targeted geographic and class strategies. I'm pleased to report that in the first quarter, despite the soft market conditions, we experienced continued success in both new business writings and retention versus our goals.

在商業險方面，2026 年第一季簽單淨保費增加 2.2 個百分點。隨著新業務市場競爭加劇，我們持續堅守承保與定價紀律，並執行聚焦的地理區域與業別策略。我很高興報告，第一季儘管市場環境偏軟，我們在新業務簽單與續保表現上仍持續優於目標。

Commercial Lines new business remained consistent with 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. Additionally, we achieved a real retention rate of 82.3% for the first quarter of 2026 as we continued to work with our independent agents to retain quality accounts.

商業險新業務仍與我在先前電話會議中提到的聚焦地理區域與業別策略一致，多數新業務承作於我們高度聚焦、預期獲利能力較高的業別。此外，2026 年第一季我們達成 82.3% 的實質續保率，並持續與獨立代理人合作以留住優質保單。

Our overall commercial rate and exposure increase, excluding workers' compensation, remained steady at 9% for the first quarter. While we're generally rate adequate across our lines of business, we continue to emphasize driving rate in areas where the intersections of class, line of business, and geography present challenges.

我們整體商業險費率與曝險的增幅（不含勞工補償險）在第一季維持於 9% 的穩定水準。雖然我們各險種整體而言費率大致足夠，但在業別、險種與地理區域交會處呈現挑戰的領域，我們仍持續強調推動費率提升。

Shifting now to first quarter Commercial Lines loss trends. As previously shared, three trends impacted our first-quarter 2026 versus first-quarter 2025 results: higher than average weather impacts, large fires, and continued excess liability development on losses for prior accident years.

接著談第一季商業險損失趨勢。如先前所分享，三項趨勢影響了我們 2026 年第一季相較 2025 年第一季的結果：高於平均的天候影響、大型火災，以及先前事故年度損失在超額責任險上的持續不利發展。

First-quarter weather-related losses increased our Commercial Lines loss ratio by 3.8 percentage points when compared to the same quarter in 2025 and 3 percentage points compared to our long-term average. These losses were primarily driven by the previously mentioned winter storms in January and February that brought heavy snow and sub-zero temperatures across our footprint, and significant wind, hail, and tornado events that impacted several states across the Central and Eastern US in March.

第一季天候相關損失使商業險損失率較 2025 年同期增加 3.8 個百分點，較我們長期平均增加 3 個百分點。這些損失主要來自先前提到的一、二月冬季風暴，為我們營運版圖帶來大雪與零下低溫，以及三月影響美國中部與東部多州的顯著強風、冰雹與龍捲風事件。

First-quarter 2026 impact from large fires resulted in a 4.2-percentage-point increase to the commercial multi-peril loss ratio when compared to the same quarter in 2025. This can be attributed to an increase in the frequency of fires in the quarter, including one fire that exceeded our external property per risk reinsurance retention and resulted in a $3.2 million net impact to our Commercial Lines underwriting results.

2026 年第一季大型火災的影響，使商業綜合險（commercial multi-peril）損失率較 2025 年同期增加 4.2 個百分點。此可歸因於本季火災發生頻率上升，其中一宗火災超過我們外部財產單一風險再保自留額，對商業險承保結果造成 320 萬美元的淨影響。

Commercial Lines prior-year reserve development was favorable overall for the first quarter of 2026, decreasing the loss ratio by 0.7 percentage points, driven by favorable commercial auto and workers' compensation development that was largely offset by unfavorable umbrella liability claim development in accident years 2022 and 2024.

2026 年第一季商業險前期年度準備金發展整體有利，使損失率下降 0.7 個百分點；主要由商業車險與勞工補償險的有利發展所帶動，但多數被 2022 年與 2024 年事故年度的伞式超額責任（umbrella liability）理賠不利發展所抵銷。

In response to increasing severity trends in umbrella liability claims over the past few years, we've implemented an initiative to reduce net retained umbrella limits in our book of business. In the first quarter of 2026 alone, we reduced exposure limits by over $150 million. We expect this number to climb throughout the remainder of 2026. Our Commercial Lines core loss ratio, which excludes the impact of large fires, weather, and prior-year reserve development, remained relatively stable, decreasing slightly by 0.7 percentage points for the first quarter of 2026 compared to the same quarter in 2025.

為因應過去數年伞式超額責任理賠嚴重度上升的趨勢，我們已推動一項措施，以降低我們業務組合中伞式超額責任的淨自留限額。僅在 2026 年第一季，我們就將曝險限額降低超過 1.5 億美元。我們預期此數字在 2026 年剩餘期間將持續攀升。我們的商業險核心損失率（排除大型火災、天候及前期年度準備金發展的影響）相對穩定，2026 年第一季較 2025 年同期小幅下降 0.7 個百分點。

From an overall commercial loss trend perspective, we continue to experience upward pressure on liability severity within both commercial auto and commercial multi-peril liability coverages (technical difficulty) increases consistently in the double-digits, slightly offset by a continued decreasing frequency. Property frequency increased in the quarter due to the weather activity, but overall severity remains in check. Additionally, frequency trend lines across all other coverages remain in check and favorable.

從整體商業險損失趨勢來看，我們在商業車險與商業綜合險責任保障上，仍持續面臨責任險嚴重度上行壓力（技術難度）且增幅穩定維持在雙位數，並由持續下降的出險頻率略為抵銷。本季因天候活動使財產出險頻率上升，但整體嚴重度仍受控。此外，其他所有保障的出險頻率趨勢線仍維持受控且表現有利。

Now turning to our Personal Lines segment. The decline of Personal Lines net premiums written remained steady at minus 13.1% for the first quarter of 2026. New business written totaled $1.6 million, representing an increase of nearly 25% over the fourth quarter of 2025 and a nearly 70% increase over the first quarter of 2025.

接著談我們的個人險部門。2026 年第一季個人險簽單淨保費的降幅維持在 -13.1%。新業務簽單合計 160 萬美元，較 2025 年第四季增加近 25%，較 2025 年第一季增加近 70%。

Additionally, I'm pleased to report that our real retention rate for the first quarter was a very healthy 88.7%. Rate and exposure slowed to 2.4% for the first quarter, which was a direct result of the achievement of rate adequacy across all lines.

此外，我很高興報告，我們第一季的實質續保率非常健康，達 88.7%。第一季費率與曝險增幅放緩至 2.4%，這是因為我們已在所有險種達成費率充足性的直接結果。

We continue to build momentum with deliberate strategies that we've put into place to slow the decline in our Personal Lines premiums.

我們持續透過已部署的審慎策略累積動能，以放緩個人險保費下滑。

We are pleased with the excellent profitability that continued in the first quarter of 2026, fueled by the results of our personal auto line of business, which saw a 3.6 percentage point decrease in loss ratio from the same quarter in 2025. This decrease was driven by a 0.8-percentage-point improvement in the core loss ratio, as well as 3.1 percentage points of more favorable prior-year reserve development.

我們對 2026 年第一季延續的優異獲利能力感到滿意，主要受惠於個人車險業務的表現，其損失率較 2025 年同期下降 3.6 個百分點。此降幅來自核心損失率改善 0.8 個百分點，以及前期年度準備金發展更為有利的 3.1 個百分點。

Our homeowners loss ratio saw a deterioration of 14.6 percentage points from the first quarter of 2025. This can be attributed to 11.9 percentage points more severe weather activity mentioned previously and 7.8 percentage points of higher large fire impact, offset somewhat by 3.9 percentage points of improvement in the core loss ratio.

我們的住宅險損失率較 2025 年第一季惡化 14.6 個百分點。此可歸因於先前提及更嚴重的天候活動增加 11.9 個百分點，以及大型火災影響提高 7.8 個百分點；部分被核心損失率改善 3.9 個百分點所抵銷。

In summary, homeowners frequency trends for the first quarter were in line with longer-term trends, with lower-than-average severity due to higher volume of weather claims in the quarter. Frequency trends in personal auto remain in check, as physical damage severity is showing signs of improving, while bodily injury severity continues to show a gradual increase.

總結而言，住宅險第一季的出險頻率趨勢與長期趨勢一致；由於本季天候理賠件數較多，嚴重度低於平均。個人車險的出險頻率趨勢仍受控；車體損失嚴重度已出現改善跡象，而人身傷害嚴重度則持續呈現緩步上升。

I'll now turn the call over to Dan DeLamater for an update on our operational strategies and developments. Dan?

接下來我將把電話會議交給 Dan DeLamater，請他更新我們的營運策略與最新進展。Dan？

Thank you, Jeff. I'll share a brief update on operational initiatives and how we're navigating the current competitive marketplace. Despite the challenges we faced in the first quarter, I'm pleased to report that we continued to make progress toward many of our business plan objectives due to the deliberate actions of our marketing and underwriting teams in collaboration with our independent agents.

謝謝你，Jeff。我將簡要更新營運措施，以及我們如何因應目前競爭激烈的市場。儘管第一季面臨挑戰，我很高興報告，因行銷與承保團隊與獨立代理人協作並採取審慎行動，我們仍持續朝多項營運計畫目標取得進展。

As we look to the remainder of 2026, we remain focused on several initiatives that will support our achievement of premium growth goals, expense targets, and profitability expectations. Among them are collaborative state strategy planning process, internal alignment between marketing, underwriting, and product teams, enhanced pricing sophistication, and continued company-wide expense optimization. These intentional efforts were among the key drivers of our new business achievements that Jeff Hay touched upon in his remarks.

展望 2026 年剩餘期間，我們仍聚焦於數項措施，以支持達成保費成長目標、費用目標與獲利預期。其中包括：協作式的州別策略規劃流程、行銷／承保／產品團隊之間的內部一致性、提升定價精細化程度，以及持續推動全公司費用最佳化。這些刻意的努力，是 Jeff Hay 在談話中提到我們新業務成果的關鍵驅動因素之一。

Our product team continues to work closely with their underwriting and marketing colleagues to strategically manage regional product portfolios. This internal alignment includes our technical data team, which provides robust and consumable data, while our analytics team delivers valuable insights that ensure each of our teams are equipped with quick and easy access to key metrics across regional, state, territory, and agency levels. Together, their collaboration enables our business units to make intelligent, data-driven business decisions, and this alignment is essential as we look to grow confidently while holding firm on profitability expectations.

我們的產品團隊持續與核保與行銷同仁密切合作，以策略性方式管理各地區的產品組合。這項內部協同也涵蓋我們的技術資料團隊，其提供強健且易於使用的資料；同時，我們的分析團隊提供有價值的洞見，確保各團隊能在地區、州、領地與代理層級，快速且便利地取得關鍵指標。他們的協作使我們的事業單位能做出明智、以數據為基礎的商業決策；在我們展望於堅守獲利預期的同時自信成長之際，這項協同至關重要。

Despite a softening marketplace, we remain focused on our intentionally defined appetite, which we work to be selectively aggressive in our new and renewal pricing. Selectivity will be critical as we remain vigilant for any signs of economic inflation as a persistent, industry-specific challenge.

儘管市場趨於疲軟，我們仍專注於我們刻意界定的承保偏好，並在新保與續保定價上力求選擇性地更具進取性。在我們持續警覺經濟通膨是否會成為持續性的、產業特定挑戰之任何跡象之際，選擇性將至關重要。

To achieve our goals, we will continue to work diligently with our independent agents to drive sustainable, profitable premium growth. We've segmented efforts in middle market commercial, small business, and personal lines. At present, construction represents the largest industry within our current in-force book of business, with the vast majority of accounts and specialty trades.

為達成目標，我們將持續與獨立代理人勤勉合作，以推動可持續且具獲利性的保費成長。我們已將工作重點分為中型市場商業險、小型企業與個人險。目前，營造業是我們現有在保業務組合中最大的產業，其中絕大多數為各類帳戶與專業工種。

Recently, we optimized our agency-facing quoting portal for targeted classes of contractors through the release of our new WriteBiz Express functionality. Soon, we will launch the same agency experience enhancement for our processing and services classes. WriteBiz Express greatly streamlines the quoting and policy issuance process for these strong-performing classes and is just the latest way we are leveraging and refining our modernized platform to meet the evolving needs of our agents.

近期，我們透過推出全新的 WriteBiz Express 功能，針對特定承包商類別最佳化了面向代理人的報價入口網站。不久後，我們也將為我們的處理與服務類別推出相同的代理體驗強化。WriteBiz Express 大幅簡化了這些表現強勁類別的報價與保單簽發流程，這也是我們運用並精進現代化平台、以滿足代理人不斷演變需求的最新作法。

Finally, leaders and team members across Donegal continue to embrace our expense management efforts. We have further refined our comprehensive and sustainable budgeting process and expense monitoring tools, and we continue to emphasize expense optimization and accountability.

最後，Donegal 各部門的領導者與團隊成員持續擁抱我們的費用管理工作。我們進一步精進全面且可持續的預算編製流程與費用監控工具，並持續強調費用最佳化與責任歸屬。

Our 2026 business plan projects a slight increase in our expense ratio as we invest in the migration of our systems to the Guidewire Cloud platform that Kevin mentioned earlier. We're confident in the capabilities the Guidewire Cloud platform will unlock for both our agents and our team members and look forward to the operational efficiencies we'll realize from these investments in the years ahead.

我們的 2026 年營運計畫預估費用率將小幅上升，因為我們將投資於 Kevin 先前提到的系統遷移至 Guidewire Cloud 平台。我們對 Guidewire Cloud 平台將為代理人與團隊成員釋放的能力充滿信心，並期待在未來幾年從這些投資中實現營運效率提升。

In closing, we believe we are well positioned to face the challenges in today's competitive insurance landscape, and we continue to invest in our long-term success.

總結而言，我們相信自己已做好充分準備，能面對當今競爭激烈的保險市場挑戰，並將持續投資於長期成功。

With that, I'll turn it over to Tony Viozzi for an investment update.

接下來，我把時間交給 Tony Viozzi，提供投資最新進展。

Thanks, Dan. With a 10-year U.S. Treasury consistently trading above 4% for the last three years and forecasts anticipating little change in interest rates for the near future, we continue to experience favorable investment income results as bonds purchased at the bottom of the rate cycle continue to run off the books and are reinvested at higher market rates.

謝謝你，Dan。由於 10 年期美國公債在過去三年持續交易於 4% 以上，且預測短期內利率變動不大，隨著在利率循環底部買入的債券持續到期退出投資組合並以更高的市場利率再投資，我們持續呈現有利的投資收益表現。

On the equity side of the market, there continues to be volatility, mostly associated with recent geopolitical events. Our long-term strategy remains focused on achieving predictable, steadily increasing investment income, coupled with modest equity exposure or long-term capital appreciation. Our approach has delivered proven results and we believe positions us well to grow investment income in the future.

在股票市場方面，波動仍在，主要與近期地緣政治事件相關。我們的長期策略仍聚焦於取得可預測、穩定成長的投資收益，同時搭配適度的股票曝險或長期資本增值。我們的方法已帶來經驗證的成果，我們相信這使我們在未來提升投資收益方面具備良好定位。

In 2025, we took intentional actions to enhance the composition of our bond portfolio with strategic bond swaps and asset allocation shifts, boosting both credit quality and yield. Our first quarter of 2026 investment results reflected the benefits of those actions. We are pleased to achieve $14.3 million in net investment income for the first quarter of 2026, which was a 19% improvement over the $12 million for the first quarter of 2025. Additionally, the average tax equivalent yield for the first quarter of 2026 increased to 3.94%, compared to 3.50% for the first quarter of 2025.

在 2025 年，我們透過策略性債券置換與資產配置調整，採取有意識的行動以改善債券投資組合的結構，同時提升信用品質與殖利率。我們 2026 年第一季的投資結果反映了這些行動帶來的效益。我們很高興在 2026 年第一季達成 1,430 萬美元的淨投資收益，較 2025 年第一季的 1,200 萬美元提升 19%。此外，2026 年第一季的平均稅當量殖利率提高至 3.94%，相較 2025 年第一季為 3.50%。

We received $44 million of incoming portfolio cash flow that was yielding 4.67% during the quarter. Adding that cash to other investable funds, we invested $63 million during the quarter at a yield of 5.39%. The 72-basis-point improvement in yield will boost annual investment income for the foreseeable future.

本季我們收到 4,400 萬美元的投資組合流入現金流，其殖利率為 4.67%。將該現金與其他可投資資金合併後，我們於本季投資了 6,300 萬美元，殖利率為 5.39%。殖利率提升 72 個基點，將在可預見的未來提高年度投資收益。

We are currently projecting $135 million in bond cash flow over the next 12 months with a current average yield of 4.45%. We expect to benefit from a continuation of higher reinvestment yields that will further increase our portfolio yield. Our relatively modest equity portfolio is positioned defensively, with exposure to value and high-dividend stocks, which has typically performed well in a declining equity market.

我們目前預估未來 12 個月將有 1.35 億美元的債券現金流，當前平均殖利率為 4.45%。我們預期將受益於較高再投資殖利率的延續，進一步提升投資組合殖利率。我們相對適度的股票投資組合採防禦性配置，曝險於價值型與高股息股票，這類配置通常在股市下跌時表現良好。

Net investment losses for both the first quarters of 2026 and 2025 reflected modest decreases in the value of our equity securities held at the end of each respective period. As of March 31, 2026, our book value per share increased to $17.54, which was a 1.2% improvement over $17.33 at December 31, 2025.

2026 年與 2025 年第一季的淨投資損失，反映了我們於各期末持有之股票證券價值的小幅下降。截至 2026 年 3 月 31 日，我們每股帳面價值增至 17.54 美元，較 2025 年 12 月 31 日的 17.33 美元提升 1.2%。

In closing, we are confident that our fixed income strategy will continue to generate investment income growth in 2026, and we will continue to watch for compelling bond swap opportunities as they may arise. Our portfolio is well positioned with highly rated bonds and a laddered cash flowing portfolio that will allow us to continue to take advantage of higher reinvestment rates in the near term. We are currently focused on attractive opportunities to acquire high-quality, tax-exempt, corporate, and mortgage-backed securities, and on locking in longer-duration bonds at current rates.

總結而言，我們有信心固定收益策略將在 2026 年持續帶動投資收益成長，並將持續留意可能出現的具吸引力債券置換機會。我們的投資組合以高評等債券與階梯式現金流投資組合良好配置，使我們能在短期內持續把握較高再投資利率的優勢。我們目前聚焦於取得高品質的免稅債、公司債與不動產抵押擔保證券的良機，並在當前利率水準鎖定較長天期的債券。

With that, I will now turn it back to Kevin for closing remarks.

接下來，我把時間交回 Kevin 作結語。

Thanks, Tony.

謝謝你，Tony。

While our first-quarter results did not meet our expectations, we've never been in a better position to achieve our short- and long-term goals than we are right now. We have clear strategies and excellent leadership alignment on what we need to do to execute them. We recently announced an increase in our quarterly cash dividend last week, further demonstrating our confidence in our ability to achieve excellent financial performance. We look forward to providing an update on our progress in future calls.

雖然我們第一季的結果未達預期，但我們從未像現在這樣處於更有利的位置，以達成短期與長期目標。我們對需要做什麼以落實策略有清晰的方向，且領導團隊在執行上高度一致。我們上週也宣布提高季度現金股利，進一步展現我們對達成優異財務表現能力的信心。我們期待在未來的電話會議中更新我們的進展。

I'll now turn the call back to Becca. Thank you.

我現在把電話會議交回給 Becca。謝謝。

Thank you, Kevin. While we requested and received questions in advance of today's call, we've worked answers to these questions into our prepared remarks. If there are any additional questions, please feel free to reach out to us.

謝謝你，Kevin。雖然我們在今天的電話會議前已請求並收到預先提問，但我們已將對這些問題的回覆納入我們的事先準備講稿中。若還有任何其他問題，歡迎隨時與我們聯繫。

This now concludes the Donegal Group first-quarter 2026 earnings webcast. You may now disconnect.

Donegal Group 2026 年第一季財報網路直播到此結束。您現在可以中斷連線。