Donegal Group, Inc.

morning and thank you for joining us today. This morning, Donegal Group issued its first quarter 2025 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. Please be advised that today's conference was pre-recorded and all participants are in listen-only mode. 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 Viazzi. 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. With that, it's my pleasure to turn it over to Mr. Kevin Burke. Kevin?

Thank you, Karen, and welcome, everyone. We are pleased to provide an update today on our quarterly results and high-level strategies and ongoing tactical initiatives. Following on the heels of a fourth quarter when we reported the highest quarterly earnings in our history, we are pleased to have eclipsed that record earnings level as positive momentum continued into the first quarter of 2025. While weather-related and large fire losses were lower than average during the first quarter, continuing improvement in our core loss ratios in both commercial and personal lines was once again a significant driver of favorable results. We will provide further details about the factors that impacted Net Premium's written growth as the call progresses. From my view, the enhanced intentionality behind our actions as well as the level of discipline our team is exercising is evident as we balance the achievement of both growth and profitability goals. We have greater insight and visibility into our underwriting performance and results versus our business plan than ever before. and our robust performance monitoring routines allow us to quickly identify and respond to any areas of deviation from expected results. We are carefully monitoring potential impact of recent economic uncertainty from tariff policies that could affect new and used automobile pricing, the cost of auto repairs, and the cost of construction, all of which are major components of our claims costs. We were nimble in reacting to the elevated inflation that followed the COVID pandemic, and we stand ready now to respond to any increase in our underlying claims costs with timely data-driven actions. To provide a brief update on our systems modernization efforts, our team is making excellent progress on detailed testing activities that will ensure successful deployment of our final major commercial line systems release in July, which will include a new commercial package policy and modernize other middle market commercial products. I am pleased to report that we successfully deployed the first phase of our last personal line software release in February, which allowed us to begin the conversion of all remaining legacy homeowner policy renewals to the new operating platform, which means that coverage and features of our new business and renewal products will be much more similar. That conversion activity will continue as policies renew over the next year. The second and final phase of this release is on track for deployment later this year. This will facilitate a conversion of legacy automobile and umbrella policy renewals to the new platform, which will continue through mid-2026. When the last legacy policy expires in mid-July 2027, we will have a single policy management system and common data infrastructure for all of our products. As we look forward to the accomplishment and the strategic advantage it brings relative to other carriers who continue to deal with legacy system challenges, we are now ramping up discussions to refine and crystallize our technology roadmap to further leverage technology and data analytics to compete and succeed in the future. We are excited to be able to look ahead and plan for the next milestone on our technology roadmap as we emerge from many years of heavy system modernization and legacy conversion activities. I cannot thank the team enough for their dedication and resilience that has led us to this point and given us an opportunity to build on a solid foundation going forward. At this point, I'll turn a call over to Jeff Miller for a review of our financial results for the quarter.

Thanks, Kevin. For the first quarter of 2025, net premiums earned increased 2.2% to $232.7 million. Net premiums written decreased by 1.7% as lower new business volume and planned attrition were offset partially by continuing solid premium rate increases and retention levels. A 9.9% decrease in personal lines net premiums written was offset partially by 3.3% growth in commercial lines. Rate increases achieved during the first quarter of 2025 averaged 9.6% in total and 10.6% when excluding workers' compensation. The combined ratio was an excellent 91.6% for the first quarter of 2025, a substantial improvement compared to 102.4% for the prior year quarter, with a lower impact of weather and large fire losses adding to a 4.5 percentage point decrease in the core loss ratio compared to the prior year quarter. As a reminder, the core loss ratio is a measure of our underlying underwriting performance after excluding the impact of weather-related losses, large fire losses, and net development of reserves for losses incurred in prior accident years. Compared to the prior year quarter, we achieved a 0.7 percentage point decrease in the commercial lines core loss ratio and a 9.4 percentage point decrease in the personal lines core loss ratio. The substantial improvement in the personal line's core loss ratio was due largely to the ongoing favorable impact of premium rate increases on net premiums earned for that segment. Weather-related losses of $8.6 million or 3.7 percentage points of the loss ratio for the first quarter of 2025 were down from $10.8 million or 4.7 percentage points for the first quarter of 2024. Commercial property losses from severe weather totaled $2.9 million and contributed 5.4 percentage points to the quarterly commercial multi-parallel loss ratio, compared to 4.3 percentage points of the loss ratio for that line of business in the first quarter of 2024. The weather impact of the homeowners line was $4.8 million, or 13.7 percentage points of the homeowners loss ratio, which improved substantially compared to 21.3 percentage points in the prior year quarter. In total, the quarterly weather claim impact was lower than the previous five-year average for the first quarter of 4.6 percentage points. Our insurance subsidiaries did not incur losses from any single event during the first quarter of 2025 or 2024 that exceeded their individual $3 million catastrophe reinsurance retention with Donegal Mutual. Large fire losses, which we define as over $50,000 in damages, contributed 3.3 percentage points to the loss ratio for the first quarter of 2025, which was lower than 6.6 percentage points for the prior year quarter. A decrease in the frequency of both commercial and homeowners' fire losses contributed to the decrease. Our insurance subsidiaries experienced $10.5 million of net favorable development of reserves for losses incurred in prior accident years, representing a 4.5 percentage point reduction in the loss ratio for the first quarter of 2025. compared to $8.4 million, or a 3.7 percentage point reduction in the loss ratio for the prior year quarter. Specific line of business detail for the first quarter of 2025 primarily included favorable development of $4.7 million for commercial auto, $4.3 million for commercial multi-parallel, $2.3 million for personal auto, offset partially by $1.8 million of unfavorable development for workers' compensation. The expense ratio of 34.6% for the first quarter of 2025 decreased modestly compared to 35.7% for the prior year quarter. The decrease primarily reflected ongoing impacts of expense reduction initiatives and a modest decrease in technology costs related to our ongoing systems modernization initiative. These benefits were offset partially by an increase in underwriting-based incentive costs for agents and employees. In summary, the underwriting income for the first quarter of 2025 combined with $12 million of net investment income resulted in an after-tax net income of $25.2 million, which was a significant increase compared to $6 million for the first quarter of 2024. To provide more details about our commercial and personal line segment results and related initiatives, I will now turn the call over to Jeff Hay.