Donegal Group, Inc.

Good morning and thank you for joining us today. This morning, Donegal Group issued its third 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 Biasi. 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 the call over to Mr. Kevin Burke. Kevin?

Thank you, Karen, and welcome everyone to our earnings webcast. We are pleased to provide an update today on our quarterly operating results and recent progress on our strategies and initiatives. We are pleased with our profitability for the third quarter and for the first nine months of 2025, with a combined ratio of 95.9% for the third quarter and 95.1% for year-to-date, with solid underwriting and investment income contributing to net income of $20.1 million for the third quarter and $62.2 million for the first nine months of 2025. We enjoyed relatively favorable weather in our operating regions for the third quarter, resulting in a weather loss ratio that was the lowest of any third quarter in the past 20 years. Our core loss ratio for the third quarter remained below our target level, with personal lines continuing to outperform as we've reached rate adequacy in that business segment. As in prior webcasts, Jeff Hay and Dan Delamater will provide further details about the ongoing factors that impacted our net premiums written growth, as well as highlight initiatives that we have planned to improve premium growth. Our 2026 business plan will include numerous strategies and action plans to enhance agency engagement and optimize our staff's utilization of systems and business intelligence enhancements that we expect will generate higher levels of new business. Our primary focus remains on delivering sustained excellent financial results while also achieving profitable control commercial lines growth by writing quality mid-market and small business accounts. Following the successful deployment of our final major commercial line systems release I reported in the second quarter, I'm very pleased to report that this past weekend, we successfully deployed the final personal lines release to facilitate conversion of all legacy personal auto and umbrella policy renewals to the new Guidewire platform. We continue to strive for stability in our Personal Lines segment, seeking to write enough new business to offset natural attrition in order to maintain a stable, profitable book of Personal Lines business. Completion of the conversion of our legacy business to the new platform will allow our Personal Lines teams to focus their efforts on optimizing our Personal Lines portfolio. With this final release now in production, all development and testing efforts have been completed for this multi-year systems modernization project that we began eight years ago. I extend my sincere appreciation and congratulations to all the Donegal team members who have worked tirelessly to ensure the successful project completion. Although all the software code has been deployed, we are continuing to follow a phased schedule for the conversion of all remaining legacy commercial and personalized policies that will continue through mid-2026. Our business teams will be closely monitoring that conversion activity over the next several months. Our technology teams will be shifting their attention to several exciting initiatives made possible by the successful systems transformation and the completion of our comprehensive cloud-based data repository and infrastructure. We are already working with industry-leading vendor partners on several generative AI projects that we expect will help us improve operational efficiencies and more importantly provide enhanced data-driven insights to our claims and underwriting staff. We are also preparing to migrate our primary on-premises Guidewire applications to the cloud-based versions over the next few years. We plan to migrate our billing and claims applications followed by our policy administration application after the completion of our legacy policy conversion activities. Migrating to the cloud version of the Guidewire applications will ensure that our future technology platform is scalable and remains current, and that we are able to take advantage of emerging innovations and product enhancements on a continuous basis. We look forward to the many competitive and operational benefits our successful systems transformation and ongoing technology initiatives will yield in the years ahead. At this point, I'll turn the call over to Jeff Miller for a review of our financial results for the quarter.

Thanks, Kevin. For the third quarter of 2025, net premiums earned of $229.8 million decreased 3.4% compared to the third quarter of 2024. Net premiums written decreased by 5.4%, with similar drivers to those we experienced in the first half of 2025 as lower new business volume and planned attrition were offset partially by premium rate increases and solid retention levels. A 15.9% decrease in personal lines net premiums written was offset partially by 3.4% growth in commercial lines. Rate increases achieved during the third quarter of 2025 averaged 6.4% in total and 7.1% when excluding workers' compensation. The combined ratio was 95.9% for the third quarter of 2025, reflecting modest improvement compared to 96.4% for the prior year quarter. We experienced a slight 1 percentage point increase in the core loss ratio compared to the prior year quarter. Core loss ratio excludes 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 had a 5.5 percentage point increase in the commercial lines core loss ratio offset partially by a 5.9 percentage point decrease in the personal lines core loss ratio. Weather-related losses of $14.3 million, or 6.2 percentage points of the loss ratio for the third quarter of 2025, decreased substantially from $24.4 million, or 10.3 percentage points for the prior year quarter. Commercial property losses from severe weather totaled $3.6 million and contributed 6.6 percentage points to the quarterly commercial multi-parallel loss ratio, down compared to 10 percentage points of the loss ratio for that line of business in the third quarter of 2024. The weather impact to the homeowners line was $8.3 million, or 25.3 percentage points of the homeowners loss ratio, which was much lower than the 45.2 points of weather loss impact in the prior year quarter, which reflected significant impact from Hurricane Helene. In total, the quarterly weather claim impact was well below the previous five-year average for the third quarter of 10 percentage points. Our insurance subsidiaries did not incur losses from any catastrophic weather events in the third quarter of 2025, compared to $6 million in net losses from Hurricane Helene in the prior year quarter. As we highlighted in the earnings release, the weather loss impact of 6.2 percentage points of the loss ratio for the quarter was the lowest of any third quarter in the past 20 years. Large fire losses, which we define as over $50,000 in damages, contributed 4.4 percentage points to the loss ratio for the third quarter of 2025, compared to 3.7 percentage points for the prior year quarter. A moderate increase in homeowners' fire losses during the quarter was partially offset by a slight decrease in commercial fire losses. Our insurance subsidiaries experienced minimal net development of reserves for losses incurred in prior accident years for the third quarter of 2025, compared to $6.2 million of net favorable reserve development for the prior year quarter. Specific line of business detail for the third quarter of 2025 primarily included unfavorable development of $2 million for personal auto and $1.4 million for other commercial, which is primarily umbrella liability, in accident years 2022 through 2024, offset partially by favorable development of $1.6 million for commercial multi-parallel and $818,000 for workers' compensation. The expense ratio of 33.5% for the third quarter of 2025 decreased compared to 34.5% for the prior year quarter. The modest decrease primarily related to ongoing impacts of expense reduction initiatives and lower underwriting-based incentive costs for agents and employees. Incentive costs for the prior year quarter were somewhat elevated due to the improvement in underwriting results for that period compared to the first half of 2024. Net investment income increased 28.8% to $13.9 million for the third quarter of 2025 compared to the prior year quarter, due primarily to an increase in average investment yield. Tony will provide further details about our investment income later in the call. Combining the favorable impacts of underwriting and investment performance, we achieved net income of $20.1 million for the third quarter of 2025, an increase of approximately 20% compared to the third quarter of 2024. For the first nine months of 2025, net income of $62.2 million increased by approximately 131% compared to $26.9 million for the first nine months of 2024. As we generate capital through consistent profitability, we will continue to invest in our people and operations to steadily grow premiums and increase scale, which we believe will create sustainable value for our stockholders over time. We are also committed to our long-standing practice of returning a portion of our profits to stockholders in the form of cash dividends. We recently declared quarterly cash dividends of 18.25 cents per share of our Class A common stock and 16.5 cents per share of our Class B common stock, payable on November 17th to stockholders of record as of November 3rd. With that, I will turn the call over to Jeff Hay to provide more details about our commercial and personal lines segment results.