Donegal Group, Inc.

Good morning and thank you for joining us today. This morning, Donico Group issued its second quarter 2026 earnings release, outlining its results. The release and a supplemental investor presentation are available in the investor relations section of Donico's website at www.donicogroup.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 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 Donald 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 is my pleasure to turn it over to Mr. Kevin Burke. Kevin?

Thank you and welcome, everyone. We are pleased to provide an update today on our quarterly results in ongoing business strategies and initiatives. We are pleased to report excellent underwriting results for the second quarter of 2026 that outperformed the second quarter of 2025, largely due to lower-than-average weather-related losses and despite the elevated impact of commercial fire losses during the quarter. We are especially pleased that our core loss ratios continue to demonstrate solid underlying performance within both the commercial and personal line segments. We are emphasizing increased engagement with our independent agents to further strengthen those important relationships. These efforts are yielding additional opportunities to write new business accounts within our clearly defined geographic and classes of business appetite. Despite competitive pressures within our regional markets, we achieved our Commercial Line's new business premium growth goals for the first half of 2026. And positive momentum is building as it relates to our Personal Line's new business volume. We pay close attention to our retention and rate achievement metrics. Both of which are areas where current market pressures are creating the greatest challenges. We are committed to growing our business over time, but we are also working diligently to maintain underwriting and pricing discipline in order to achieve target profitability levels. This is a balancing act that will require a great deal of focus and attention for the remainder of 2026 and as we plan for 2027 and beyond. Our business and technology initiatives remain on track. We are making steady progress on the planned migration of our Guidewire claims and billing systems to the Guidewire Cloud Platform in the first half of 2027. In conjunction with that migration, we expect to implement several GenAI solutions that will provide greater insights into our claims personnel and increase efficiencies within our claims operations. We are already benefiting from the utilization of GenAI coding tools by our IT data and applications development teams. We look forward to continuing to expand that utilization to garner additional efficiencies and cost savings. We look forward to our annual state strategy planning sessions in early August, when our home office and regional leadership teams come together for several days to refine our strategies and tactics at a very granular level. These discussions will ensure alignment across our sales, marketing, underwriting, and product teams and will inform our 2027 business plan objectives as that plan is developed and finalized over the next several months. At this point, I'll turn a call over to Jeff Miller for a review of our financial results for the quarter.

Thank you, Kevin. For the second quarter of 2026, net premiums earned decreased 4% to $222.6 million. Net premiums written decreased by 3.2%, with similar drivers to the first quarter as lower premium rate increases and retention levels were offset partially by an increase in new business volume. A 9.7% decrease in personal lines net premiums written was offset partially by 0.8% growth in commercial lines. Rate increases achieved during the second quarter of 2026 averaged 5.2% in total and 6% when excluding workers' compensation. The combined ratio was 95.6% for the second quarter of 2026, down from 97.7% for the prior year quarter. primarily due to lower weather impact and more favorable development of reserves for losses incurred in prior accident years, offset partially by higher large fire losses and a higher expense ratio. The core loss ratio remained fairly stable at 51% compared to 50.1% for the prior year quarter. Rolling down into individual loss ratio components, weather-related losses were $11.9 million or 5.3 percentage points of the loss ratio for the second quarter of 2026, which were far lower than the $25.8 million or 11.1 percentage points for the second quarter of 2025. The quarterly weather claim impact was well below the previous five-year average for the second quarter of 9.4 percentage points. Large fire losses, which we define as over $50,000 in damages, contributed 6.7 percentage points to the loss ratio for the second quarter of 2026, which was higher than the 5.2 percentage points for the prior year quarter and reflected an increase in the severity of commercial fire losses. Our insurance subsidiaries experienced $7.8 million of net favorable development of reserves for losses incurred in prior accident years or a 3.5 percentage point reduction in the loss ratio for the second quarter of 2026 compared to $3 million or a 1.3 percentage point reduction in the loss ratio for the prior year quarter. Specific line of business detail for the second quarter of 2026 included favorable development of $2.6 million for personal auto, $2.4 million for workers' compensation, $1.2 million for commercial auto, $1.1 million for homeowners, and $700,000 for commercial multi-parallel. The expense ratio was 35.8% for the second quarter of 2026 compared to 32.2% for the prior year quarter. The increase primarily reflected the impact of the lower base of net premiums earned for the current quarter and also reflected an increase in underwriting-based incentive compensation expense due to the more favorable quarterly loss ratio relative to the prior year quarter. In summary, solid increases in underwriting income, investment income, and net investment gains combined to provide after-tax net income of $22.3 million for the second quarter of 2026, up 32% compared to $16.9 million for the second quarter of 2025. To provide more details about our commercial and personal line segment results, I will turn the call over to Jeff Hay.