UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
______________________
Form 8-K
______________________
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event Reported): March 18, 2016
Donegal Group Inc.
(Exact Name of Registrant as Specified in Charter)
| DELAWARE | 0-15341 | 23-2424711 |
| (State or Other Jurisdiction of Incorporation) | (Commission File Number) | (I.R.S. Employer Identification Number) |
| 1195 RIVER RD, MARIETTA, PA 17547 |
| (Address of Principal Executive Offices) (Zip Code) |
717-426-1931
(Registrant's telephone number, including area code)
(Former name or former address, if changed since last report)
| Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions: | ||
| [ ] | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |
| [ ] | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |
| [ ] | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |
| [ ] | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) | |
Item 2.02. Results of Operations and Financial Condition.
On March 18, 2016, the Registrant issued a press release, a copy of which is attached hereto as Exhibit 99.1 and is incorporated herein by reference.
Item 9.01. Financial Statements and Exhibits.
Exhibit 99.1. Press release dated March 18, 2016
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| Donegal Group Inc. | ||
| Date: March 18, 2016 | By: | /s/ Jeffrey D. Miller |
| Name: Jeffrey D. Miller | ||
| Title: Executive Vice President & Chief Financial Officer | ||
EXHIBIT 99.1
Donegal Group Inc. Announces Revised Fourth Quarter and Full Year 2015 Results
MARIETTA, Pa., March 18, 2016 (GLOBE NEWSWIRE) -- Donegal Group Inc. (NASDAQ:DGICA) (NASDAQ:DGICB) today announced revisions to its previously reported financial results for the fourth quarter and year ended December 31, 2015.
The revisions relate to the Company’s accounting for its purchase of 2,000,000 shares of treasury stock in December 2015. After discussing with its independent registered public accounting firm the facts and circumstances the Company considered in making judgments based on applicable accounting guidance with respect to the Company’s accounting for the purchase, the Company determined that the premium it paid over the fair market value of the treasury stock should be charged to expense rather than included in the cost of the treasury stock the Company purchased.
The revisions result in an increase to the Company’s expenses and a reduction in the Company’s net income in the amount of $5.8 million for both the fourth quarter and full year of 2015. The revisions have no income tax effect. As a result of the revisions, the Company’s earnings per share of its Class A common stock on a diluted basis decreased by 21 cents for both the fourth quarter and full year of 2015. The Company’s revised earnings per share of its Class A common stock on a diluted basis was 77 cents for the full year of 2015, compared to 55 cents for the full year of 2014.
The revisions do not change the Company’s reported total assets, total liabilities, total stockholders’ equity or book value per share at December 31, 2015.
“The revisions to our reported financial results do not include any changes that impact our reported insurance underwriting results for 2015, which reflected strong performance across nearly all lines of business and represented substantial improvement over the comparable underwriting results for 2014,” said Jeffrey D. Miller, Executive Vice President and Chief Financial Officer of Donegal Group Inc.
The Company will include financial statements that contain the revisions described above in its Form 10-K for the year ended December 31, 2015, which the Company expects to file with the Securities and Exchange Commission later today.
About the Company
Donegal Group Inc. is an insurance holding company whose insurance subsidiaries offer personal and commercial property and casualty lines of insurance in 21 Mid-Atlantic, Midwestern, New England and Southern states. The insurance subsidiaries of Donegal Group Inc. and Donegal Mutual Insurance Company conduct business together as the Donegal Insurance Group. The Donegal Insurance Group has an A.M. Best rating of A (Excellent).
The Company’s Class A common stock and Class B common stock trade on NASDAQ under the symbols DGICA and DGICB, respectively. As an effective acquirer of small to medium-sized “main street” property and casualty insurers, Donegal Group has grown profitably since its formation in 1986. The Company continues to seek opportunities for growth while striving to achieve its longstanding goal of outperforming the property and casualty insurance industry in terms of service, profitability and growth in book value.
For Further Information:
Jeffrey D. Miller
Executive Vice President & Chief Financial Officer
Phone: (717) 426-1931
E-mail: investors@donegalgroup.com