Donegal Group Inc (NASDAQ:DGICB) Q2 2019 Earnings Conference Call - Final Transcript
Jul 30, 2019 • 11:00 am ET
Good morning. My name is Cheryl, and I will be your conference operator today. At this time, I would like to welcome everyone to the Donegal Group Inc Q2 2019 Earnings Conference Call. [Operator Instructions]
Jeff Miller, Chief Financial Officer, you may begin your conference.
Jeffrey D. Miller
Thank you very much. Good morning, everyone, and welcome to the Donegal Group Conference Call for the second quarter and first half ended June 30th, 2019. Yesterday afternoon, we issued a news release outlining our quarterly results. For a copy of that release, please visit the Investor Relations section of our website at www.donegalgroup.com. In today's call, Kevin Burke, President and Chief Executive Officer, will discuss a number of our recent developments and update you on our business strategy and initiatives. And I'll follow his comments with a brief overview of our quarterly financial details. Following our prepared comments, we will open the line for any questions you might have. Before we get started, you should be aware that our commentary today includes forward-looking statements that involve a number of risks and uncertainties. We described forward-looking statements in our news release, and we provided further information about risk factors that could cause actual results to differ materially from those we project in the forward-looking statements in the report on Form-10K that we submitted to the SEC.
You can access our Form-10K through the investors' section of our website under the SEC filings link. We used certain non-GAAP financial measures to analyze our business results and refer you to the reconciliation of non-GAAP information included in the news release we issued yesterday. With that, I'll turn it over to Kevin.
Kevin G. Burke
Thanks, Jeff, and welcome, everyone. Main theme over the first half of 2019 has been a gradual shift of our mix of business towards commercial lines where we see a greater opportunity to achieve consistent underwriting profits.
This shift is evident in our second quarter premiums, where our commercial premiums represented approximately 52% of our total writings. We grew commercial lines by nearly 14% in the second quarter, which helped to drive higher underwriting profit and net income of $4.8 million or $0.17 per class a share for the period.
In addition, we are continuing to evaluate and implement underwriting and rate actions within our Personal Lines business segment, with the goal of showing marked improvement in future quarters.
Our commercial lines growth was largely the result of new business writings, as we are concentrating on growing our market share in geographical markets where we can both increase our scale and also compete profitably. As account writers, the growth was spread across our commercial business lines, which each of our lines growing by at least 9% during the quarter.
Commercial auto premiums increased by approximately 12%, largely due to premium rate increases that averaged over 8% during the quarter. In spite of mandated rate reductions in a number of states, our worker's compensation premiums grew by 9%, and commercial multi peril, which ranges from small BOP policies