Donegal: Losses from storms reduce Q4 earnings

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February 16. 2012 8:00AM - Last modified: February 16. 2012 8:19AM

By Tim Stuhldreher

Donegal Group Inc. expects to report a net loss of 3 cents to 5 cents per Class A share for the fourth quarter of 2011 due to unusually heavy losses from the year's severe weather, the Marietta-area insurance holding company said Wednesday.

Fourth-quarter results will reflect $7.1 million in losses from weather in the first nine months of 2011, Donegal said in a statement. In addition, Donegal covered $5 million in weather losses and $6.5 million in fire losses in the fourth quarter, the firm said.

One analyst had expected fourth-quarter earnings of 28 cents per Class A share for Donegal, according to Yahoo Finance.

In June, Donegal said it would take a $13 million to $15 million hit to its second-quarter earnings due to losses from storms in April and May.

Donegal said it will discuss results further in its quarterly conference call and Web cast, set for Feb. 24.

Donegal companies sell property and casualty insurance in more than 20 states in the East, South and Midwest. Its shares trade on the Nasdaq under the ticker symbols DGICA and DGICB.