Good morning and thank you for joining us today. This morning, Donegal Group issued its Fourth Quarter and Full-Year 2022 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. After management remarks, there will be a question-and-answer session for questions submitted ahead of the call. Speaking today will be President and Chief Executive Officer, Kevin Burke; Chief Financial Officer, Jeff Miller; Chief Underwriting Officer, Jeff Hay; Senior Vice President, Field Operations, 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 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 it over to Mr. Kevin Burke. Kevin?

Thank you Karin, and welcome everyone. From a growth and profitability perspective, our performance in the fourth quarter of 2022 largely reflected a continuation of the trends we experienced throughout the year. Anyone following the insurance industry knows how impactful the current inflationary environment has been for insurance carriers. The historically unprecedented spike in loss costs has caused particularly harsh impacts to carriers with substantial volumes of personal lines business, where the process of obtaining regulatory approvals extends the timeline for implementing rate actions that are necessary to respond to the rapid increases in loss costs and generate profit improvement. While our 2022 financial results did not meet our long-term profitability target, I am proud of the diligent efforts of the entire Donegal team as we continued to navigate through the inflationary challenges and took aggressive actions to position our company for future growth and success. We made significant progress on a number of strategic initiatives during the year, and I will provide a summary overview of our accomplishments during the year in the call today. I will then hand the call over to Jeff Miller for a review of the financial details, who will then be followed by Jeff Hay for a deeper dive into our commercial and personal lines segment performance. You will also hear from Dan DeLamater, the head of field operations for the Donegal Insurance Group, who will provide you his perspective on our sales and marketing efforts and opportunities as we move into 2023. Tony Viozzi will end our prepared remarks with an investment update before we respond to questions we received in advance of this call. We had several strategic areas of focus for 2022, and I am pleased with the progress we made in each of them. First, we maintained growth momentum within…

Thank you, Kevin. For the fourth quarter of 2022, net premiums earned grew by 6.5% to $213 million. We achieved net premium written growth of 10.2%, which was mostly related to higher new business writings in personal lines, strong retention results, and premium rate increases that averaged 8.9% for all lines, excluding workers’ compensation. Our underwriting results were impacted by elevated weather-related losses and ongoing inflationary pressures on loss costs for property and automobile physical damage coverages. The overall combined ratio for the fourth quarter of 2022 was 102.8%, compared to 101.6% for the prior-year quarter. The deterioration of the combined ratio was primarily driven by an increase in the expense ratio, which we primarily attribute to higher technology costs related to our ongoing systems modernization initiatives. The fourth quarter loss ratios were comparable for 2022 and 2021, as higher weather-related losses in the fourth quarter of 2022 were largely offset by a higher benefit of net favorable development of reserves for losses incurred in prior accident years, compared to the prior-year quarter. Weather-related losses totaled $16.5 million, or 7.7 percentage points on the loss ratio for the fourth quarter of 2022. We incurred $5 million in losses from Winter Storm Elliott in late December, with our reinsurance agreement with Donegal Mutual limiting the net impact to that amount. The total quarterly weather claim impact was higher than our previous five-year average of 4.4 percentage points for the fourth quarter. We experienced favorable net development of reserves for losses incurred in prior accident years of $14.2 million, or a [6.7-point] [ph] reduction in the loss ratio for the fourth quarter of 2022, compared to $5.3 million, or a [2.7-point] [ph] reduction in the loss ratio for the same period last year. Our insurance subsidiaries experienced favorable development, primarily related to…

Thank you, Jeff. While our underwriting results for the fourth quarter and full-year 2022 fell short of our long-term profit objective, we did take aggressive steps throughout 2022 to improve our results across our operations. As I summarize the drivers of the fourth quarter results in both the commercial and our personal lines segments, I will also discuss many of the actions we have taken to date, along with additional actions we plan to take to generate more favorable results in future periods. I’ll start with our commercial lines segment. We continued our controlled growth momentum in commercial lines net written premiums for the quarter, taking a more conservative approach to new business opportunities as we continue to manage through the challenging inflationary impact on loss trends. Premium retention remained strong in the fourth quarter – holding in the mid-90 percentage range across most of our lines of business, largely resulting from a strong quarterly average rate increase of 9.4%, excluding workers’ compensation. Retention levels were lower in our Midwest and Southeast regions where we are taking more aggressive non-renewal actions to drive profit improvement. We also experienced a lower average negative rate impact in workers’ compensation, as we utilized various underwriting levers to offset filed bureau loss cost decreases where our experience warrants that action. I mentioned in prior calls that we had refined the commercial auto rate guidance we provide to our underwriters, thereby enabling them to pursue more rate on risks that are underpriced in order to accelerate improved margins within their risk portfolios. I am pleased to report that we are achieving stronger rate increases in our lowest margin business and maintaining higher retention levels in our highest margin business. We are now providing similar rate guidance for other lines of business in our commercial lines…

Thank you, Jeff. I’m excited for the opportunity to share some details about the sales and marketing efforts at Donegal. First and foremost, an important distinctive for Donegal, and one that we believe provides tremendous benefit and opportunity is that we distribute our products solely through independent agents. In 2022, our agency partners continued to provide new business opportunities to us that resulted in over $100 million in new business writings, with over 70% of that new business in commercial lines. Our agents also helped us to retain quality accounts in-spite of significant price increases that were made necessary by the spike in inflation over the past year. It’s important to note that our appointed agency relationships include hundreds of traditional, independently-owned agencies, as well as hundreds more agencies who have either joined a larger membership group or sold to a national or regional organization. Mergers and acquisitions within the independent agency channel have set all-time-high records for several years running. While this activity has brought significant amounts of new capital into the distribution side of the insurance business, agency ownership changes have also created a challenging competitive landscape for insurance carriers. We are dealing with these market challenges head-on by working strategically with 12 national account organizations that represent agencies responsible for approximately 30% of our total premium portfolio. While we will continue to maintain strong relationships with our traditional agents who have contributed to our growth and success over many years, we view our relationships with these expanding national account organizations as significant opportunities for profitable future growth. Kevin mentioned our progress in the implementation of new underwriting systems and products. In addition to these advancements, we are also enhancing the sophistication of our sales and marketing efforts with excellent data and automation tools at our fingertips. New and improved business intelligence and CRM capabilities are providing greater insights into market opportunities and agency performance. These resources are helping us identify prospective customers, perpetuate customer and premium retention, manage agency growth and profitability, and to further support our best-in-class service commitment to our agents. We remain focused on providing excellent products and service to ensure we are there when it matters most for our agents and policyholders. At Donegal, our goal is to build an effective and efficient sales process for current and prospective policyholders that our independent agents entrust to us. With all of our advancements in product development and underwriting acumen, we proudly remain a relationship-driven, people-first company. With that, I will turn it over to Tony for an update on our Investments segment.

Thank you, Dan. For the fourth consecutive quarter, we increased average investment yields with the fourth quarter average yield up 31 basis points from a year ago to 2.90%. This increase was driven by rising market rates and selectively moving into the most attractive spread products. Additionally, our average reinvestment yield again exceeded that of the maturities, calls, and MBS cash flow we received, by approximately 200 basis points for the quarter. Total invested assets rose by $27.8 million, or 2%, from December 31, 2021. Net investment income increased to $9.4 million, up 14.5%, compared to the fourth quarter of 2021, as a result of an increase in average investment assets, as well as the increase in portfolio yield. We expect ongoing improvement in our investment income throughout 2023, as we believe cash equivalent rates will increase and fixed income rates will stabilize as we progress through the year. Net investment gains of $626,000 were down more than 50%, compared to the prior-year quarter, but we were pleased to see an increase in the market value of the equity securities after experiencing significant declines earlier in the year. While equity markets remain volatile, the performance of our relatively modest equity portfolio was generally in-line with that of the S&P 500 index. We made a conscious decision to decrease our equity exposure by nearly half over the course of 2022, and we shifted into a heavier weighting of value style stocks. We also experienced a significant decline in our fixed-income portfolio as market interest rates rose sharply during the year. However, we believe that our laddered maturities, coupled with our conservative investment philosophy, and flexibility in managing our overall portfolio, has put us in a solid position to recover those rate-driven declines as we hold those investments to their stated maturities. The decrease in the market value of our available-for-sale bonds reduced our book value by $1.39 in 2022. Other business drivers also contributed to an overall book value decline of $2.16, or 12.7%, from December 31, 2021, ending 2022 at $14.79. We expect to grow our book value through improved operating results and through a recovery of the market value of our bonds over time. I will now turn it back to Karin, our Investor Relations consultant.

Thank you, Tony. Moving onto our Question-and-Answer Session. We requested and received questions from interested parties in advance of today’s call. While we have worked answers to most questions into our prepared remarks, we will address a few of the questions directly. The first question is, given commentary by many market participants that this year’s renewal was the hardest market they have seen in their lifetime, did Donegal Mutual and the Donegal Group subsidiaries make any notable changes to their reinsurance program, and will your reinsurance costs increase for 2023?

This is Jeff Miller, and I’ll be glad to respond to that question. Donegal Mutual and the insurance subsidiaries of Donegal Group purchase reinsurance together to achieve economies of scale. We have historically purchased reinsurance coverage at relatively conservative loss retention levels, because reinsurance costs were generally reasonable at lower retention levels due to our relatively conservative risk profile. But as the question suggested, our experience was similar to other reinsurance purchasers who found it challenging to renew coverage at January 1. Based on some preliminary discussions we had with many of our reinsurers last October, we expected that we would be pressured to increase loss retentions under our reinsurance program for 2023, and we performed various analyses to model the impact of potential changes on our group’s economic capital. That analysis served us well as we proceeded through the renewal process, and with the assistance of our reinsurance intermediary, we were able to successfully renew our program for 2023 with increases to retention amounts for several of the programs that remained well within our risk tolerances. We increased our per-risk retentions for property and casualty losses from $2 million for 2022 to $3 million for 2023. That change did not apply to workers’ compensation losses, for which our retention remains at $2 million per loss. For property catastrophe reinsurance, we increased our external reinsurance retention from $15 million per event for 2022 to $25 million per event for 2023. However, I would hasten to point out that Donegal Mutual continues to provide underlying catastrophe reinsurance protection for the subsidiaries of Donegal Group Inc. The individual Donegal Group Inc. subsidiary retention was increased from $2 million per event for 2022 to $3 million per event for 2023. The aggregate retention for any event that impacts multiple subsidiaries was increased from $5 million for 2022 to $6 million for 2023. Therefore, relative to 2022, the incremental increase in losses Donegal Group Inc. will retain for any catastrophe event in 2023 is limited to $1 million. As a result of increasing our reinsurance retentions, we will have a modest reduction in our reinsurance premium spend compared to 2022, with projected reinsurance premium savings for the Donegal Group Inc. subsidiaries of approximately $1.8 million for the year.

Thank you for that update, Jeff. The next question relates to medical inflation. Are you seeing any material changes in medical inflation impacting your book? And how should we be thinking about Donegal’s potential exposure to medical inflation more broadly?

This is Jeff Hay and I can take that one Karin. In my prepared remarks, I discussed the impact that inflation and supply chain disruption is having on our loss cost trends, but that is primarily impacting property and auto physical damage coverages. Medical inflation also impacts several of our products, primarily affecting bodily injury liability claims under personal and commercial auto coverages, as well as claims for incidents such as slips and falls under general liability coverages, and the medical costs related to injuries covered by workers’ compensation policies. While we are continuing to experience inflation impact on these medical-sensitive loss costs, it has been more stable and predictable than for physical damage claims. Medical inflation is captured within our bodily injury claim severity trend, for which our current increase is in the 7-8% range. A modest downward trend in loss frequency for bodily injury claims has partially offset the severity increase over the past few years and we account for these trends in our pricing strategies.

Thank you. The next question relates to workers’ compensation. Can you dig deeper into the workers’ comp trends? What are you seeing from a pricing perspective, changes in loss trend, reserving or reserve development standpoint, and is there anything you’re watching or concerned about?

Jeff Hay here again. As I said in my response to the previous question, medical costs are increasing, but to a lesser extent for workers’ compensation claims and that’s for a few reasons. Primarily, lower utilization is tempering the medical loss costs for this line, and this is an industry-wide phenomenon. Utilization relates to the number of services needed to treat an injured worker. We and other carriers are seeing a shift from inpatient to outpatient procedures and a movement away from opioids & toward generic drugs. In some cases, MRIs and other medical services are becoming less expensive. Those factors and other advances in medical treatments have contributed to lower utilization that has helped to offset inflation in the costs of medical services generally. There are a few other factors impacting workers’ comp loss trends, the low unemployment level is driving wage costs higher, but wage inflation is not uniform across all industries. Lower wage earners are seeing larger increases, and there has been a shifting workforce, which is having varying impacts by industry and class of business. With generally higher wages and less experienced workers for the construction and manufacturing classes, we do see greater risk of higher loss costs in those classes. With all that said, our loss trends for the workers’ comp remain favorable overall. Our premiums have declined as a result of continued aggressive bureau rate decreases in the mid-single digits, which we are working to offset through discretionary pricing actions to the extent possible. And as far are reserve and reserve development is concerned, we have had consistent favorable reserve development in worker’s comp over many years. While we closely monitor the loss trends I just discussed, we have not made any significant changes to our philosophy or approach to reserving for this line.

Thank you, Jeff. The next question pertains to reserve development. Can you provide a breakdown of the reserve development by line of business and any color on the drivers of that development?

Sure Karin, this is Jeff Miller. For the fourth quarter, we had $14.2 million of favorable reserve development in total, mainly comprised of $7 million in commercial auto, $2.8 million in homeowners, $2.5 million in personal auto, $1.6 million in other commercial, which is primarily commercial umbrella liability, and $900,000 in workers’ compensation. For the full-year, we had $44.8 million of favorable reserve development in total, mainly comprised of $18.4 million in commercial auto, $10.8 million in personal auto, $4.8 million in homeowners, $4.8 million in workers’ compensation, and $4.3 million in commercial multi-peril. As far as drivers are concerned, the actual emergence of paid loss and case reserve activity, primarily for the 2020 and 2021 accident years, was more favorable than anticipated based on historical averages. Particularly for our commercial and personal automobile lines of business, the lower emergence was due to a combination of favorable loss settlements and the benefits we realized from various profit improvement initiatives, including significant reductions of exposures in the State of Georgia over the past few years.

Thank you. The last question relates to capital management. Could you provide us an update on your approach to capital management and where your priorities stand heading into 2023?

Jeff Miller again. We’ve taken a very consistent approach to capital management, utilizing cash dividends as the primary means of returning capital to our shareholders. We believe this approach appropriately rewards long-term shareholders, and our dividend yield continues to rank among the highest of our regional insurance peers. We continue to focus on growing book value by generating favorable operating returns, and we do not expect any material change in our approach to capital management in the foreseeable future.

Thank you for that update, Jeff. If there are any additional questions, please feel free to reach out to us. I will now turn it back to Mr. Kevin Burke for final remarks.

Thanks Karin. While there was significant weather-related and large loss impact to the fourth quarter and full-year results, we are pleased with the execution and initial benefits of our various strategic initiatives. We are confident that the substantial improvements we are making to our operations will allow us to better serve our agents and policyholders for the years to come, while our focus on improving our results will lead us to sustainable profitability. Thanks for joining us today.

This now concludes the fourth quarter and full-year 2022 earnings webcast. You may now disconnect.