Donegal Group Inc. Announces New Executive Incentive Plans

Donegal Group Inc. has approved new Annual and Long-Term Executive Incentive Plans, effective December 18, 2025. These plans aim to motivate and retain executive officers by linking bonuses to financial objectives. The Annual Plan rewards achievement of commercial lines premium growth, statutory combined ratio targets for the Donegal Insurance Group, and operating return on equity for the Company in fiscal year 2026. The Long-Term Plan is based on achieving a target average statutory combined ratio for the Donegal Insurance Group over the fiscal years 2026-2028, with a potential reduction if annual targets are missed. Both plans allow for discretionary bonuses and include adjustments for incentive payments, equity compensation, and catastrophe events. The Compensation Committees retain discretion over bonus amounts. Further details will be provided in the Company's 2026 Proxy Statement.