Donegal Group Inc. Announces Inclusion of Mountain States Insurance Business in Donegal Underwriting Pool

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[{"type":"text","content":"MARIETTA, Pa., Jan. 15, 2021 (GLOBE NEWSWIRE) -- Donegal Group Inc. (NASDAQ:DGICA) and (NASDAQ:DGICB) today announced that its 2021 consolidated financial results will begin to include the business Donegal Mutual Insurance Company (“Donegal Mutual”) and its subsidiaries generate in four Southwestern states. Donegal Mutual and its subsidiaries have marketed commercial products in the Southwestern region as the Mountain States Insurance Group (“Mountain States”) since the May 2017 merger of Mountain States Mutual Casualty Company with and into Donegal Mutual. For the year ended December 31, 2020, Mountain States had net premiums written of approximately $48.5 million in the states of Colorado, New Mexico, Texas and Utah. Kevin G. Burke, President and Chief Executive Officer of Donegal Group Inc., commented, “We are pleased with the transformation of Mountain States since Donegal Mutual’s acquisition of that business operation in 2017. Donegal Mutual provided significant resources and operational support over the past several years to fully integrate the Mountain States operations and return them to underwriting profitability. The inclusion of the Mountain States insurance business in the pooling agreement represents a continuation of the multi-faceted acquisition strategy Donegal Group Inc. has shared with Donegal Mutual over the past 30 years.” For policies effective January 1, 2021 and thereafter, Donegal Mutual will include the insurance business of Mountain States in its pooling agreement with Atlantic States Insurance Company (“Atlantic States”), an insurance subsidiary of Donegal Group Inc. Pursuant to the pooling agreement, Atlantic States has an 80% share of the results of the pooled business. Therefore, Donegal Group Inc.’s consolidated financial results will include 80% of the net underwriting results of Mountain States for policies effective in 2021 and subsequently. About the Company Donegal Group Inc. is an insurance holding company whose insurance subsidiaries and affiliates offer personal and commercial property and casualty lines of insurance in 24 Mid-Atlantic, Midwestern, New England, Southern and Southwestern states. Donegal Mutual Insurance Company and the insurance subsidiaries of Donegal Group Inc. conduct business together as the Donegal Insurance Group. The Donegal Insurance Group has an A.M. Best rating of...

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