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DGICB - Donegal Inc News Story

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Last Trade - 19/04/21

Sector
Financials
Size
Small Cap
Market Cap £327.3m
Enterprise Value £317.8m
Revenue £562.4m
Position in Universe 3624th / 6847

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

Fri 15th January, 2021 2:00pm
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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 A (Excellent).

The Class A common stock and Class B common stock of Donegal Group Inc. trade
on the NASDAQ Global Select Market under the symbols DGICA and DGICB,
respectively. We are focused on several primary strategies, including
achieving sustained excellent financial performance, strategically modernizing
our operations and processes to transform our business, capitalizing on
opportunities to grow profitably and delivering a superior experience to our
agents and customers.

Safe Harbor

We base all statements contained in this release that are not historic facts
on our current expectations. These statements are forward-looking in nature
(as defined in the Private Securities Litigation Reform Act of 1995) and
involve a number of risks and uncertainties. Actual results could vary
materially. Factors that could cause actual results to vary materially
include: our ability to attract new business, retain existing business and
collect balances due to us as a result of the prolonged economic challenges
resulting from the COVID-19 pandemic, adverse and catastrophic weather events,
our ability to maintain profitable operations, the adequacy of the loss and
loss expense reserves of our insurance subsidiaries, business and economic
conditions in the areas in which our insurance subsidiaries operate, interest
rates, competition from various insurance and other financial businesses,
terrorism, the availability and cost of reinsurance, legal and judicial
developments including those related to COVID-19 business interruption
coverage and exclusions, changes in regulatory requirements and other risks we
describe in the periodic reports we file with the Securities and Exchange
Commission. You should not place undue reliance on any such forward-looking
statements. We disclaim any obligation to update such statements or to
announce publicly the results of any revisions that we may make to any
forward-looking statements to reflect the occurrence of anticipated or
unanticipated events or circumstances after the date of such statements.

For Further Information:

Jeffrey D. Miller, Executive Vice President & Chief Financial Officer 
Phone: (717) 426-1931
E-mail: investors@donegalgroup.com

Adam Prior, Senior Vice President, The Equity Group Inc.
Phone: (212) 836-9606
E-mail: aprior@equityny.com




GlobeNewswire, Inc. 2021
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