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DONEGAL MUTUAL ASSUMES MANAGEMENT OF PIONEER MUTUAL

 DONEGAL MUTUAL ASSUMES MANAGEMENT OF PIONEER MUTUAL
 MARIETTA, Pa., April 2 /PRNewswire/ -- Donegal Mutual Insurance


Company, the holder of approximately 85 percent of Donegal Group Inc. (OTC: DGIC) outstanding common stock, announced they have received final approval from the Ohio Insurance Department to assume management of Pioneer Mutual Insurance Company of Greenville, Ohio.
 Pioneer is an Ohio domiciled property and casualty insurance company doing business in Ohio and Indiana with direct premiums written of approximately $4,000,000 in 1991. Final transfer of management is anticipated to take place on April 3, 1992, at which time Donegal Mutual would purchase a surplus note of Pioneer and nominees of Donegal Mutual will constitute a majority of Pioneer Mutual's board of directors.
 As part of the approvals received from the Ohio Insurance Department, Donegal Mutual was also admitted to the state of Ohio for the writing of property and casualty insurance.
 "We believe that this transaction will enable Donegal to expand its underwriting presence into two very desirable marketplaces, Ohio and Indiana, more quickly than would otherwise have been the case" stated Donald H. Nikolaus, president. "Further, the additional infusion of capital into Pioneer will enable it to have a firm financial foundation to expand in its current markets. We have been successful in the past in growing a similar acquisition and look forward, with confidence, to expanding Donegal Mutual's marketing reach," added Mr. Nikolaus.
 -0- 4/2/92
 /CONTACT: Ralph G. Spontak, senior vice president/secretary of Donegal Group Inc., 717-426-1931/
 (DGIC) CO: Donegal Mutual Insurance Company; Pioneer Mutual Insurance ST: Pennsylvania IN: INS SU: TNM


AH -- NY073 -- 4575 04/02/92 16:58 EST
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Publication:PR Newswire
Date:Apr 2, 1992
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