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DONEGAL MUTUAL INSURANCE ASSUMES MANAGEMENT CONTROL OF DELAWARE MUTUAL INSURANCE

 MARIETTA, Pa., Jan. 12 /PRNewswire/ -- Donegal Group Inc. (NASDAQ: DGIC) reported that its affiliate, Donegal Mutual Insurance Company, has assumed management control of Delaware Mutual Insurance Company of New Castle, Del. in the completion of a previously announced transaction.
 Donegal Mutual infused capital into Delaware Mutual through the purchase of a $2 million surplus note. The two companies also entered into a formal management agreement which effectively gives Donegal Mutual complete control over the day to day operations of Delaware Mutual.
 Delaware Mutual is Delaware's oldest insurance institution and was founded in 1839. It writes a broad range of insurance overages and will focus on the homeowners, personal lines and small commercial insurance markets. Delaware Mutual wrote approximately $10.1 million of direct premium in 1992 and is represented by more than 85 independent agents in Delaware and Maryland.
 Obtaining management control of Delaware Mutual will give Donegal a stronger position in the Delaware marketplace and provide a base of operation within the state of Delaware.
 Donegal Group Inc. is a regional property-casualty insurance holding company doing business in Pennsylvania, Virginia, Maryland, Ohio and Delaware through its wholly owned subsidiaries, Atlantic States Insurance Company and Southern Insurance Company of Virginia.
 -0- 1/12/94
 /CONTACT: Ralph G. Spontak, Senior Vice President and Chief Financial Officer of Donegal Group Inc., 717-426-1931/
 (DGIC)


CO: Donegal Group Inc.; Donegal Mutual Insurance Company; Delaware
 Mutual Insurance Company ST: Pennsylvania, Delaware IN: INS SU: TNM


LG -- NY062 -- 1442 01/12/94 14:20 EST
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Publication:PR Newswire
Date:Jan 12, 1994
Words:249
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