Donegal Group Finalizes Sheboygan Falls Deal

Donegal Group Inc. has completed the acquisition of all of the outstanding capital stock of Sheboygan Falls Insurance Company. The acquisition consideration was approximately $12.0 million, which includes a surplus contribution of $8.5 million to support the future premium growth of Sheboygan Falls.

Sheboygan Falls, which operates only in Wisconsin, underwrites a broad line of personal lines products, including auto, homeowners, dwelling fire and umbrella coverages. It also underwrites commercial products, including commercial package policies, commercial fire, general liability and workers' compensation. Sheboygan Falls estimates that it will report approximately $8.0 of net written premium for 2008.

Donegal Group Inc. is a property and casualty insurance holding company whose insurance subsidiaries offer personal and commercial lines of insurance to businesses and individuals in five Mid-Atlantic states (Delaware, Maryland, New Hampshire, New York and Pennsylvania), eight Southeastern states (Alabama, Georgia, Louisiana, North Carolina, South Carolina, Tennessee, Virginia and West Virginia) and six Midwestern states (Iowa, Nebraska, Ohio, Oklahoma, South Dakota and Wisconsin).