MARIETTA, Pa., Sept. 22 /PRNewswire-FirstCall/ -- Donegal Group Inc. (NASDAQ:DGICANASDAQ:DGICB) today reported that certain members of the Donegal Insurance Group have entered into an Acquisition Rights Agreement (the "Agreement") with The Shelby Insurance Company and Shelby Casualty Insurance Company (together "Shelby"). The Agreement grants those members the right, in their discretion and subject to their traditional underwriting and agency appointment standards, to offer renewal or replacement policies to the holders of Shelby's automobile, homeowners and dwelling fire policies in Pennsylvania, Tennessee and Alabama. The Agreement is pursuant to Shelby's plans of withdrawal from those three states. Shelby is a part of Vesta Insurance Group, Inc. (NYSE:VTA).
As part of the Agreement, the Donegal Insurance Group will pay specified amounts to Shelby based on the direct gross premiums written by the Donegal Insurance Group on the renewal and replacement policies it issues.
Donegal Group Inc. is an insurance holding company whose insurance subsidiaries offer personal and commercial property and casualty lines of insurance in six Mid-Atlantic states (Connecticut, Delaware, Maryland, New Hampshire, New York and Pennsylvania), eight Southeastern states (Alabama, Georgia, Louisiana, North Carolina, South Carolina, Tennessee, Virginia and West Virginia) and five Midwestern states (Iowa, Nebraska, Ohio, Oklahoma and South Dakota). Donegal Group Inc.'s insurance subsidiaries and Donegal Mutual Insurance Company conduct business as the Donegal Insurance Group.
All statements contained in this press release that are not historic facts are based on current expectations. Such statements are forward-looking (as defined in the Private Securities Litigation Reform Act of 1995) in nature and necessarily involve a number of risks and uncertainties. Actual results could vary materially. The factors that could cause actual results to vary materially include, but are not limited to, the ability of Donegal Group Inc. to maintain profitable operations, the adequacy of the Donegal Group Inc.'s reserves for losses and loss adjustment expenses, business and economic conditions in the areas in which Donegal Group Inc. operates, competition from various insurance and non-insurance businesses, terrorism, legal and judicial developments, changes in regulatory requirements and other risks that are described from time to time in Donegal Group Inc.'s filings with the Securities and Exchange Commission. Donegal Group Inc. disclaims any obligation to update such statements or to announce publicly the results of any revisions that may be made to any forward-looking statements to reflect the occurrence of anticipated or unanticipated events or circumstances after the date of such statements. DATASOURCE: Donegal Group Inc.
CONTACT: Donald H. Nikolaus, President and Chief Executive Officer, Donegal Group, +1-717-426-1931, Fax: +1-717-426-7009 Web site: http://www.donegalgroup.com/
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