Donegal Group Inc. (NASDAQ:DGICA) Files An 8-K Regulation FD Disclosure
Item7.01.
| Regulation FD Disclosure. |
On December16, 2016, Donegal Mutual Insurance Company (Donegal
Mutual) issued a press release, a copy of which is attached to
this Form 8-K Report as Exhibit 99.1 and is incorporated by
reference in this Form 8-K Report.
| Item8.01. | Other Events. |
Donegal Mutual and Mountain States Mutual Casualty Company
(Mountain States) have signed an agreement (the Agreement)
whereby, subject to various closing conditions that include
applicable regulatory approvals and the approval of the
policyholders of Mountain States, Mountain States will merge with
and into Donegal Mutual (the Merger). Donegal Mutual will be the
surviving company in the merger, and Mountain States insurance
subsidiaries, Mountain States Indemnity Company and Mountain
States Commercial Insurance Company, will become insurance
subsidiaries of Donegal Mutual.
Mountain States currently conducts business together with its
insurance subsidiaries as the Mountain States Insurance Group in
the states of Colorado, New Mexico, Texas and Utah. The Mountain
States Insurance Group writes commercial lines of insurance and
had net premiums written of $42.3 million in 2015.
Donegal Mutual owns approximately 73% of the aggregate voting
control of Donegal Group Inc. (DGI) through its ownership of
approximately 46% of the outstanding shares of DGIs ClassA common
stock and approximately 83% of the outstanding shares of DGIs
Class B common stock.
DGI is not a party to the Agreement and will have no financial
interest in, or impact from, the Merger. For an indefinite period
of time following the consummation of the Merger, Donegal Mutual
will exclude the business of the Mountain States Insurance Group
from its pooling agreement with Atlantic States Insurance Company
(Atlantic States), an insurance subsidiary of DGI. Under the
pooling agreement, Donegal Mutual and Atlantic States currently
pool substantially all of their respective premiums, losses and
loss expenses and share the underwriting results in proportion to
their respective participation in the underwriting pool.
| Item9.01. | Financial Statements and Exhibits. |
|
ExhibitNo. |
Exhibit Description |
|
| 99.1 | Donegal Mutual press release dated December 16, 2016. |
-2-
About Donegal Group Inc. (NASDAQ:DGICA)
Donegal Group Inc. (DGI) is an insurance holding company whose insurance subsidiaries offer personal and commercial lines of property and casualty insurance to businesses and individuals in over 21 Mid-Atlantic, Midwestern, New England and Southern states. The Company has four segments, which consist of its investment function, its personal lines of insurance, its commercial lines of insurance and its investment in Donegal Financial Services Corporation (DFSC). The Company primarily operates through two segments: personal lines of insurance and commercial lines of insurance. The personal lines of insurance, which its insurance subsidiaries write consists primarily of private passenger automobile and homeowners insurance. The commercial lines of insurance, which its insurance subsidiaries write consists primarily of commercial automobile, commercial multi-peril and workers’ compensation insurance. It holds interests in DFSC, which is a unitary savings and loan holding company. Donegal Group Inc. (NASDAQ:DGICA) Recent Trading Information
Donegal Group Inc. (NASDAQ:DGICA) closed its last trading session up +0.77 at 18.06 with 138,848 shares trading hands.
