Donegal Mutual Insurance Company operates as a mutual fire and accident insurance entity concentrating on providing a flexible range of personal, agricultural and commercial products. It also underwrites coverage for personal and commercial insurance. The company itself uses a network of around 1,200 independent insurance agents as a medium when offering its wide selection of insurance products to the market. These agents they turn to are generally from Pennsylvania, Virginia, Ohio, Maryland, Delaware, North Carolina; and the entirety of the Mid-Atlantic, Southeast and Midwest regions of the country.
Previously, the company was officially known as Donegal and Conoy Mutual Fire Insurance throughout the industry. Founded in 1889, it established its headquarters in Marietta, Pennsylvania. It was originally set up by farmers throughout the area as their protection from the potentially disastrous financial impact of the loss of their personal property due to a fire. After a while, the company name was finally changed to the Donegal Mutual Insurance Company that everyone knows about today.
Strong and healthy financial foundation combined with very successful operating principles and strategies earned an “A” (which stands for excellent) rating from A.M. Best company. In 1986, Donegal Mutual planned the formation of a top-down holding company that still deals with insurance, Donegal Group Incorporated. An insurance portfolio company works just like a normal commercial corporation that owns insurance companies Surety Bonds
, but the problem is that it is not actual insurance itself. Donegal Group Incorporated made an initial offering of common shares to the purchasing public in a plan in which Donegal Mutual retained a majority stake. There are now two separate types of Donegal Group Incorporated common stock currently listed on NASDAQ symbolized by DGICA and DGICB.
Another company joined the fold in that bumpy 1986 called Atlantic States Insurance. It is more of a wholly owned subsidiary of Donegal Group Incorporated, where it had a pooling agreement with that of Donegal Mutual, that both companies will be allocated a certain percentage of the combined underwriting results. Three years later, Donegal Group Incorporated began expanding its influence and geographic area specifically in the state of Virginia by acquiring Southern Insurance of Virginia.
The 1990s saw large acquisitions completed of Delaware-based Delaware Atlantic Insurance Company, Ohio-based Pioneer Insurance Company, Georgia-based Southern Heritage Insurance, and Pioneer of New York. These far-reaching acquisitions of the Donegal Insurance Group gave it the ability to offer and provide insurance products in all of these regions served by these acquired companies.