UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
Current Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act
of 1934
Date of Report (Date of earliest event reported): January 2, 2004
Donegal Group Inc.
(Exact name of registrant as specified in its charter)
Delaware 0-15341 23-02424711
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(State or other jurisdiction (Commission (I.R.S. Employer
of incorporation) File Number) Identification No.)
1195 River Road, Marietta, Pennsylvania 17547
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including areacode: 717-426-1931
N/A
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(Former name or former address, if changed since last report)
Item 5. Other Events.
On January 2, 2004, Donegal Group Inc. (the "Company") issued
a press release, a copy of which is filed as Exhibit 99.1 hereto, announcing the
acquisition of all of the outstanding capital stock of Le Mars Insurance Company
("Le Mars"), the successor to Le Mars Mutual Insurance Company of Iowa following
its conversion to a stock insurance company pursuant to a plan of conversion.
The Company acquired the capital stock of Le Mars for approximately $12.5
million.
Le Mars operates as a multiple line carrier in Iowa, Nebraska,
Oklahoma and South Dakota. Personal lines coverages represents a majority of
premiums written, with the balance coming from farmowners and mercantile and
service businesses. Le Mars' largest line of business is private passenger
automobile liability and physical damage; other principal lines include
homeowners and commercial multi-peril.
On January 6, 2004, the Company issued a press release, a copy
of which is filed as Exhibit 99.2 hereto, announcing the January 6, 2004
acquisition of all of the outstanding common stock of The Peninsula Insurance
Company ("Peninsula Insurance") and Peninsula Indemnity Company ("Peninsula
Indemnity") from Folksamerica Holding Company, Inc. pursuant to a Stock Purchase
Agreement. The purchase price of approximately $23.3 million was a cash payment
equal to 107.5% of the consolidated GAAP stockholders' equity of Peninsula
Insurance and Peninsula Indemnity as of the date of closing of the acquisition.
Peninsula Insurance and Peninsula Indemnity are each
Maryland-domiciled insurance companies headquartered in Salisbury, Maryland that
write primarily private passenger automobile coverages, and also write
homeowners, commercial multi-peril, workers' compensation and commercial
automobile coverages. The principal operating area of Peninsula Insurance and
Peninsula Indemnity is Maryland, Delaware and Virginia.
Item 7. Financial Statements and Exhibits.
(c) Exhibits.
See Exhibit Index.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
DONEGAL GROUP INC.
By:__________________________
Donald H. Nikolaus, President
And Chief Executive Officer
Date: January 16, 2004
EXHIBIT INDEX
Exhibit No. Description Reference
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99.1* Press Release issued by Donegal Group Inc. dated January 2, Filed herewith.
2004.
99.2* Press Release issued by Donegal Group Inc. dated January 7, Filed herewith.
2004.
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* This press release shall not be deemed to be filed for the purposes of
Section 18 of the Securities Exchange Act of 1934 or incorporated by
reference in any filing under the Securities Act of 1933.