Marietta, Pa.-based Donegal Group Inc. said it has completed its $12 million acquisition of Sheboygan Falls Insurance Company.

The $12 million price is for all of the outstanding capital stock and includes a surplus contribution of $8.5 million to support future premium growth of Sheboygan Falls.

Sheboygan Falls, based in Sheboygan Falls, Wis., operates only in Wisconsin, where it provides a line of personal lines insurance 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 million of net written premium for 2008.

Donald H. Nikolaus, Donegal Group Inc. president and chief executive officer, said in a statement, “An important part of our strategy is the selective acquisition of property and casualty insurers to augment our organic growth in our existing markets and expand into selected geographic regions.”

The acquisition, he explained, is a continuation of plans to expand operations in the Midwest, which are currently in Iowa, Nebraska, Ohio, Oklahoma, South Dakota and Wisconsin.

Donegal Group Inc. is a property-casualty insurance holding company whose insurance subsidiaries also offer personal and commercial lines of insurance in Delaware, Maryland, New Hampshire, New York, Pennsylvania, Alabama, Georgia, Louisiana, North Carolina, South Carolina, Tennessee, Virginia and West Virginia.

Special Reports /

Sheboygan Falls Bought By Donegal Group

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