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Donegal Insurance leaps into the Southwest with new merger

Lancaster County’s Donegal Mutual Insurance Co. is leaping into the Southwest with the acquisition of New Mexico-based Mountain States Mutual Casualty Co.

The move lets Donegal, which already operates in 21 states, expand its reach to a part of the country where it previously had no footprint.

“We look forward to our affiliation with Mountain States, which has longstanding excellent relationships with its independent agents throughout its marketing region,” Donald Nikolaus, president of Donegal Mutual, said in a news release.

The planned merger, announced Friday, is still subject to regulatory and policyholder approval. Donegal did not disclose a purchase price in its news release.

Mountain States and its subsidiaries, Mountain States Indemnity Company and Mountain States Commercial Insurance Company, do business in Colorado, New Mexico, Texas and Utah as Mountain States Insurance Group. Donegal will continue using that name for its operations in the Southwest.

Joining Donegal, which had net premiums written of $738.7 million in 2015, will let Mountain States increase its mark on property and casualty insurance markets, Mountain States President William Davis said in the release.

Mountain States had net premiums written of $42.3 million in 2015.

The acquisition is the most recent of many Donegal Mutual and its affiliate, Donegal Group Inc., have made since 1986, the release notes. The company expects to complete others as opportunities arise.

Jennifer Wentz
Jennifer Wentz covers Lancaster County, York County, financial services, taxation and legal services. Have a tip or question for her? Email her at jwentz@cpbj.com.

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