AM Best Revises Outlooks to Stable for Members of Donegal Insurance Group and Donegal Group Inc. - Seite 2

Donegal Group’s neutral business profile includes geographic and product line diversification, effective use of technology in the independent agency distribution channel, and a history of successful expansion through strategic acquisitions and affiliations.

Appropriate ERM is demonstrated through a formal risk management process, which provides assurances that the organization’s key compliance, financial, strategic and operational risks are addressed in meeting organizational objectives. Additionally, Donegal Group purchases various excess of loss and per risk reinsurance treaties from high quality reinsurers to protect surplus, reduce volatility and increase capacity. In 2019, Donegal Group made significant changes to its reinsurance program, which AM Best expects to benefit operating results going forward, dependent upon the incidence of large loss activity and the occurrence of catastrophe events.

The affirmation of the Long-Term ICR of Donegal Group Inc. recognizes the overall financial strength of its property/casualty insurance operation, its moderate amount of financial leverage and the subordination of its creditors to the insurance companies’ policyholders.

The FSR of A (Excellent) and the Long Term ICRs of “a” have been affirmed, with outlooks revised to stable from negative for the following members of Donegal Insurance Group:

• Atlantic States Insurance Company
• Donegal Mutual Insurance Company
• Michigan Insurance Company
• Mountain States Commercial Insurance Company
• Mountain States Indemnity Company
• Peninsula Indemnity Company
• Peninsula Insurance Company
• Southern Insurance Company of Virginia
• Southern Mutual Insurance Company

This press release relates to Credit Ratings that have been published on AM Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best’s Credit Ratings. For information on the proper media use of Best’s Credit Ratings and AM Best press releases, please view Guide for Media - Proper Use of Best’s Credit Ratings and AM Best Rating Action Press Releases.