Donegal Mutual Insurance Company Announces Plan to Acquire Conestoga Title
Insurance Company
MARIETTA, Penn., Aug. 22, 2008 (GLOBE NEWSWIRE) -- Conestoga Financial
Corporation and Donegal Mutual Insurance Company announced today that they have
signed an agreement whereby a subsidiary of Donegal Mutual will acquire all of
the outstanding capital stock of Conestoga Title Insurance Company and its
affiliated companies that provide various title insurance services from
Conestoga Financial Corporation. The acquisition has been approved by the
Commissioner of Insurance of the Commonwealth of Pennsylvania and the
shareholders of Conestoga Financial. Closing of the transaction is scheduled to
occur on August 27, 2008.
For Donegal Mutual, the acquisition provides an opportunity to expand its lines
of business. Donald H. Nikolaus, President of Donegal Mutual, remarked "We are
pleased to affiliate with a company with a long-standing reputation such as
Conestoga Title, which has excellent relationships with its independent agents
throughout its market area. We look forward to making our strategic resources
available to Conestoga Title, so that it can grow its business and deliver
enhanced products and services to its policyholders and agents."
Donegal Mutual, which was incorporated in 1889, is a mutual fire and casualty
insurance company located in Marietta, Pennsylvania. Donegal Mutual underwrites
a broad line of personal and commercial insurance coverages. Donegal Mutual has
an A.M. Best financial strength rating of A (Excellent) and its combined ratio
regularly outperforms the combined ratio of the United States property and
casualty insurance industry as a whole.
Donegal Mutual owns approximately 66% of the voting control of Donegal Group
Inc., an insurance holding company that, through its insurance subsidiaries,
conducts a property and casualty insurance business in 18 states in the
Mid-Atlantic, Southeastern and Midwestern regions of the United States. The
Class A common stock and Class B common stock of Donegal Group is traded on the
Nasdaq Global Select Market under the symbols DGICA and DGICB. Donegal Group is
not a party to the transaction with Conestoga Financial Corporation.
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CONTACT: Donegal Mutual Insurance Company
Jeffrey D. Miller, Senior Vice President
& Chief Financial Officer
(717) 426-3529 ext. 7357
Fax: (717) 426-7009
jeffmiller@donegalgroup.com
Conestoga Financial Corporation
John K. Schwertfuehrer, Vice President Finance
(717) 299-4805
Fax: (717) 399-9833
jschwertfuehrer@contitle.com
