Donegal Mutual Insurance Company and the Mountain States Insurance Group Announce Strategic Affiliation
On December 16, 2016, Donegal Mutual Insurance Company and Mountain States Mutual Casualty Company announced a strategic affiliation where Mountain States Mutual will merge with and into Donegal Mutual. Donegal Mutual is the surviving company in the merger and will acquire control of Mountains States Mutual’s insurance subsidiaries, Mountain States Indemnity Company and Mountain States Commercial Insurance Company.
The merger and related transactions will enable the Mountain States Insurance Group to enhance its competitive position within its property and casualty insurance markets. Donegal Mutual will bring management assistance, as well as significant operational and technology resources, to provide the Mountain States Insurance Group enhanced opportunities to restore its underwriting profitability and grow its business. For Donegal Mutual, the affiliation provides an opportunity to expand its business into the Southwestern region, where it has no current operations. Consummation of the transactions requires the approval of Commissioner of Insurance of the Commonwealth of Pennsylvania and the Superintendent of Insurance of the State of New Mexico.
For additional information, please review the following announcements and updates.