Donegal Mutual Moves Into Southwest Market

Donegal Mutual Insurance is expanding into the southwest United States by acquiring Mountain States Mutual Casualty.

Mountain States, which is unprofitable, will be merged into Donegal Mutual. No payment will be made.

The transaction is expected to be complete in the second quarter.

Mountain States, based in Albuquerque, New Mexico, serves New Mexico, Colorado, Texas and Utah, all new markets for Donegal Mutual.

"Mountain States has not operated profitably in recent years," said Donegal Mutual spokesman Jeff Miller.

"Following a similar approach to a number of our past mutual affiliations, we look forward to bringing our management assistance as well as technology and operational resources to return Mountain States to profitability and to grow our business in the Southwestern region of the country."

Mountain States, formed in 1937, writes commercial lines of insurance. Net premiums were $42.3 million in 2015. It has 65 employees.

Marietta-based Donegal Mutual, incorporated in 1889, offers personal and commercial insurance. It has 850 employees.

It controls publicly-held Donegal Group, which serves 21 states as far west as Nebraska. Donegal Group had net premiums written of $738.7 million in 2015.

Credit: [email protected]