Donegal Group Inc. Announces Quarterly Dividend and Share Repurchase Program

Donegal Group Inc.

reported that its board of directors today declared a regular quarterly cash dividend of $.1275 per share of the Company's Class A common stock and $.1150 per share of the Company's Class B common stock. The dividends are payable on August 15, 2013 to stockholders of record as of the close of business on August 1, 2013. The Company also announced that its board of directors has authorized a share repurchase program, pursuant to which the Company may purchase up to 500,000 shares of its Class A common stock at market prices prevailing from time to time in the open market subject to the provisions of SEC Rule 10b-18 and in privately negotiated transactions. The share repurchase program has no fixed expiration date. Donegal Group Inc. is an insurance holding company whose insurance subsidiaries offer personal and commercial property and casualty lines of insurance in 22 Mid-Atlantic, Midwestern, New England and Southern states. The insurance subsidiaries of Donegal Group Inc. and Donegal Mutual Insurance Company conduct business together as the Donegal Insurance Group. The Donegal Insurance Group has an A.M. Best rating of A (Excellent). The Company's Class A common stock and Class B common stock trade on the NASDAQ Global Select Market under the symbols DGICA and DGICB, respectively. As an effective acquirer of small to medium-sized "main street" property and casualty insurers, Donegal Group has grown profitably over the past 25 years. The Company continues to seek opportunities for growth while striving to achieve its longstanding goal of outperforming the property and casualty insurance industry in terms of service, profitability and growth in book value.