U.S primary holding company Donegal Group Inc. has revealed that in an effort to simplify its organisational structure and lower administrative costs, it’s planning to consolidate a number of its wholly-owned subsidiaries, effective December 1st, 2019.
Specifically, Donegal Group has announced that its Iowa-based property and casualty (P&C) insurer, Le Mars Insurance Company, and Sheboygan Falls Insurance Company, a Wisconsin domiciled P&C insurer, will merge with and into Atlantic States Insurance Company, Donegal’s Pennsylvania-based P&C insurance subsidiary.
Following the mergers, which are effective December 1st, the separate corporate existence of Le Mars and Sheboygan Falls will cease to exist and Atlantic Sales will remain as the surviving insurer. All parties involved in the mergers have received all required regulatory approvals to complete the transactions.
Donegal explains that the mergers will have no impact on the staffing, operations or branch offices of Donegal Insurance Group in the regions that Le Mars and Sheboygan Falls operate in.
Furthermore, while the insurance policies of both subsidiaries will be included in the pooling agreement between Atlantic States and Donegal Mutual Insurance Company beginning at their next renewal date, the firm states that it does not anticipate the mergers to materially impact its consolidated financial results.
