Sheboygan Falls Mutual Insurance Co. and Donegal Mutual Insurance Co. a have signed an agreement whereby Donegal Mutual will make an investment of $3,500,000 in Sheboygan Falls Mutual and Donegal Mutual will enter into a services agreement with Sheboygan Falls Mutual for the purpose of reducing costs through economies of scale.
Consummation of the transactions requires the approval of the Wisconsin commissioner of insurance.
Lee F. Wilcox, president of Sheboygan Falls Mutual, stated that the affiliation will enable Sheboygan Falls Mutual to become a more vigorous competitor in the property and casualty insurance markets in Wisconsin. There will be no change in the management team of Sheboygan Falls Mutual.
For Donegal Mutual, the affiliation provides an opportunity to expand its business into Wisconsin, according to Donald H. Nikolaus, prresident of Donegal Mutual.
Sheboygan Falls Mutual was formed in 1899 and writes both personal and commercial lines of insurance in Wisconsin.
Donegal Mutual, which was incorporated in 1889, is a mutual fire and casualty insurance company located in Marietta, Pennsylvania. Donegal Mutual underwrites personal and commercial insurance coverages. Donegal Mutual has an A.M. Best financial strength rating of A (Excellent).
Donegal Mutual owns approximately 62 percent 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. Donegal Group is not a party to the transaction with Sheboygan Falls Mutual.
Source: Donegal Mutual and Sheboygan Mutual
Topics Wisconsin
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