Donegal Insurance Group and ECM Insurance Group announced that ECM will acquire the renewal rights to Donegal’s entire book of farmowners insurance business in the states of Pennsylvania, Delaware, Virginia, Ohio and Indiana in 2026.
The book represents approximately $8 million in farm-related business written by Southern Insurance Company of Virginia (SICVA), a Donegal company.
Jeffery T. Hay, Donegal executive vice president and chief underwriting officer, said the decision to retire from the farmowners insurance business is in keeping with the company’s multi-year effort to modernize its systems, product offerings and customer experience by focusing on its core lines of business and customers.
“While insuring farmowners has been an important part of our company history, we recognize that the costs required to modernize our Farm product is larger than we could justify passing on to our existing farmowner policyholders,” Hay said in announcing the agreement between the two Pennsylvania-based insurers.
In May, AM Best affirmed the Financial Strength Rating (FSR) of A (Excellent) and the Long-Term Issuer Credit Ratings (Long-Term ICR) of “a” (Excellent) of the members of Donegal Insurance Group. In doing so, the ratings agency credited the insurer’s ongoing profitability initiatives to improve underwriting performance, including significant rate actions, the transfer of unprofitable accounts and investing in new technology. “This favorable trend is expected to continue going forward in support of the adequate operating performance assessment,” AM Best said.
Hay sad Donegal chose ECM as a partner after “an extensive evaluation of alternate carriers.”
The agreement takes into account the impact this deal will have on Donegal’s independent agents, according to Dan DeLamater, Donegal executive vice president and chief operating officer. He said Donegal negotiated a renewal rights agreement with ECM, which he said is a company with “an unquestioned commitment to farm insurance, a proven track record of book-of-business transfers, and a committed nationwide independent agency distribution strategy.”
According to Randy Shaw, president and CEO of ECM, the acquisition of Donegal’s farm business will represent a “material increase in premium” for ECM, which is one of leading carriers for farms across the Mid-Atlantic, Midwest and Southern regions.
“By combining ECM’s state of the art farm products with Donegal’s market relationships, we anticipate additional growth that complements our core business strategy,” Shaw said.
Farmowners is a core product for ECM, which in 2022 acquired the farm, ranch, and equine business of American Reliable Insurance Co.
ECM Insurance Group says it is the fourth largest writer of farmowners insurance in Pennsylvania and the second largest in North Carolina. The company insures more than 50,000 policyholders and $20 billion in property with written premium exceeding $98 million. Its 400+ independent agents are in Arkansas, Georgia, Illinois, Indiana, Kansas, Kentucky, Maryland, Missouri, Nebraska, North Carolina, Ohio, Pennsylvania, South Dakota, Tennessee, Texas and Virginia.
The sale is subject to regulatory approval in Pennsylvania, Delaware, Virginia, Ohio and Indiana.The transaction is expected to close in the fourth quarter of 2025.
Marietta-based Donegal Insurance Group provides commercial and personal insurance products through independent agents in 21 states.
Topics Agribusiness
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