September 21st 2007

On September 21, 2007, The Insurance Alliance of Central Pennsylvania presented Donegal Insurance Companies with its Personal Lines Carrier of the Year Award in recognition of the outstanding partnership between the organizations. Jane Koppenheffer, President and CEO of The Insurance Alliance, presented the award as part of its Connections 2007 Carrier Recognition Event.

The Insurance Alliance sponsored Connections 2007 as an opportunity for its employees to interact with the insurance company employees that they work with on a daily basis, as well as regional and executive management. Participating were CEO’s, Regional Vice Presidents, Underwriting Managers, Claims Managers, Field Representatives, Underwriters and other key insurance company personnel from approximately 30 different insurance companies.

In presenting the award to Donegal Insurance Companies, Jane Koppenheffer commented:

The Insurance Alliance of Central Pennsylvania selected Donegal Insurance Companies to receive this award based on the results of a survey of over 200 Alliance employees. Donegal Insurance Companies ranked highest in Personal Lines in the following categories: Underwriting Responsiveness, Competitiveness, Ease of Doing Business, Most Improved Personal Lines Carrier, and Best Overall Personal Lines Carrier. They also ranked very high in the categories of Quality Products, Automation Capabilities, and Billing and Customer Service.The Insurance Alliance grew with Donegal Insurance Companies 18.3% in 2005, 16.7% in 2006 and 10.5% YTD 2007. In 2005, we wrote 474 new pieces of business and 694 in 2006, through July of 2007.

This is the first time that a carrier has won the Personal Lines award twice; Donegal also was recognized in 2006 demonstrating its continued commitment to excellence.

Some of the comments from our member employees who completed the survey included:

About Automation:
“Donegal’s software is very convenient and easy.”

About Their Personal Lines Underwriter:
“There is no hesitation in saying that my underwriter is truly one of the best. He is very prompt at returning phone calls, easy to do busy with/flexible and not to mention has a great personality.”

“Donegal’s Personal Lines Underwriter makes you want to choose Donegal as your ‘go to’Co(mpany).”

(UW) is the best underwriter. He is very helpful and always calls you back promptly.

UW is always helpful, and willing to work with you on items. Quick to reply to messages. (Field Staff) are open to comments and suggestions.

About Their Management:
“Donegal has demonstrated a ‘can do’ personal lines atmosphere.”

“Donegal Mutual is and has been my first ‘go to’ company. It has been a great experience working with a company that is willing to work with you.”

“I am pleased to see their commitment to helping agencies grow for the future through excellent co-op advertising and producer financing programs. The visibility and commitment of their entire management team to helping The Alliance grow their Personal Lines book is outstanding.”

When there is a strong partnership between independent insurance agencies and insurance companies, everyone wins – especially the consumers. The service they receive is improved through enhanced communication, deeper understanding of company policies and procedures, and a higher degree of responsiveness and cohesiveness.

The Insurance Alliance of Central Pennsylvania is a collective of 11 premier independent agencies located in the Central and greater Lehigh Valley regions of Pennsylvania. Through size, diversity and broad expertise, The Alliance offers on a regional level that which is normally found only with national brokers — ranking in 2007 as the 37th largest independent property/casualty agency in the nation. Its long-term growth and profitability has enabled The Alliance to secure preferred relationships with the region and nation’s top insurance companies. With over 250 employees, its greater resources provide the sophistication to serve any size client. The Alliance ended 2006 with over $240 Million in Property-Casualty premiums written.