Donegal Group, an insurance holding company, has reported that its net income for the second quarter ended June 30, 2008 was $6.89 million compared to $10.78 million for the second quarter of 2007.

Revenues for the quarter were $93.97 million, an increase of 11.1% over the second quarter of 2007, with net premiums earned of $87.33 million, a 12.6% increase over the year-earlier period.

Net premiums written for the period grew 13.8% to $94.49 million from $83.06 million during the comparable quarter of 2007. Net investment income increased to $5.79 million for the second quarter of 2008, a rise of 4.2% over the $5.56 million recorded in the corresponding quarter of 2007.

Donald Nikolaus, president and CEO of Donegal Group, said: We are disappointed with the decrease in earnings for the second quarter of 2008 compared to the prior year period, but we are pleased to be able to report continued premium growth and profitability in a quarter that contained an unprecedented number of severe weather events in various regions of the country.