To increase the business in Georgia and South Carolina
Donegal Mutual Insurance and Southern Mutual Insurance have completed the affiliation of the two companies.
Southern Mutual has entered into a quota share reinsurance agreement pursuant to which Donegal Mutual has assumed 100% of Southern Mutual’s currently in force business and will assume 100% of Southern Mutual’s future business, and Donegal Mutual is including and will include all business it assumes from Southern Mutual in
its pooling agreement with Atlantic States Insurance, a subsidiary of Donegal Group.
Donegal Mutual has licensed Southern Mutual to use Donegal Mutual’s WritePro and WriteBiz technology, which permits agents to underwrite applications and issue policies automatically through the internet and enhances ease of use.
Southern Mutual will retain its mutual status, its Georgia domicile and its current headquarters in Athens, Georgia with the same management, employees and agents.
Donegal Mutual will assist Southern Mutual in offering additional insurance products and coverages. Seven Donegal Mutual designees now serve on Southern Mutual’s 12-
person Board of Directors.
The affiliation received the approval of the Commissioner of Insurance of the State of Georgia on October 28, 2009 following a public hearing held on October 9, 2009.
Donald H. Nikolaus, president of Donegal Mutual Insurance, said: “The Donegal Insurance Group is pleased to be affiliated with Southern Mutual and expects both companies to increase their business in Georgia and South Carolina. We look forward to a long and successful relationship with Southern Mutual’s management, employees and agents.”