Donegal Group Inc. (DGICB, Financial) filed Annual Report for the period ended 2010-12-31.
Donegal Group Inc. has a market cap of $371.2 million; its shares were traded at around $18.5 with a P/E ratio of 23.72 and P/S ratio of 0.91. The dividend yield of Donegal Group Inc. stocks is 2.22%. Donegal Group Inc. had an annual average earning growth of 15.3% over the past 10 years.
We acquired all of the outstanding capital stock of Michigan Insurance Company, a Michigan-domiciled property and casualty insurance company, or MICO, effective as of December 1, 2010 when DGI Acquisition Corp., or DAC, our wholly owned subsidiary, merged with and into MICO with MICO as the surviving corporation. In the merger, all of the outstanding capital stock of MICO converted into the right to receive an aggregate merger consideration payable entirely in cash equal to 122% of the stockholders equity of MICO as of November 30, 2010 determined in accordance with generally accepted accounting principles, or GAAP, or approximately $42 million. As part of the transaction, Donegal Mutual purchased a surplus note of MICO in the principal amount of $5.0 million, and Donegal Mutual and MICO entered into a 25% quota-share reinsurance agreement. Upon the merger, eight of our designees became directors of MICO along with the president of MICO. We maintain control of MICO through our ownership of all of the outstanding capital stock of MICO and because our designees represent a majority of the members of MICOs board of directors.
Our pending acquisition of Union National Financial Corporation, or UNFC, and its wholly owned subsidiary, Union National Community Bank, or UNCB, in Lancaster, Pennsylvania is currently awaiting the approval of the Office of Thrift Supervision, or the OTS. At December 31, 2010, UNFC had, on a consolidated basis, assets of $448.0 million, loans of $320.5 million and stockholders equity of $29.0 million and ten branches in Lancaster County, Pennsylvania. We expect to complete the acquisition of UNCB prior to June 30, 2011.
The annual net earned premiums of our insurance subsidiaries have increased from $196.8 million in 2003 to $378.0 million in 2010, a compound annual growth rate of 10%. Over the same time period, our insurance subsidiaries have achieved a combined ratio more favorable than that of the property and casualty insurance industry as a whole. Our insurance subsidiaries seek to increase their annual net earned premiums and enhance their profitability by:
Our insurance subsidiaries maintain stringent expense controls under direct supervision of their senior management. We centralize many processing and administrative activities of our insurance subsidiaries to realize operating synergies and better control expenses. Our insurance subsidiaries utilize technology to automate much of their underwriting and to facilitate agency and policyholder communications on an efficient and cost-effective basis. We operate on a paperless basis. As a result of our focus on expense control, our insurance subsidiaries have reduced their expense ratio from 36.6% in 1999 to 32.0% in 2010. Our insurance subsidiaries have also increased their annual premium per employee, a measure of efficiency that our insurance subsidiaries use to evaluate their operations, from approximately $470,000 in 1999 to approximately $791,000 in 2010.
We have seven insurance subsidiaries: Atlantic States Insurance Company, or Atlantic States, Southern Insurance Company of Virginia, or Southern, Le Mars Insurance Company, or Le Mars, The Peninsula Insurance Company and its wholly owned subsidiary, Peninsula Indemnity Company, or collectively, the Peninsula Group, Sheboygan Falls Insurance Company, or Sheboygan, and MICO. In addition, we benefit from Donegal Mutuals 100% quota-share reinsurance agreement with Southern Mutual Insurance Company, or Southern Mutual, and Donegal Mutuals placement of its assumed business from Southern Mutual into the pooling agreement. We also own 48.2% of Donegal Financial Services Corporation, or DFSC, a registered savings and loan holding company that owns Province Bank FSB, or Province Bank, a federal savings bank that began operations in 2000. Donegal Mutual owns the remaining 51.8% of DFSC. Upon DFSCs acquisition of UNFC, on a pro forma basis as of December 31, 2010, Province Bank would have total assets of approximately $571.0 million, loans of approximately $371.0 million and stockholders equity of $67.0 million at December 31, 2010. We believe the combined banks will complement the product offerings of our insurance subsidiaries. The following chart summarizes our organizational structure and includes all of our property and casualty insurance subsidiaries and Southern Mutual:
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Donegal Group Inc. has a market cap of $371.2 million; its shares were traded at around $18.5 with a P/E ratio of 23.72 and P/S ratio of 0.91. The dividend yield of Donegal Group Inc. stocks is 2.22%. Donegal Group Inc. had an annual average earning growth of 15.3% over the past 10 years.
Highlight of Business Operations:
We are an insurance holding company whose insurance subsidiaries offer personal and commercial lines of property and casualty insurance to businesses and individuals in 22 Mid-Atlantic, Midwestern, New England and Southern states. Our insurance subsidiaries provide their policyholders with a selection of insurance products at competitive rates, while pursuing profitability through adherence to a strict underwriting discipline. At December 31, 2010, we had total assets of $1.2 billion and stockholders equity of $380.1 million. Our net income was $11.5 million for the year ended December 31, 2010 compared to $18.8 million for the year ended December 31, 2009.We acquired all of the outstanding capital stock of Michigan Insurance Company, a Michigan-domiciled property and casualty insurance company, or MICO, effective as of December 1, 2010 when DGI Acquisition Corp., or DAC, our wholly owned subsidiary, merged with and into MICO with MICO as the surviving corporation. In the merger, all of the outstanding capital stock of MICO converted into the right to receive an aggregate merger consideration payable entirely in cash equal to 122% of the stockholders equity of MICO as of November 30, 2010 determined in accordance with generally accepted accounting principles, or GAAP, or approximately $42 million. As part of the transaction, Donegal Mutual purchased a surplus note of MICO in the principal amount of $5.0 million, and Donegal Mutual and MICO entered into a 25% quota-share reinsurance agreement. Upon the merger, eight of our designees became directors of MICO along with the president of MICO. We maintain control of MICO through our ownership of all of the outstanding capital stock of MICO and because our designees represent a majority of the members of MICOs board of directors.
Our pending acquisition of Union National Financial Corporation, or UNFC, and its wholly owned subsidiary, Union National Community Bank, or UNCB, in Lancaster, Pennsylvania is currently awaiting the approval of the Office of Thrift Supervision, or the OTS. At December 31, 2010, UNFC had, on a consolidated basis, assets of $448.0 million, loans of $320.5 million and stockholders equity of $29.0 million and ten branches in Lancaster County, Pennsylvania. We expect to complete the acquisition of UNCB prior to June 30, 2011.
The annual net earned premiums of our insurance subsidiaries have increased from $196.8 million in 2003 to $378.0 million in 2010, a compound annual growth rate of 10%. Over the same time period, our insurance subsidiaries have achieved a combined ratio more favorable than that of the property and casualty insurance industry as a whole. Our insurance subsidiaries seek to increase their annual net earned premiums and enhance their profitability by:
Our insurance subsidiaries maintain stringent expense controls under direct supervision of their senior management. We centralize many processing and administrative activities of our insurance subsidiaries to realize operating synergies and better control expenses. Our insurance subsidiaries utilize technology to automate much of their underwriting and to facilitate agency and policyholder communications on an efficient and cost-effective basis. We operate on a paperless basis. As a result of our focus on expense control, our insurance subsidiaries have reduced their expense ratio from 36.6% in 1999 to 32.0% in 2010. Our insurance subsidiaries have also increased their annual premium per employee, a measure of efficiency that our insurance subsidiaries use to evaluate their operations, from approximately $470,000 in 1999 to approximately $791,000 in 2010.
We have seven insurance subsidiaries: Atlantic States Insurance Company, or Atlantic States, Southern Insurance Company of Virginia, or Southern, Le Mars Insurance Company, or Le Mars, The Peninsula Insurance Company and its wholly owned subsidiary, Peninsula Indemnity Company, or collectively, the Peninsula Group, Sheboygan Falls Insurance Company, or Sheboygan, and MICO. In addition, we benefit from Donegal Mutuals 100% quota-share reinsurance agreement with Southern Mutual Insurance Company, or Southern Mutual, and Donegal Mutuals placement of its assumed business from Southern Mutual into the pooling agreement. We also own 48.2% of Donegal Financial Services Corporation, or DFSC, a registered savings and loan holding company that owns Province Bank FSB, or Province Bank, a federal savings bank that began operations in 2000. Donegal Mutual owns the remaining 51.8% of DFSC. Upon DFSCs acquisition of UNFC, on a pro forma basis as of December 31, 2010, Province Bank would have total assets of approximately $571.0 million, loans of approximately $371.0 million and stockholders equity of $67.0 million at December 31, 2010. We believe the combined banks will complement the product offerings of our insurance subsidiaries. The following chart summarizes our organizational structure and includes all of our property and casualty insurance subsidiaries and Southern Mutual:
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