Donegal Group Notes Impact of Isabel

Donegal Group Inc. reported that the financial impact of property claims from Hurricane Isabel, net of reinsurance, will total approximately $1 million which will reduce net income by $650,000, or $.07 per share on a diluted basis, for the quarter ended Sept. 30, 2003.

“The company’s underwriting efforts to limit catastrophe exposures and our reinsurance programs are responding as designed and will limit the net financial impact to the company to $650,000,” stated Donald Nikolaus, president and CEO of the Donegal Companies.

The company will release its third quarter earnings on Wednesday, Oct. 15, 2003.

Donegal Group Inc. is a regional property-casualty insurance holding company doing business in 14 Mid-Atlantic and Southern states through its subsidiaries Atlantic States Insurance Company and Southern Insurance Company of Virginia.