Donegal Group Inc. reported consolidated unaudited earnings results for the third quarter and nine months ended September 30, 2009. For the quarter, the company reported net income of $6.74 million or $0.27 per basic and diluted class A common stock and $0.24 per basic and diluted class B common stock on total revenues of $94.88 million compared to net income of $6.27 million or $0.25 per basic and diluted class A common stock and $0.23 per basic and diluted class B common stock on total revenues of $92.71 million for the same period a year ago. Net income per common share For the nine months ended September 30, 2009, the company reported net income of $11.3 million or $0.45 per basic and diluted class A common stock and $0.41 per basic and diluted class B common stock on total revenues of $285.16 million compared to net income of $19.15 million or $0.76 per basic and diluted class A common stock and $0.69 per basic and diluted class B common stock on total revenues of $276.47 million for the same period a year ago. Book value per share as on September 30, 2009 was $15.36.

Jeff Miller, CFO of Donegal Group Inc. said, �The current statutory surplus was $347.3 million as of September 30. As far as excess capital, certainly we [wouldn't] say that we have a great deal of excess capital. We are looking to do acquisitions. We are going to preserve the capital that we have and look to capitalize on those types of opportunities. I wouldn't see any significant returns of capital in the form of share repurchase is at this point. But we certainly believe our capital is adequate. We believe we are well-capitalized. We have very low debt levels and we feel like we are in a very good financial position.� When asked about size of acquisitions, that firm is considering, he noted, �Well, we've -- I think we have historically said we looked at acquisitions anywhere from $10 million to $75 million, $80 million as far as premiums written and surplus levels. So those would be the types of acquisition candidates that we would be interested in looking at. Not looking to swallow a well, so anything that would be $100 million plus would likely be outside of our interest. But looking at smaller, we look at mutual companies as well as stock companies. And we believe that there's a universe of companies out there that we will have opportunity to look at over the next couple of years.�

Donegal Group Inc. reported that its board of directors declared a regular quarterly cash dividend payable on November 16, 2009 of $0.1125 per share of Class A common stock and $0.10 per share of Class B common stock to stockholders of record as of the close of business on November 2, 2009.