The Donegal Group, he said, "has a business strategy of expanding into the Midwest. We had previously written in Ohio and had desire to find at least one, and maybe multiple, acquisition candidates in the Midwest."

Mr. Spontak also explained that although Le Mars was at the far-western end of the region that Donegal Group was looking at for its expansion, "it fit the profile as far as size and the lines of business that it wrote. And we thought it was a good step into expanding our Midwest presence."

Donegal Group is now seeking to acquire additional companies to "fill in the gap" between the states that Le Mars writes and the state of Ohio, Mr. Spontak said. "The Le Mars acquisition is the first step in the expansion of our operations to the Midwest."

Le Mars is a multiple-line carrier in Iowa, Nebraska, Oklahoma and South Dakota. Its personal-lines coverages represent most of the written premiums, with the balance coming from farm owners and mercantile and service businesses. Le Mars' largest line of business is private passenger auto liability and physical damage; other principal lines include homeowners and commercial multi-peril.

Donegal Group Inc. offers various personal, farm and commercial property-casualty insurance, in about 15 eastern states. The company's personal insurance products offerings range from auto and boat policies to homeowners and fire coverage. Its commercial insurance products include business owners, multi-peril and workers' compensation policies.