Donegal Group's Atlantic States Insurance Company is FHLBank Pittsburgh's Newest Member
PITTSBURGH--(BUSINESS WIRE)-- The Federal Home Loan Bank (FHLBank) of Pittsburgh today announced that Atlantic States Insurance Company, a wholly owned subsidiary of Donegal Group Inc. [NASDAQ: DGICA and DGICB], is the newest member of its financial services cooperative.
Atlantic States Insurance Company offers property and casualty insurance products within its core multi-state footprint of Delaware, Maryland, Virginia, Ohio and Pennsylvania as well as some additional Southern and Midwestern states. Its main office is located in Marietta, PA.
FHLBank membership is not new to the Donegal Group. Donegal Group's banking affiliate, Union Community Bank, has been an FHLBank Pittsburgh member since 2000. With today's announcement, Atlantic States Insurance Company is also able to tap FHLBank Pittsburgh's products and services, further enhancing the company's already robust liquidity and providing the ability to obtain low-cost funds for asset/liability management and financing.
"We are pleased to welcome Atlantic States Insurance Company to the FHLBank Pittsburgh family," said Winthrop Watson, President and Chief Executive Officer. "For 80 years and through all economic cycles, FHLBank has served as a reliable, on-demand provider of low-cost liquidity for a variety of business purposes. We look forward to meeting our new member's needs in service to their management, customers and investors."
"We are pleased that our primary subsidiary has become a member of FHLBank Pittsburgh. Atlantic States Insurance Company's membership will provide us with a low-cost source of liquidity to enhance our financial flexibility," said Donald Nikolaus, Chief Executive Officer of Donegal Group Inc.
The addition of Atlantic States Insurance Company as a member of the FHLBank Pittsburgh cooperative adds to the total number of member insurance companies across the 12-Bank Federal Home Loan Bank System. At June 30, 2012, 267 insurance companies were served by the Banks and had total advances (low-cost loans) outstanding of $52.4 billion.
About the Donegal Insurance Group
For more than 100 years, the Donegal Insurance Group has met the comprehensive property and casualty insurance needs of its customers. Formed in 1889 as the Donegal and Conoy Mutual Fire Insurance Company of Marietta, PA, the company eventually changed its name to Donegal Mutual Insurance Company. In 1986, Donegal Mutual Insurance Company formed a downstream insurance holding company, Donegal Group Inc., which became the umbrella for a growing number of insurance company subsidiaries, including Atlantic States Insurance Company, which was formed the same year.
Donegal Group Inc.'s insurance subsidiaries offer personal and commercial property and casualty lines of insurance in 22 Mid-Atlantic, Midwestern, New England and Southern states.
The insurance subsidiaries of Donegal Group Inc. and Donegal Mutual Insurance Company conduct business together as the Donegal Insurance Group. The Donegal Insurance Group has received an A ("Excellent") rating from the A.M. Best Company. For more information, visit www.donegalgroup.com
About FHLBank Pittsburgh
FHLBank Pittsburgh is a wholesale bank that serves the funding, housing finance and community and economic development needs of its owner-members. FHLBank Pittsburgh provides reliable access to low-cost funds, competitive pricing in the purchase of mortgage loans, correspondent banking, technical assistance, affordable housing grants and other programs so members can better serve their own communities. FHLBank Pittsburgh is privately capitalized and funded and does not use taxpayer dollars. At September 30, 2012, the Bank had 294 members in its district of Delaware, Pennsylvania and West Virginia and held approximately $60 billion in assets. FHLBank Pittsburgh is one of twelve Banks in the Federal Home Loan Bank System, established by Congress in 1932 to support the residential mortgage activities of local financial institutions. Visit: www.fhlb-pgh.com
This news release may contain forward-looking statements that are subject to risks and uncertainties. Such risks and uncertainties may include, but are not limited to, general economic conditions (including effects on, among other things, mortgage-backed securities), legislative and regulatory developments, changes in our membership profile, demand for advances, changes in projected business volumes, business and capital plan adjustments and amendments, regulatory actions or approvals, competitive pressure from alternative member funding sources, shifts in demand for our products and consolidated obligations and other risks detailed from time to time in the FHLBank's filings with the Securities and Exchange Commission. These uncertainties may cause our actual future results to be materially different than those expressed in our forward-looking statements. The FHLBank Pittsburgh does not undertake to update any forward-looking statements made in this announcement.
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