Donegal (DGICA) 10-Q 6 Nov 15 2015 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2015	Oct. 31, 2015
Document Information [Line Items]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Sep. 30, 2015
Document Fiscal Year Focus	2,015
Document Fiscal Period Focus	Q3
Trading Symbol	DGICA
Entity Registrant Name	DONEGAL GROUP INC
Entity Central Index Key	800,457
Current Fiscal Year End Date	--12-31
Entity Filer Category	Accelerated Filer
Class A Common Stock [Member]
Document Information [Line Items]
Entity Common Stock, Shares Outstanding		22,498,383
Class B Common Stock [Member]
Document Information [Line Items]
Entity Common Stock, Shares Outstanding		5,576,775

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($)	Sep. 30, 2015	Dec. 31, 2014
Fixed maturities
Held to maturity, at amortized cost	$ 303,409,930	$ 307,391,699
Available for sale, at fair value	483,589,669	435,149,784
Equity securities, available for sale, at fair value	35,835,920	30,822,022
Investment in affiliates	40,110,080	39,283,924
Short-term investments, at cost, which approximates fair value	24,596,219	20,293,648
Total investments	887,541,818	832,941,077
Cash	24,927,652	35,578,509
Accrued investment income	6,681,098	5,751,376
Premiums receivable	146,608,317	133,306,961
Reinsurance receivable	259,890,449	253,635,890
Deferred policy acquisition costs	53,510,659	48,298,608
Deferred tax asset, net	18,301,648	17,146,303
Prepaid reinsurance premiums	117,503,124	115,871,783
Property and equipment, net	7,142,932	7,668,340
Accounts receivable - securities	258,030
Federal income taxes receivable	338,628	581,477
Goodwill	5,625,354	5,625,354
Other intangible assets	958,010	958,010
Other	1,568,730	1,290,956
Total assets	1,530,856,449	1,458,654,644
Liabilities
Unpaid losses and loss expenses	569,146,468	538,258,406
Unearned premiums	441,318,285	408,646,363
Accrued expenses	18,827,797	19,429,627
Reinsurance balances payable	3,940,824	7,841,172
Borrowings under lines of credit	48,000,000	53,500,000
Cash dividends declared		3,467,273
Subordinated debentures	5,000,000	5,000,000
Due to affiliate	753,996	2,409,347
Drafts payable	669,910	1,950,765
Other	1,632,116	2,017,048
Total liabilities	$ 1,089,289,396	$ 1,042,520,001
Stockholders' Equity
Preferred stock, $.01 par value, authorized 2,000,000 shares; none issued
Additional paid-in capital	$ 218,082,040	$ 200,348,783
Accumulated other comprehensive income	2,789,016	5,353,269
Retained earnings	234,411,399	223,253,887
Treasury stock	(14,006,357)	(13,101,682)
Total stockholders' equity	441,567,053	416,134,643
Total liabilities and stockholders' equity	1,530,856,449	1,458,654,644
Class A Common Stock [Member]
Stockholders' Equity
Common stock value	234,463	223,894
Total stockholders' equity	234,463	223,894
Class B Common Stock [Member]
Stockholders' Equity
Common stock value	56,492	56,492
Total stockholders' equity	$ 56,492	$ 56,492

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - $ / shares	Sep. 30, 2015	Dec. 31, 2014
Preferred stock, par value	$ 0.01	$ 0.01
Preferred stock, shares authorized	2,000,000	2,000,000
Preferred stock, shares issued	0	0
Class A Common Stock [Member]
Common stock, par value	$ 0.01	$ 0.01
Common stock, shares authorized	40,000,000	40,000,000
Common stock, shares issued	23,446,230	22,389,369
Common stock, shares outstanding	22,443,642	21,447,661
Class B Common Stock [Member]
Common stock, par value	$ 0.01	$ 0.01
Common stock, shares authorized	10,000,000	10,000,000
Common stock, shares issued	5,649,240	5,649,240
Common stock, shares outstanding	5,576,775	5,576,775

Consolidated Statements of Inco

Consolidated Statements of Income - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Revenues:
Net premiums earned	$ 153,096,075	$ 142,149,561	$ 450,083,676	$ 412,286,978
Investment income, net of investment expenses	5,399,080	4,299,044	15,505,429	13,529,304
Net realized investment (losses) gains	(754,050)	351,269	682,932	2,296,909
Lease income	178,827	217,144	568,552	643,726
Installment payment fees	1,473,447	1,641,459	4,473,905	4,964,708
Equity in earnings of Donegal Financial Services Corporation	408,405	476,906	1,276,692	1,234,773
Total revenues	159,801,784	149,135,383	472,591,186	434,956,398
Expenses:
Net losses and loss expenses	102,233,708	91,003,905	296,012,311	286,523,746
Amortization of deferred policy acquisition costs	25,036,000	22,889,000	73,872,000	66,233,000
Other underwriting expenses	24,155,566	22,795,149	73,192,072	64,800,475
Policyholder dividends	886,210	933,910	2,491,919	1,935,660
Interest	188,000	368,417	908,615	1,177,034
Other expenses	301,367	531,178	1,704,680	2,145,963
Total expenses	152,800,851	138,521,559	448,181,597	422,815,878
Income before income tax expense	7,000,933	10,613,824	24,409,589	12,140,520
Income tax expense	1,314,102	1,865,113	5,403,395	2,087,553
Net income	$ 5,686,831	$ 8,748,711	$ 19,006,194	$ 10,052,967
Class A Common Stock [Member]
Earnings per common share:
Common stock - basic and diluted	$ 0.21	$ 0.33
Common stock - basic	0.21	0.33	$ 0.71	$ 0.39
Common stock - diluted	0.21	0.33	0.69	0.38
Class B Common Stock [Member]
Earnings per common share:
Common stock - basic and diluted	0.18	0.30	0.63	0.35
Common stock - basic	0.18	0.30	0.63	0.35
Common stock - diluted	$ 0.18	$ 0.30	$ 0.63	$ 0.35

Consolidated Statements of Inc5

Consolidated Statements of Income (Parenthetical) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Net realized investment (losses) gains	$ (754,050)	$ 351,269	$ 682,932	$ 2,296,909
Income tax (benefit) expense	1,314,102	1,865,113	5,403,395	2,087,553
Reclassification out of Accumulated Other Comprehensive Income [Member]
Net realized investment (losses) gains	(754,050)	351,269	682,932	2,296,909
Income tax (benefit) expense	$ (263,918)	$ 119,431	$ 239,026	$ 780,949

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Income - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Statement of Comprehensive Income [Abstract]
Net income	$ 5,686,831	$ 8,748,711	$ 19,006,194	$ 10,052,967
Unrealized (loss) gain on securities:
Unrealized holding (loss) income during the period, net of income tax (benefit) expense	860,268	(447,448)	(2,120,347)	8,050,945
Reclassification adjustment for losses (gains) included in net income, net of income tax (benefit) expense	490,132	(231,838)	(443,906)	(1,515,960)
Other comprehensive (loss) income	1,350,400	(679,286)	(2,564,253)	6,534,985
Comprehensive income	$ 7,037,231	$ 8,069,425	$ 16,441,941	$ 16,587,952

Consolidated Statements of Com7

Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Statement of Comprehensive Income [Abstract]
Income tax (benefit) expense on unrealized holding income arising during the period	$ 463,221	$ (246,339)	$ (1,141,726)	$ 4,299,787
Income tax (benefit) expense on reclassification adjustment for gains	$ (263,918)	$ 119,431	$ 239,026	$ 780,949

Consolidated Statement of Stock

Consolidated Statement of Stockholders' Equity - 9 months ended Sep. 30, 2015 - USD ($)	Total	Additional Paid-In Capital [Member]	Accumulated Other Comprehensive Income [Member]	Retained Earnings [Member]	Treasury Stock [Member]	Class A Common Stock [Member]	Class B Common Stock [Member]
Beginning balance at Dec. 31, 2014	$ 416,134,643	$ 200,348,783	$ 5,353,269	$ 223,253,887	$ (13,101,682)	$ 223,894	$ 56,492
Beginning balance, shares at Dec. 31, 2014						22,389,369	5,649,240
Issuance of common stock (stock compensation plans)	16,765,943	16,755,374				$ 10,569
Issuance of common stock (stock compensation plans), shares						1,056,861
Net income	19,006,194			19,006,194
Cash dividends declared	(7,295,336)			(7,295,336)
Grant of stock options		553,346		(553,346)
Tax benefit on exercise of stock options	424,537	424,537
Repurchase of treasury stock	(904,675)				(904,675)
Other comprehensive loss	(2,564,253)		(2,564,253)
Ending balance at Sep. 30, 2015	$ 441,567,053	$ 218,082,040	$ 2,789,016	$ 234,411,399	$ (14,006,357)	$ 234,463	$ 56,492
Ending balance, shares at Sep. 30, 2015						23,446,230	5,649,240

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($)	9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
Cash Flows from Operating Activities:
Net income	$ 19,006,194	$ 10,052,967
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	2,890,128	2,621,222
Net realized investment gains	(682,932)	(2,296,909)
Equity in earnings of Donegal Financial Services Corporation	(1,276,692)	(1,234,773)
Changes in assets and liabilities:
Losses and loss expenses	30,888,062	24,483,315
Unearned premiums	32,671,922	40,067,794
Premiums receivable	(13,301,356)	(15,662,330)
Deferred acquisition costs	(5,212,051)	(5,454,070)
Deferred income taxes	225,409	(494,946)
Reinsurance receivable	(6,254,559)	(7,572,790)
Prepaid reinsurance premiums	(1,631,341)	(8,497,832)
Accrued investment income	(929,722)	(861,410)
Due to affiliate	(1,655,351)	(1,921,725)
Reinsurance balances payable	(3,900,348)	(7,503,895)
Current income taxes	242,849	1,421,216
Accrued expenses	(601,830)	(2,304,068)
Other, net	(1,943,559)	1,070,705
Net adjustments	29,528,629	15,859,504
Net cash provided by operating activities	48,534,823	25,912,471
Cash Flows from Investing Activities:
Purchases of fixed maturities, held to maturity	(18,483,546)	(100,356,105)
Purchases of fixed maturities, available for sale	(132,823,136)	(61,688,801)
Purchases of equity securities, available for sale	(9,011,957)	(23,904,348)
Maturity of fixed maturities:
Held to maturity	22,416,840	31,852,974
Available for sale	56,293,130	22,921,683
Sales of fixed maturities, available for sale	23,485,311	22,781,515
Sales of equity securities, available for sale	2,704,425	8,436,920
Net purchases of property and equipment	(78,292)	(1,937,280)
Net decrease in investment in affiliates	675,100
Net (purchases) sales of short-term investments	(4,302,571)	83,244,835
Net cash used in investing activities	(59,124,696)	(18,648,607)
Cash Flows from Financing Activities:
Cash dividends paid	(10,762,609)	(10,119,401)
Issuance of common stock	17,106,300	8,228,902
Purchase of treasury stock	(904,675)	(12,026)
Payments on lines of credit	(9,500,000)	(5,000,000)
Borrowings under lines of credit	4,000,000	3,000,000
Net cash used in financing activities	(60,984)	(3,902,525)
Net (decrease) increase in cash	(10,650,857)	3,361,339
Cash at beginning of period	35,578,509	27,636,416
Cash at end of period	24,927,652	30,997,755
Cash paid during period - Interest	757,175	980,364
Net cash paid during period - Taxes	$ 4,500,000	$ 900,000

Organization

Organization	9 Months Ended
	Sep. 30, 2015
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Organization	1 - Organization Donegal Mutual Insurance Company (“Donegal Mutual”) organized us as an insurance holding company on August 26, 1986. Our insurance subsidiaries, Atlantic States Insurance Company (“Atlantic States”), Southern Insurance Company of Virginia (“Southern”), Le Mars Insurance Company (“Le Mars”), the Peninsula Insurance Group (“Peninsula”), which consists of Peninsula Indemnity Company and The Peninsula Insurance Company, Sheboygan Falls Insurance Company (“Sheboygan”) and Michigan Insurance Company (“MICO”), write personal and commercial lines of property and casualty coverages exclusively through a network of independent insurance agents in certain Mid-Atlantic, Midwestern, New England and Southern states. We also own 48.2% of the outstanding stock of Donegal Financial Services Corporation (“DFSC”), a grandfathered unitary savings and loan holding company that owns Union Community Bank (“UCB”), a state savings bank. UCB has 14 banking offices, all of which are located in Lancaster County, Pennsylvania. Donegal Mutual owns the remaining 51.8% of the outstanding stock of DFSC. We have four segments: our investment function, our personal lines of insurance, our commercial lines of insurance and our investment in DFSC. The personal lines products of our insurance subsidiaries consist primarily of homeowners and private passenger automobile policies. The commercial lines products of our insurance subsidiaries consist primarily of commercial automobile, commercial multi-peril and workers’ compensation policies. At September 30, 2015, Donegal Mutual held approximately 36% of our outstanding Class A common stock and approximately 76% of our outstanding Class B common stock. This ownership provides Donegal Mutual with approximately 65% of the total voting power of our outstanding common stock. We believe Donegal Mutual’s voting control of us benefits us for the reasons we describe in our Annual Report on Form 10-K. Our insurance subsidiaries and Donegal Mutual have interrelated operations due to a pooling agreement and other intercompany agreements and transactions. While each company maintains its separate corporate existence, our insurance subsidiaries and Donegal Mutual conduct business together as the Donegal Insurance Group. As such, Donegal Mutual and our insurance subsidiaries share the same business philosophy, the same management, the same employees and the same facilities and offer the same types of insurance products. Atlantic States, our largest subsidiary, participates in a pooling agreement with Donegal Mutual. Under the pooling agreement, Donegal Mutual and Atlantic States pool their insurance business and each company receives an allocated percentage of the pooled business. Atlantic States has an 80% share of the results of the pooled business, and Donegal Mutual has a 20% share of the results of the pooled business. The same executive management and underwriting personnel administer products, classes of business underwritten, pricing practices and underwriting standards of Donegal Mutual and our insurance subsidiaries. In addition, as the Donegal Insurance Group, Donegal Mutual and our insurance subsidiaries share a combined business plan to achieve market penetration and underwriting profitability objectives. The products our insurance subsidiaries and Donegal Mutual market are generally complementary, thereby allowing the Donegal Insurance Group to offer a broader range of products to a given market and to expand the Donegal Insurance Group’s ability to service an entire personal lines or commercial lines account. Distinctions within the products Donegal Mutual and our insurance subsidiaries offer relate generally to specific risk profiles targeted within similar classes of business, such as preferred tier products versus standard tier products, but we do not allocate all of the standard risk gradients to one company. Therefore, the underwriting profitability of the business the individual companies write directly will vary. However, as the risk characteristics of all business Donegal Mutual and Atlantic States write directly are homogenized within the underwriting pool, Donegal Mutual and Atlantic States share the underwriting results in proportion to their respective participation in the pool. Pooled business represents the predominant percentage of the net underwriting activity of both Donegal Mutual and Atlantic States. On February 23, 2009, our board of directors authorized a share repurchase program pursuant to which we may purchase up to 300,000 shares of our Class A common stock at prices prevailing from time to time in the open market subject to the provisions of applicable rules of the Securities and Exchange Commission (the “SEC”) and in privately negotiated transactions. We purchased 3,222 shares of our Class A common stock under this program during the nine-month period ended September 30, 2015. We purchased 846 shares of our Class A common stock under this program during the nine-month period ended September 30, 2014. As of September 30, 2015, we had no remaining authorization to purchase shares under this program. On July 18, 2013, our board of directors authorized a share repurchase program pursuant to which we have the authority to purchase up to 500,000 additional shares of our Class A common stock at prices prevailing from time to time in the open market subject to the provisions of applicable rules of the SEC and in privately negotiated transactions. We purchased 57,658 shares of our Class A common stock under this program during the nine-month period ended September 30, 2015. We did not purchase any shares of our Class A common stock under this program during the nine-month period ended September 30, 2014. We have purchased a total of 57,658 shares of our Class A common stock under this program from its inception through September 30, 2015.

Basis of Presentation

Basis of Presentation	9 Months Ended
	Sep. 30, 2015
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Presentation	2 - Basis of Presentation Our financial information for the interim periods included in this Form 10-Q Report is unaudited; however, such information reflects all adjustments, consisting only of normal recurring adjustments that, in the opinion of our management, are necessary for a fair presentation of our financial position, results of operations and cash flows for those interim periods. Our results of operations for the nine months ended September 30, 2015 are not necessarily indicative of the results of operations we expect for the year ending December 31, 2015. You should read these interim financial statements in conjunction with the financial statements and the notes to our financial statements contained in our Annual Report on Form 10-K for the year ended December 31, 2014.

Earnings Per Share

Earnings Per Share	9 Months Ended
	Sep. 30, 2015
Earnings Per Share [Abstract]
Earnings Per Share	3 - Earnings Per Share We have two classes of common stock, which we refer to as our Class A common stock and our Class B common stock. Our certificate of incorporation provides that whenever our board of directors declares a dividend on our Class B common stock, our board of directors shall simultaneously declare a dividend on our Class A common stock that is payable to the holders of our Class A common stock at the same time and as of the same record date at a rate that is at least 10% greater than the rate at which our board of directors declared a dividend on our Class B common stock. Accordingly, we use the two-class method to compute our earnings per common share. The two-class method is an earnings allocation formula that determines earnings per share separately for each class of common stock based on dividends we have declared and an allocation of our remaining undistributed earnings using a participation percentage that reflects the dividend rights of each class. The table below presents for the periods indicated a reconciliation of the numerators and denominators we used to compute basic and diluted net income per share for each class of our common stock: Three Months Ended September 30, 2015 2014 Class A Class B Class A Class B (in thousands, except per share data) Basic net income per share: Numerator: Allocation of net income $ 4,663 $ 1,024 $ 7,072 $ 1,677 Denominator: Weighted-average shares outstanding 22,442,240 5,576,775 21,175,388 5,576,775 Basic net income per share $ 0.21 $ 0.18 $ 0.33 $ 0.30 Diluted net income per share: Numerator: Allocation of net income $ 4,663 $ 1,024 $ 7,072 $ 1,677 Denominator: Number of shares used in basic computation 22,442,240 5,576,775 21,175,388 5,576,775 Weighted-average shares effect of dilutive securities Add: Director and employee stock options 242,240 — 526,260 — Number of shares used in per share computations 22,684,480 5,576,775 21,701,648 5,576,775 Diluted net income per share $ 0.21 $ 0.18 $ 0.33 $ 0.30 Nine Months Ended September 30, 2015 2014 Class A Class B Class A Class B (in thousands, except per share data) Basic net income per share: Numerator: Allocation of net income $ 15,502 $ 3,504 $ 8,131 $ 1,922 Denominator: Weighted-average shares outstanding 21,995,952 5,576,775 21,004,426 5,576,775 Basic net income per share $ 0.71 $ 0.63 $ 0.39 $ 0.35 Diluted net income per share: Numerator: Allocation of net income $ 15,502 $ 3,504 $ 8,131 $ 1,922 Denominator: Number of shares used in basic computation 21,995,952 5,576,775 21,004,426 5,576,775 Weighted-average shares effect of dilutive securities Add: Director and employee stock options 399,657 — 431,762 — Number of shares used in per share computations 22,395,609 5,576,775 21,436,188 5,576,775 Diluted net income per share $ 0.69 $ 0.63 $ 0.38 $ 0.35 We did not include outstanding options to purchase the following number of shares of Class A common stock in our computation of diluted earnings per share because the exercise price of the options exceeded the average market price of our Class A common stock during the applicable periods: Three Months Ended Nine Months Ended 2015 2014 2015 2014 Number of options to purchase Class A shares excluded 4,014,501 2,504,333 — 2,548,500

Reinsurance

Reinsurance	9 Months Ended
	Sep. 30, 2015
Insurance [Abstract]
Reinsurance	4 - Reinsurance Atlantic States and Donegal Mutual have participated in a pooling agreement since 1986 under which each company places all of its direct written premiums into the pool the pooling agreement established, and Atlantic States and Donegal Mutual then share the underwriting results of the pool in accordance with the terms of the pooling agreement. Atlantic States has an 80% share of the results of the pool, and Donegal Mutual has a 20% share of the results of the pool. Our insurance subsidiaries and Donegal Mutual purchase certain third-party reinsurance on a combined basis. Le Mars, MICO, Peninsula and Sheboygan also purchase separate third-party reinsurance that provides coverage that we believe is commensurate with their relative size and risk exposures. Our insurance subsidiaries use several different reinsurers, all of which, consistent with the requirements of our insurance subsidiaries and Donegal Mutual, have an A.M. Best rating of A- (Excellent) or better or, with respect to foreign reinsurers, have a financial condition that, in the opinion of our management, is equivalent to a company with at least an A- rating from A.M. Best. The following information describes the external reinsurance our insurance subsidiaries have in place for 2015: • excess of loss reinsurance, under which losses are automatically reinsured, through a series of reinsurance agreements, over a set retention (generally $1.0 million), and • catastrophe reinsurance, under which Donegal Mutual and our insurance subsidiaries recover, through a series of reinsurance agreements, 100% of an accumulation of many losses resulting from a single event, including natural disasters, over a set retention (generally $5.0 million) and after exceeding an annual aggregate deductible (generally $1.5 million) up to aggregate losses of $149.0 million per occurrence. Our insurance subsidiaries and Donegal Mutual also purchase facultative reinsurance to cover exposures in excess of the covered limits of their third-party reinsurance agreements. Until December 31, 2014, MICO maintained a quota-share reinsurance agreement with third-party reinsurers to reduce its net exposures. Effective January 1, 2015, MICO no longer maintains a quota-share reinsurance agreement with third-party reinsurers. In addition to the pooling agreement and third-party reinsurance, our insurance subsidiaries have various reinsurance agreements with Donegal Mutual. Other than the MICO change we describe above, we have made no significant changes to our third-party reinsurance or the reinsurance agreements between our insurance subsidiaries and Donegal Mutual during the nine months ended September 30, 2015.

Investments

Investments	9 Months Ended
	Sep. 30, 2015
Investments, Debt and Equity Securities [Abstract]
Investments	5 - Investments The amortized cost and estimated fair values of our fixed maturities and equity securities at September 30, 2015 were as follows: Amortized Gross Gross Estimated (in thousands) Held to Maturity U.S. Treasury securities and obligations of U.S. government corporations and agencies $ 51,088 $ 2,384 $ — $ 53,472 Obligations of states and political subdivisions 113,232 9,061 160 122,133 Corporate securities 60,658 1,053 652 61,059 Mortgage-backed securities 78,432 2,059 64 80,427 Totals $ 303,410 $ 14,557 $ 876 $ 317,091 Amortized Gross Gross Estimated (in thousands) Available for Sale U.S. Treasury securities and obligations of U.S. government corporations and agencies $ 42,127 $ 368 $ 4 $ 42,491 Obligations of states and political subdivisions 235,944 15,101 463 250,582 Corporate securities 55,049 599 473 55,175 Mortgage-backed securities 133,404 2,074 136 135,342 Fixed maturities 466,524 18,142 1,076 483,590 Equity securities 36,108 1,787 2,059 35,836 Totals $ 502,632 $ 19,929 $ 3,135 $ 519,426 At September 30, 2015, our holdings of obligations of states and political subdivisions included general obligation bonds with an aggregate fair value of $265.2 million and an amortized cost of $249.1 million. Our holdings at September 30, 2015 also included special revenue bonds with an aggregate fair value of $107.5 million and an amortized cost of $100.1 million. With respect to both categories of those bonds at September 30, 2015, we held no securities of any issuer that constituted more than 10% of our holdings of either bond category. Education bonds and water and sewer utility bonds represented 56% and 26%, respectively, of our total investments in special revenue bonds based on the carrying values of these investments at September 30, 2015. Many of the issuers of the special revenue bonds we held at September 30, 2015 have the authority to impose ad valorem taxes. In that respect, many of the special revenue bonds we held at September 30, 2015 were similar to general obligation bonds. The amortized cost and estimated fair values of our fixed maturities and equity securities at December 31, 2014 were as follows: Amortized Gross Gross Estimated (in thousands) Held to Maturity U.S. Treasury securities and obligations of U.S. government corporations and agencies $ 53,619 $ 1,694 $ — $ 55,313 Obligations of states and political subdivisions 110,999 10,313 5 121,307 Corporate securities 52,226 1,235 461 53,000 Mortgage-backed securities 90,548 2,099 112 92,535 Totals $ 307,392 $ 15,341 $ 578 $ 322,155 Amortized Gross Gross Estimated (in thousands) Available for Sale U.S. Treasury securities and obligations of U.S. government corporations and agencies $ 21,153 $ 126 $ 20 $ 21,259 Obligations of states and political subdivisions 248,046 18,210 14 266,242 Corporate securities 53,211 809 75 53,945 Mortgage-backed securities 91,791 2,005 92 93,704 Fixed maturities 414,201 21,150 201 435,150 Equity securities 29,986 1,652 816 30,822 Totals $ 444,187 $ 22,802 $ 1,017 $ 465,972 At December 31, 2014, our holdings of obligations of states and political subdivisions included general obligation bonds with an aggregate fair value of $279.7 million and an amortized cost of $259.8 million. Our holdings also included special revenue bonds with an aggregate fair value of $107.8 million and an amortized cost of $99.2 million. With respect to both categories of those bonds at December 31, 2014, we held no securities of any issuer that constituted more than 10% of our holdings of either bond category. Education bonds and water and sewer utility bonds represented 55% and 27%, respectively, of our total investments in special revenue bonds based on the carrying values of these investments at December 31, 2014. Many of the issuers of the special revenue bonds we held at December 31, 2014 have the authority to impose ad valorem taxes. In that respect, many of the special revenue bonds we held at December 31, 2014 were similar to general obligation bonds. We made reclassifications from available for sale to held to maturity of certain fixed maturities at fair value on November 30, 2013. We have segregated within accumulated other comprehensive income the net unrealized losses of $15.1 million arising prior to the November 30, 2013 reclassification date for fixed maturities reclassified from available for sale to held to maturity. We are amortizing this balance over the remaining life of the related securities as an adjustment to yield in a manner consistent with the accretion of discount on the same fixed maturities. We recorded amortization of $905,446 and $945,783 in accumulated other comprehensive income during the nine months ended September 30, 2015 and 2014, respectively. At September 30, 2015 and December 31, 2014, net unrealized losses of $12.7 million and $14.0 million, respectively, remained within accumulated other comprehensive income. We show below the amortized cost and estimated fair value of our fixed maturities at September 30, 2015 by contractual maturity. Expected maturities may differ from contractual maturities because issuers of the securities may have the right to call or prepay obligations with or without call or prepayment penalties. Amortized Estimated (in thousands) Held to maturity Due in one year or less $ 3,760 $ 3,758 Due after one year through five years 35,903 36,714 Due after five years through ten years 77,561 80,500 Due after ten years 107,754 115,692 Mortgage-backed securities 78,432 80,427 Total held to maturity $ 303,410 $ 317,091 Available for sale Due in one year or less $ 19,435 $ 19,897 Due after one year through five years 91,910 95,761 Due after five years through ten years 111,218 116,297 Due after ten years 110,557 116,293 Mortgage-backed securities 133,404 135,342 Total available for sale $ 466,524 $ 483,590 Gross realized gains and losses from investments before applicable income taxes for the three and nine months ended September 30, 2015 and 2014 were as follows: Three Months Ended Nine Months Ended 2015 2014 2015 2014 (in thousands) (in thousands) Gross realized gains: Fixed maturities $ 7 $ 19 $ 974 $ 1,367 Equity securities 30 407 733 1,059 37 426 1,707 2,426 Gross realized losses: Fixed maturities 27 33 105 34 Equity securities 764 42 919 95 791 75 1,024 129 Net realized (losses) gains $ (754 ) $ 351 $ 683 $ 2,297 We held fixed maturities and equity securities with unrealized losses representing declines that we considered temporary at September 30, 2015 as follows: Less Than 12 Months More Than 12 Months Fair Value Unrealized Fair Value Unrealized (in thousands) U.S. Treasury securities and obligations of U.S. government corporations and agencies $ 5,371 $ 4 $ — $ — Obligations of states and political subdivisions 36,872 623 — — Corporate securities 32,937 649 5,245 476 Mortgage-backed securities 22,650 126 6,780 74 Equity securities 11,621 2,059 — — Totals $ 109,451 $ 3,461 $ 12,025 $ 550 We held fixed maturities and equity securities with unrealized losses representing declines that we considered temporary at December 31, 2014 as follows: Less Than 12 Months More Than 12 Months Fair Unrealized Fair Unrealized (in thousands) U.S. Treasury securities and obligations of U.S. government corporations and agencies $ 6,821 $ 18 $ 937 $ 1 Obligations of states and political subdivisions 4,146 15 1,309 4 Corporate securities 26,854 500 2,398 36 Mortgage-backed securities 13,361 72 9,026 132 Equity securities 7,512 816 — — Totals $ 58,694 $ 1,421 $ 13,670 $ 173 We make estimates concerning the valuation of our investments and the recognition of other-than-temporary declines in the value of our investments. For equity securities, we write down the investment to its fair value, and we reflect the amount of the write-down as a realized loss in our results of operations when we consider the decline in value of an individual equity security investment to be other than temporary. We monitor all investments individually for other-than-temporary declines in value. Generally, we assume there has been an other-than-temporary decline in value if an individual equity security has depreciated in value by more than 20% of our original cost and has been in such an unrealized loss position for more than six months. We held 22 equity securities that were in an unrealized loss position at September 30, 2015. Based upon our analysis of general market conditions and underlying factors impacting these equity securities, we considered these declines in value to be temporary. With respect to a debt security that is in an unrealized loss position, we first assess if we intend to sell the debt security. If we determine we intend to sell the debt security, we recognize the impairment loss in our results of operations. If we do not intend to sell the debt security, we determine whether it is more likely than not that we will be required to sell the debt security prior to recovery. If we determine it is more likely than not that we will be required to sell the debt security prior to recovery, we recognize an impairment loss in our results of operations. If we determine it is more likely than not that we will not be required to sell the debt security prior to recovery, we then evaluate whether a credit loss has occurred. We determine whether a credit loss has occurred by comparing the amortized cost of the debt security to the present value of the cash flows we expect to collect. If we expect a cash flow shortfall, we consider that a credit loss has occurred. If we determine that a credit loss has occurred, we consider the impairment to be other than temporary. We then recognize the amount of the impairment loss related to the credit loss in our results of operations, and we recognize the remaining portion of the impairment loss in our other comprehensive income, net of applicable taxes. In addition, we may write down securities in an unrealized loss position based on a number of other factors, including when the fair value of an investment is significantly below its cost, when the financial condition of the issuer of a security has deteriorated, the occurrence of industry, issuer or geographic events that have negatively impacted the value of a security and rating agency downgrades. We held 118 debt securities that were in an unrealized loss position at September 30, 2015. Based upon our analysis of general market conditions and underlying factors impacting these debt securities, we considered these declines in value to be temporary. We amortize premiums and discounts on debt securities over the life of the security as an adjustment to yield using the effective interest method. We compute realized investment gains and losses using the specific identification method. We amortize premiums and discounts on mortgage-backed debt securities using anticipated prepayments. We account for our investment in affiliates using the equity method of accounting. Under this method, we record our investment at cost, with adjustments for our share of our affiliates’ earnings and losses as well as changes in the equity of our affiliates due to unrealized gains and losses. Our investment in affiliates represents our 48.2% ownership interest in DFSC. We include our share of DFSC’s net income in our results of operations. We have compiled the following summary financial information for DFSC at September 30, 2015 and December 31, 2014 and for the three and nine months ended September 30, 2015 and 2014, respectively, from the financial statements of DFSC. The financial information of DFSC at September 30, 2015 and 2014 and for the three and nine months then ended is unaudited. Balance sheets: September 30, December 31, (in thousands) Total assets $ 508,632 $ 505,934 Total liabilities $ 425,528 $ 424,267 Stockholders’ equity 83,104 81,667 Total liabilities and stockholders’ equity $ 508,632 $ 505,934 Three Months Ended September 30, Nine Months Ended September 30, Income statements: 2015 2014 2015 2014 (in thousands) (in thousands) Net income $ 847 $ 989 $ 2,372 $ 2,561

Segment Information

Segment Information	9 Months Ended
	Sep. 30, 2015
Segment Reporting [Abstract]
Segment Information	6 - Segment Information We evaluate the performance of our personal lines and commercial lines segments based upon the underwriting results of our insurance subsidiaries using statutory accounting principles (“SAP”) that various state insurance departments prescribe or permit. Our management uses SAP to measure the performance of our insurance subsidiaries instead of United States generally accepted accounting principles (“GAAP”). Financial data by segment for the three and nine month periods ended September 30, 2015 and 2014 is as follows: Three Months Ended 2015 2014 (in thousands) Revenues: Premiums earned Commercial lines $ 66,456 $ 59,221 Personal lines 86,640 82,929 GAAP premiums earned 153,096 142,150 Net investment income 5,399 4,299 Realized investment (losses) gains (754 ) 351 Equity in earnings of DFSC 408 477 Other 1,653 1,858 Total revenues $ 159,802 $ 149,135 Income before income taxes: Underwriting income (loss): Commercial lines $ 4,447 $ 2,383 Personal lines (3,727 ) 1,415 SAP underwriting income 720 3,798 GAAP adjustments 65 730 GAAP underwriting income 785 4,528 Net investment income 5,399 4,299 Realized investment (losses) gains (754 ) 351 Equity in earnings of DFSC 408 477 Other 1,163 959 Income before income taxes $ 7,001 $ 10,614 Nine Months Ended 2015 2014 (in thousands) Revenues: Premiums earned Commercial lines $ 193,036 $ 170,263 Personal lines 257,048 242,024 GAAP premiums earned 450,084 412,287 Net investment income 15,505 13,529 Realized investment gains 683 2,297 Equity in earnings of DFSC 1,277 1,235 Other 5,042 5,608 Total revenues $ 472,591 $ 434,956 Income before income taxes: Underwriting income (loss): Commercial lines $ 6,449 $ (8,792 ) Personal lines (6,499 ) (5,544 ) SAP underwriting loss (50 ) (14,336 ) GAAP adjustments 4,565 7,130 GAAP underwriting income (loss) 4,515 (7,206 ) Net investment income 15,505 13,529 Realized investment gains 683 2,297 Equity in earnings of DFSC 1,277 1,235 Other 2,430 2,286 Income before income taxes $ 24,410 $ 12,141

Borrowings

Borrowings	9 Months Ended
	Sep. 30, 2015
Debt Disclosure [Abstract]
Borrowings	7 - Borrowings Lines of Credit In June 2015, we renewed our existing credit agreement with Manufacturers and Traders Trust Company (“M&T”) relating to a $60.0 million unsecured, revolving line of credit. The line of credit expires in July 2018. We have the right to request a one-year extension of the credit agreement as of each anniversary date of the credit agreement. At September 30, 2015, we had $13.0 million in outstanding borrowings and had the ability to borrow an additional $47.0 million at interest rates equal to M&T’s current prime rate or the then current LIBOR rate plus 2.25%. The interest rate on our outstanding borrowings from M&T is adjustable quarterly, and, at September 30, 2015, that interest rate was 2.44%. We pay a fee of 0.2% per annum on the loan commitment amount regardless of usage. The credit agreement requires our compliance with certain covenants. These covenants include minimum levels of our net worth, leverage ratio, statutory surplus and the A.M. Best ratings of our insurance subsidiaries. We were in compliance with all requirements of the M&T credit agreement during the nine months ended September 30, 2015. MICO is a member of the Federal Home Loan Bank (“FHLB”) of Indianapolis. Through its membership, MICO has the ability to issue debt to the FHLB of Indianapolis in exchange for cash advances. MICO had no outstanding borrowings with the FHLB of Indianapolis at December 31, 2014 or September 30, 2015. The table below presents the amount of FHLB of Indianapolis stock MICO purchased, collateral pledged and assets related to MICO’s membership at September 30, 2015. FHLB of Indianapolis stock purchased and owned $ 201,100 Collateral pledged, at par (carrying value $2,664,290) 2,668,766 Borrowing capacity currently available 2,584,505 Atlantic States is a member of the FHLB of Pittsburgh. Through its membership, Atlantic States has the ability to issue debt to the FHLB of Pittsburgh in exchange for cash advances. In 2013, Atlantic States issued secured debt in the principal amount of $15.0 million to the FHLB of Pittsburgh in exchange for cash advances in the amount of $15.0 million. In July 2015, Atlantic States issued secured debt in the principal amount of $20.0 million to the FHLB of Pittsburgh in exchange for cash advances in the amount of $20.0 million. Atlantic States then loaned $20.0 million to us. We used the proceeds of our loan from Atlantic States to repay borrowings under our line of credit with M&T. We expect this FHLB of Pittsburgh financing to reduce our interest expense by approximately $420,000 on an annual basis. The interest rate on the advances was .36% at September 30, 2015. The table below presents the amount of FHLB of Pittsburgh stock Atlantic States purchased, collateral pledged and assets related to Atlantic States’ membership in the FHLB of Pittsburgh at September 30, 2015. FHLB of Pittsburgh stock purchased and owned $ 1,540,300 Collateral pledged, at par (carrying value $38,218,212) 38,519,029 Borrowing capacity currently available 2,089,109 Subordinated Debentures In 2002, West Bend Mutual Insurance Company (“West Bend”), the prior owner of MICO, purchased a $5.0 million surplus note from MICO at face value to increase MICO’s statutory surplus. In 2010, Donegal Mutual purchased the surplus note from West Bend at face value in connection with our acquisition of MICO. The surplus note carries an interest rate of 5.00%, and any repayment of principal or payment of interest on the surplus note requires prior approval of the Michigan Department of Insurance and Financial Services.

Share-Based Compensation

Share-Based Compensation	9 Months Ended
	Sep. 30, 2015
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Share-Based Compensation	8 - Share–Based Compensation We measure all share-based payments to employees, including grants of stock options, and use a fair-value-based method for the recording of related compensation expense in our consolidated statements of income. In determining the expense we record for stock options granted to directors and employees of our subsidiaries and affiliates, we estimate the fair value of each option award on the date of grant using the Black-Scholes option pricing model. The significant assumptions we utilize in applying the Black-Scholes option pricing model are the risk-free interest rate, the expected term, the dividend yield and the expected volatility. We charged compensation expense related to our stock compensation plans against income before income taxes of $598,516 and $494,974 for the three months ended September 30, 2015 and 2014, respectively, with a corresponding income tax benefit of $209,481 and $173,241, respectively. We charged compensation expense related to our stock compensation plans against income before income taxes of $1.9 million and $1.5 million for the nine months ended September 30, 2015 and 2014, respectively, with a corresponding income tax benefit of $671,607 and $536,725, respectively. At September 30, 2015, we had $2.6 million of unrecognized compensation expense related to nonvested share-based compensation granted under our stock compensation plans. We expect to recognize this compensation expense over a weighted average period of 1.1 years. We received cash from option exercises under all stock compensation plans during the three months ended September 30, 2015 and 2014 of $181,488 and $3.9 million, respectively. We received cash from option exercises under all stock compensation plans during the nine months ended September 30, 2015 and 2014 of $13.7 million and $5.2 million, respectively. We realized actual tax benefits for the tax deductions from option exercises of share-based compensation of $4,802 and $177,717 for the three months ended September 30, 2015 and 2014, respectively. We realized actual tax benefits for the tax deductions from option exercises of share-based compensation of $424,537 and $241,391 for the nine months ended September 30, 2015 and 2014, respectively.

Fair Value Measurements

Fair Value Measurements	9 Months Ended
	Sep. 30, 2015
Fair Value Disclosures [Abstract]
Fair Value Measurements	9 - Fair Value Measurements We account for financial assets using a framework that establishes a hierarchy that ranks the quality and reliability of the inputs, or assumptions, we use in the determination of fair value, and we classify financial assets and liabilities carried at fair value in one of the following three categories: Level 1 – quoted prices in active markets for identical assets and liabilities; Level 2 – directly or indirectly observable inputs other than Level 1 quoted prices; and Level 3 – unobservable inputs not corroborated by market data. For investments that have quoted market prices in active markets, we use the quoted market price as fair value and include these investments in Level 1 of the fair value hierarchy. We classify publicly-traded equity securities as Level 1. When quoted market prices in active markets are not available, we base fair values on quoted market prices of comparable instruments or price estimates we obtain from independent pricing services and include these investments in Level 2 of the fair value hierarchy. We classify our fixed maturity investments as Level 2. Our fixed maturity investments consist of U.S. Treasury securities and obligations of U.S. government corporations and agencies, obligations of states and political subdivisions, corporate securities and mortgage-backed securities. We also classify a portion of our equity securities as Level 2. We present our investments in available-for-sale fixed maturity and equity securities at estimated fair value. The estimated fair value of a security may differ from the amount that could be realized if we sold the security in a forced transaction. In addition, the valuation of fixed maturity investments is more subjective when markets are less liquid, increasing the potential that the estimated fair value does not reflect the price at which an actual transaction would occur. We utilize nationally recognized independent pricing services to estimate fair values or obtain market quotations for substantially all of our fixed maturity and equity investments. These pricing services utilize market quotations for fixed maturity and equity securities that have quoted prices in active markets. For fixed maturity securities that generally do not trade on a daily basis, the pricing services prepare estimates of fair value measurements based predominantly on observable market inputs. The pricing services do not use broker quotes in determining the fair values of our investments. Our investment personnel review the estimates of fair value the pricing services provide to determine if the estimates we obtain from the pricing services are representative of fair values based upon our investment personnel’s general knowledge of the market, their research findings related to unusual fluctuations in value and their comparison of such values to execution prices for similar securities. Our investment personnel regularly monitor the market, current trading ranges for similar securities and the pricing of specific investments. Our investment personnel review all pricing estimates that we receive from the pricing services against their expectations with respect to pricing based on fair market curves, security ratings, coupon rates, security type and recent trading activity. Our investment personnel review documentation with respect to the pricing services’ pricing methodology that they obtain periodically to determine if the primary pricing sources, market inputs and pricing frequency for various security types are reasonable. At September 30, 2015, we received two estimates per security from the pricing services, and we priced substantially all of our Level 1 and Level 2 investments using those prices. In our review of the estimates the pricing services provided at September 30, 2015, we did not identify any material discrepancies, and we did not make any adjustments to the estimates the pricing services provided. We present our cash and short-term investments at estimated fair value. We classify these items as Level 1. The carrying values we report in our balance sheet for premium receivables and reinsurance receivables and payables for premiums and paid losses and loss expenses approximate their fair values. The carrying amounts we report in our balance sheet for our subordinated debentures and borrowings under lines of credit approximate their fair values. We classify these items as Level 3. We evaluate our assets and liabilities on a recurring basis to determine the appropriate level at which to classify them for each reporting period. The following table presents our fair value measurements for our investments in available-for-sale fixed maturity and equity securities at September 30, 2015: Fair Value Measurements Using Fair Value Quoted (Level 1) Significant Other (Level 2) Significant (Level 3) (in thousands) U.S. Treasury securities and obligations of U.S. government corporations and agencies $ 42,491 $ — $ 42,491 $ — Obligations of states and political subdivisions 250,582 — 250,582 — Corporate securities 55,175 — 55,175 — Mortgage-backed securities 135,342 — 135,342 — Equity securities 35,836 25,865 9,971 — Totals $ 519,426 $ 25,865 $ 493,561 $ — We did not transfer any investments between Levels 1 and 2 during the nine months ended September 30, 2015. The following table presents our fair value measurements for our investments in available-for-sale fixed maturity and equity securities at December 31, 2014: Fair Value Measurements Using Fair Value Quoted Assets (Level 1) Significant Other (Level 2) Significant (Level 3) (in thousands) U.S. Treasury securities and obligations of U.S. government corporations and agencies $ 21,259 $ — $ 21,259 $ — Obligations of states and political subdivisions 266,242 — 266,242 — Corporate securities 53,945 — 53,945 — Mortgage-backed securities 93,704 — 93,704 — Equity securities 30,822 20,768 10,054 — Totals $ 465,972 $ 20,768 $ 445,204 $ —

Income Taxes

Income Taxes	9 Months Ended
	Sep. 30, 2015
Income Tax Disclosure [Abstract]
Income Taxes	10 - Income Taxes At September 30, 2015 and December 31, 2014, respectively, we had no material unrecognized tax benefits or accrued interest and penalties. Tax years 2012 through 2015 remained open for examination at September 30, 2015. We provide a valuation allowance when we believe it is more likely than not that we will not realize some portion of our tax assets. We established a valuation allowance of $440,778 related to a portion of the net operating loss carryforward of Le Mars at January 1, 2004. We have determined that we are not required to establish a valuation allowance for our other net deferred tax assets of $43.6 million and $41.7 million at September 30, 2015 and December 31, 2014, respectively, because it is more likely than not that we will realize these deferred tax assets through reversals of existing temporary differences, future taxable income and the implementation of tax planning strategies. We also have a net operating loss carryforward of $3.9 million related to Le Mars, which will begin to expire in 2020 if not previously utilized. This carryforward is subject to an annual limitation in the amount that we can use in any one year of approximately $376,000. We also have an alternative minimum tax credit carryforward of $11.0 million with an indefinite life.

Impact of New Accounting Standa

Impact of New Accounting Standards	9 Months Ended
	Sep. 30, 2015
Accounting Changes and Error Corrections [Abstract]
Impact of New Accounting Standards	11 - Impact of New Accounting Standards In May 2014, the Financial Accounting Standards Board (the “FASB”) issued guidance that requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. While the guidance will replace most existing GAAP revenue recognition guidance, the scope of the guidance excludes insurance contracts. The new standard is effective on January 1, 2018. The standard permits the use of either the retrospective or the cumulative effect transition method. We do not expect the adoption of this new guidance to have a significant impact on our financial position, results of operations or cash flows. In February 2015, the FASB issued a new standard that amends the current consolidation guidance affecting both the variable interest entity (“VIE”) and voting interest entity (“VOE”) consolidation models. The standard does not add or remove any of the characteristics in determining if an entity is a VIE or VOE, but rather, the standard enhances assessment of some of these characteristics. The new standard is effective on January 1, 2017. We do not expect the adoption of this new guidance to have a significant impact on our financial position, results of operations or cash flows. In May 2015, the FASB issued guidance that removes the requirement to categorize within the fair value hierarchy all investments for which fair value is measured using the net asset value per share practical expedient. The guidance also removes the requirement to make certain disclosures for all investments that are eligible to be measured at fair value using the net asset value per share practical expedient. The guidance instead limits disclosure to investments for which the entity has elected to measure fair value using that practical expedient. The guidance is effective for annual reporting periods beginning after December 15, 2015, and interim reporting periods within those annual reporting periods. We do not expect the adoption of this new guidance to have a significant impact on our financial position, results of operations or cash flows. In May 2015, the FASB issued guidance that requires entities to provide additional disclosures about their liability for unpaid claims and claim adjustment expenses to increase the transparency of significant estimates. The guidance also requires entities to disclose information about significant changes in methodologies and assumptions used to calculate the liability for unpaid claims and claim adjustment expenses, including the reasons for the changes and the effects on the entities’ financial statements, and the timing, frequency and severity of claims. The guidance also requires entities to disclose a rollforward of the liability for unpaid claims and claim adjustment expenses for annual and interim reporting periods. The guidance is effective for annual reporting periods beginning after December 15, 2015, and interim reporting periods within annual reporting periods beginning after December 15, 2016. We do not expect the adoption of this new guidance to have a significant impact on our financial position, results of operations or cash flows.

Impact of New Accounting Stan21

Impact of New Accounting Standards (Policies)	9 Months Ended
	Sep. 30, 2015
Accounting Changes and Error Corrections [Abstract]
Other Comprehensive Income	In May 2014, the Financial Accounting Standards Board (the “FASB”) issued guidance that requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. While the guidance will replace most existing GAAP revenue recognition guidance, the scope of the guidance excludes insurance contracts. The new standard is effective on January 1, 2018. The standard permits the use of either the retrospective or the cumulative effect transition method. We do not expect the adoption of this new guidance to have a significant impact on our financial position, results of operations or cash flows. In February 2015, the FASB issued a new standard that amends the current consolidation guidance affecting both the variable interest entity (“VIE”) and voting interest entity (“VOE”) consolidation models. The standard does not add or remove any of the characteristics in determining if an entity is a VIE or VOE, but rather, the standard enhances assessment of some of these characteristics. The new standard is effective on January 1, 2017. We do not expect the adoption of this new guidance to have a significant impact on our financial position, results of operations or cash flows. In May 2015, the FASB issued guidance that removes the requirement to categorize within the fair value hierarchy all investments for which fair value is measured using the net asset value per share practical expedient. The guidance also removes the requirement to make certain disclosures for all investments that are eligible to be measured at fair value using the net asset value per share practical expedient. The guidance instead limits disclosure to investments for which the entity has elected to measure fair value using that practical expedient. The guidance is effective for annual reporting periods beginning after December 15, 2015, and interim reporting periods within those annual reporting periods. We do not expect the adoption of this new guidance to have a significant impact on our financial position, results of operations or cash flows. In May 2015, the FASB issued guidance that requires entities to provide additional disclosures about their liability for unpaid claims and claim adjustment expenses to increase the transparency of significant estimates. The guidance also requires entities to disclose information about significant changes in methodologies and assumptions used to calculate the liability for unpaid claims and claim adjustment expenses, including the reasons for the changes and the effects on the entities’ financial statements, and the timing, frequency and severity of claims. The guidance also requires entities to disclose a rollforward of the liability for unpaid claims and claim adjustment expenses for annual and interim reporting periods. The guidance is effective for annual reporting periods beginning after December 15, 2015, and interim reporting periods within annual reporting periods beginning after December 15, 2016. We do not expect the adoption of this new guidance to have a significant impact on our financial position, results of operations or cash flows.

Earnings Per Share (Tables)

Earnings Per Share (Tables)	9 Months Ended
	Sep. 30, 2015
Earnings Per Share [Abstract]
Summary of Reconciliation of Numerators and Denominators Used in Basic and Diluted Per Share Computations	The table below presents for the periods indicated a reconciliation of the numerators and denominators we used to compute basic and diluted net income per share for each class of our common stock: Three Months Ended September 30, 2015 2014 Class A Class B Class A Class B (in thousands, except per share data) Basic net income per share: Numerator: Allocation of net income $ 4,663 $ 1,024 $ 7,072 $ 1,677 Denominator: Weighted-average shares outstanding 22,442,240 5,576,775 21,175,388 5,576,775 Basic net income per share $ 0.21 $ 0.18 $ 0.33 $ 0.30 Diluted net income per share: Numerator: Allocation of net income $ 4,663 $ 1,024 $ 7,072 $ 1,677 Denominator: Number of shares used in basic computation 22,442,240 5,576,775 21,175,388 5,576,775 Weighted-average shares effect of dilutive securities Add: Director and employee stock options 242,240 — 526,260 — Number of shares used in per share computations 22,684,480 5,576,775 21,701,648 5,576,775 Diluted net income per share $ 0.21 $ 0.18 $ 0.33 $ 0.30 Nine Months Ended September 30, 2015 2014 Class A Class B Class A Class B (in thousands, except per share data) Basic net income per share: Numerator: Allocation of net income $ 15,502 $ 3,504 $ 8,131 $ 1,922 Denominator: Weighted-average shares outstanding 21,995,952 5,576,775 21,004,426 5,576,775 Basic net income per share $ 0.71 $ 0.63 $ 0.39 $ 0.35 Diluted net income per share: Numerator: Allocation of net income $ 15,502 $ 3,504 $ 8,131 $ 1,922 Denominator: Number of shares used in basic computation 21,995,952 5,576,775 21,004,426 5,576,775 Weighted-average shares effect of dilutive securities Add: Director and employee stock options 399,657 — 431,762 — Number of shares used in per share computations 22,395,609 5,576,775 21,436,188 5,576,775 Diluted net income per share $ 0.69 $ 0.63 $ 0.38 $ 0.35
Reconciliation of Diluted Shares Outstanding	We did not include outstanding options to purchase the following number of shares of Class A common stock in our computation of diluted earnings per share because the exercise price of the options exceeded the average market price of our Class A common stock during the applicable periods: Three Months Ended Nine Months Ended 2015 2014 2015 2014 Number of options to purchase Class A shares excluded 4,014,501 2,504,333 — 2,548,500

Investments (Tables)

Investments (Tables)	9 Months Ended
	Sep. 30, 2015
Investments, Debt and Equity Securities [Abstract]
Summary of Amortized Cost and Estimated Fair Values of Fixed Maturities and Equity Securities	The amortized cost and estimated fair values of our fixed maturities and equity securities at September 30, 2015 were as follows: Amortized Gross Gross Estimated (in thousands) Held to Maturity U.S. Treasury securities and obligations of U.S. government corporations and agencies $ 51,088 $ 2,384 $ — $ 53,472 Obligations of states and political subdivisions 113,232 9,061 160 122,133 Corporate securities 60,658 1,053 652 61,059 Mortgage-backed securities 78,432 2,059 64 80,427 Totals $ 303,410 $ 14,557 $ 876 $ 317,091 Amortized Gross Gross Estimated (in thousands) Available for Sale U.S. Treasury securities and obligations of U.S. government corporations and agencies $ 42,127 $ 368 $ 4 $ 42,491 Obligations of states and political subdivisions 235,944 15,101 463 250,582 Corporate securities 55,049 599 473 55,175 Mortgage-backed securities 133,404 2,074 136 135,342 Fixed maturities 466,524 18,142 1,076 483,590 Equity securities 36,108 1,787 2,059 35,836 Totals $ 502,632 $ 19,929 $ 3,135 $ 519,426 The amortized cost and estimated fair values of our fixed maturities and equity securities at December 31, 2014 were as follows: Amortized Gross Gross Estimated (in thousands) Held to Maturity U.S. Treasury securities and obligations of U.S. government corporations and agencies $ 53,619 $ 1,694 $ — $ 55,313 Obligations of states and political subdivisions 110,999 10,313 5 121,307 Corporate securities 52,226 1,235 461 53,000 Mortgage-backed securities 90,548 2,099 112 92,535 Totals $ 307,392 $ 15,341 $ 578 $ 322,155 Amortized Gross Gross Estimated (in thousands) Available for Sale U.S. Treasury securities and obligations of U.S. government corporations and agencies $ 21,153 $ 126 $ 20 $ 21,259 Obligations of states and political subdivisions 248,046 18,210 14 266,242 Corporate securities 53,211 809 75 53,945 Mortgage-backed securities 91,791 2,005 92 93,704 Fixed maturities 414,201 21,150 201 435,150 Equity securities 29,986 1,652 816 30,822 Totals $ 444,187 $ 22,802 $ 1,017 $ 465,972
Summary of Amortized Cost and Estimated Fair Value of Fixed Maturities by Contractual Maturity	We show below the amortized cost and estimated fair value of our fixed maturities at September 30, 2015 by contractual maturity. Expected maturities may differ from contractual maturities because issuers of the securities may have the right to call or prepay obligations with or without call or prepayment penalties. Amortized Estimated (in thousands) Held to maturity Due in one year or less $ 3,760 $ 3,758 Due after one year through five years 35,903 36,714 Due after five years through ten years 77,561 80,500 Due after ten years 107,754 115,692 Mortgage-backed securities 78,432 80,427 Total held to maturity $ 303,410 $ 317,091 Available for sale Due in one year or less $ 19,435 $ 19,897 Due after one year through five years 91,910 95,761 Due after five years through ten years 111,218 116,297 Due after ten years 110,557 116,293 Mortgage-backed securities 133,404 135,342 Total available for sale $ 466,524 $ 483,590
Summary of Gross Realized Gains and Losses from Investments before Applicable Income Taxes	Gross realized gains and losses from investments before applicable income taxes for the three and nine months ended September 30, 2015 and 2014 were as follows: Three Months Ended Nine Months Ended 2015 2014 2015 2014 (in thousands) (in thousands) Gross realized gains: Fixed maturities $ 7 $ 19 $ 974 $ 1,367 Equity securities 30 407 733 1,059 37 426 1,707 2,426 Gross realized losses: Fixed maturities 27 33 105 34 Equity securities 764 42 919 95 791 75 1,024 129 Net realized (losses) gains $ (754 ) $ 351 $ 683 $ 2,297
Summary of Fixed Maturities and Equity Securities with Unrealized Losses	We held fixed maturities and equity securities with unrealized losses representing declines that we considered temporary at September 30, 2015 as follows: Less Than 12 Months More Than 12 Months Fair Value Unrealized Fair Value Unrealized (in thousands) U.S. Treasury securities and obligations of U.S. government corporations and agencies $ 5,371 $ 4 $ — $ — Obligations of states and political subdivisions 36,872 623 — — Corporate securities 32,937 649 5,245 476 Mortgage-backed securities 22,650 126 6,780 74 Equity securities 11,621 2,059 — — Totals $ 109,451 $ 3,461 $ 12,025 $ 550 We held fixed maturities and equity securities with unrealized losses representing declines that we considered temporary at December 31, 2014 as follows: Less Than 12 Months More Than 12 Months Fair Unrealized Fair Unrealized (in thousands) U.S. Treasury securities and obligations of U.S. government corporations and agencies $ 6,821 $ 18 $ 937 $ 1 Obligations of states and political subdivisions 4,146 15 1,309 4 Corporate securities 26,854 500 2,398 36 Mortgage-backed securities 13,361 72 9,026 132 Equity securities 7,512 816 — — Totals $ 58,694 $ 1,421 $ 13,670 $ 173
Summary of Financial Information	The financial information of DFSC at September 30, 2015 and 2014 and for the three and nine months then ended is unaudited. Balance sheets: September 30, December 31, (in thousands) Total assets $ 508,632 $ 505,934 Total liabilities $ 425,528 $ 424,267 Stockholders’ equity 83,104 81,667 Total liabilities and stockholders’ equity $ 508,632 $ 505,934 Three Months Ended September 30, Nine Months Ended September 30, Income statements: 2015 2014 2015 2014 (in thousands) (in thousands) Net income $ 847 $ 989 $ 2,372 $ 2,561

Segment Information (Tables)

Segment Information (Tables)	9 Months Ended
	Sep. 30, 2015
Segment Reporting [Abstract]
Summary of Financial Data by Segment	Financial data by segment for the three and nine month periods ended September 30, 2015 and 2014 is as follows: Three Months Ended 2015 2014 (in thousands) Revenues: Premiums earned Commercial lines $ 66,456 $ 59,221 Personal lines 86,640 82,929 GAAP premiums earned 153,096 142,150 Net investment income 5,399 4,299 Realized investment (losses) gains (754 ) 351 Equity in earnings of DFSC 408 477 Other 1,653 1,858 Total revenues $ 159,802 $ 149,135 Income before income taxes: Underwriting income (loss): Commercial lines $ 4,447 $ 2,383 Personal lines (3,727 ) 1,415 SAP underwriting income 720 3,798 GAAP adjustments 65 730 GAAP underwriting income 785 4,528 Net investment income 5,399 4,299 Realized investment (losses) gains (754 ) 351 Equity in earnings of DFSC 408 477 Other 1,163 959 Income before income taxes $ 7,001 $ 10,614 Nine Months Ended 2015 2014 (in thousands) Revenues: Premiums earned Commercial lines $ 193,036 $ 170,263 Personal lines 257,048 242,024 GAAP premiums earned 450,084 412,287 Net investment income 15,505 13,529 Realized investment gains 683 2,297 Equity in earnings of DFSC 1,277 1,235 Other 5,042 5,608 Total revenues $ 472,591 $ 434,956 Income before income taxes: Underwriting income (loss): Commercial lines $ 6,449 $ (8,792 ) Personal lines (6,499 ) (5,544 ) SAP underwriting loss (50 ) (14,336 ) GAAP adjustments 4,565 7,130 GAAP underwriting income (loss) 4,515 (7,206 ) Net investment income 15,505 13,529 Realized investment gains 683 2,297 Equity in earnings of DFSC 1,277 1,235 Other 2,430 2,286 Income before income taxes $ 24,410 $ 12,141

Borrowings (Tables)

Borrowings (Tables)	9 Months Ended
	Sep. 30, 2015
Debt Disclosure [Abstract]
Amount of FHLB of Indianapolis/Pittsburgh Stock Purchased, Collateral Pledged and Assets Related to MICO's/Atlantic States Agreement	The table below presents the amount of FHLB of Indianapolis stock MICO purchased, collateral pledged and assets related to MICO’s membership at September 30, 2015. FHLB of Indianapolis stock purchased and owned $ 201,100 Collateral pledged, at par (carrying value $2,664,290) 2,668,766 Borrowing capacity currently available 2,584,505 FHLB of Pittsburgh stock purchased and owned $ 1,540,300 Collateral pledged, at par (carrying value $38,218,212) 38,519,029 Borrowing capacity currently available 2,089,109

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	9 Months Ended
	Sep. 30, 2015
Fair Value Disclosures [Abstract]
Fair Value Measurements for Investments in Available-for-Sale Fixed Maturity and Equity Securities	The following table presents our fair value measurements for our investments in available-for-sale fixed maturity and equity securities at September 30, 2015: Fair Value Measurements Using Fair Value Quoted (Level 1) Significant Other (Level 2) Significant (Level 3) (in thousands) U.S. Treasury securities and obligations of U.S. government corporations and agencies $ 42,491 $ — $ 42,491 $ — Obligations of states and political subdivisions 250,582 — 250,582 — Corporate securities 55,175 — 55,175 — Mortgage-backed securities 135,342 — 135,342 — Equity securities 35,836 25,865 9,971 — Totals $ 519,426 $ 25,865 $ 493,561 $ — We did not transfer any investments between Levels 1 and 2 during the nine months ended September 30, 2015. The following table presents our fair value measurements for our investments in available-for-sale fixed maturity and equity securities at December 31, 2014: Fair Value Measurements Using Fair Value Quoted Assets (Level 1) Significant Other (Level 2) Significant (Level 3) (in thousands) U.S. Treasury securities and obligations of U.S. government corporations and agencies $ 21,259 $ — $ 21,259 $ — Obligations of states and political subdivisions 266,242 — 266,242 — Corporate securities 53,945 — 53,945 — Mortgage-backed securities 93,704 — 93,704 — Equity securities 30,822 20,768 10,054 — Totals $ 465,972 $ 20,768 $ 445,204 $ —

Organization - Additional Infor

Organization - Additional Information (Detail)	9 Months Ended		26 Months Ended
	Sep. 30, 2015SegmentOfficeshares	Sep. 30, 2014shares	Sep. 30, 2015shares	Jul. 18, 2013shares	Feb. 23, 2009shares
Business Acquisition [Line Items]
Operations commenced date	Aug. 26, 1986
Stock ownership percentage owned by third party	51.80%
Number of banking offices | Office	14
Number of operating segments | Segment	4
Voting power percentage of outstanding common stock	65.00%
Percentage of share in results of pooled business subsidiary	80.00%
Percentage of share in results of pooled business owned by third party	20.00%
Stock Repurchase Program One [Member]
Business Acquisition [Line Items]
Authority to purchase shares	0		0
Donegal Financial Services Corporation [Member]
Business Acquisition [Line Items]
Outstanding stock ownership percentage	48.20%		48.20%
Class A Common Stock [Member]
Business Acquisition [Line Items]
Stock ownership percentage held by major shareholder	36.00%
Class A Common Stock [Member] | Stock Repurchase Program One [Member]
Business Acquisition [Line Items]
Purchased shares for class A common stock					300,000
Common stock shares purchased	3,222	846
Class A Common Stock [Member] | Stock Repurchase Program Two [Member]
Business Acquisition [Line Items]
Common stock shares purchased	57,658	0	57,658
Authority to purchase shares				500,000
Class B Common Stock [Member]
Business Acquisition [Line Items]
Stock ownership percentage held by major shareholder	76.00%

Earnings Per Share - Additional

Earnings Per Share - Additional Information (Detail)	9 Months Ended
	Sep. 30, 2015
Equity [Abstract]
Minimum percentage of class A common stock declared dividend excess over class B dividend	10.00%

Earnings Per Share - Summary of

Earnings Per Share - Summary of Reconciliation of Numerators and Denominators Used in Basic and Diluted Per Share Computations (Detail) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Class A Common Stock [Member]
Numerator:
Allocation of net income	$ 4,663	$ 7,072	$ 15,502	$ 8,131
Denominator:
Weighted-average shares outstanding	22,442,240	21,175,388	21,995,952	21,004,426
Basic net income per share	$ 0.21	$ 0.33	$ 0.71	$ 0.39
Numerator:
Allocation of net income	$ 4,663	$ 7,072	$ 15,502	$ 8,131
Denominator:
Number of shares used in basic computation	22,442,240	21,175,388	21,995,952	21,004,426
Weighted-average shares effect of dilutive securities
Add: Director and employee stock options	242,240	526,260	399,657	431,762
Number of shares used in per share computations	22,684,480	21,701,648	22,395,609	21,436,188
Diluted net income per share	$ 0.21	$ 0.33	$ 0.69	$ 0.38
Class B Common Stock [Member]
Numerator:
Allocation of net income	$ 1,024	$ 1,677	$ 3,504	$ 1,922
Denominator:
Weighted-average shares outstanding	5,576,775	5,576,775	5,576,775	5,576,775
Basic net income per share	$ 0.18	$ 0.30	$ 0.63	$ 0.35
Numerator:
Allocation of net income	$ 1,024	$ 1,677	$ 3,504	$ 1,922
Denominator:
Number of shares used in basic computation	5,576,775	5,576,775	5,576,775	5,576,775
Weighted-average shares effect of dilutive securities
Number of shares used in per share computations	5,576,775	5,576,775	5,576,775	5,576,775
Diluted net income per share	$ 0.18	$ 0.30	$ 0.63	$ 0.35

Earnings Per Share - Reconcilia

Earnings Per Share - Reconciliation of Diluted Shares Outstanding (Detail) - shares	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2014
Earnings Per Share [Abstract]
Number of options to purchase Class A shares excluded	4,014,501	2,504,333	2,548,500

Reinsurance - Additional Inform

Reinsurance - Additional Information (Detail)	9 Months Ended
	Sep. 30, 2015USD ($)
Ceded Credit Risk [Line Items]
Percentage of share in results of pooled business subsidiary	80.00%
Percentage of share in results of pooled business owned by third party	20.00%
Excess of loss reinsured under an agreement	$ 1,000,000
Percentage of accumulation of losses	100.00%
Natural disasters, over a set retention	$ 5,000,000
Natural disasters, aggregate annual deduction	1,500,000
Donegal Mutual [Member]
Ceded Credit Risk [Line Items]
Maximum amount of loss coverage under reinsurance agreement of property catastrophe	$ 149,000,000

Investments - Summary of Amorti

Investments - Summary of Amortized Cost and Estimated Fair Values of Fixed Maturities and Equity Securities (Detail) - USD ($)	Sep. 30, 2015	Dec. 31, 2014
Schedule of Equity Method Investments [Line Items]
Total held to maturity, Amortized Cost	$ 303,409,930	$ 307,391,699
Held to Maturity, Gross Unrealized Gains	14,557,000	15,341,000
Held to Maturity, Gross Unrealized Losses	876,000	578,000
Total held to maturity, Estimated Fair Value	317,091,000	322,155,000
Available for Sale, Amortized Cost	502,632,000	444,187,000
Available for Sale, Gross Unrealized Gains	19,929,000	22,802,000
Available for Sale, Gross Unrealized Losses	3,135,000	1,017,000
Available for Sale, Estimated Fair Value	519,426,000	465,972,000
U.S. Treasury Securities and Obligations of U.S. Government Corporations and Agencies [Member]
Schedule of Equity Method Investments [Line Items]
Total held to maturity, Amortized Cost	51,088,000	53,619,000
Held to Maturity, Gross Unrealized Gains	2,384,000	1,694,000
Total held to maturity, Estimated Fair Value	53,472,000	55,313,000
Available for Sale, Amortized Cost	42,127,000	21,153,000
Available for Sale, Gross Unrealized Gains	368,000	126,000
Available for Sale, Gross Unrealized Losses	4,000	20,000
Available for Sale, Estimated Fair Value	42,491,000	21,259,000
Obligations of States and Political Subdivisions [Member]
Schedule of Equity Method Investments [Line Items]
Total held to maturity, Amortized Cost	113,232,000	110,999,000
Held to Maturity, Gross Unrealized Gains	9,061,000	10,313,000
Held to Maturity, Gross Unrealized Losses	160,000	5,000
Total held to maturity, Estimated Fair Value	122,133,000	121,307,000
Available for Sale, Amortized Cost	235,944,000	248,046,000
Available for Sale, Gross Unrealized Gains	15,101,000	18,210,000
Available for Sale, Gross Unrealized Losses	463,000	14,000
Available for Sale, Estimated Fair Value	250,582,000	266,242,000
Corporate Securities [Member]
Schedule of Equity Method Investments [Line Items]
Total held to maturity, Amortized Cost	60,658,000	52,226,000
Held to Maturity, Gross Unrealized Gains	1,053,000	1,235,000
Held to Maturity, Gross Unrealized Losses	652,000	461,000
Total held to maturity, Estimated Fair Value	61,059,000	53,000,000
Available for Sale, Amortized Cost	55,049,000	53,211,000
Available for Sale, Gross Unrealized Gains	599,000	809,000
Available for Sale, Gross Unrealized Losses	473,000	75,000
Available for Sale, Estimated Fair Value	55,175,000	53,945,000
Mortgage-Backed Securities [Member]
Schedule of Equity Method Investments [Line Items]
Total held to maturity, Amortized Cost	78,432,000	90,548,000
Held to Maturity, Gross Unrealized Gains	2,059,000	2,099,000
Held to Maturity, Gross Unrealized Losses	64,000	112,000
Total held to maturity, Estimated Fair Value	80,427,000	92,535,000
Available for Sale, Amortized Cost	133,404,000	91,791,000
Available for Sale, Gross Unrealized Gains	2,074,000	2,005,000
Available for Sale, Gross Unrealized Losses	136,000	92,000
Available for Sale, Estimated Fair Value	135,342,000	93,704,000
Equity Securities [Member]
Schedule of Equity Method Investments [Line Items]
Available for Sale, Amortized Cost	36,108,000	29,986,000
Available for Sale, Gross Unrealized Gains	1,787,000	1,652,000
Available for Sale, Gross Unrealized Losses	2,059,000	816,000
Available for Sale, Estimated Fair Value	35,836,000	30,822,000
Fixed Maturities [Member]
Schedule of Equity Method Investments [Line Items]
Available for Sale, Amortized Cost	466,524,000	414,201,000
Available for Sale, Gross Unrealized Gains	18,142,000	21,150,000
Available for Sale, Gross Unrealized Losses	1,076,000	201,000
Available for Sale, Estimated Fair Value	$ 483,590,000	$ 435,150,000

Investments - Additional Inform

Investments - Additional Information (Detail)	Nov. 30, 2013USD ($)	Sep. 30, 2015USD ($)Securities	Sep. 30, 2014USD ($)	Dec. 31, 2014USD ($)
Schedule of Investments [Line Items]
Net unrealized losses arising prior to reclassification date and classified in accumulated other comprehensive income	$ 15,100,000
Amortization of unrealized losses recorded in accumulated other comprehensive income		$ 905,446	$ 945,783
Depreciation of original cost value		20.00%
Time period for which individual security should be in unrealized position of twenty percentage or more to assume it as other than temporary decline		More than six months
Equity Securities [Member]
Schedule of Investments [Line Items]
Number of fixed maturity securities classified as available for sale | Securities		22
Debt Securities [Member]
Schedule of Investments [Line Items]
Number of fixed maturity securities classified as available for sale | Securities		118
Obligations of States and Political Subdivisions [Member]
Schedule of Investments [Line Items]
Aggregate fair value of bond held		$ 265,200,000		$ 279,700,000
Amortized cost of bond held		249,100,000		259,800,000
Special Revenue Bonds [Member]
Schedule of Investments [Line Items]
Aggregate fair value of bond held		107,500,000		107,800,000
Amortized cost of bond held		$ 100,100,000		$ 99,200,000
Education Bonds [Member]
Schedule of Investments [Line Items]
Percentage of investments in special revenue bonds		56.00%		55.00%
Water and Sewer Utility Bonds [Member]
Schedule of Investments [Line Items]
Percentage of investments in special revenue bonds		26.00%		27.00%
Accumulated Net Unrealized Investment Losses [Member]
Schedule of Investments [Line Items]
Net unrealized losses reclassified in accumulated other comprehensive income		$ 12,700,000		$ 14,000,000
Donegal Financial Services Corporation [Member]
Schedule of Investments [Line Items]
Percentage of ownership interest		48.20%
Minimum [Member]
Schedule of Investments [Line Items]
Percentage of which the company held security of any issuer		10.00%		10.00%

Investments - Summary of Amor34

Investments - Summary of Amortized Cost and Estimated Fair Value of Fixed Maturities by Contractual Maturity (Detail) - USD ($)	Sep. 30, 2015	Dec. 31, 2014
Held to maturity
Due in one year or less, Amortized Cost	$ 3,760,000
Due after one year through five years, Amortized Cost	35,903,000
Due after five years through ten years, Amortized Cost	77,561,000
Due after ten years, Amortized Cost	107,754,000
Mortgage-backed securities, Amortized Cost	78,432,000
Total held to maturity, Amortized Cost	303,409,930	$ 307,391,699
Due in one year or less, Estimated Fair Value	3,758,000
Due after one year through five years, Estimated Fair Value	36,714,000
Due after five years through ten years, Estimated Fair Value	80,500,000
Due after ten years, Estimated Fair Value	115,692,000
Mortgage-backed securities, Estimated Fair Value	80,427,000
Total held to maturity, Estimated Fair Value	317,091,000	322,155,000
Available for sale
Due in one year or less, Amortized Cost	19,435,000
Due after one year through five years, Amortized Cost	91,910,000
Due after five years through ten years, Amortized Cost	111,218,000
Due after ten years, Amortized Cost	110,557,000
Mortgage-backed securities, Amortized Cost	133,404,000
Total available for sale, Amortized Cost	466,524,000
Due in one year or less, Estimated Fair Value	19,897,000
Due after one year through five years, Estimated Fair Value	95,761,000
Due after five years through ten years, Estimated Fair Value	116,297,000
Due after ten years, Estimated Fair Value	116,293,000
Mortgage-backed securities, Estimated Fair Value	135,342,000
Total available for sale, Estimated Fair Value	$ 483,589,669	$ 435,149,784

Investments - Summary of Gross

Investments - Summary of Gross Realized Gains and Losses from Investments before Applicable Income Taxes (Detail) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Gain (Loss) on Investments [Line Items]
Gross realized gains	$ 37,000	$ 426,000	$ 1,707,000	$ 2,426,000
Gross realized losses	791,000	75,000	1,024,000	129,000
Net realized (losses) gains	(754,050)	351,269	682,932	2,296,909
Fixed Maturities [Member]
Gain (Loss) on Investments [Line Items]
Gross realized gains	7,000	19,000	974,000	1,367,000
Gross realized losses	27,000	33,000	105,000	34,000
Equity Securities [Member]
Gain (Loss) on Investments [Line Items]
Gross realized gains	30,000	407,000	733,000	1,059,000
Gross realized losses	$ 764,000	$ 42,000	$ 919,000	$ 95,000

Investments - Summary of Fixed

Investments - Summary of Fixed Maturities and Equity Securities with Unrealized Losses (Detail) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Schedule of Available-for-sale Securities [Line Items]
Less Than 12 Months, Fair Value	$ 109,451	$ 58,694
Less Than 12 Months, Unrealized Losses	3,461	1,421
More Than 12 Months, Fair Value	12,025	13,670
More Than 12 Months, Unrealized Losses	550	173
U.S. Treasury Securities and Obligations of U.S. Government Corporations and Agencies [Member]
Schedule of Available-for-sale Securities [Line Items]
Less Than 12 Months, Fair Value	5,371	6,821
Less Than 12 Months, Unrealized Losses	4	18
More Than 12 Months, Fair Value		937
More Than 12 Months, Unrealized Losses		1
Obligations of States and Political Subdivisions [Member]
Schedule of Available-for-sale Securities [Line Items]
Less Than 12 Months, Fair Value	36,872	4,146
Less Than 12 Months, Unrealized Losses	623	15
More Than 12 Months, Fair Value		1,309
More Than 12 Months, Unrealized Losses		4
Corporate Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Less Than 12 Months, Fair Value	32,937	26,854
Less Than 12 Months, Unrealized Losses	649	500
More Than 12 Months, Fair Value	5,245	2,398
More Than 12 Months, Unrealized Losses	476	36
Mortgage-Backed Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Less Than 12 Months, Fair Value	22,650	13,361
Less Than 12 Months, Unrealized Losses	126	72
More Than 12 Months, Fair Value	6,780	9,026
More Than 12 Months, Unrealized Losses	74	132
Equity Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Less Than 12 Months, Fair Value	11,621	7,512
Less Than 12 Months, Unrealized Losses	$ 2,059	$ 816

Investments - Summary of Financ

Investments - Summary of Financial Information (Detail) - Donegal Financial Services Corporation [Member] - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014	Dec. 31, 2014
Balance sheets:
Total assets	$ 508,632		$ 508,632		$ 505,934
Total liabilities	425,528		425,528		424,267
Stockholders' equity	83,104		83,104		81,667
Total liabilities and stockholders' equity	508,632		508,632		$ 505,934
Income statements:
Net income	$ 847	$ 989	$ 2,372	$ 2,561

Segment Information - Summary o

Segment Information - Summary of Financial Data by Segment (Detail) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Premiums earned
Net premiums earned	$ 153,096,075	$ 142,149,561	$ 450,083,676	$ 412,286,978
GAAP premiums earned	153,096,000	142,150,000	450,084,000	412,287,000
Net investment income	5,399,080	4,299,044	15,505,429	13,529,304
Realized investment (losses) gains	(754,050)	351,269	682,932	2,296,909
Equity in earnings of DFSC	408,405	476,906	1,276,692	1,234,773
Other	1,653,000	1,858,000	5,042,000	5,608,000
Total revenues	159,801,784	149,135,383	472,591,186	434,956,398
Underwriting income (loss):
SAP underwriting income (loss)	720,000	3,798,000	(50,000)	(14,336,000)
GAAP adjustments	65,000	730,000	4,565,000	7,130,000
GAAP underwriting income (loss)	785,000	4,528,000	4,515,000	(7,206,000)
Net investment income	5,399,080	4,299,044	15,505,429	13,529,304
Realized investment (losses) gains	(754,050)	351,269	682,932	2,296,909
Equity in earnings of DFSC	408,405	476,906	1,276,692	1,234,773
Other	1,163,000	959,000	2,430,000	2,286,000
Income before income tax expense	7,000,933	10,613,824	24,409,589	12,140,520
Commercial Lines [Member]
Premiums earned
Net premiums earned	66,456,000	59,221,000	193,036,000	170,263,000
Underwriting income (loss):
SAP underwriting income (loss)	4,447,000	2,383,000	6,449,000	(8,792,000)
Personal Lines [Member]
Premiums earned
Net premiums earned	86,640,000	82,929,000	257,048,000	242,024,000
Underwriting income (loss):
SAP underwriting income (loss)	$ (3,727,000)	$ 1,415,000	$ (6,499,000)	$ (5,544,000)

Borrowings - Additional Informa

Borrowings - Additional Information (Detail) - USD ($)	9 Months Ended
	Sep. 30, 2015	Jul. 31, 2015	Jun. 30, 2015	Dec. 31, 2014	Dec. 31, 2013
Line of Credit Facility [Line Items]
Line of credit that expires date	2018-07
Outstanding borrowings	$ 48,000,000			$ 53,500,000
Line of credit, interest rate related to LIBOR rate description	Interest rates equal to M&T's current prime rate or the then current LIBOR rate plus 2.25%
Percentage commitment fee	0.20%
Manufacturers and Traders Trust Company [Member]
Line of Credit Facility [Line Items]
Outstanding borrowings	$ 13,000,000
Line of credit facility remaining borrowing capacity	$ 47,000,000
Interest rate on borrowings	2.44%
Revolving credit facility, borrowing interest rate	The credit agreement requires our compliance with certain covenants. These covenants include minimum levels of our net worth, leverage ratio, statutory surplus and the A.M. Best ratings of our insurance subsidiaries. We were in compliance with all requirements of the M&T credit agreement during the nine months ended September 30, 2015.
FHLB of Indianapolis [Member] | MICO [Member]
Line of Credit Facility [Line Items]
Federal Home Loan Bank borrowing amount outstanding	$ 0			$ 0
FHLB of Pittsburgh [Member] | Atlantic States [Member]
Line of Credit Facility [Line Items]
Right to request for extension of credit agreement with Manufacturers and Traders Trust Company	2,089,109
Debt issued to FHLB in exchange of advance cash		$ 20,000,000			$ 15,000,000
Loan amount		$ 20,000,000
Expected decrease in interest expense	$ 420,000
Revolving Credit Facility [Member] | Manufacturers and Traders Trust Company [Member]
Line of Credit Facility [Line Items]
Right to request for extension of credit agreement with Manufacturers and Traders Trust Company			$ 60,000,000
Lines of Credit [Member] | Maximum [Member]
Line of Credit Facility [Line Items]
Debt instrument interest rate effective percentage	2.25%
Lines of Credit [Member] | FHLB of Pittsburgh [Member] | Atlantic States [Member]
Line of Credit Facility [Line Items]
Interest rate on advances	0.36%
Subordinated Debentures [Member]
Line of Credit Facility [Line Items]
Debt instrument basis spread on variable rate	5.00%
Subordinated Debentures [Member] | West Bend Mutual Insurance Company [Member]
Line of Credit Facility [Line Items]
Purchase of surplus note	$ 5,000,000

Borrowings - Amount of FHLB of

Borrowings - Amount of FHLB of Indianapolis/Pittsburgh Stock Purchased, Collateral Pledged and Assets Related to MICO's/Atlantic States Agreement (Detail)	Sep. 30, 2015USD ($)
MICO [Member] | FHLB of Indianapolis [Member]
Amount of FHLB of Indianapolis/Pittsburgh stock purchased, collateral pledged and assets related to MICO's/Atlantic States Agreement
FHLB stock purchased and owned	$ 201,100
Collateral pledged, at par	2,668,766
Borrowing capacity currently available	2,584,505
Atlantic States [Member] | FHLB of Pittsburgh [Member]
Amount of FHLB of Indianapolis/Pittsburgh stock purchased, collateral pledged and assets related to MICO's/Atlantic States Agreement
FHLB stock purchased and owned	1,540,300
Collateral pledged, at par	38,519,029
Borrowing capacity currently available	$ 2,089,109

Borrowings - Amount of FHLB o41

Borrowings - Amount of FHLB of Indianapolis/Pittsburgh Stock Purchased, Collateral Pledged and Assets Related to MICO's/Atlantic States Agreement (Parenthetical) (Detail)	Sep. 30, 2015USD ($)
MICO [Member] | FHLB of Indianapolis [Member]
Line of Credit Facility [Line Items]
Collateral Pledged at carrying value	$ 2,664,290
Atlantic States [Member] | FHLB of Pittsburgh [Member]
Line of Credit Facility [Line Items]
Collateral Pledged at carrying value	$ 38,218,212

Share-Based Compensation - Addi

Share-Based Compensation - Additional Information (Detail) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Compensation expense in stock compensation plans	$ 598,516	$ 494,974	$ 1,900,000	$ 1,500,000
Income tax benefit of stock compensation plans	209,481	173,241	671,607	536,725
Unrecognized compensation expense related to nonvested share-based compensation granted under the plan	2,600,000		$ 2,600,000
Weighted average period of unrecognized compensation expense			1 year 1 month 6 days
Cash from option exercises	181,488	3,900,000	$ 13,700,000	5,200,000
Tax benefit for tax deductions from option exercises	$ 4,802	$ 177,717	$ 424,537	$ 241,391

Fair Value Measurements - Fair

Fair Value Measurements - Fair Value Measurements for Investments in Available-for-Sale Fixed Maturity and Equity Securities (Detail) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale Securities, Fair Value Disclosure	$ 519,426	$ 465,972
U.S. Treasury Securities and Obligations of U.S. Government Corporations and Agencies [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale Securities, Fair Value Disclosure	42,491	21,259
Obligations of States and Political Subdivisions [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale Securities, Fair Value Disclosure	250,582	266,242
Corporate Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale Securities, Fair Value Disclosure	55,175	53,945
Mortgage-Backed Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale Securities, Fair Value Disclosure	135,342	93,704
Equity Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale Securities, Fair Value Disclosure	35,836	30,822
Assets and Liabilities on Recurring Basis [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale Securities, Fair Value Disclosure	519,426	465,972
Assets and Liabilities on Recurring Basis [Member] | U.S. Treasury Securities and Obligations of U.S. Government Corporations and Agencies [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale Securities, Fair Value Disclosure	42,491	21,259
Assets and Liabilities on Recurring Basis [Member] | Obligations of States and Political Subdivisions [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale Securities, Fair Value Disclosure	250,582	266,242
Assets and Liabilities on Recurring Basis [Member] | Corporate Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale Securities, Fair Value Disclosure	55,175	53,945
Assets and Liabilities on Recurring Basis [Member] | Mortgage-Backed Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale Securities, Fair Value Disclosure	135,342	93,704
Assets and Liabilities on Recurring Basis [Member] | Equity Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale Securities, Fair Value Disclosure	35,836	30,822
Assets and Liabilities on Recurring Basis [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale Securities, Fair Value Disclosure	25,865	20,768
Assets and Liabilities on Recurring Basis [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Equity Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale Securities, Fair Value Disclosure	25,865	20,768
Assets and Liabilities on Recurring Basis [Member] | Significant Other Observable Inputs (Level 2) [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale Securities, Fair Value Disclosure	493,561	445,204
Assets and Liabilities on Recurring Basis [Member] | Significant Other Observable Inputs (Level 2) [Member] | U.S. Treasury Securities and Obligations of U.S. Government Corporations and Agencies [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale Securities, Fair Value Disclosure	42,491	21,259
Assets and Liabilities on Recurring Basis [Member] | Significant Other Observable Inputs (Level 2) [Member] | Obligations of States and Political Subdivisions [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale Securities, Fair Value Disclosure	250,582	266,242
Assets and Liabilities on Recurring Basis [Member] | Significant Other Observable Inputs (Level 2) [Member] | Corporate Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale Securities, Fair Value Disclosure	55,175	53,945
Assets and Liabilities on Recurring Basis [Member] | Significant Other Observable Inputs (Level 2) [Member] | Mortgage-Backed Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale Securities, Fair Value Disclosure	135,342	93,704
Assets and Liabilities on Recurring Basis [Member] | Significant Other Observable Inputs (Level 2) [Member] | Equity Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale Securities, Fair Value Disclosure	$ 9,971	$ 10,054

Fair Value Measurements - Addit

Fair Value Measurements - Additional information (Detail)	Sep. 30, 2015USD ($)
Fair Value Disclosures [Abstract]
Transfer of investments between Levels 1 and 2	$ 0

Income Taxes - Additional Infor

Income Taxes - Additional Information (Detail) - USD ($)	9 Months Ended
	Sep. 30, 2015	Dec. 31, 2014
Operating Loss Carryforwards [Line Items]
Other deferred tax assets, net	$ 43,600,000	$ 41,700,000
Alternative minimum tax credit carryforward	$ 11,000,000
Earliest Tax Year [Member]
Operating Loss Carryforwards [Line Items]
Tax years open for examination	2,012
Latest Tax Year [Member]
Operating Loss Carryforwards [Line Items]
Tax years open for examination	2,015
Le Mars [Member]
Operating Loss Carryforwards [Line Items]
Valuation allowance related to the portion of operating loss carryforwards	$ 440,778
Operating loss carryforwards	$ 3,900,000
Operating loss carryforwards expiration period	2,020
Operating loss carryforwards annual limitations in amount on use	$ 376,000