Donegal (DGICA) 10-Q 7 Nov 16 2016 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2016	Oct. 31, 2016
Document Information [Line Items]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Sep. 30, 2016
Document Fiscal Year Focus	2,016
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		21,231,379
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, 2016	Dec. 31, 2015
Fixed maturities
Held to maturity, at amortized cost	$ 332,272,969	$ 310,258,704
Available for sale, at fair value	515,821,393	501,393,559
Equity securities, available for sale, at fair value	46,311,943	37,260,821
Investment in affiliate	40,145,067	38,476,708
Short-term investments, at cost, which approximates fair value	9,251,153	13,432,482
Total investments	943,802,525	900,822,274
Cash	32,130,534	28,139,144
Accrued investment income	6,817,760	5,991,197
Premiums receivable	165,761,900	141,267,411
Reinsurance receivable	259,428,626	259,728,113
Deferred policy acquisition costs	57,404,289	52,108,388
Deferred tax asset, net	14,721,101	19,443,807
Prepaid reinsurance premiums	127,431,503	113,522,505
Property and equipment, net	6,705,671	7,027,143
Federal income taxes receivable	1,823,273	1,487,656
Goodwill	5,625,354	5,625,354
Other intangible assets	958,010	958,010
Other	1,453,864	1,713,413
Total assets	1,624,064,410	1,537,834,415
Liabilities
Unpaid losses and loss expenses	594,267,943	578,205,109
Unearned premiums	476,432,783	429,493,203
Accrued expenses	21,067,170	22,460,475
Reinsurance balances payable	3,058,225	3,480,406
Borrowings under lines of credit	74,000,000	81,000,000
Cash dividends declared		3,511,881
Subordinated debentures	5,000,000	5,000,000
Accounts payable - securities	540,311	582,560
Due to affiliate	3,978,958	3,557,177
Other	1,710,209	2,155,036
Total liabilities	1,180,055,599	1,129,445,847
Stockholders' Equity
Preferred stock, $.01 par value, authorized 2,000,000 shares; none issued
Additional paid-in capital	231,885,764	219,525,301
Accumulated other comprehensive income	6,340,292	773,744
Retained earnings	246,710,728	229,024,370
Treasury stock, at cost	(41,226,357)	(41,226,357)
Total stockholders' equity	444,008,811	408,388,568
Total liabilities and stockholders' equity	1,624,064,410	1,537,834,415
Class A Common Stock [Member]
Stockholders' Equity
Common stock value	241,892	235,018
Total stockholders' equity	241,892	235,018
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, 2016	Dec. 31, 2015
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	24,189,133	23,501,805
Common stock, shares outstanding	21,186,545	20,499,217
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, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Revenues:
Net premiums earned	$ 166,809,851	$ 153,096,075	$ 487,227,767	$ 450,083,676
Investment income, net of investment expenses	5,581,238	5,399,080	16,471,630	15,505,429
Net realized investment gains (losses)	1,018,415	(754,050)	2,204,533	682,932
Lease income	163,779	178,827	514,768	568,552
Installment payment fees	1,380,024	1,473,447	4,109,550	4,473,905
Equity in earnings of Donegal Financial Services Corporation	357,956	408,405	698,658	1,276,692
Total revenues	175,311,263	159,801,784	511,226,906	472,591,186
Expenses:
Net losses and loss expenses	111,174,963	102,233,708	309,946,943	296,012,311
Amortization of deferred policy acquisition costs	27,524,000	25,036,000	80,034,000	73,872,000
Other underwriting expenses	28,340,135	24,155,566	81,557,159	73,192,072
Policyholder dividends	1,143,026	886,210	2,729,595	2,491,919
Interest	473,917	188,000	1,286,279	908,615
Other expenses	226,183	301,367	1,179,660	1,704,680
Total expenses	168,882,224	152,800,851	476,733,636	448,181,597
Income before income tax expense	6,429,039	7,000,933	34,493,270	24,409,589
Income tax expense (benefit)	1,615,635	1,314,102	9,246,299	5,403,395
Net income	$ 4,813,404	$ 5,686,831	$ 25,246,971	$ 19,006,194
Class A Common Stock [Member]
Earnings per common share:
Common stock - basic	$ 0.19	$ 0.21	$ 0.98	$ 0.71
Common stock - diluted	0.18	0.21	0.95	0.69
Class B Common Stock [Member]
Earnings per common share:
Common stock - basic	0.16	0.18	0.88	0.63
Common stock - diluted	0.16	0.18	0.88	0.63
Common stock - basic and diluted	$ 0.16	$ 0.18	$ 0.88	$ 0.63

Consolidated Statements of Inc5

Consolidated Statements of Income (Parenthetical) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Net realized investment gains (losses)	$ 1,018,415	$ (754,050)	$ 2,204,533	$ 682,932
Income tax expense (benefit)	1,615,635	1,314,102	9,246,299	5,403,395
Reclassification out of Accumulated Other Comprehensive Income [Member]
Net realized investment gains (losses)	1,018,415	(754,050)	2,204,533	682,932
Income tax expense (benefit)	$ 356,446	$ (263,918)	$ 771,587	$ 239,026

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Income - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Statement of Comprehensive Income [Abstract]
Net income	$ 4,813,404	$ 5,686,831	$ 25,246,971	$ 19,006,194
Unrealized gain (loss) on securities:
Unrealized holding gain (loss) during the period, net of income tax expense (benefit)	(1,106,346)	860,268	6,999,494	(2,120,347)
Reclassification adjustment for (gains) losses included in net income, net of income tax expense (benefit)	(661,969)	490,132	(1,432,946)	(443,906)
Other comprehensive (loss) income	(1,768,315)	1,350,400	5,566,548	(2,564,253)
Comprehensive income	$ 3,045,089	$ 7,037,231	$ 30,813,519	$ 16,441,941

Consolidated Statements of Com7

Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Statement of Comprehensive Income [Abstract]
Income tax expense (benefit) on unrealized holding during the period	$ (595,724)	$ 463,221	$ 3,768,959	$ (1,141,726)
Income tax expense (benefit) on reclassification adjustment for gains (losses)	$ 356,446	$ (263,918)	$ 771,587	$ 239,026

Consolidated Statement of Stock

Consolidated Statement of Stockholders' Equity - 9 months ended Sep. 30, 2016 - 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, 2015	$ 408,388,568	$ 219,525,301	$ 773,744	$ 229,024,370	$ (41,226,357)	$ 235,018	$ 56,492
Beginning balance, shares at Dec. 31, 2015						23,501,805	5,649,240
Issuance of common stock	1,390,065	1,389,022				$ 1,043
Issuance of common stock, shares						104,271
Share-based compensation	10,402,182	10,396,351				$ 5,831
Share-based compensation, shares						583,057
Net income	25,246,971			25,246,971
Cash dividends declared	(6,985,523)			(6,985,523)
Grant of stock options		575,090		(575,090)
Other comprehensive income	5,566,548		5,566,548
Ending balance at Sep. 30, 2016	$ 444,008,811	$ 231,885,764	$ 6,340,292	$ 246,710,728	$ (41,226,357)	$ 241,892	$ 56,492
Ending balance, shares at Sep. 30, 2016						24,189,133	5,649,240

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($)	9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015
Cash Flows from Operating Activities:
Net income	$ 25,246,971	$ 19,006,194
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation, amortization and other non-cash items	5,365,877	2,890,128
Net realized investment gains	(2,204,533)	(682,932)
Equity in earnings of Donegal Financial Services Corporation	(698,658)	(1,276,692)
Changes in assets and liabilities:
Losses and loss expenses	16,062,834	30,888,062
Unearned premiums	46,939,580	32,671,922
Premiums receivable	(24,494,489)	(13,301,356)
Deferred acquisition costs	(5,295,901)	(5,212,051)
Deferred income taxes	1,725,335	225,409
Reinsurance receivable	299,487	(6,254,559)
Prepaid reinsurance premiums	(13,908,998)	(1,631,341)
Accrued investment income	(826,563)	(929,722)
Due to affiliate	421,781	(1,655,351)
Reinsurance balances payable	(422,181)	(3,900,348)
Current income taxes	(335,617)	242,849
Accrued expenses	(1,393,305)	(601,830)
Other, net	(185,278)	(1,943,559)
Net adjustments	21,049,371	29,528,629
Net cash provided by operating activities	46,296,342	48,534,823
Cash Flows from Investing Activities:
Purchases of fixed maturities, held to maturity	(35,461,529)	(18,483,546)
Purchases of fixed maturities, available for sale	(127,113,153)	(132,823,136)
Purchases of equity securities, available for sale	(10,753,187)	(9,011,957)
Maturity of fixed maturities:
Held to maturity	13,603,700	22,416,840
Available for sale	64,406,512	56,293,130
Sales of fixed maturities, available for sale	52,032,208	23,485,311
Sales of equity securities, available for sale	5,068,287	2,704,425
Net purchases of property and equipment	(260,968)	(78,292)
Net decrease in investment in affiliate		675,100
Net sales (purchases) of short-term investments	4,181,329	(4,302,571)
Net cash used in investing activities	(34,296,801)	(59,124,696)
Cash Flows from Financing Activities:
Cash dividends paid	(10,497,404)	(10,762,609)
Issuance of common stock	9,489,253	17,106,300
Purchase of treasury stock		(904,675)
Payments on lines of credit	(7,000,000)	(9,500,000)
Borrowings under lines of credit		4,000,000
Net cash used in financing activities	(8,008,151)	(60,984)
Net increase (decrease) in cash	3,991,390	(10,650,857)
Cash at beginning of period	28,139,144	35,578,509
Cash at end of period	32,130,534	24,927,652
Cash paid during period - Interest	1,001,870	757,175
Net cash paid during period - Taxes	$ 8,255,000	$ 4,500,000

Organization

Organization	9 Months Ended
	Sep. 30, 2016
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. 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, 2016, Donegal Mutual held approximately 47% of our outstanding Class A common stock and approximately 83% of our outstanding Class B common stock. This ownership provides Donegal Mutual with approximately 73% 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 Reports on Form 10-K and in our proxy statements. 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 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 did not purchase any shares of our Class A common stock under this program during the nine months ended September 30, 2016. We purchased 57,658 shares of our Class A common stock under this program during the nine months ended September 30, 2015. We have purchased a total of 57,658 shares of our Class A common stock under this program from its inception through September 30, 2016.

Basis of Presentation

Basis of Presentation	9 Months Ended
	Sep. 30, 2016
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, our financial information we include in this Form 10-Q Report 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, 2016 are not necessarily indicative of the results of operations we expect for the year ending December 31, 2016. You should read the interim financial statements we include in this Form 10-Q Report 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, 2015.

Earnings Per Share

Earnings Per Share	9 Months Ended
	Sep. 30, 2016
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, 2016 2015 Class A Class B Class A Class B (in thousands, except per share data) Basic net income per share: Numerator: Allocation of net income $ 3,901 $ 912 $ 4,663 $ 1,024 Denominator: Weighted-average shares outstanding 21,078 5,577 22,442 5,577 Basic net income per share $ 0.19 $ 0.16 $ 0.21 $ 0.18 Diluted net income per share: Numerator: Allocation of net income $ 3,901 $ 912 $ 4,663 $ 1,024 Denominator: Number of shares used in basic computation 21,078 5,577 22,442 5,577 Weighted-average shares effect of dilutive securities Add: Director and employee stock options 831 — 242 — Number of shares used in diluted computation 21,909 5,577 22,684 5,577 Diluted net income per share $ 0.18 $ 0.16 $ 0.21 $ 0.18 Nine Months Ended September 30, 2016 2015 Class A Class B Class A Class B (in thousands, except per share data) Basic net income per share: Numerator: Allocation of net income $ 20,329 $ 4,918 $ 15,502 $ 3,504 Denominator: Weighted-average shares outstanding 20,791 5,577 21,996 5,577 Basic net income per share $ 0.98 $ 0.88 $ 0.71 $ 0.63 Diluted net income per share: Numerator: Allocation of net income $ 20,329 $ 4,918 $ 15,502 $ 3,504 Denominator: Number of shares used in basic computation 20,791 5,577 21,996 5,577 Weighted-average shares effect of dilutive securities Add: Director and employee stock options 560 — 400 — Number of shares used in diluted computation 21,351 5,577 22,396 5,577 Diluted net income per share $ 0.95 $ 0.88 $ 0.69 $ 0.63 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 September 30, Nine Months Ended September 30, 2016 2015 2016 2015 Number of options to purchase Class A shares excluded — 4,014,501 — —

Reinsurance

Reinsurance	9 Months Ended
	Sep. 30, 2016
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 2016: • excess of loss reinsurance, under which Donegal Mutual and our insurance subsidiaries recover, through a series of reinsurance agreements, losses 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 $1.0 million) up to aggregate losses of $170.0 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. In addition to the pooling agreement and third-party reinsurance, our insurance subsidiaries have various reinsurance agreements with Donegal Mutual. 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, 2016.

Investments

Investments	9 Months Ended
	Sep. 30, 2016
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, 2016 were as follows: Amortized Cost Gross Unrealized Gross Unrealized Estimated Fair (in thousands) Held to Maturity U.S. Treasury securities and obligations of U.S. government corporations and agencies $ 59,254 $ 3,130 $ 7 $ 62,377 Obligations of states and political subdivisions 122,203 14,292 4 136,491 Corporate securities 86,582 3,360 598 89,344 Mortgage-backed securities 64,234 2,425 — 66,659 Totals $ 332,273 $ 23,207 $ 609 $ 354,871 Amortized Cost Gross Unrealized Gross Unrealized Estimated Fair (in thousands) Available for Sale U.S. Treasury securities and obligations of U.S. government corporations and agencies $ 36,009 $ 368 $ 2 $ 36,375 Obligations of states and political subdivisions 184,068 10,219 11 194,276 Corporate securities 88,826 2,156 141 90,841 Mortgage-backed securities 190,936 3,444 51 194,329 Fixed maturities 499,839 16,187 205 515,821 Equity securities 41,806 4,917 411 46,312 Totals $ 541,645 $ 21,104 $ 616 $ 562,133 At September 30, 2016, our holdings of obligations of states and political subdivisions included general obligation bonds with an aggregate fair value of $229.6 million and an amortized cost of $213.6 million. Our holdings at September 30, 2016 also included special revenue bonds with an aggregate fair value of $101.2 million and an amortized cost of $92.7 million. With respect to both categories of those bonds at September 30, 2016, 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 62% and 24%, respectively, of our total investments in special revenue bonds based on the carrying values of these investments at September 30, 2016. Many of the issuers of the special revenue bonds we held at September 30, 2016 have the authority to impose ad valorem taxes. In that respect, many of the special revenue bonds we held at September 30, 2016 were similar to general obligation bonds. The amortized cost and estimated fair values of our fixed maturities and equity securities at December 31, 2015 were as follows: Amortized Cost Gross Unrealized Gross Unrealized Estimated Fair (in thousands) Held to Maturity U.S. Treasury securities and obligations of U.S. government corporations and agencies $ 51,194 $ 1,544 $ — $ 52,738 Obligations of states and political subdivisions 119,115 10,828 119 129,824 Corporate securities 65,307 816 1,561 64,562 Mortgage-backed securities 74,643 1,181 149 75,675 Totals $ 310,259 $ 14,369 $ 1,829 $ 322,799 Amortized Cost Gross Unrealized Gross Unrealized Estimated Fair (in thousands) Available for Sale U.S. Treasury securities and obligations of U.S. government corporations and agencies $ 37,080 $ 160 $ 51 $ 37,189 Obligations of states and political subdivisions 223,769 13,151 364 236,556 Corporate securities 73,474 350 1,012 72,812 Mortgage-backed securities 154,687 1,045 896 154,836 Fixed maturities 489,010 14,706 2,323 501,393 Equity securities 35,765 2,269 773 37,261 Totals $ 524,775 $ 16,975 $ 3,096 $ 538,654 At December 31, 2015, our holdings of obligations of states and political subdivisions included general obligation bonds with an aggregate fair value of $256.9 million and an amortized cost of $241.1 million. Our holdings also included special revenue bonds with an aggregate fair value of $109.5 million and an amortized cost of $101.8 million. With respect to both categories of bonds, we held no securities of any issuer that comprised more than 10% of that category at December 31, 2015. Education bonds and water and sewer utility bonds represented 57% and 26%, respectively, of our total investments in special revenue bonds based on their carrying values at December 31, 2015. Many of the issuers of the special revenue bonds we held at December 31, 2015 have the authority to impose ad valorem taxes. In that respect, many of the special revenue bonds we held are 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 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 we 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 $1.0 million and $905,446 in accumulated other comprehensive income during the nine months ended September 30, 2016 and 2015, respectively. At September 30, 2016 and December 31, 2015, net unrealized losses of $11.3 million and $12.3 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, 2016 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 Cost Estimated Fair (in thousands) Held to maturity Due in one year or less $ 9,643 $ 9,657 Due after one year through five years 42,967 44,275 Due after five years through ten years 86,925 92,926 Due after ten years 128,504 141,354 Mortgage-backed securities 64,234 66,659 Total held to maturity $ 332,273 $ 354,871 Available for sale Due in one year or less $ 36,476 $ 37,158 Due after one year through five years 115,204 119,709 Due after five years through ten years 105,689 109,631 Due after ten years 51,534 54,994 Mortgage-backed securities 190,936 194,329 Total available for sale $ 499,839 $ 515,821 Gross realized gains and losses from investments before applicable income taxes for the three and nine months ended September 30, 2016 and 2015 were as follows: Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 (in thousands) Gross realized gains: Fixed maturities $ 289 $ 7 $ 2,129 $ 974 Equity securities 1,170 30 1,226 733 1,459 37 3,355 1,707 Gross realized losses: Fixed maturities 22 27 280 105 Equity securities 419 764 870 919 441 791 1,150 1,024 Net realized gains (losses) $ 1,018 $ (754 ) $ 2,205 $ 683 We held fixed maturities and equity securities with unrealized losses representing declines that we considered temporary at September 30, 2016 as follows: Less Than 12 Months More Than 12 Months Fair Value Unrealized Losses Fair Value Unrealized Losses (in thousands) U.S. Treasury securities and obligations of U.S. government corporations and agencies $ 2,988 $ 9 $ — $ — Obligations of states and political subdivisions 4,248 13 722 2 Corporate securities 21,006 205 2,911 534 Mortgage-backed securities 20,567 49 831 2 Equity securities 4,515 308 163 103 Totals $ 53,324 $ 584 $ 4,627 $ 641 We held fixed maturities and equity securities with unrealized losses representing declines that we considered temporary at December 31, 2015 as follows: Less Than 12 Months More Than 12 Months Fair Value Unrealized Losses Fair Value Unrealized Losses (in thousands) U.S. Treasury securities and obligations of U.S. government corporations and agencies $ 10,168 $ 51 $ — $ — Obligations of states and political subdivisions 19,437 483 — — Corporate securities 69,482 1,615 11,324 958 Mortgage-backed securities 105,300 876 7,538 168 Equity securities 9,245 773 — — Totals $ 213,632 $ 3,798 $ 18,862 $ 1,126 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 seven equity securities that were in an unrealized loss position at September 30, 2016. 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 55 debt securities that were in an unrealized loss position at September 30, 2016. 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 affiliate using the equity method of accounting. Under this method, we record our investment at cost, with adjustments for our share of our affiliate’s earnings and losses as well as changes in the equity of our affiliate due to unrealized gains and losses. Our investment in affiliate 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, 2016 and December 31, 2015 and for the three and nine months ended September 30, 2016 and 2015, respectively, from the financial statements of DFSC. The financial information of DFSC at September 30, 2016 and 2015 and for the three and nine months then ended is unaudited. Balance sheets: September 30, December 31, (in thousands) Total assets $ 522,118 $ 507,139 Total liabilities $ 438,942 $ 427,423 Stockholders’ equity 83,176 79,716 Total liabilities and stockholders’ equity $ 522,118 $ 507,139 Three Months Ended September 30, Nine Months Ended September 30, Income statements: 2016 2015 2016 2015 (in thousands) Net income $ 742 $ 847 $ 1,449 $ 2,372

Segment Information

Segment Information	9 Months Ended
	Sep. 30, 2016
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 months ended September 30, 2016 and 2015 is as follows: Three Months Ended September 30, 2016 2015 (in thousands) Revenues: Premiums earned Commercial lines $ 75,571 $ 66,456 Personal lines 91,239 86,640 GAAP premiums earned 166,810 153,096 Net investment income 5,581 5,399 Realized investment gains (losses) 1,018 (754 ) Equity in earnings of DFSC 358 408 Other 1,544 1,653 Total revenues $ 175,311 $ 159,802 Income before income taxes: Underwriting (loss) income: Commercial lines $ 3,701 $ 4,447 Personal lines (5,861 ) (3,727 ) SAP underwriting (loss) income (2,160 ) 720 GAAP adjustments 788 65 GAAP underwriting (loss) income (1,372 ) 785 Net investment income 5,581 5,399 Realized investment gains (losses) 1,018 (754 ) Equity in earnings of DFSC 358 408 Other 844 1,163 Income before income taxes $ 6,429 $ 7,001 Nine Months Ended September 30, 2016 2015 (in thousands) Revenues: Premiums earned Commercial lines $ 218,405 $ 193,036 Personal lines 268,823 257,048 GAAP premiums earned 487,228 450,084 Net investment income 16,472 15,505 Realized investment gains 2,205 683 Equity in earnings of DFSC 699 1,277 Other 4,623 5,042 Total revenues $ 511,227 $ 472,591 Income before income taxes: Underwriting income (loss): Commercial lines $ 14,118 $ 6,449 Personal lines (6,953 ) (6,499 ) SAP underwriting income (loss) 7,165 (50 ) GAAP adjustments 5,795 4,565 GAAP underwriting income 12,960 4,515 Net investment income 16,472 15,505 Realized investment gains 2,205 683 Equity in earnings of DFSC 699 1,277 Other 2,157 2,430 Income before income taxes $ 34,493 $ 24,410

Borrowings

Borrowings	9 Months Ended
	Sep. 30, 2016
Debt Disclosure [Abstract]
Borrowings	7 - Borrowings Lines of Credit In July 2016, 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 2019. 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, 2016, we had $39.0 million in outstanding borrowings and had the ability to borrow an additional $21.0 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, 2016, that interest rate was 2.78%. 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, 2016. 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 September 30, 2016. 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, 2016. FHLB of Indianapolis stock purchased and owned $ 236,700 Collateral pledged, at par (carrying value $2,180,650) 2,177,558 Borrowing capacity currently available 2,143,057 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. Atlantic States had $35.0 million in outstanding advances at September 30, 2016. The interest rate on the advances was .59% at September 30, 2016. 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, 2016. FHLB of Pittsburgh stock purchased and owned $ 1,574,700 Collateral pledged, at par (carrying value $36,058,067) 36,085,816 Borrowing capacity currently available 310,732 Subordinated Debentures Donegal Mutual holds a $5.0 million surplus note that MICO issued to increase MICO’s statutory surplus. 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, 2016
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 $414,696 and $598,516 for the three months ended September 30, 2016 and 2015, respectively, with a corresponding income tax benefit of $145,143 and $209,481, respectively. We charged compensation expense related to our stock compensation plans against income before income taxes of $2.0 million and $1.9 million for the nine months ended September 30, 2016 and 2015, respectively, with a corresponding income tax benefit of $710,584 and $671,607, respectively. At September 30, 2016, we had $2.0 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 approximately 1.3 years. We received cash from option exercises under all stock compensation plans during the three months ended September 30, 2016 and 2015 of $3.7 million and $181,488, respectively. We received cash from option exercises under all stock compensation plans during the nine months ended September 30, 2016 and 2015 of $7.8 million and $13.7 million, respectively. We realized actual tax benefits for the tax deductions related to option exercises of $243,656 and $4,802 for the three months ended September 30, 2016 and 2015, respectively. We realized actual tax benefits for the tax deductions related to option exercises of $521,852 and $424,537 for the nine months ended September 30, 2016 and 2015, respectively.

Fair Value Measurements

Fair Value Measurements	9 Months Ended
	Sep. 30, 2016
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 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, 2016, 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, 2016, 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, 2016: Fair Value Measurements Using Fair Value Quoted Prices in Significant Significant (in thousands) U.S. Treasury securities and obligations of U.S. government corporations and agencies $ 36,375 $ — $ 36,375 $ — Obligations of states and political subdivisions 194,276 — 194,276 — Corporate securities 90,841 — 90,841 — Mortgage-backed securities 194,329 — 194,329 — Equity securities 35,167 35,167 — — Total investments in the fair value hierarchy 550,988 35,167 515,821 — Investment measured at net asset value 11,145 — — — Totals $ 562,133 $ 35,167 $ 515,821 $ — We did not transfer any investments between Levels 1 and 2 during the nine months ended September 30, 2016. The following table presents our fair value measurements for our investments in available-for-sale fixed maturity and equity securities at December 31, 2015: Fair Value Measurements Using Fair Value Quoted Prices in Significant Significant (in thousands) U.S. Treasury securities and obligations of U.S. government corporations and agencies $ 37,189 $ — $ 37,189 $ — Obligations of states and political subdivisions 236,556 — 236,556 — Corporate securities 72,812 — 72,812 — Mortgage-backed securities 154,836 — 154,836 — Equity securities 26,727 26,727 — — Total investments in the fair value hierarchy 528,120 26,727 501,393 — Investment measured at net asset value 10,534 — — — Totals $ 538,654 $ 26,727 $ 501,393 $ —

Income Taxes

Income Taxes	9 Months Ended
	Sep. 30, 2016
Income Tax Disclosure [Abstract]
Income Taxes	10 - Income Taxes At September 30, 2016 and December 31, 2015, respectively, we had no material unrecognized tax benefits or accrued interest and penalties. Tax years 2013 through 2016 remained open for examination at September 30, 2016. 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 deferred tax assets of $43.4 million and $42.7 million at September 30, 2016 and December 31, 2015, 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. Our deferred tax assets include a net operating loss carryforward of $3.6 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. Our deferred tax assets also include an alternative minimum tax credit carryforward of $7.6 million with an indefinite life.

Impact of New Accounting Standa

Impact of New Accounting Standards	9 Months Ended
	Sep. 30, 2016
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 a VOE, but rather, the standard enhances assessment of some of these characteristics. The new standard was effective on December 15, 2015. The adoption of this new guidance did not 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 was effective for annual reporting periods beginning after December 15, 2015, and interim reporting periods within those annual reporting periods. The adoption of this new guidance did not 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. In January 2016, the FASB issued guidance that generally requires entities to measure equity investments at fair value and recognize changes in fair value in their results of operations. The guidance also simplifies the impairment assessment of equity investments without readily determinable fair values by requiring entities to perform a qualitative assessment to identify impairment. The FASB issued other disclosure and presentation improvements related to financial instruments within the guidance. The guidance is effective for annual and interim reporting periods beginning after December 15, 2017. As a result of this guidance, we will reflect changes in the fair value of our equity investments in our results of operations beginning January 1, 2018. In February 2016, the FASB issued guidance that requires lessees to recognize leases, including operating leases, on the lessee’s balance sheet, unless a lease is considered a short-term lease. The guidance also requires entities to make new judgments to identify leases. The guidance is effective for annual and interim reporting periods beginning after December 15, 2018 and permits early adoption. 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 March 2016, the FASB issued guidance that simplifies and improves several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities and classification on the statement of cash flows. The guidance is effective for annual and interim 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. In June 2016, the FASB issued guidance that amends previous guidance on the impairment of financial instruments by adding an impairment model that allows an entity to recognize expected credit losses as an allowance rather than impairments as credit losses are incurred. The new guidance is intended to reduce complexity and result in a more timely recognition of expected credit losses. The guidance is effective for annual and interim reporting periods beginning after December 15, 2019. 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 August 2016, the FASB issued guidance that clarifies how certain cash receipts and cash payments shall be presented and classified in the statement of cash flows. This guidance addresses eight specific cash flow issues with the objective of reducing the existing diversity in practice. The guidance is effective for annual and interim reporting periods beginning after December 15, 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.

Impact of New Accounting Stan21

Impact of New Accounting Standards (Policies)	9 Months Ended
	Sep. 30, 2016
Accounting Changes and Error Corrections [Abstract]
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 a VOE, but rather, the standard enhances assessment of some of these characteristics. The new standard was effective on December 15, 2015. The adoption of this new guidance did not 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 was effective for annual reporting periods beginning after December 15, 2015, and interim reporting periods within those annual reporting periods. The adoption of this new guidance did not 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. In January 2016, the FASB issued guidance that generally requires entities to measure equity investments at fair value and recognize changes in fair value in their results of operations. The guidance also simplifies the impairment assessment of equity investments without readily determinable fair values by requiring entities to perform a qualitative assessment to identify impairment. The FASB issued other disclosure and presentation improvements related to financial instruments within the guidance. The guidance is effective for annual and interim reporting periods beginning after December 15, 2017. As a result of this guidance, we will reflect changes in the fair value of our equity investments in our results of operations beginning January 1, 2018. In February 2016, the FASB issued guidance that requires lessees to recognize leases, including operating leases, on the lessee’s balance sheet, unless a lease is considered a short-term lease. The guidance also requires entities to make new judgments to identify leases. The guidance is effective for annual and interim reporting periods beginning after December 15, 2018 and permits early adoption. 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 March 2016, the FASB issued guidance that simplifies and improves several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities and classification on the statement of cash flows. The guidance is effective for annual and interim 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. In June 2016, the FASB issued guidance that amends previous guidance on the impairment of financial instruments by adding an impairment model that allows an entity to recognize expected credit losses as an allowance rather than impairments as credit losses are incurred. The new guidance is intended to reduce complexity and result in a more timely recognition of expected credit losses. The guidance is effective for annual and interim reporting periods beginning after December 15, 2019. 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 August 2016, the FASB issued guidance that clarifies how certain cash receipts and cash payments shall be presented and classified in the statement of cash flows. This guidance addresses eight specific cash flow issues with the objective of reducing the existing diversity in practice. The guidance is effective for annual and interim reporting periods beginning after December 15, 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.

Earnings Per Share (Tables)

Earnings Per Share (Tables)	9 Months Ended
	Sep. 30, 2016
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, 2016 2015 Class A Class B Class A Class B (in thousands, except per share data) Basic net income per share: Numerator: Allocation of net income $ 3,901 $ 912 $ 4,663 $ 1,024 Denominator: Weighted-average shares outstanding 21,078 5,577 22,442 5,577 Basic net income per share $ 0.19 $ 0.16 $ 0.21 $ 0.18 Diluted net income per share: Numerator: Allocation of net income $ 3,901 $ 912 $ 4,663 $ 1,024 Denominator: Number of shares used in basic computation 21,078 5,577 22,442 5,577 Weighted-average shares effect of dilutive securities Add: Director and employee stock options 831 — 242 — Number of shares used in diluted computation 21,909 5,577 22,684 5,577 Diluted net income per share $ 0.18 $ 0.16 $ 0.21 $ 0.18 Nine Months Ended September 30, 2016 2015 Class A Class B Class A Class B (in thousands, except per share data) Basic net income per share: Numerator: Allocation of net income $ 20,329 $ 4,918 $ 15,502 $ 3,504 Denominator: Weighted-average shares outstanding 20,791 5,577 21,996 5,577 Basic net income per share $ 0.98 $ 0.88 $ 0.71 $ 0.63 Diluted net income per share: Numerator: Allocation of net income $ 20,329 $ 4,918 $ 15,502 $ 3,504 Denominator: Number of shares used in basic computation 20,791 5,577 21,996 5,577 Weighted-average shares effect of dilutive securities Add: Director and employee stock options 560 — 400 — Number of shares used in diluted computation 21,351 5,577 22,396 5,577 Diluted net income per share $ 0.95 $ 0.88 $ 0.69 $ 0.63
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 September 30, Nine Months Ended September 30, 2016 2015 2016 2015 Number of options to purchase Class A shares excluded — 4,014,501 — —

Investments (Tables)

Investments (Tables)	9 Months Ended
	Sep. 30, 2016
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, 2016 were as follows: Amortized Cost Gross Unrealized Gross Unrealized Estimated Fair (in thousands) Held to Maturity U.S. Treasury securities and obligations of U.S. government corporations and agencies $ 59,254 $ 3,130 $ 7 $ 62,377 Obligations of states and political subdivisions 122,203 14,292 4 136,491 Corporate securities 86,582 3,360 598 89,344 Mortgage-backed securities 64,234 2,425 — 66,659 Totals $ 332,273 $ 23,207 $ 609 $ 354,871 Amortized Cost Gross Unrealized Gross Unrealized Estimated Fair (in thousands) Available for Sale U.S. Treasury securities and obligations of U.S. government corporations and agencies $ 36,009 $ 368 $ 2 $ 36,375 Obligations of states and political subdivisions 184,068 10,219 11 194,276 Corporate securities 88,826 2,156 141 90,841 Mortgage-backed securities 190,936 3,444 51 194,329 Fixed maturities 499,839 16,187 205 515,821 Equity securities 41,806 4,917 411 46,312 Totals $ 541,645 $ 21,104 $ 616 $ 562,133 The amortized cost and estimated fair values of our fixed maturities and equity securities at December 31, 2015 were as follows: Amortized Cost Gross Unrealized Gross Unrealized Estimated Fair (in thousands) Held to Maturity U.S. Treasury securities and obligations of U.S. government corporations and agencies $ 51,194 $ 1,544 $ — $ 52,738 Obligations of states and political subdivisions 119,115 10,828 119 129,824 Corporate securities 65,307 816 1,561 64,562 Mortgage-backed securities 74,643 1,181 149 75,675 Totals $ 310,259 $ 14,369 $ 1,829 $ 322,799 Amortized Cost Gross Unrealized Gross Unrealized Estimated Fair (in thousands) Available for Sale U.S. Treasury securities and obligations of U.S. government corporations and agencies $ 37,080 $ 160 $ 51 $ 37,189 Obligations of states and political subdivisions 223,769 13,151 364 236,556 Corporate securities 73,474 350 1,012 72,812 Mortgage-backed securities 154,687 1,045 896 154,836 Fixed maturities 489,010 14,706 2,323 501,393 Equity securities 35,765 2,269 773 37,261 Totals $ 524,775 $ 16,975 $ 3,096 $ 538,654
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, 2016 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 Cost Estimated Fair (in thousands) Held to maturity Due in one year or less $ 9,643 $ 9,657 Due after one year through five years 42,967 44,275 Due after five years through ten years 86,925 92,926 Due after ten years 128,504 141,354 Mortgage-backed securities 64,234 66,659 Total held to maturity $ 332,273 $ 354,871 Available for sale Due in one year or less $ 36,476 $ 37,158 Due after one year through five years 115,204 119,709 Due after five years through ten years 105,689 109,631 Due after ten years 51,534 54,994 Mortgage-backed securities 190,936 194,329 Total available for sale $ 499,839 $ 515,821
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, 2016 and 2015 were as follows: Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 (in thousands) Gross realized gains: Fixed maturities $ 289 $ 7 $ 2,129 $ 974 Equity securities 1,170 30 1,226 733 1,459 37 3,355 1,707 Gross realized losses: Fixed maturities 22 27 280 105 Equity securities 419 764 870 919 441 791 1,150 1,024 Net realized gains (losses) $ 1,018 $ (754 ) $ 2,205 $ 683
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, 2016 as follows: Less Than 12 Months More Than 12 Months Fair Value Unrealized Losses Fair Value Unrealized Losses (in thousands) U.S. Treasury securities and obligations of U.S. government corporations and agencies $ 2,988 $ 9 $ — $ — Obligations of states and political subdivisions 4,248 13 722 2 Corporate securities 21,006 205 2,911 534 Mortgage-backed securities 20,567 49 831 2 Equity securities 4,515 308 163 103 Totals $ 53,324 $ 584 $ 4,627 $ 641 We held fixed maturities and equity securities with unrealized losses representing declines that we considered temporary at December 31, 2015 as follows: Less Than 12 Months More Than 12 Months Fair Value Unrealized Losses Fair Value Unrealized Losses (in thousands) U.S. Treasury securities and obligations of U.S. government corporations and agencies $ 10,168 $ 51 $ — $ — Obligations of states and political subdivisions 19,437 483 — — Corporate securities 69,482 1,615 11,324 958 Mortgage-backed securities 105,300 876 7,538 168 Equity securities 9,245 773 — — Totals $ 213,632 $ 3,798 $ 18,862 $ 1,126
Summary of Financial Information	The financial information of DFSC at September 30, 2016 and 2015 and for the three and nine months then ended is unaudited. Balance sheets: September 30, December 31, (in thousands) Total assets $ 522,118 $ 507,139 Total liabilities $ 438,942 $ 427,423 Stockholders’ equity 83,176 79,716 Total liabilities and stockholders’ equity $ 522,118 $ 507,139 Three Months Ended September 30, Nine Months Ended September 30, Income statements: 2016 2015 2016 2015 (in thousands) Net income $ 742 $ 847 $ 1,449 $ 2,372

Segment Information (Tables)

Segment Information (Tables)	9 Months Ended
	Sep. 30, 2016
Segment Reporting [Abstract]
Summary of Financial Data by Segment	Financial data by segment for the three and nine months ended September 30, 2016 and 2015 is as follows: Three Months Ended September 30, 2016 2015 (in thousands) Revenues: Premiums earned Commercial lines $ 75,571 $ 66,456 Personal lines 91,239 86,640 GAAP premiums earned 166,810 153,096 Net investment income 5,581 5,399 Realized investment gains (losses) 1,018 (754 ) Equity in earnings of DFSC 358 408 Other 1,544 1,653 Total revenues $ 175,311 $ 159,802 Income before income taxes: Underwriting (loss) income: Commercial lines $ 3,701 $ 4,447 Personal lines (5,861 ) (3,727 ) SAP underwriting (loss) income (2,160 ) 720 GAAP adjustments 788 65 GAAP underwriting (loss) income (1,372 ) 785 Net investment income 5,581 5,399 Realized investment gains (losses) 1,018 (754 ) Equity in earnings of DFSC 358 408 Other 844 1,163 Income before income taxes $ 6,429 $ 7,001 Nine Months Ended September 30, 2016 2015 (in thousands) Revenues: Premiums earned Commercial lines $ 218,405 $ 193,036 Personal lines 268,823 257,048 GAAP premiums earned 487,228 450,084 Net investment income 16,472 15,505 Realized investment gains 2,205 683 Equity in earnings of DFSC 699 1,277 Other 4,623 5,042 Total revenues $ 511,227 $ 472,591 Income before income taxes: Underwriting income (loss): Commercial lines $ 14,118 $ 6,449 Personal lines (6,953 ) (6,499 ) SAP underwriting income (loss) 7,165 (50 ) GAAP adjustments 5,795 4,565 GAAP underwriting income 12,960 4,515 Net investment income 16,472 15,505 Realized investment gains 2,205 683 Equity in earnings of DFSC 699 1,277 Other 2,157 2,430 Income before income taxes $ 34,493 $ 24,410

Borrowings (Tables)

Borrowings (Tables)	9 Months Ended
	Sep. 30, 2016
FHLB of Indianapolis [Member]
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, 2016. FHLB of Indianapolis stock purchased and owned $ 236,700 Collateral pledged, at par (carrying value $2,180,650) 2,177,558 Borrowing capacity currently available 2,143,057
FHLB of Pittsburgh [Member]
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 Pittsburgh stock Atlantic States purchased, collateral pledged and assets related to Atlantic States’ membership in the FHLB of Pittsburgh at September 30, 2016. FHLB of Pittsburgh stock purchased and owned $ 1,574,700 Collateral pledged, at par (carrying value $36,058,067) 36,085,816 Borrowing capacity currently available 310,732

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	9 Months Ended
	Sep. 30, 2016
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, 2016: Fair Value Measurements Using Fair Value Quoted Prices in Significant Significant (in thousands) U.S. Treasury securities and obligations of U.S. government corporations and agencies $ 36,375 $ — $ 36,375 $ — Obligations of states and political subdivisions 194,276 — 194,276 — Corporate securities 90,841 — 90,841 — Mortgage-backed securities 194,329 — 194,329 — Equity securities 35,167 35,167 — — Total investments in the fair value hierarchy 550,988 35,167 515,821 — Investment measured at net asset value 11,145 — — — Totals $ 562,133 $ 35,167 $ 515,821 $ — The following table presents our fair value measurements for our investments in available-for-sale fixed maturity and equity securities at December 31, 2015: Fair Value Measurements Using Fair Value Quoted Prices in Significant Significant (in thousands) U.S. Treasury securities and obligations of U.S. government corporations and agencies $ 37,189 $ — $ 37,189 $ — Obligations of states and political subdivisions 236,556 — 236,556 — Corporate securities 72,812 — 72,812 — Mortgage-backed securities 154,836 — 154,836 — Equity securities 26,727 26,727 — — Total investments in the fair value hierarchy 528,120 26,727 501,393 — Investment measured at net asset value 10,534 — — — Totals $ 538,654 $ 26,727 $ 501,393 $ —

Organization - Additional Infor

Organization - Additional Information (Detail)	9 Months Ended		38 Months Ended
	Sep. 30, 2016Segmentshares	Sep. 30, 2015shares	Sep. 30, 2016shares	Jul. 18, 2013shares
Business Acquisition [Line Items]
Operations commenced date	Aug. 26, 1986
Stock ownership percentage owned by third party	51.80%
Number of operating segments | Segment	4
Voting power percentage of outstanding common stock	73.00%
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%
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	47.00%
Class A Common Stock [Member] | Stock Repurchase Program Two [Member]
Business Acquisition [Line Items]
Authority to purchase shares				500,000
Common stock shares purchased	0	57,658	57,658
Class B Common Stock [Member]
Business Acquisition [Line Items]
Stock ownership percentage held by major shareholder	83.00%

Earnings Per Share - Additional

Earnings Per Share - Additional Information (Detail)	9 Months Ended
	Sep. 30, 2016
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, shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Class A Common Stock [Member]
Numerator:
Allocation of net income	$ 3,901	$ 4,663	$ 20,329	$ 15,502
Denominator:
Weighted-average shares outstanding	21,078	22,442	20,791	21,996
Basic net income per share	$ 0.19	$ 0.21	$ 0.98	$ 0.71
Numerator:
Allocation of net income	$ 3,901	$ 4,663	$ 20,329	$ 15,502
Denominator:
Number of shares used in basic computation	21,078	22,442	20,791	21,996
Weighted-average shares effect of dilutive securities
Add: Director and employee stock options	831	242	560	400
Number of shares used in diluted computation	21,909	22,684	21,351	22,396
Diluted net income per share	$ 0.18	$ 0.21	$ 0.95	$ 0.69
Class B Common Stock [Member]
Numerator:
Allocation of net income	$ 912	$ 1,024	$ 4,918	$ 3,504
Denominator:
Weighted-average shares outstanding	5,577	5,577	5,577	5,577
Basic net income per share	$ 0.16	$ 0.18	$ 0.88	$ 0.63
Numerator:
Allocation of net income	$ 912	$ 1,024	$ 4,918	$ 3,504
Denominator:
Number of shares used in basic computation	5,577	5,577	5,577	5,577
Weighted-average shares effect of dilutive securities
Number of shares used in diluted computation	5,577	5,577	5,577	5,577
Diluted net income per share	$ 0.16	$ 0.18	$ 0.88	$ 0.63

Earnings Per Share - Reconcilia

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

Reinsurance - Additional Inform

Reinsurance - Additional Information (Detail)	9 Months Ended
	Sep. 30, 2016USD ($)
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%
Loss reinsurance, set retention amount	$ 1,000,000
Percentage of accumulation of losses	100.00%
Catastrophe reinsurance, set retention amount	$ 5,000,000
Catastrophe reinsurance, deductible amount	1,000,000
Donegal Mutual [Member]
Ceded Credit Risk [Line Items]
Maximum amount of loss coverage under reinsurance agreement of property catastrophe	$ 170,000,000

Investments - Summary of Amorti

Investments - Summary of Amortized Cost and Estimated Fair Values of Fixed Maturities and Equity Securities (Detail) - USD ($)	Sep. 30, 2016	Dec. 31, 2015
Schedule of Equity Method Investments [Line Items]
Total held to maturity, Amortized Cost	$ 332,272,969	$ 310,258,704
Held to Maturity, Gross Unrealized Gains	23,207,000	14,369,000
Held to Maturity, Gross Unrealized Losses	609,000	1,829,000
Total held to maturity, Estimated Fair Value	354,871,000	322,799,000
Available for Sale, Amortized Cost	541,645,000	524,775,000
Available for Sale, Gross Unrealized Gains	21,104,000	16,975,000
Available for Sale, Gross Unrealized Losses	616,000	3,096,000
Available for Sale, Estimated Fair Value	562,133,000	538,654,000
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	59,254,000	51,194,000
Held to Maturity, Gross Unrealized Gains	3,130,000	1,544,000
Held to Maturity, Gross Unrealized Losses	7,000
Total held to maturity, Estimated Fair Value	62,377,000	52,738,000
Available for Sale, Amortized Cost	36,009,000	37,080,000
Available for Sale, Gross Unrealized Gains	368,000	160,000
Available for Sale, Gross Unrealized Losses	2,000	51,000
Available for Sale, Estimated Fair Value	36,375,000	37,189,000
Obligations of States and Political Subdivisions [Member]
Schedule of Equity Method Investments [Line Items]
Total held to maturity, Amortized Cost	122,203,000	119,115,000
Held to Maturity, Gross Unrealized Gains	14,292,000	10,828,000
Held to Maturity, Gross Unrealized Losses	4,000	119,000
Total held to maturity, Estimated Fair Value	136,491,000	129,824,000
Available for Sale, Amortized Cost	184,068,000	223,769,000
Available for Sale, Gross Unrealized Gains	10,219,000	13,151,000
Available for Sale, Gross Unrealized Losses	11,000	364,000
Available for Sale, Estimated Fair Value	194,276,000	236,556,000
Corporate Securities [Member]
Schedule of Equity Method Investments [Line Items]
Total held to maturity, Amortized Cost	86,582,000	65,307,000
Held to Maturity, Gross Unrealized Gains	3,360,000	816,000
Held to Maturity, Gross Unrealized Losses	598,000	1,561,000
Total held to maturity, Estimated Fair Value	89,344,000	64,562,000
Available for Sale, Amortized Cost	88,826,000	73,474,000
Available for Sale, Gross Unrealized Gains	2,156,000	350,000
Available for Sale, Gross Unrealized Losses	141,000	1,012,000
Available for Sale, Estimated Fair Value	90,841,000	72,812,000
Mortgage-Backed Securities [Member]
Schedule of Equity Method Investments [Line Items]
Total held to maturity, Amortized Cost	64,234,000	74,643,000
Held to Maturity, Gross Unrealized Gains	2,425,000	1,181,000
Held to Maturity, Gross Unrealized Losses		149,000
Total held to maturity, Estimated Fair Value	66,659,000	75,675,000
Available for Sale, Amortized Cost	190,936,000	154,687,000
Available for Sale, Gross Unrealized Gains	3,444,000	1,045,000
Available for Sale, Gross Unrealized Losses	51,000	896,000
Available for Sale, Estimated Fair Value	194,329,000	154,836,000
Equity Securities [Member]
Schedule of Equity Method Investments [Line Items]
Available for Sale, Amortized Cost	41,806,000	35,765,000
Available for Sale, Gross Unrealized Gains	4,917,000	2,269,000
Available for Sale, Gross Unrealized Losses	411,000	773,000
Available for Sale, Estimated Fair Value	46,312,000	37,261,000
Fixed Maturities [Member]
Schedule of Equity Method Investments [Line Items]
Available for Sale, Amortized Cost	499,839,000	489,010,000
Available for Sale, Gross Unrealized Gains	16,187,000	14,706,000
Available for Sale, Gross Unrealized Losses	205,000	2,323,000
Available for Sale, Estimated Fair Value	$ 515,821,000	$ 501,393,000

Investments - Additional Inform

Investments - Additional Information (Detail)	Nov. 30, 2013USD ($)	Sep. 30, 2016USD ($)Securities	Sep. 30, 2015USD ($)	Dec. 31, 2015USD ($)
Schedule of Investments [Line Items]
Net unrealized losses arising prior to reclassification date and classified in accumulated other comprehensive loss	$ 15,100,000
Amortization of unrealized losses recorded in accumulated other comprehensive income		$ 1,000,000	$ 905,446
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
Donegal Financial Services Corporation [Member]
Schedule of Investments [Line Items]
Percentage of ownership interest		48.20%
Equity Securities [Member]
Schedule of Investments [Line Items]
Number of fixed maturity securities classified as available for sale | Securities		7
Obligations of States and Political Subdivisions [Member]
Schedule of Investments [Line Items]
Aggregate fair value of bond held		$ 229,600,000		$ 256,900,000
Amortized cost of bond held		213,600,000		241,100,000
Special Revenue Bonds [Member]
Schedule of Investments [Line Items]
Aggregate fair value of bond held		101,200,000		109,500,000
Amortized cost of bond held		$ 92,700,000		$ 101,800,000
Education Bonds [Member]
Schedule of Investments [Line Items]
Percentage of investments in special revenue bonds		62.00%		57.00%
Water and Sewer Utility Bonds [Member]
Schedule of Investments [Line Items]
Percentage of investments in special revenue bonds		24.00%		26.00%
Fixed Maturities [Member]
Schedule of Investments [Line Items]
Number of fixed maturity securities classified as available for sale | Securities		55
Accumulated Net Unrealized Investment Losses [Member]
Schedule of Investments [Line Items]
Net unrealized losses reclassified in accumulated other comprehensive income		$ 11,300,000		$ 12,300,000
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, 2016	Dec. 31, 2015
Held to maturity
Due in one year or less, Amortized Cost	$ 9,643,000
Due after one year through five years, Amortized Cost	42,967,000
Due after five years through ten years, Amortized Cost	86,925,000
Due after ten years, Amortized Cost	128,504,000
Mortgage-backed securities, Amortized Cost	64,234,000
Total held to maturity, Amortized Cost	332,272,969	$ 310,258,704
Available for sale
Due in one year or less, Amortized Cost	36,476,000
Due after one year through five years, Amortized Cost	115,204,000
Due after five years through ten years, Amortized Cost	105,689,000
Due after ten years, Amortized Cost	51,534,000
Mortgage-backed securities, Amortized Cost	190,936,000
Total available for sale, Amortized Cost	499,839,000
Held to maturity
Due in one year or less, Estimated Fair Value	9,657,000
Due after one year through five years, Estimated Fair Value	44,275,000
Due after five years through ten years, Estimated Fair Value	92,926,000
Due after ten years, Estimated Fair Value	141,354,000
Mortgage-backed securities, Estimated Fair Value	66,659,000
Total held to maturity, Estimated Fair Value	354,871,000	322,799,000
Available for sale
Due in one year or less, Estimated Fair Value	37,158,000
Due after one year through five years, Estimated Fair Value	119,709,000
Due after five years through ten years, Estimated Fair Value	109,631,000
Due after ten years, Estimated Fair Value	54,994,000
Mortgage-backed securities, Estimated Fair Value	194,329,000
Total available for sale, Estimated Fair Value	$ 515,821,393	$ 501,393,559

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, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Gain (Loss) on Investments [Line Items]
Gross realized gains	$ 1,459,000	$ 37,000	$ 3,355,000	$ 1,707,000
Gross realized losses	441,000	791,000	1,150,000	1,024,000
Net realized gains (losses)	1,018,415	(754,050)	2,204,533	682,932
Fixed Maturities [Member]
Gain (Loss) on Investments [Line Items]
Gross realized gains	289,000	7,000	2,129,000	974,000
Gross realized losses	22,000	27,000	280,000	105,000
Equity Securities [Member]
Gain (Loss) on Investments [Line Items]
Gross realized gains	1,170,000	30,000	1,226,000	733,000
Gross realized losses	$ 419,000	$ 764,000	$ 870,000	$ 919,000

Investments - Summary of Fixed

Investments - Summary of Fixed Maturities and Equity Securities with Unrealized Losses (Detail) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Schedule of Available-for-sale Securities [Line Items]
Less Than 12 Months, Fair Value	$ 53,324	$ 213,632
Less Than 12 Months, Unrealized Losses	584	3,798
More Than 12 Months, Fair Value	4,627	18,862
More Than 12 Months, Unrealized Losses	641	1,126
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	2,988	10,168
Less Than 12 Months, Unrealized Losses	9	51
Obligations of States and Political Subdivisions [Member]
Schedule of Available-for-sale Securities [Line Items]
Less Than 12 Months, Fair Value	4,248	19,437
Less Than 12 Months, Unrealized Losses	13	483
More Than 12 Months, Fair Value	722
More Than 12 Months, Unrealized Losses	2
Corporate Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Less Than 12 Months, Fair Value	21,006	69,482
Less Than 12 Months, Unrealized Losses	205	1,615
More Than 12 Months, Fair Value	2,911	11,324
More Than 12 Months, Unrealized Losses	534	958
Mortgage-Backed Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Less Than 12 Months, Fair Value	20,567	105,300
Less Than 12 Months, Unrealized Losses	49	876
More Than 12 Months, Fair Value	831	7,538
More Than 12 Months, Unrealized Losses	2	168
Equity Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Less Than 12 Months, Fair Value	4,515	9,245
Less Than 12 Months, Unrealized Losses	308	$ 773
More Than 12 Months, Fair Value	163
More Than 12 Months, Unrealized Losses	$ 103

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, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015	Dec. 31, 2015
Balance sheets:
Total assets	$ 522,118		$ 522,118		$ 507,139
Total liabilities	438,942		438,942		427,423
Stockholders' equity	83,176		83,176		79,716
Total liabilities and stockholders' equity	522,118		522,118		$ 507,139
Income statements:
Net income	$ 742	$ 847	$ 1,449	$ 2,372

Segment Information - Summary o

Segment Information - Summary of Financial Data by Segment (Detail) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Premiums earned
Net premiums earned	$ 166,809,851	$ 153,096,075	$ 487,227,767	$ 450,083,676
Net investment income	5,581,238	5,399,080	16,471,630	15,505,429
Realized investment gains (losses)	1,018,415	(754,050)	2,204,533	682,932
Equity in earnings of DFSC	357,956	408,405	698,658	1,276,692
Other	1,544,000	1,653,000	4,623,000	5,042,000
Total revenues	175,311,263	159,801,784	511,226,906	472,591,186
Underwriting (loss) income:
SAP underwriting (loss) income	(2,160,000)	720,000	7,165,000	(50,000)
GAAP adjustments	788,000	65,000	5,795,000	4,565,000
GAAP underwriting (loss) income	(1,372,000)	785,000	12,960,000	4,515,000
Net investment income	5,581,238	5,399,080	16,471,630	15,505,429
Realized investment gains (losses)	1,018,415	(754,050)	2,204,533	682,932
Equity in earnings of DFSC	357,956	408,405	698,658	1,276,692
Other	844,000	1,163,000	2,157,000	2,430,000
Income before income tax expense	6,429,039	7,000,933	34,493,270	24,409,589
Commercial Lines [Member]
Premiums earned
Net premiums earned	75,571,000	66,456,000	218,405,000	193,036,000
Underwriting (loss) income:
SAP underwriting (loss) income	3,701,000	4,447,000	14,118,000	6,449,000
Personal Lines [Member]
Premiums earned
Net premiums earned	91,239,000	86,640,000	268,823,000	257,048,000
Underwriting (loss) income:
SAP underwriting (loss) income	$ (5,861,000)	$ (3,727,000)	$ (6,953,000)	$ (6,499,000)

Borrowings - Additional Informa

Borrowings - Additional Information (Detail) - USD ($)	9 Months Ended
	Sep. 30, 2016	Jul. 31, 2016	Dec. 31, 2015
Line of Credit Facility [Line Items]
Line of credit expiration month and year	2019-07
Outstanding borrowings	$ 74,000,000		$ 81,000,000
Line of credit, interest 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	$ 39,000,000
Line of credit facility remaining borrowing capacity	$ 21,000,000
Interest rate on borrowings	2.78%
Line of credit covenant description	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, 2016.
FHLB of Indianapolis [Member] | MICO [Member]
Line of Credit Facility [Line Items]
Outstanding advances	$ 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	310,732
Outstanding advances	$ 35,000,000
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] | London Interbank Offered Rate (LIBOR) [Member]
Line of Credit Facility [Line Items]
Debt instrument basis spread on variable rate	2.25%
Lines of Credit [Member] | FHLB of Pittsburgh [Member] | Atlantic States [Member]
Line of Credit Facility [Line Items]
Interest rate on advances	0.59%
Subordinated Debentures [Member]
Line of Credit Facility [Line Items]
Debt instrument stated interest rate	5.00%
Subordinated Debentures [Member] | West Bend Mutual Insurance Company [Member]
Line of Credit Facility [Line Items]
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, 2016USD ($)
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 as part of the agreement	$ 236,700
Collateral pledged, at par	2,177,558
Borrowing capacity currently available	2,143,057
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 as part of the agreement	1,574,700
Collateral pledged, at par	36,085,816
Borrowing capacity currently available	$ 310,732

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, 2016USD ($)
FHLB of Indianapolis [Member] | MICO [Member]
Line of Credit Facility [Line Items]
Collateral Pledged at carrying value	$ 2,180,650
FHLB of Pittsburgh [Member] | Atlantic States [Member]
Line of Credit Facility [Line Items]
Collateral Pledged at carrying value	$ 36,058,067

Share-Based Compensation - Addi

Share-Based Compensation - Additional Information (Detail) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Compensation expense in stock compensation plans	$ 414,696	$ 598,516	$ 2,000,000	$ 1,900,000
Income tax benefit of stock compensation plans	145,143	209,481	710,584	671,607
Unrecognized compensation expense related to nonvested share-based compensation granted under the plan	2,000,000		$ 2,000,000
Weighted average period of unrecognized compensation expense			1 year 3 months 18 days
Cash from option exercises	3,700,000	181,488	$ 7,800,000	13,700,000
Tax benefit for tax deductions related to option exercises	$ 243,656	$ 4,802	$ 521,852	$ 424,537

Fair Value Measurements - Fair

Fair Value Measurements - Fair Value Measurements for Investments in Available-for-Sale Fixed Maturity and Equity Securities (Detail) - USD ($)	Sep. 30, 2016	Dec. 31, 2015
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale Securities, Fair Value Disclosure	$ 562,133,000	$ 538,654,000
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	36,375,000	37,189,000
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	194,276,000	236,556,000
Corporate Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale Securities, Fair Value Disclosure	90,841,000	72,812,000
Mortgage-Backed Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale Securities, Fair Value Disclosure	194,329,000	154,836,000
Equity Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale Securities, Fair Value Disclosure	46,312,000	37,261,000
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	562,133	538,654
Assets and Liabilities on Recurring Basis [Member] | Investments Measured at Net Asset Value [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale Securities, Fair Value Disclosure	11,145	10,534
Assets and Liabilities on Recurring Basis [Member] | Total Investments in the Fair Value Hierarchy [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale Securities, Fair Value Disclosure	550,988	528,120
Assets and Liabilities on Recurring Basis [Member] | Total Investments in the Fair Value Hierarchy [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	36,375	37,189
Assets and Liabilities on Recurring Basis [Member] | Total Investments in the Fair Value Hierarchy [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	194,276	236,556
Assets and Liabilities on Recurring Basis [Member] | Total Investments in the Fair Value Hierarchy [Member] | Corporate Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale Securities, Fair Value Disclosure	90,841	72,812
Assets and Liabilities on Recurring Basis [Member] | Total Investments in the Fair Value Hierarchy [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	194,329	154,836
Assets and Liabilities on Recurring Basis [Member] | Total Investments in the Fair Value Hierarchy [Member] | Equity Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale Securities, Fair Value Disclosure	35,167	26,727
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | 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	35,167	26,727
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Assets and Liabilities on Recurring Basis [Member] | Total Investments in the Fair Value Hierarchy [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale Securities, Fair Value Disclosure	35,167	26,727
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Assets and Liabilities on Recurring Basis [Member] | Total Investments in the Fair Value Hierarchy [Member] | Equity Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale Securities, Fair Value Disclosure	35,167	26,727
Significant Other Observable Inputs (Level 2) [Member] | 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	515,821	501,393
Significant Other Observable Inputs (Level 2) [Member] | Assets and Liabilities on Recurring Basis [Member] | Total Investments in the Fair Value Hierarchy [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale Securities, Fair Value Disclosure	515,821	501,393
Significant Other Observable Inputs (Level 2) [Member] | Assets and Liabilities on Recurring Basis [Member] | Total Investments in the Fair Value Hierarchy [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	36,375	37,189
Significant Other Observable Inputs (Level 2) [Member] | Assets and Liabilities on Recurring Basis [Member] | Total Investments in the Fair Value Hierarchy [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	194,276	236,556
Significant Other Observable Inputs (Level 2) [Member] | Assets and Liabilities on Recurring Basis [Member] | Total Investments in the Fair Value Hierarchy [Member] | Corporate Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale Securities, Fair Value Disclosure	90,841	72,812
Significant Other Observable Inputs (Level 2) [Member] | Assets and Liabilities on Recurring Basis [Member] | Total Investments in the Fair Value Hierarchy [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	$ 194,329	$ 154,836

Income Taxes - Additional Infor

Income Taxes - Additional Information (Detail) - USD ($)	9 Months Ended
	Sep. 30, 2016	Dec. 31, 2015
Operating Loss Carryforwards [Line Items]
Other deferred tax assets	$ 43,400,000	$ 42,700,000
Alternative minimum tax credit carryforward	$ 7,600,000
Earliest Tax Year [Member]
Operating Loss Carryforwards [Line Items]
Tax years open for examination	2,013
Latest Tax Year [Member]
Operating Loss Carryforwards [Line Items]
Tax years open for examination	2,016
Le Mars [Member]
Operating Loss Carryforwards [Line Items]
Valuation allowance related to the portion of operating loss carryforwards	$ 440,778
Operating loss carryforwards	$ 3,600,000
Operating loss carryforwards expiration period	2,020
Operating loss carryforwards annual limitations in amount on use	$ 376,000