EXHIBIT (23)(B)







                          Independent Auditors' Consent


The Board of Directors
Donegal Group Inc.


We consent to the use of our reports incorporated herein by reference and to the
reference to our firm under the heading "Experts" in the registration statement.

Our reports refer to a change in the Company's method of accounting for
investment securities by adopting the provisions of Statement of Financial
Accounting Standards No. 115, "Accounting for Certain Investments in Debt and
Equity Securities".


                                                 KPMG Peat Marwick LLP

Harrisburg, Pennsylvania
June 20, 1996