Donegal Insurance Group has decided to step away from its farmowners insurance business, and ECM Insurance Group will take over the renewal rights for this line of business starting in 2026. The deal covers Donegal’s farmowners policies in Pennsylvania, Delaware, Virginia, Ohio, and Indiana, involving about $8 million in farm-related premiums written by Southern Insurance Company of Virginia, a Donegal subsidiary.
Jeffery T. Hay, Donegal’s executive vice president and chief underwriting officer, said the move is part of the company’s plan to focus on its main insurance products and customers. Updating the farmowners insurance products and systems would have been too costly to pass on to existing customers, he explained.
Donegal chose ECM after careful consideration of other companies, according to Hay. Dan DeLamater, Donegal’s chief operating officer, emphasized that ECM’s strong commitment to farm insurance and solid track record with business transfers made it a good fit. ECM also has a broad network of independent agents across the country, which will be important to serve current policyholders.
For ECM, this acquisition will significantly grow their farm insurance business. Randy Shaw, ECM’s president and CEO, said the added business fits well with their current farm insurance products and strategy. ECM already writes significant farm coverage in the Mid-Atlantic, Midwest, and Southern states, and insures more than 50,000 policyholders nationwide.
ECM is known as one of the top farmowners insurance providers in Pennsylvania and North Carolina. The company manages over $20 billion in property and writes more than $98 million in premiums, supported by over 400 independent agents across many states.
The agreement still needs approval by regulators in the five states where the transfer will happen. The sale is expected to be finalized in the last quarter of 2025. Donegal, based in Marietta, serves customers in 21 states with both personal and commercial insurance through independent agents.
This change marks a shift for Donegal as it focuses its efforts on its main lines and customer base, while ECM expands its footprint in farmowners insurance, aiming to grow with a combined experience and broad market reach.