DONEGAL GROUP INC — Director's Dealing 2011

May 24, 2011

SEC Form 4 — Statement of Changes in Beneficial Ownership

Issuer: DONEGAL GROUP INC (DGICA)
CIK: 0000800457
Period of Report: 2011-05-17

Reporting Person: SHEPARD GREGORY M (10% Owner)

Non-Derivative Transactions

Date	Security	Code	Shares	Price	A/D	Holdings After	Ownership
2011-05-17	Class A Common Stock	P	15450	$13.15	Acquired	3447367	Direct
2011-05-20	Class A Common Stock	P	5691	$13.26	Acquired	3453058	Direct
2011-05-23	Class A Common Stock	P	6323	$13.08	Acquired	3459381	Direct
2011-05-24	Class A Common Stock	P	53839	$13.11	Acquired	3513220	Direct

Footnotes

F1: 15,450 shares of Class A Common Stock of Donegal Group Inc. received by Gregory M. Shepard on May 17, 2011 were part of the merger consideration for 72,400 Union National Financial Corporation "UNNF" common shares owned by Mr. Shepard. Mr. Shepard voted against the UNNF merger; exercised his right to dissent from the merger; did not voluntarily sell or exchange his UNNF shares; and has not yet received notice from UNNF as to the status of his dissenters' rights request.