DONEGAL GROUP INC — Director's Dealing 2011

May 10, 2011

SEC Form 4 — Statement of Changes in Beneficial Ownership

Issuer: DONEGAL GROUP INC (DGICA)
CIK: 0000800457
Period of Report: 2011-05-06

Reporting Person: DONEGAL MUTUAL INSURANCE CO (10% Owner)

Non-Derivative Transactions

Date	Security	Code	Shares	Price	A/D	Holdings After	Ownership
2011-05-06	Class A Common Stock	J	600000	$13.15	Disposed	7755184	Direct

Holdings (Non-Derivative)

Security	Shares	Ownership
Class B Common Stock	4198339	Direct

Footnotes

F1: Donegal Mutual Insurance Company transferred 600,000 shares of Class A common stock of Donegal Group Inc. ("DGI") as a capital contribution to Donegal Financial Services Corporation ("DFSC"). DFSC will distribute these shares as merger consideration issuable to former stockholders of Union National Financial Corporation ("UNFC") in connection with the merger of UNFC with and into DFSC on May 6, 2011. The price shown in this filing represents the closing price of DGI Class A common stock on May 6, 2011.