Securities
                            and Exchange Commission
                             Washington, D.C. 20549
                                   Form 10-Q

(Mark One) 

[x] Quarterly Report Pursuant to Section 13 of the Securities Exchange Act of
    1934

For the Quarterly Period Ended June 30, 1995.

                                       or

[ ] Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange
    of 1934

    For the transition period from _________________ to ___________________.

Commission File No. 0-15341

                               Donegal Group Inc.
             (Exact name of registrant as specified in its charter)

                    Delaware                            23-2424711
         (State or other jurisdiction of             (I.R.S. Employer
         incorporation or organization)             Identification No.)

             1195 River Road, P.O. Box 302, Marietta, PA 17547-0302
          (Address of principal executive offices, including zip code)

                                 (717) 426-1931
              (Registrant's telephone number, including area code)

              (Former name, former address and former fiscal year,
                         if changed since last report)

     Indicate by check mark whether registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days. Yes x  No .

               Applicable Only to Issuers Involved in Bankruptcy
                  Proceedings During the Preceding Five Years:

     Indicate by check mark whether the registrant has filed all documents and
reports required by Sections 12, 13, or 15(d) of the Securities Exchange Act of
1934 subsequent to the distribution of securities under a plan confirmed by a
court. Yes No .

                     Applicable Only to Corporate Issuers:

     Indicate the number of shares outstanding of each of the issuer's classes
of common stock, as of the latest practicable date: 4,184,614 shares of Common
Stock, $1.00 par value, outstanding on July 31, 1995.

                           Part I. Financial Information

Item 1.  Financial Statements.

                      Donegal Group Inc. And Subsidiaries
                           Consolidated Balance Sheet

Assets                                                                                  June 30, 1995              December 31, 1994
                                                                                        -------------              -----------------
                                                                                          (Unaudited)

Investments
    Fixed maturities
       Held to maturity, at amortized cost                                              $   77,555,218              $   65,451,109
       Available for sale, at market value and at
       the lower of amortized cost or market value                                          45,363,797                  41,370,321
    Equity securities, available for sale at market                                          5,243,584                   4,190,316
    Short-term investments, at cost, which
       approximate market                                                                   14,106,979                  24,640,509
                                                                                        --------------              --------------
          Total Investments                                                                142,269,578                 135,652,255
Cash                                                                                           725,844                   1,263,764
Accrued investment income                                                                    2,114,004                   1,912,835
Premiums receivable                                                                         10,284,404                   8,882,053
Reinsurance receivable                                                                      23,871,627                  21,295,593
Deferred policy acquisition costs                                                            6,095,209                   5,551,869
Deferred federal income taxes                                                                3,457,568                   3,734,826
Current income taxes                                                                           115,300                        --
Prepaid reinsurance premiums                                                                12,249,164                  10,802,519
Property and equipment, net                                                                  1,624,051                   1,591,766
Accounts receivable - securities                                                                  --                       212,655
Due from affiliate                                                                           1,264,022                     591,707
Other                                                                                          391,532                     554,468
                                                                                        --------------              --------------
          Total Assets                                                                  $  204,462,303              $  192,046,310
                                                                                        ==============              ==============

Liabilities and Stockholders' Equity

Liabilities
    Losses and loss expenses                                                            $   86,301,706              $   79,962,961
    Unearned premiums                                                                       49,143,337                  44,512,189
    Accrued expenses                                                                         1,005,586                   1,134,064
    Current income taxes                                                                           --                       123,687
    Reinsurance balances payable                                                               579,881                     562,626
    Cash dividend declared to stockholders                                                         --                       369,335
    Accounts payable - securities                                                              339,879                   4,213,830
    Other                                                                                      277,805                     165,827
                                                                                        --------------              --------------
          Total Liabilities                                                                137,648,194                 131,044,519
                                                                                        --------------              --------------
 Stockholders' Equity
    Preferred stock, $1.00 par value, authorized
       1,000,000 shares; none issued
    Common stock, $1.00 par value, authorized
       10,000,000 shares, issued 4,242,724 and
       4,162,770 shares and outstanding 4,177,676
       and 4,097,722 shares                                                                  4,242,724                   4,162,770
    Additional paid-in capital                                                              33,176,721                  32,411,677
    Net unrealized gain (losses) on investments                                                115,662                    (821,535)
    Retained earnings                                                                       30,098,782                  26,068,659
    Treasury stock                                                                            (819,780)                   (819,780)
                                                                                        --------------              --------------
          Total Stockholders' Equity                                                        66,814,109                  61,001,791
                                                                                         --------------              --------------
          Total Liabilities and
              Stockholders' Equity                                                      $  204,462,303              $  192,046,310
                                                                                        ==============              ==============

          See accompanying notes to consolidated financial statements.

                                      -1-

                      Donegal Group Inc. and Subsidiaries
                        Consolidated Statement of Income
                                  (Unaudited)

               For the three months ended June 30, 1995 and 1994

                                            Three Months Ended June 30,
                                              1995              1994
                                              ----              ----  
                                                          
Revenues:

 Premiums earned                          $ 27,233,374      $ 23,936,073
 Premiums ceded                             (6,787,195)       (5,871,976)
                                          ------------      ------------
   Net premiums earned                      20,446,179        18,064,097
 Investment income, net of investment
   expenses                                  2,121,382         1,730,994
 Realized gain (loss)                          190,191          (308,134)
 Lease income                                  122,553           116,093
 Service charge income                         371,604           204,494
                                          ------------       -----------
   Total Revenues                           23,251,909        19,807,544
                                          ------------       -----------

Expenses:

 Losses and loss expenses                   18,289,014        15,034,547
 Reinsurance recoveries                     (4,597,411)       (3,520,254)
                                          ------------       -----------
   Net losses and loss expenses             13,691,603        11,514,293
 Amortization of deferred policy
   acquisition costs                         3,440,000         3,010,000
 Other underwriting expenses                 2,513,161         2,208,111
 Policy dividends                              324,625           221,268
 Other expenses                                324,855           188,326
                                          ------------       -----------
   Total Expenses                           20,294,244        17,141,998
                                          ------------       -----------

   Income before income taxes                2,957,665         2,665,546
Income taxes                                   694,201           718,508
                                          ------------       -----------
 Net income                               $  2,263,464      $  1,947,038
                                          ============      ============

Earnings per common share                 $        .53      $        .47
                                          ============      ============                                

          See accompanying notes to consolidated financial statements.

                                      -2-

                      Donegal Group Inc. and Subsidiaries
                        Consolidated Statement of Income
                                  (Unaudited)

                For the six months ended June 30, 1995 and 1994

                                              Six Months Ended June 30,
                                               1995             1994
                                               ----             ----
                                                           
Revenues:

 Premiums earned                          $ 53,392,825      $ 46,533,113
 Premiums ceded                            (13,453,727)      (11,404,256)
                                          ------------      ------------
   Net premiums earned                      39,939,098        35,128,857
 Investment income, net of investment
   expenses                                  4,208,374         3,521,245
 Realized gain (loss)                          214,297           (34,487)
 Lease income                                  241,274           230,145
 Service charge income                         678,634           358,480
                                          ------------      ------------
   Total Revenues                           45,281,677        39,204,240
                                          ------------      ------------

Expenses:

 Losses and loss expenses                   33,670,457        33,219,316
 Reinsurance recoveries                     (7,904,116)       (8,223,528)
                                          ------------      ------------
   Net losses and loss expenses             25,766,341        24,995,788 
                                          ------------      ------------
 Amortization of deferred policy            
   acquisition costs                         6,598,000         5,835,000
 Other underwriting expenses                 5,683,747         4,712,362
 Policy dividends                              633,816           483,190
 Other expenses                                628,390           367,793
                                          ------------      ------------
   Total Expenses                           39,310,294        36,394,133
                                          ------------      ------------

   Income before income taxes                5,971,383         2,810,107
Income taxes                                 1,529,737           565,600
                                          ------------      ------------
 Net income                               $  4,441,646      $  2,244,507
                                          ============      ============

Earnings per common share                 $       1.05      $        .54
                                          ============      ============

          See accompanying notes to consolidated financial statements.

                                      -3-

                      DONEGAL GROUP INC. AND SUBSIDIARIES
                 CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY
                                  (Unaudited)
                    FOR THE THREE MONTHS ENDED JUNE 30, 1995

                     
                           Common Stock                        Net Unreal-                                      Total 
                           ------------         Additonal       ized Gains                                      Stock- 
                                                 Paid-In       (Losses) on       Retained      Treasury        holders'
                        Shares       Amount      Capital       Investments       Earnings        Stock          Equity
                        ------       ------      -------       -----------       --------        -----          ------
                                                                             
Balance,
  January 1, 1995     4,162,770    $4,162,770   $32,411,677    $  (821,535)     $26,068,659    $(819,780)     $61,001,791

Net Income                                                                        4,441,646                     4,441,646

Unrealized gain
  on investments                                                   937,197                                        937,197

Dividends Paid                                                                     (411,523)                     (411,523)

Issuance of
  Common Stock           79,954        79,954       765,044                                                       844,998
                      ---------    ----------   -----------     -----------     -----------    ---------       ----------
     
Balance,
 June 30, 1995        4,242,724    $4,242,724   $33,176,721     $  115,662      $30,098,782    $(819,780)     $66,814,109
                      =========    ==========   ===========     ==========      ===========    =========      ===========

                See accompanying notes to financial statements.

                                      -4-

                      DONEGAL GROUP INC. AND SUBSIDIARIES
                      CONSOLIDATED STATEMENT OF CASH FLOWS
                                  (Unaudited)
                For the six months ended June 30, 1995 and 1994

                                                 Six months ended June 30,
                                                    1995          1994
                                                    ----          ----
                                                       
Cash Flows from Operating Activities: 
 Net income                                   $  4,441,646   $  2,244,507
 Adjustments to reconcile net income to net
   cash provided by operating activities:
   Liabilities for losses and loss expenses      6,338,745      7,941,338
   Depreciation and amortization                   110,746        149,294
   Realized investment (gain) loss                (214,297)        34,487
 Changes in Assets and Liabilities:
   Unearned premiums                             4,631,148      3,551,013
   Premiums receivable                          (1,402,351)    (1,396,401)
   Deferred acquisition costs                     (543,340)      (319,155)
   Deferred income taxes                          (205,539)      (229,592)
   Reinsurance receivable                       (2,576,034)    (6,178,808)
   Prepaid reinsurance premiums                 (1,446,645)    (1,488,535)
   Accrued investment income                      (201,169)       192,985
   Due from affiliate                             (672,315)       227,836
   Accounts payable reinsurance                     17,255      1,083,179
   Current income taxes payable                   (238,987)       649,433
   Other, net                                      146,436       (371,961)
                                              ------------     ----------
Net adjustments                                  3,743,653      3,845,113
                                              ------------     ----------
   Net cash provided by operating activities     8,185,299      6,089,620
                                              ------------     ----------
Cash flows from investing activities:
 Purchase of fixed maturities
   Held to maturity                            (11,811,318)    (4,388,465)
   Available for sale                           (8,602,670)   (10,969,994)
 Purchase of equity securities, 
   available for sale                           (3,998,350)    (5,380,857)
 Sale of fixed maturities
   Held to maturity                                    ---      1,346,375
   Available for sale                            2,621,843     13,904,427
 Maturity of fixed maturities -
   held to maturity                              2,266,416      8,690,154
 Maturity of fixed maturities -
   available for sale                              533,334        199,291
 Sale of equity securities, available for sale   3,813,240      5,489,155
 Purchase of property and equipment               (179,554)       (87,192)
 Purchase of intangible asset                          ---       (115,000)
 Net sales of short-term investments             6,569,700    (14,093,484)
                                              ------------     ----------
   Net cash used in investing activities        (8,787,359)    (5,405,590)
                                              ------------     ----------
Cash flows from
financing activities:
 Expenses of subsidiary formation                      ---        (16,625)
 Cash dividends paid                              (780,858)      (695,680)
 Issuance of common stock                          844,998         55,401
 Net cash provided by (used in)
   financing activities                             64,140       (656,904)
                                              ------------     ----------
Net decrease in cash                              (537,920)        27,126
Cash at beginning of year                        1,263,764      1,192,124
                                              ------------     ----------
Cash at end of quarter                       $     725,844  $   1,219,250
                                              ============   ============
Cash paid during period
                  - Interest                             0              0
                  - Income Taxes              $  1,973,000 $      146,000

          See accompanying notes to consolidated financial statements.

                                      -5-

Management's Discussion and Analysis of
Financial Condition and Results of Operations

Overview

   Donegal Group Inc. ("DGI" or the "Company") is a regional insurance holding
company doing business in Pennsylvania, Maryland, Delaware, Virginia and Ohio
through its wholly owned subsidiaries, Atlantic States Insurance Company
("Atlantic"), Southern Insurance Company of Virginia ("Southern") and Atlantic
Insurance Services, Inc. ("AIS"). The Company's major lines of business in 1994
and their percentages of total net earned premiums were Automobile Liability
(30.7%), Automobile Physical Damage (16.2%) Homeowners (13.8%), Commercial
Multiple Peril (13.8%) and Workers' Compensation (19.9%). Atlantic and Southern
are subject to regulation by Insurance Departments in those states in which they
operate and undergo periodic examination by those departments. They are also
subject to competition from other insurance carriers in their operating areas.
DGI was formed in September 1986 by Donegal Mutual Insurance Company (the
"Mutual Company") which owns 59% of the outstanding common shares of the Company
as of June 30, 1995.

   In connection with the formation of the Company and Atlantic States, as of
October 1, 1986, Atlantic States and the Mutual Company entered into a pooling
agreement which provides for the allocation of premiums, losses, loss settlement
expenses and underwriting expenses. The Company is not liable for any losses
occurring prior to the date of the pooling agreement. The Company's
participation in the pool was 35% from October 1, 1986 to September 30, 1988,
50% from October 1, 1988 to December 31, 1992 and since January 1, 1993 has been
60%.

   On December 29, 1988, the Company converted Southern Mutual Insurance Company
into Southern Insurance Company of Virginia, which writes property and casualty
insurance in Virginia, and acquired all of Southern's outstanding capital stock.
Pursuant to a reinsurance agreement, Southern cedes 50% of its direct premiums
written less certain reinsurance to the Mutual Company and retains the remaining
50%. Because the Mutual Company places substantially all of the business assumed
from Southern into the pool, from which the Company has a 60% allocation, the
company's results of operations include approximately 80% of the business
written by Southern.

   In January 1994, the Company formed Atlantic Insurance Services, Inc. which
primarily provides risk inspection services for the property-casualty insurance
industry.

   The Company's results of operations are affected by the conditions that
affect all property and casualty insurance companies, such as competition,
catastrophic events, regulation, general economic conditions and the investment
environment. Underwriting results vary by line of business and from period to
period principally due to changes in claims experience. Because the Company's
premium volume in various lines of business is small, small changes in the
number of incurred claims can significantly affect the results of operations
from that line of business in a given fiscal period.

                                      -6-

                        DONEGAL GROUP INC. AND SUBSIDIA
                                  (Unaudited)
               Summary Notes to Consolidated Financial Statements

1 - Organization

   The Company was organized as a regional insurance holding company by Donegal
Mutual Insurance Company (the "Mutual Company") on August 26, 1986 and operates
in Pennsylvania, Maryland, Delaware, Virginia and Ohio through its wholly owned
stock insurance companies, Atlantic States Insurance Company ("Atlantic
States"), Southern Insurance Company of Virginia ("Southern") and Atlantic
Insurance Services, Inc. ("AIS"). The Company's major lines of business are
Automobile Liability, Automobile Physical Damage, Homeowners, Commercial
Multiple Peril and Workers' Compensation. Atlantic and Southern are subject to
regulation by Insurance Departments in those states in which they operate and
undergo periodic examination by those departments. They are also subject to
competition from other insurance carriers in their operating areas. Atlantic
States engages in the insurance business primarily through an intercompany
pooling arrangement with the Mutual Company. Southern was acquired by the
Company on December 31, 1988 pursuant to a plan of conversion from a mutual to a
stock company and cedes 50% of its business to the Mutual Company, 80% prior to
1991. At June 30, 1995 the Mutual Company held 59% of the outstanding common
stock of the Company.

2 - Basis of Presentation

   The financial information for the interim period included herein is
unaudited; however, such information reflects all adjustments, consisting only
of normal recurring adjustments, which, in the opinion of management of
Registrant, are necessary to a fair presentation of Registrant's financial
position, results of operations and changes in financial position for the
interim period included herein. The results of operations for the six months
ended June 30, 1995, are not necessarily indicative of results of operations to
be expected for the twelve months ended December 31, 1995.

   These financial statements should be read in conjunction with the financial
statements and notes thereto contained in Registrant's Annual Report on Form
10-K for the year ended December 31, 1994.

                                      -7-

Results of Operations - Three Months Ended June 30, 1995
to Three Months Ended June 30, 1994

   Revenues for the three months ended June 30, 1995 were $23,251,909, an
increase of $3,444,365, or 17.4%, over the same period of 1994. An increase in
net premiums earned of $2,382,082, or 13.2% represented most of this change. The
company s retained share of direct premiums written increased 10.1% in the
second quarter of 1995 compared to the second quarter of 1994. In the second
quarter 1994, the Company incurred additional ceded reinsurance premiums of
approximately $400,000. These additional ceded premiums were reinstatement
premiums related to catastrophe reinsurance recoveries resulting from claims
incurred due to severe weather which hit the northeastern part of the United
States in the first three months of 1994. Investment income for the second
quarter 1995 was $2,121,382 an increase of $390,388, or 22.6%, over the second
quarter 1994. An increase in the average invested assets of $14,306,118, or
11.4%, to $139,724,060 and an increase in the average return on investments to
an annualized rate of 6.1% for the second quarter of 1995 compared to 5.5% for
the second quarter of 1994, accounted for the change. Realized investment gains,
which resulted from the normal turnover of the Company s investment portfolio,
increased to $190,191 in the second quarter of this year, compared to a loss of
($308,134) for the second quarter of 1994.

   The GAAP combined ratio of insurance operations in the second quarter of 1995
was 97.7% compared to 93.9% for the same period in 1994. The GAAP combined ratio
is the sum of the ratios of incurred losses and loss adjusting expenses to
premiums earned (loss ratio), policyholders dividends to premiums earned
(dividend ratio), and underwriting expenses to premiums earned (expense ratio).
An increase in the loss ratio from 63.7% in the second quarter of 1994 to 67.0%
in the second quarter of 1995, accounted for most of the change. The expense
ratio increased from 28.9% to 29.1% in the second quarter of 1995 due primarily
to additional incentive expenses for employees and agents related to the higher
levels of profitability for the year to date. The dividend ratio increased
slightly from 1.2% for the second quarter of 1994 to 1.6% for the second quarter
of 1995 due primarily to higher levels of profitability in 1995.

   Federal income taxes for the second quarter of 1995 represented 23.5% of
pre-tax income compared to 26.9% for the second quarter of 1994. A tax benefit
resulting from the exercise of options by employees accounted for the majority
of this difference. The effective tax rates incurred are less than the statutory
federal rate of 34% due primarily to tax exempt investment income from municipal
bonds.

                                      -8-

Results of Operations - Six Months Ended June 30, 1995
to Six Months Ended June 30, 1994

   Revenues for the six months ended June 30, 1995 were $45,281,677, an increase
of $6,077,437, or 15.5%, over the same period of 1994. An increase in net
premiums earned of $4,810,241, or 13.7% represented most of this change. The
company s retained share of direct premiums written increased 12.4% in the first
six months of 1995 compared to the same period of 1994. In the six months ended
June 30, 1994, the Company incurred additional ceded reinsurance premiums of
approximately $1,000,000. These additional ceded premiums were reinstatement
premiums related to catastrophe reinsurance recoveries resulting from claims
incurred due to severe weather which hit the northeastern part of the United
States in the first three months of 1994. Investment income for the first six
months of 1995 was $4,208,374 an increase of $687,129, or 19.5%, over the first
six months of 1994. An increase in the average invested assets of $15,307,229,
or 12.4%, to $138,960,916 and an increase in the average return on investments
to an annualized rate of 6.1% for the first six months of 1995 compared to 5.7%
for the first six months of 1994, accounted for the change. Realized investment
gains, which resulted from the normal turnover of the Company s investment
portfolio, increased to $214,297 through June 30 of this year, compared to a
loss of ($34,487) for the first six months of 1994.

   The GAAP combined ratio of insurance operations in the first six months of
1995 was 96.9% compared to 102.6% for the same period in 1994. The GAAP combined
ratio is the sum of the ratios of incurred losses and loss adjusting expenses to
premiums earned (loss ratio), policyholders dividends to premiums earned
(dividend ratio), and underwriting expenses to premiums earned (expense ratio).
An improvement in the loss ratio from 71.2% in the first six months of 1994 to
64.5% in the first six months of 1995, accounted for most of the change. The
expense ratio increased from 30.0% to 30.7% for the first six months ended June
30, 1995 due primarily to additional incentive expenses for employees and agents
related to the higher levels of profitability for the year to date. The dividend
ratio increased slightly from 1.4% for the first two quarters of 1994 to 1.6%
for the first two quarters of 1995, due primarily to higher levels of
profitability in 1995.

   Federal income taxes for the six months ended June 30, 1995 represented 25.6%
of pre-tax income compared to 20.1% for the same period of 1994 due primarily to
the net loss incurred for taxes in the first quarter of 1994, used in the second
quarter of 1994. The effective tax rates incurred are less than the statutory
federal rate of 34% due primarily to tax exempt investment income from municipal
bonds.

                                      -9-

Liquidity and Capital Resources

     The Company generates sufficient funds from its operations and maintains a
high degree of liquidity in its investment portfolio. The primary source of
funds to meet the demands of claim settlements and operating expenses are
premium collections, investment earnings and maturing investments. As of June
30, 1995, the Company had no material commitment for capital expenditures.

     In investing funds made available from operations, the Company maintains
securities maturities consistent with its projected cash needs for the payment
of claims and expenses. The Company maintains a portion of its investment
portfolio in relatively short-term and highly liquid assets to ensure the
availability of funds.

     The Company's principal source of cash with which to pay stockholder
dividends is dividends from Atlantic States and Southern, which are required by
law to maintain certain minimum surplus on a statutory basis and are subject to
regulations under which payment of dividends from statutory surplus is
restricted and may require prior approval of their domiciliary insurance
regulatory authorities. At December 31, 1994, amounts available for distribution
as dividends to DGI without prior approval of the insurance regulatory
authorities are $764,696 from Southern and $4,072,387 from Atlantic States.

     Unrealized gains resulting from fluctuations in the market value of
investments available for sale reported in the balance sheet at market value
were $115,662 at June 30, 1995, net of taxes.

                                      -10-

Credit Risk

     The company provides property and liability coverages through its
subsidiaries' independent agency systems located throughout its operating area.
The majority of this business is billed directly to the insured although a
portion of Donegal Group's commercial business is billed through its agents who
are extended credit in the normal course of business.

     The Company's subsidiaries have reinsurance agreements in place with the
Mutual Company and with a number of other major authorized reinsurers.

Impact of Inflation

     Property and casualty insurance premiums are established before the amount
of losses and loss settlement expenses, or the extent to which inflation may
impact such expenses, are known. Consequently, the Company attempts, in
establishing rates, to anticipate the potential impact of inflation.

Impact of New Accounting Standards

Accounting for Certain Investments in Debt and Equity Securities

     The Company adopted the SFAS No. 115, Accounting for Certain Investments in
Debt and Equity Securities , effective January 1, 1994 on a prospective basis.
The cumulative effect of adopting SFAS 115 resulted in a before tax unrealized
gain of $1,908,207. The net increase to equity amounted to $1,259,417 after
providing for taxes of $648,790. Adoption of this statement had no effect on the
net income of the Company.

     SFAS 115 requires that investments in all debt securities and those equity
securities with readily determinable market values be classified into three
categories as follows:

                                      

     Held to Maturity Securities    -   Debt securities that the enterprise has the positive intent and ability to hold to
                                        maturity; reported at amortized costs.

     Trading Securities             -   Debt and equity securities that are bought and held principally for the purpose  
                                        of selling them in the near term; reported at fair value, with unrealized gains and
                                        losses included in earnings.

     Available for Sale Securities  -   Debt and equity securities not classified as either held to maturity securities or
                                        trading securities; reported at fair value, with unrealized gains and losses
                                        excluded from earnings and reported as a separate
                                        component of shareholders' equity (net of tax effects).

                                        No trading securities were identified at December 31, 1994 or June 30, 1995.

                                      -11-

                           Part II. Other Information

Item 1.  Legal Proceedings

      None.

Item 2.  Changes in Securities

      None.

Item 3.  Defaults upon Senior Securities

      None.

Item 4.  Submission of Matters to a Vote of Security Holders

      None.

Item 5.   Other Information

      None.

Item 6.   Exhibits and Reports on Form 8-K

      (a) Exhibits
          EX-27    Financial Data Schedule
      (b) Reports on Form 8-K
          During the quarter ended June 30, 1995, Registrant did not file any
          reports on Form 8-K.

                                      -12-

                                 Signatures

Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.

                                          Donegal Group Inc.

Date:  August 10, 1995                   By: ______________________
                                         Donald H. Nikolaus,
                                         President and
                                         Chief Executive Officer

Date:  August 10, 1995                    By: ____________________
                                          Ralph G. Spontak,
                                          Corporate Secretary,
                                          Senior Vice President and
                                          Chief Financial Officer

                                      -13-

  

   7

                                                              3-MOS
                                                    DEC-31-1995
                                                         JUN-30-1995
                                                  45,363,797
                                                 77,555,218
                                                   78,619,251
                                                             5,243,584
                                                                     0
                                                                  0
                                                       142,106,979
                                                                   725,844
                                                             0
                                                 6,095,209
                                                       204,462,303
                                                       86,301,706
                                                   49,143,337
                                                                 0
                                                          0
                                                                0
                                                               4,242,724
                                                          0
                                                                    0
                                                            62,571,385
                                         204,462,303
                                                            20,446,179
                                                    2,121,382
                                                       190,191
                                                           494,157
                                                            13,691,603
                                            3,440,000
                                                   2,513,161
                                                        2,957,665
                                                             694,201
                                                    2,263,464
                                                                 0
                                                                0
                                                                      0
                                                           2,263,464
                                                                .53
                                                                .53
                                                                 0
                                                            0
                                                              0
                                                             0
                                                               0
                                                                0
                                                        0