EXHIBIT 14

                               DONEGAL GROUP INC.

                                 CODE OF ETHICS

         This Code of Ethics of the Company applies to the Chief Executive
Officer, the Chief Financial Officer, the Chief Accounting Officer, the
Treasurer and the Controller of the Company (each, a "Covered Person"). The
Covered Persons hold important roles in corporate governance. This Code of
Ethics is designed to deter wrongdoing and promote ethical conduct and
compliance with applicable laws and regulations.

         Each Covered Person has the obligation to:

         a)       Engage in and promote honest and ethical conduct, including
                  the ethical handling of actual or apparent conflicts of
                  interest between personal and professional relationships;

         b)       Produce full, fair, accurate, timely and understandable
                  disclosure in reports and documents that the Company or its
                  subsidiaries file with, or submit to, the Securities and
                  Exchange Commission and other regulators and in other public
                  communications made by the Company or its subsidiaries;

         c)       Comply with applicable governmental laws, rules and
                  regulations, as well as the rules and regulations of the
                  Nasdaq Stock Market; and

         d)       Promptly report any possible violation of this Code of Ethics
                  to the Audit Committee or any of the persons designated from
                  time to time by the Company's Board of Directors for such
                  purposes.

         Each Covered Person is prohibited from directly or indirectly taking
any action to fraudulently influence, coerce, manipulate or mislead the Company
or its subsidiaries' independent public accountants for the purpose of rendering
the financial statements of the Company or its subsidiaries misleading.

         Each Covered Person will be held accountable for the Covered Person's
adherence to this Code of Ethics. Failure to observe the terms of this Code of
Ethics may result in disciplinary action, up to and including termination of
employment. Violations of this Code of Ethics may also constitute violations of
law and may result in civil and criminal penalties for the Covered Person, his
or her supervisors or the Company.

         Reporting any possible violation of this Code of Ethics may be made
anonymously. Questions regarding the best course of action in a particular
situation should promptly be directed to Donald H. Nikolaus, President and Chief
Executive Officer, with a copy to the Company's chief legal officer.

As adopted by the Board of Directors on March 19, 2004.

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