Partners Mutual Insurance Company (Partners Mutual) and Pennsylvania National Mutual Casualty Insurance Company (Penn National Insurance), rated A- (Excellent) by A. M. Best, jointly announced that they have entered into an affiliation agreement. Pursuant to the agreement, after closing, Penn National Insurance and Partners Mutual will enter into an Intercompany Reinsurance Pooling Agreement. The parties expect that by joining the Penn National Insurance pool, Partners Mutual will be assigned Penn National Insurance's pooled rating by A. M. Best. The affiliation agreement was approved by the boards of directors of both companies and is subject to regulatory approval, which is expected by year-end 2011.
Kenneth R. Shutts, president and CEO of Penn National Insurance, said: "This affiliation will benefit both organizations not only through greater spread of risk, but also through the leveraging of resources. It is clear that Partners Mutual's associates share the same values, management philosophy and strong belief in the importance of the independent agency system that we hold at Penn National Insurance. Partners Mutual's agents can be certain of our joint commitment to providing them a consistent and service-oriented market for many years to come. We are extremely pleased with, and excited about, this affiliation and the growth opportunities it represents for us in the Midwest."
Partners Mutual's president and CEO, Richard C. Ewert, said: "Partners Mutual, on the occasion of our 80th year of serving policyholders exclusively under the independent agency system, is proud to affiliate with Penn National Insurance, with its strong management, balance sheet, and history of superior service to its agents. We believe that Penn National Insurance will provide Partners Mutual with substantial operational support as well as access to additional products and services for our agents and insureds. As a result of the affiliation, Partners Mutual expects to receive a rating that will permit us to be a strong and growing competitor in our Midwestern markets."
Richard C. Ewert will continue to serve as Partners Mutual's president and CEO; and Mark H. Ewert will continue to serve as its executive vice president.
Partners Mutual will pool its premiums, losses and underwriting expenses with Penn National Insurance and geographically diversify its book of business. Partners Mutual will also enhance its ability to gain more competitive terms on reinsurance and other operational services, and gain access to Penn National Insurance's technology services.
The affiliation allows Penn National Insurance to geographically diversify its book of business and to pursue growth in the Midwest, through the independent agents representing Partners Mutual and with the leadership of Partners Mutual's CEO and EVP.
About Partners Mutual Insurance Company
Founded in 1931 as Badger State Casualty Company Limited Mutual, now headquartered in Waukesha, Wisconsin, the company began as a mono-line auto insurance carrier. The company sells personal and commercial property-casualty insurance in Iowa and Wisconsin through a network of 120 independent agencies. In 1992 the company changed its name to Partners Mutual Insurance Company to reflect its corporate philosophy emphasizing the importance of a strong partnership between the company and its independent agents – a philosophy shared by Penn National Insurance. Partners Mutual had direct premium writings of $38.8 million in 2010. More information is available at www.partnersmutual.com.
About Penn National Insurance
Penn National Insurance (www.pennnationalinsurance.com), founded in 1919, sells personal and commercial property-casualty insurance in PA, MD, DE, NJ, VA, NC, SC, TN, and AL, through a network of more than 750 independent agencies. The company wrote $489 million in net written premium in 2010 on $487 million in policyholders' surplus, and total assets exceeded $1.4 billion. The company employs more than 800 people in its nine-state sales and service territory.
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Contacts:
Penn National Insurance
Christopher Markley
Vice President –
Corporate Communications
717-255-6895 office
717-329-1982
mobile
cmarkley@pnat.com
www.pennnationalinsurance.com
