Welcome to Penn National Insurance’s Paving the way 2014 Annual Report for future leaders Penn National Insurance | 2014 Annual Report
Combined Statutory Financial Highlights
Combined Statutory Financial Highlights
(Dollars in thousands) 2014 2013 2012 2011* 2010* 2009* 2008* Big Shoes to Fill
President’s Message Direct premiums written $ 706,213 $ 681,691 $ 633,571 $ 551,033 $ 518,978 $ 512,056 $ 537,878
Investing in our future leaders Net premiums written 666,301 644,536 595,863 517,723 489,123 481,156 506,734 Net premiums earned 653,181 619,758 570,761 507,689 488,099 487,031 518,373 Developing our people Investment income, including A retrospective of Ken Shutts’ career realized gains and losses 55,988 51,419 49,272 46,369 50,672 51,528 37,095 Combined Statutory Financial Statements Net income (loss) 42,526 32,795 13,715 (25,164) (11,029) 29,040 35,135
Facts in Brief Total cash and investments $1,376,699 $1,328,973 $1,223,269 $1,137,748 $1,210,396 $1,204,785 $1,161,226
Officers & Directors Total admitted assets 1,668,067 1,559,170 1,454,559 1,348,683 1,406,703 1,382,014 1,353,668 Total policyholders’ surplus 567,445 550,211 481,590 451,151 487,148 484,850 427,155 Combined ratio after dividends 98.9 100.9 111.6 113.8 115.7 103.0 99.9 2 / 17
Direct Premiums Written Total Admitted Assets Total Policyholders’ Surplus Statutory Combined Ratio After Dividends (in millions) (in millions) (in millions) (lower is better)
2014 $700 $1700 $600 115 600 1600 500 110
500 1500 400 1400 105 400 300 1300 300 100 1200 200 200
95 1100 100 100
0 1000 0 90 08 09 10 11 12 13 14 * 08 09 10 11 12 13 14 * 08 09 10 11 12 13 14 * 08 09 10 11 12 13 14 *
*2011 and prior years do not include the results of Partners Mutual Insurance. Penn National Insurance | 2014 Annual Report
We’re making sure that the seasoned veterans on our team Combined Statutory Financial Highlights pass along their collective wisdom Big Shoes to Fill to the people we’re training, President’s Message supporting the tradition of finding Investing in our future leaders our future leaders within our Developing our people existing employee ranks. A retrospective of Ken Shutts’ career Combined Statutory Financial Statements big Facts in Brief
Officers & Directors
3 / 17 shoes to fill
“We enjoy many benefits that come from having seasoned, experienced insurance professionals who have long tenure with our organization. But those benefits come at the cost of a looming retirement bubble. Through our succession-planning process, we have been focused on developing and promoting employees up through the ranks, and to attract new employees with a desire to work in an organization that offers career advancement opportunities, and not just a job.”
Chris Sears, president & CEO Penn National Insurance | 2014 Annual Report
Combined Statutory Financial Highlights
Big Shoes to Fill
President’s Message
Investing in our future leaders
Developing our people
A retrospective of Ken Shutts’ career
Combined Statutory Financial Statements
Facts in Brief
Officers & Directors
4 / 17
We believe that But, like most companies, we face a retirement bubble. We enjoy the benefits of the our employees unusually long tenure of our employees, with more than 50 percent of our employees falling in the Baby Boomer Employee Tenure are our demographic (born between 1946 and 1963). n 25 years or greater greatest asset. n 20 – 24 years During 2014, we demonstrated our commitment to making n 15 – 19 years this company a great place for long-term, career-oriented n 10 – 14 years employees through a series of internal promotions and n 5 – 9 years n 4 years or fewer a continuation of our investment in succession planning, employee mentoring and employee training and development. Penn National Insurance | 2014 Annual Report
A joint message from Christine Sears & Kenneth R. Shutts
Combined Statutory Financial Highlights Times may have been simpler Big Shoes to Fill
President’s Message and the world a bit slower
Investing in our future leaders when we began our careers at Developing our people Penn National Insurance in 1980. A retrospective of Ken Shutts’ career
Combined Statutory Financial Statements
Facts in Brief Back then, personal computers had not yet found their way into the company, paper files were everywhere, and a 36-hour work week was the Officers & Directors norm. We were much smaller: policyholders’ surplus stood at $64 million, and net premiums written were $171 million.
5 / 17 Over the years, underwriting and claims files gave way to a paperless environment, three-part memos were replaced first by fax and then by email, and today text messages speed communications between underwriters, adjusters, agents and policyholders. Thankfully, our company’s values and culture have endured over the years. We cherish our employees and agents as much as ever. We continue to embrace our mutual structure and always remember that the reason we exist is to serve our policyholders. And so as Ken concludes his successful career and Chris assumes her leadership role, we jointly author this year’s message sharing our absolute commitment to continue the traditions and values that have served our company so well for nearly a century.
Integrity, respect and an emphasis on delivering a superior relationship- driven business model will continue to be the hallmarks of our company. We understand that insurance is a “people business” and that we must always focus on our agents and policyholders. By capitalizing on our interactions with both parties and providing excellent service, we secure and retain profitable business in the process. We are a regional mutual company, and our relationship model fits us like a glove.
The world and the pace of change are not going to slow any time soon. It is mind-boggling to think of technology advancements yet to come. We will always use such advancements to make doing business with us easier and more efficient, but never as a replacement for the importance we place on building relationships. Penn National Insurance | 2014 Annual Report
A joint message from Christine Sears & Kenneth R. Shutts
Combined Statutory Financial Highlights Many of our accomplishments this year Big Shoes to Fill
President’s Message centered on enhancing agency and
Investing in our future leaders policyholder services so that all of our Developing our people interactions better meet today’s expectations. A retrospective of Ken Shutts’ career
Combined Statutory Financial Statements
Facts in Brief These improvements are part of a larger process in which we Within personal lines, the introduction of an advance auto are committed to enhancing the total customer experience. quote discount was very well received and sparked new Officers & Directors We strive to deliver flawless customer interactions that are business growth. The introduction of this discount emerged personal, respectful and very responsive. We are examining from work completed by our analytics team. Our investment all forms of communication with our agents and policyholders in analytics and modeling is leading us to new findings that 6 / 17 to include our website, telephone, email, online information we will continue to use to improve our performance. and mobile for opportunities to deliver a better overall The retirement bubble is upon us, and our succession- engagement experience. management process has helped us identify the technical The roll-out of our improved billing system continued this and managerial skills our organization will need to carry year for both personal and commercial lines. By listening us forward. We have been successful in having employees and acting on input from agency focus groups, we improved available and ready to step into the shoes of our highly our invoices, making it easier for policyholders to read skilled, retiring employees. Our newer employees are and understand their bills. We introduced new convenient bringing an enthusiasm and energy level to the workplace payment options and now offer an option for our personal that is welcomed. Our tenured workforce takes pride in lines policyholders to go green and receive policy documents passing down their technical expertise and teaching the and bills electronically. We updated our Online Insurance importance of relationships to new employees. It is exciting Center, which quickly and easily provides information about to see four generations of employees, from the traditionalists policies and billing and provides policyholders with online to the millennials, working together to achieve our mission payment options. of providing superior insurance products and services.
We continued to add new features to our under-writing It is widely understood that we operate in a highly products to allow us to address changing trends in the competitive business. Over the last several years, the industry marketplace. This year, we introduced contractors’ E&O has benefitted from price increases in commercial and coverage, crisis response endorsement, and enhanced inland personal lines. The homeowners line is beginning to show marine capabilities. We also made revisions to our hotel/motel signs of improvement from price strengthening and most product offering, which improved our product and price recently benign catastrophe experience across the country. competitive position.
Penn National Insurance | 2014 Annual Report
A joint message from Christine Sears & Kenneth R. Shutts
Combined Statutory Financial Highlights
Big Shoes to Fill Persistently low interest rates stubbornly place pressure Looking forward, there is no end to the challenges and President’s Message on underwriting results within the commercial casualty opportunities we will encounter. We plan to build on our Investing in our future leaders lines. However, abundant capacity is already slowing price past successes and look to further improve our operating increases. It would be unwise to believe that the pricing performance, while at the same time giving agencies, Developing our people cycle will lie dormant for very long, but we are confident businesses and families a compelling reason to place business A retrospective of Ken Shutts’ career in our ability to navigate whatever the market may bring. with us. We will bring products to market that respond to an ever-changing environment. To this end, we will be delivering Combined Statutory Financial Statements The past year was another in which we achieved an a cyber liability product for commercial policyholders and our Facts in Brief overall increase in premium writings from prior year levels. first telematics option for the personal auto segment in 2015. Specifically, direct premiums written were $24.5 million Officers & Directors higher than those of the previous year. This allowed direct We owe a great deal of gratitude to our agents and premiums written to reach $706.2 million for the twelve policyholders who trust us with their business. We are proud months ended December 31, 2014, representing a pinnacle and appreciative of all of our employees who work so hard 7 / 17 achievement for our company. Net premiums earned also to establish effective business relationships with agents, build grew, from $619.8 million in 2013 to $653.2 million in 2014. our systems, and provide support and assistance to our policyholders during their time of need. An in-depth analysis of our claims liability resulted in a $23.4 million decrease in the net reserves for loss and loss adjustment expenses on our legacy lead paint claims as of December 31, 2014. Of this favorable amount, $12.0 million was considered retroactive reinsurance and therefore offset in other expenses.
For the year ended December 31, 2014, Penn National Christine Sears, CPCU Insurance reported statutory net income of $42.5 million president and chief executive officer compared to $32.8 million for the year ended December 31, 2013. This improvement was achieved despite an increase in total net catastrophe losses and loss adjustment expenses incurred, which were $25.7 million during 2014 compared to the uncharacteristically low $8.1 million of 2013. Our company’s combined ratio of 98.9 for the year represented an improvement of 2.0 points from that of the prior year. Kenneth R. Shutts A total of $17.2 million was added to policyholders’ surplus, retired president & CEO (Dec. 31, 2014), which reached $567.4 million at the end of 2014. member – board of directors, Penn National Insurance Penn National Insurance | 2014 Annual Report Investing in our future To prepare our employees for growth, leaders promotion and future leadership Combined Statutory Financial Highlights opportunities, we invest in continuing Big Shoes to Fill professional education in insurance. President’s Message We also promote training for employees
Investing in our future leaders in our Financial Division, Internal Audit, HR, IT, Actuarial and support positions. Developing our people
A retrospective of Ken Shutts’ career
Combined Statutory Financial Statements
Facts in Brief We offer time during the work day to allow employees FINANCIAL to pursue these studies, and we offer financial incentive Associate in Insurance Accounting and Finance Officers & Directors payments to reward employees for completing individual Certified Public Accountant classes and programs. Our tuition reimbursement Chartered Financial Analyst program allows employees to take qualified under- 8 / 17 Licensed International Financial Analyst graduate and graduate courses and entire degree Certified Treasury Professional programs, paid for by our company. Certified Management Accountant Our employees invest enormous amounts of their personal time studying for insurance technical training, INTERNAL AUDITING and we are so very proud of their accomplishments, Certified Financial Services Auditor shown in the following chart, which documents the Certified Fraud Examiner number of employees who have completed rigorous Certified Information Systems Auditor certification programs. Certified Internal Auditor
HUMAN RESOURCES CPCU – Chartered Property Casualty Underwriter 65 Certified Benefits Professional AU – Associate in Underwriting 50 Senior Professional in Human Resources AIC – Associate in Claims 61 AIS – Associate in Insurance Services 69 INFORMATION TECHNOLOGY AIM – Associate in Management 23 Microsoft Certified Solutions Developer ARM – Associate in Risk Management 16 Microsoft Certified Systems Administrator AIT – Associate in Technology 17 Project Management Professional ARe – Associate in Reinsurance 7 Certified Business Intelligence Professional AINS – Associate in General Insurance 220 ADMINISTRATIVE SERVICES Certified Administrative Professional Organizational Management Specialty
ACTUARIAL/STATISTICAL Associate Insurance Data Manager Penn National Insurance | 2014 Annual Report
Developing our people
By hiring good people with a career orientation, mentoring and developing them, Combined Statutory Financial Highlights and offering internal training opportunities and tuition reimbursement for a wide
Big Shoes to Fill variety of educational initiatives, we are building bench strength to support our
President’s Message tradition of finding our future leaders within our existing employee ranks.
Investing in our future leaders In 2014, when Chris Sears was promoted, we activated We also invest in employee development through succession plans that resulted in other significant internal formal leadership development programs, including the Developing our people promotions. Leadership Harrisburg program at our headquarters region, A retrospective of Ken Shutts’ career which takes participants through a nine-month program Our succession planning process ensures that we are that shows how community volunteers can become Combined Statutory Financial Statements anticipating retirements and other job vacancies and involved in volunteer leadership service. We have enrolled investing in employees with potential to promote into Facts in Brief 13 employees in this program since its inception, many of those vacating positions. A new mentoring program Officers & Directors whom continue to work for us and to serve as volunteers creates relationships between employees designed with community service organizations. The leadership skills Leadership Harrisburg graduates among to build skills and transfer historical knowledge and taught in the program help them on their jobs, and have our employees: Britta Schatz; Sharia Benn; experience. And a trainee program allows us to 9 / 17 served them well as they have taken leadership positions Randal Mancini; Cynthia Todoroff; bring in new employees and teach them the skills on many community boards of directors. Tamir London; Katie Bobb; Robert Potter; they need to move into insurance technical positions. Traci Ducceschi; Christopher Markley. Penn National Insurance | 2014 Annual Report
Combined Statutory Financial Highlights
Big Shoes to Fill
President’s Message
Investing in our future leaders United Way tricycle race team: Katie Bobb; Felix Kamau; Gio Acosta; Courtney LeFaivre; Developing our people Sara Westhafer; Heather Arnold; Mark Hoover; A retrospective of Ken Shutts’ career Erika-Lauren Mastroddi.
Combined Statutory Financial Statements
Facts in Brief
Officers & Directors Our United Way campaign team also offers leadership development opportunities. Employees run our two-week campaign, which 10 / 17 raises more than $340,000. Employees plan and manage events to educate employees about United Way affiliates, hold fund- raising sales and events, and participate in a tricycle race that has been a growing event for more than 15 years, with hundreds of participants. Our United Way Women’s Leadership Network, consisting of donors of $500 or more to the campaign, performs volunteer work throughout the year to benefit various affiliated agencies. We sponsor the YWCA Tribute to Women of Excellence award program annually, and honorees from among our ranks stand out as leaders within our organization and in the community.
Developing our people
Our recipients of the YWCA Tribute to Women of Excellence award: Karen Yarrish; Chris Sears; Leadership Harrisburg-graduate Tamir London Sharia Benn; Lisa Katterman; Sharon Marburger; Rebecca Haner; Britta Schatz; Maureen Lathrop; (pictured with his daughter, Zoe) serves on the board Cindy Reinhart; Staci Ulp; Sue Smith; Sharon Lane; Cindy Todoroff; Josetta Santiago. of directors of the Camp Curtain YMCA, and also on the board of Harrisburg’s chapter of Girls on the Run. Penn National Insurance | 2014 Annual Report
A Retrospective
Combined Statutory Financial Highlights Our recently retired CEO, Ken Shutts, joined a company in 1980 that emphasized Big Shoes to Fill training and development, promotion from President’s Message within, a deep respect for the independent agency distribution system and the benefits Investing in our future leaders of a mutual incorporation structure. Developing our people Those values guided him as he advanced. A retrospective of Ken Shutts’ career When he reached the pinnacle of his Combined Statutory Financial Statements career, he made sure they would continue
Facts in Brief to be deeply ingrained values that would encourage and guide others and allow the Officers & Directors company to maintain the values and culture that have been its hallmark since 1919.
11 / 17 A reader of history, Ken looked to the past for inspiration. But as a practical realist, he knew it was his job to encourage and lead our managers to grapple with the challenges of the present and to foresee those of the future — particularly in light of 35 Years: A Retrospective fast technological changes.
In just the few years before his retirement, he proudly saw his company keep up with and surpass many leading insurance carriers’ delivery of high-technology services to agents and policyholders. Thanks to his visionary leadership, we compete with the best. When Ken Shutts retired December 31, he left behind a very different company than he had joined 35 years before. Bigger. Stronger. Penn National Insurance | 2014 Annual Report
Combined Statutory Financial Highlights Big Shoes to Fill In just the past Recent Commercial Lines enhancements President’s Message few years, we We enhanced our commercial lines product offerings, including Investing in our future leaders expansion of our hotel/motel business classes guidelines, strengthened our inland marine business by considering both Developing our people made several supported and unsupported business, and programed PennPlus A retrospective of Ken Shutts’ career significant to allow agents to quote five key inland marine categories. We introduced coverage to protect contractors from errors Combined Statutory Financial Statements automation and omissions liability, and also introduced Facts in Brief new protection against crisis events in the enhancements workplace, including violence and premises Officers & Directors contamination. We also added protection for due to Ken’s computer fraud and electronic funds transfer. 12 / 17 leadership. Recent Personal Lines enhancements And if you ask those who We made electronic versions of the auto insurance ID card easily worked on the projects, they accessible on our website, our mobile app and on PennConnect. 35 Years: A Retrospective We implemented an Advance Auto Discount when an auto policy would credit his enthusiasm, quoted seven or more days in advance of the effective date. Our new umbrella quoting and submission process in PennPlus willingness to make the necessary features quick quotes and the ability to bridge data from the financial and time investments in underlying Homeowners or Auto policy. the projects, and for finishing and delivering them faster than we would have thought possible. Penn National Insurance | 2014 Annual Report
Combined Statutory Financial Highlights We can respond to online insurance shoppers while still fully Big Shoes to Fill Developing our digital strategy has supporting our independent agents as our sole means helped Penn National Insurance President’s Message of distribution, with our new partnership with IA&B and to re-examine all aspects of Investing in our future leaders TrustedChoice. This project provides personal auto quoting through Project CAP (Consumer Agent Portal) in Pennsylvania. customer engagement, both for Developing our people TrustedChoice.com offers the consumer the ability to evaluate policyholders and agents, and to
A retrospective of Ken Shutts’ career multiple insurance companies and the chance to select an look at our company’s operations independent agent who will advocate on their behalf. All agents in light of recent automation Combined Statutory Financial Statements who are members of IA&B developments and multi-channel Facts in Brief are listed within the site’s agent finder database. communication technologies. Officers & Directors
13 / 17 Recent service improvements
We improved service and customer engagement by redesigning our corporate Years: A Retrospective 35 website to make it easier to pay online or file a claim without having to log into the Online Insurance Center. We added staff to our Customer Contact Center to speed call response. We enhanced our mobile app, including a new ability to store video.
We engaged in a detailed digital strategy project, which will help us use technology to promote the independent agency distribution system and create a flawless customer experience for both our agents and policyholders. Penn National Insurance | 2014 Annual Report
2014 Combined Statutory Financial Statements (Unaudited)
Combined Statutory Financial Highlights Combined Statutory Balance Sheets (Unaudited)
Big Shoes to Fill December 31, (dollars in thousands) 2014 2013 President’s Message
Investing in our future leaders Admitted Assets
Developing our people Investments: Bonds $1,197,810 $1,139,084 A retrospective of Ken Shutts’ career Stocks 134,652 144,836 Combined Statutory Financial Statements Mortgage loans 18,621 19,512 Real estate & other 1,576 1,752 Facts in Brief Cash and cash equivalents 24,040 23,789 Officers & Directors Total cash and investments 1,376,699 1,328,973
Agents’ balances and uncollected premiums 173,010 163,581 14 / 17 Investment income due and accrued 11,020 11,352 Amounts due from reinsurers 61,639 10,295 Deferred tax asset, net 40,886 36,262 Other assets 4,813 8,707 Total admitted assets $1,668,067 $1,559,170
Liabilities and Policyholders’ Surplus Liabilities: Reserves for losses and loss adjustment expenses $ 671,908 $ 622,909 Unearned premiums 298,433 285,314 Premium taxes and other expenses 66,583 39,705 Drafts outstanding 12,386 10,712 Other liabilities 51,312 50,319 Total liabilities 1,100,622 1,008,959
Policyholders’ surplus: Surplus notes 50,000 50,000 Unassigned surplus 517,445 500,211 Total policyholders’ surplus 567,445 550,211 Total liabilities and policyholders’ surplus $1,668,067 $1,559,170 Penn National Insurance | 2014 Annual Report
2014 Combined Statutory Financial Statements (Unaudited)
Combined Statutory Financial Highlights Combined Statutory Statements of Income (Unaudited)
Big Shoes to Fill Years Ended December 31, (dollars in thousands) 2014 2013 President’s Message
Investing in our future leaders Underwriting income (loss): Net premiums written $666,301 $644,536 Developing our people Increase in unearned premiums (13,120) (24,778) A retrospective of Ken Shutts’ career Premiums earned 653,181 619,758 Combined Statutory Financial Statements Losses and loss adjustment expenses 423,268 405,768 Facts in Brief Underwriting expenses 221,944 224,676
Officers & Directors Total losses and expenses 645,212 630,444 Total underwriting income (loss) 7,969 (10,686)
15 / 17 Investment income: Net investment income 43,720 40,905 Net realized gains on investments 12,268 10,514 Total investment income 55,988 51,419
Other income (expenses), net (9,931) 2,504 Income before dividends and federal income tax expense 54,026 43,237 Dividends to policyholders 4,613 3,327 Income before federal income tax expense 49,413 39,910 Federal income tax expense 6,887 7,115 Net income $ 42,526 $ 32,795
Combined Statutory Operating Statistics (Unaudited)
Years Ended December 31, 2014 2013
Loss ratio 55.3 55.1 Loss adjustment expense ratio 9.5 10.4 Loss and loss adjustment expense ratio 64.8 65.5 Underwriting expense ratio 33.4 34.9 Dividend ratio 0.7 0.5 Combined ratio after dividends 98.9 100.9
Net premiums written to surplus ratio 1.2 1.2 Net liabilities to surplus ratio 1.9 1.8 Net leverage ratio 3.1 3.0 Penn National Insurance | 2014 Annual Report
Facts in Brief Our Mission n We ranked 97th in net premiums written out of approximately Why we exist 1,000 U.S. property and casualty insurance groups. We deliver superior property and casualty insurance products Combined Statutory Financial Highlights and services through independent agents. In doing so, we n We employ more than 820 people. provide financial security to businesses and individuals that Big Shoes to Fill n We sell through more than 925 independent agencies, in 11 states. assists them in managing their risk. President’s Message n We were founded in 1919.
Investing in our future leaders n Our principal lines of business are personal automobile, other liability, commercial automobile, homeowners and workers’ compensation. Developing our people Our Vision n We have a financial strength rating of A- (Excellent) from the What we are seeking to build, grow and maintain A retrospective of Ken Shutts’ career A.M. Best Company. Penn National Insurance will distinguish itself from its peers
Combined Statutory Financial Statements and will be the regional carrier of choice of top-performing independent agents. We will partner with our agents Facts in Brief to grow profitably by providing them with comprehensive
Officers & Directors Penn National Insurance’s environmental efforts in solutions that meet their needs. 2014 achieved the following: As an employer, Penn National Insurance will: n Saved 968 trees • Saved 1,582,245 gallons of water 16 / 17 n Be accountable for its actions. n Recycled 115,446 pounds of office paper n Provide professional growth and development opportunities. n Reduced 288 cubic yards of landfill requirements n Avoided 83,582 pounds of CO2, equal to taking eight cars off the road n Create a culture that encourages prudent risk-taking.
n Saved 219,717 KW-hours of electricity n Empower employees to take initiative and make decisions.
n Promote a healthy personal and work/life balance.
Winner of:
Best Places to Work in Insurance 2014 2014 Combined Direct Premiums Combined Direct Premiums Core Values Written by Line of Business Written by State How we will do business Best Places to Work in IT n Personal Auto 27% n Pennsylvania 39% Integrity We will be open and honest in all of our actions. Best Places to Work in PA n Other Liability 16% n North Carolina 17% Financial Strength We will be profitable and maintain n Commercial Auto 13% n New Jersey 12% the ability to meet our financial commitments. Top Workplaces in Pittsburgh, PA n Homeowners 13% n Alabama 6% Excellence We will strive to be the best in class n Workers’ Compensation 12% n Maryland 6% for our policyholders, agents and employees. Best Employers in North Carolina n Businessowners 8% n Virginia 6% Respect We will treat everyone fairly and n Other* 11% n Tennessee 5% value differences among ourselves. n Wisconsin 3% *Includes General Liability, Communication We will provide open, Products Liability and Umbrella Liability n Other 6% honest and frequent communication. Citizenship We will give back to our communities through both volunteer time and financial support. Penn National Insurance | 2014 Annual Report
Officers & Directors
Elected Officers Appointed Officers Claims Office Managers
Combined Statutory Financial Highlights Christine Sears, CPCU* Frank Benedek Neil French president & CEO vice president – Claims Division regional claims manager – Pittsburgh Big Shoes to Fill Robert B. Brandon, CPCU John Buchenauer Paul Heineck President’s Message executive vice president & COO vice president – Personal Lines Division regional claims manager – North Carolina & Tennessee
Investing in our future leaders Gregory R. Stine, CTP, FLMI William Buffington Joseph Holland senior vice president, treasurer & CFO vice president – Human Resources regional claims manager – Harrisburg & New Jersey Developing our people Karen C. Yarrish John Foster A retrospective of Ken Shutts’ career senior vice president, secretary & general counsel vice president – Underwriting Operations
Combined Statutory Financial Statements Sharon Lane Partners Mutual Insurance Company *Also serves on the Board of Directors vice president – Corporate Risk Facts in Brief Richard Maffuccio Randal Mancini president & CEO vice president – Commercial Lines Division Officers & Directors Board of Directors Mark Ewert Chad Ott executive vice president, treasurer & COO Dennis C. Rowe, CPCU vice president – Actuarial 17 / 17 chairman Suzanne Chrisemer retired CEO – Penn National Insurance Andrew Potalivo corporate secretary & vice president of underwriting vice president – Field Operations John H. Rhodes lead outside director Britta Schatz chairman & CEO – Rhodes Development Group, Inc. CIO (real estate development) Inservco Insurance Services, Inc.
William H. Alexander Michael Scheib faculty – Wharton School, University of Pennsylvania president & COO Regional Office VPs Frank D. Campbell Staci Ulp Annual Meeting: retired executive vice president & director – James Alexander vice president – client services/field management Monday, April 13, 2015, 11 a.m. Conning Asset Management (investment management firm) regional vice president – Nashville at Penn National Insurance’s Alexander M. Clark Jeff Blatherwick Home Office. senior managing director – regional vice president – Harrisburg Griffin Financial Group, LLC (investment banking) All policyholders invited to attend. Mark Fitzgerald Todd R. Fisher, M.D. vice president –Surety physician – private practice For more information, please contact: Donald McAuliffe Mark B. Glessner Christopher Markley, regional vice president – Central Atlantic vice president, retired managing partner – Harrisburg Office of PricewaterhouseCoopers Corporate Communications Linda Pihonsky regional vice president – Pittsburgh Penn National Insurance James E. McGill retired senior vice president – Charles Uckele Two North Second Street Robins & Weill, Inc. (insurance agency) P.O. Box 2361 regional vice president – Greensboro Harrisburg, PA 17105 Sherill T. Moyer, Esq. of counsel – Rhoads & Sinon LLP (law firm) 1-800-388-4764 ext. 6895 [email protected] Kenneth R. Shutts retired president & CEO – Penn National Insurance
Douglas C. Stago president – K.R. MacDonald, Inc. (insurance agency)
Stephen L. Swanson president & CEO – CSE Corporation (mine safety equipment manufacturing)