OLDWICK, NJ, October 25, 2022–(BUSINESS WIRE)–AM Best has revised the outlooks to positive from stable and affirmed the Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Ratings of “a-” (Excellent) of Pennsylvania National Mutual Casualty Insurance Company (Penn Mutual), its subsidiaries , Penn National Security Insurance Company and Founders Insurance Company, and its mutual company affiliate, Partners Mutual Insurance Company (collectively referred to as Penn National). Concurrently, AM Best has revised the outlook to positive from stable and affirmed the Long-Term Issue Credit Rating of “bbb” (Good) of $29.5 million 9.5% surplus notes due 2034, issued by Penn Mutual. All companies are headquartered in Harrisburg, PA except for Partners Mutual Insurance Company, which is headquartered in Waukesha, WI.
The Credit Ratings (ratings) reflect Penn National’s balance sheet strength, which AM Best assesses as very strong, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management.
The positive outlooks reflect the overall strength of Penn National’s balance sheet underpinned by its strongest level of risk-adjusted capitalization, as measured by Best’s Capital Adequacy Ratio (BCAR), as well as its strong capital position, organic surplus growth in recent years, prudent investment portfolio and moderate underwriting leverage. The group’s favorable reserve development in the past three years, while generating adequate operating performance, also was considered in the revised outlooks. AM Best expects that the group’s risk-adjusted capitalization will be maintained at the strongest level, as measured by BCAR, and that its adequate operating performance will continue over the near term.
Penn National’s ratings are supported by the group’s solid operating performance in recent years, driven primarily by investment income. Penn National is a multi-line property/casualty writer with a diversified product mix of commercial and personal lines offerings, with personal and commercial auto