2016 ANNUAL REPORT PRESIDENT’S MESSAGE FINANCIAL HIGHLIGHTS ABOUT PENN NATIONAL INSURANCE PRODUCT INNOVATIONS 2016 TOP ACCOMPLISHMENTS CLAIMS SERVICE ENHANCEMENTS EMPLOYEE ENGAGEMENT OFFICERS & DIRECTORS DOWNLOADS

FINANCIAL HIGHLIGHTS

“I am pleased to report that our company’s financial foundation remains strong. We strive to achieve a reliable foundation of financial protection and outstanding customer service.”

Christine Sears, CPCU – president & CEO

Combined Statutory Financial Highlights

The twelve months ended December 31, 2016, unfolded into a banner year for our company with respect to its financial performance.

The year began with our best-ever first quarter results, followed by sustained momentum throughout the remainder of the year, ultimately ending with reported statutory net income of $53.3 million for 2016. Direct premiums written exceeded planned goals for both commercial and personal lines, coming in at a total of $725.8 million for the year and surpassing 2015 premium writings by $5.8 million. The overall increase in written premium was due to a combination of renewal exposure growth, modest price increases, and steady policy count retention. Likewise, net premiums earned in 2016 exceeded the previous year by $16.0 million or 2.4 percent.

The Company’s combined ratio was 98.5 for the year ended December 31, 2016, representing a 0.7 point improvement from the 2015 combined ratio of 99.2. The lower ratio was primarily the result of a 0.8 point reduction in the loss and loss adjustment expense ratio, largely driven by overall improvement in non-weather-related property losses compared to the prior year. Catastrophe and weather-related losses and loss adjustment expenses added 2.1 points to the combined ratio in 2016 compared to 2.2 points of such losses experienced during the previous year. Other notable performance measures for 2016 included net investment income of $42.0 million. Augmented by an additional $7.2 million in realized capital gains, largely from our equities portfolio, total investment income reached $49.2 million for the year.

The company’s strong performance during 2016 enabled total policyholders’ surplus to increase $43.1 million since the previous year-end. At December 31, 2016, surplus was a formidable $623.9 million while our company’s total admitted assets were at $1.8 billion.

2016

*2011 and prior years do not include the results of Partners Mutual Insurance.

Click to download 2016 Combined Statutory Financial Statements

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