The parties expect that by joining the Penn National Insurance pool, Partners Mutual will be assigned Penn National Insurance's pooled rating (of A-, excellent) by A. M. Best. Penn says 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.
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 VP.
Penn says Partners Mutual will pool its premiums, losses and underwriting expenses with Penn National, and geographically diversify its book of business. Partners Mutual also will enhance its ability to gain more competitive terms on reinsurance and other operational services, and gain access to Penn National Insurance's technology services.
Penn National says the affiliation will allow the company 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 executive VP.