Fourth Quarter 2004    Volume 11 Number 4

Now that we’re part of United America Indemnity, Ltd., you may expect that things will change at Penn-America.  And some things have changed: our agents have access to more products, we have a bigger presence in our markets and we are part of an even more financially powerful enterprise.  Some things will not change, such as creating franchise value for our general agents and our continued commitment to open, honest and frequent communication with everyone whose livelihood is connected to Penn-America. 

Our management style always has been collaborative.  As one result of that engaging process, every member of our management team has had a major role in crafting the strategies that drive the company today.  As all of us step-up to the opportunities of 2005, we do so as the architects of Penn-America’s success, not its inheritors.  From that perspective, we say with great confidence and commitment that the values and practices that have defined Penn-America will continue to define us. 

Here’s an example: Some of our agents told us that despite our overall reputation as being “easy to do business with", there were instances in which we did not turn around agency submissions within 24-48 hours.  We looked at our systems and saw that we could improve our mechanism for recognizing uneven underwriting workloads so that we can shift resources as needed.  We’re now modifying our quote management system to ensure that we achieve this goal 100% of the time. 

Another example: our agents consider our online agency manual to be one of the best in the business.  But we’re always working to improve it. So our IT group is now responding to requests from our agency advisory meeting to refine how we link sections of our manual, improve the functionality of some of our forms and to enhance our manual’s search function.

Penn-America is built on principles that are sound and proven.  The values expressed in the founding “Hatboro Creed” remain the central touchstone of this company.  All of us are committed to the same human values and financial goals that marked Penn-America’s years as a public company.  That commitment will not change.

I’m proud to have been selected to lead Penn-America and I’m very appreciative of the opportunity to have worked with Jon Saltzman over the last five years.  I’m grateful for the continued support of our agents, employees and numerous business partners.  You can count on Penn-America continuing to deliver the returns that your trust deserves.

Sincerely,
Joseph F. Morris
President and Chief Executive Officer