Pennsylvania National Auto Insurance Review (2024)

This Pennsylvania National Auto Insurance Review looks at Harrisburg, Pennsylvania-located Pennsylvania National Mutual Casualty Insurance Company.

The company’s marketplace isn’t actually national. The company focuses on a nine-state, East Coast marketplace.

The company, operating as Penn National Insurance, provides individual and commercial property and casualty insurance to clients in Pennsylvania, 40 percent of its business, Maryland, Delaware, New Jersey, North Carolina, Virginia, South Carolina, Alabama and Tennessee.

Personal auto insurance policies account for about 26 percent of direct premiums written, according to the 2010 Annual Report.

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Homeowners, private auto and umbrella coverage isn’t available in Alabama, South Carolina, and Delaware. Inservco Insurance Services Inc., a third-party claims administrator subsidiary, helps self-insured clients manage risk.

What You Should Know About Pennsylvania National

Pennsylvania National uses a network of about 750 independent insurance brokers and agents throughout its nine-state market.

According to the company website, Pennsylvania National ranks in the top 10 percent (102nd) of 1,000 property and casualty underwriters in the U.S. based on net premiums.

Pennsylvania National Auto Insurance Financial Information

Pennsylvania National is rated A- (Excellent) by A.M. Best. Its financial strength is the foundation of its services.

The company has about $1.3 billion in total assets, according to the 2010 Annual Report. Premium writings were greater than $500 million during fiscal year-ended December 2010.

Pennsylvania National Auto Insurance History

The company was founded in 1919 by a farmers’ group that was angry about the cost of workers’ comp coverage. They knew it was possible to drive down the high costs of liability insurance.

Pennsylvania National started to offer other insurance lines to suit the needs of its clients.

Rather than the company’s initial agricultural business focus, Pennsylvania National now tends to the needs of service-focused businesses.

Pennsylvania National started to offer other insurance lines to suit the needs of its clients.

Rather than the company’s initial agricultural business focus, Pennsylvania National now tends to the needs of service-focused businesses.

Pennsylvania National Auto Insurance Customer Service

Pennsylvania National’s value proposition aligns with its location. The company says it doesn’t want a national marketplace.

By remaining in a regional market, the company offers personal attention and face-to-face assistance.

Filing a claim can occur in person or through the toll-free intake number. The company offers clients the choice of how to obtain services.

The company also believes that an independent insurance agent and broker network affords clients the widest range of choices.

Pennsylvania National doesn’t want to compete solely on auto insurance rates, but clients have a choice to compare costs offered through the independent network.

Pennsylvania National Insurance Coverage Options

About 26 percent of the company’s premiums written were in personal auto insurance lines, and about 15 percent were in commercial auto insurance lines. The company’s other 2010 premiums written were:

• Other liability- 16 percent
• Workers’ comp- 14 percent
• Homeowners- 11 percent
• Business owners- 7 percent
• Other- 11 percent

Marketplace percentages of premiums written:

• Pennsylvania- 40 percent
• North Carolina- 18 percent
• New Jersey- 11 percent
• Alabama- 8 percent
• Maryland- 7 percent
• Virginia/Tennessee- 15 percent

Sister companies include Penn National Realty Trust, Penn National Mutual Casualty Insurance Company (Pittsburgh, Pennsylvania), Penn National Security Insurance Company, Pennsylvania National Mutual Casualty Insurance Company (Nashville, Tennessee), Pennsylvania National Mutual Casualty Insurance Company (Greensboro, North Carolina), and Pennsylvania National Mutual Casualty Insurance Company (Lawrenceville, New Jersey).

According to Dun & Bradstreet, Pennsylvania National earned $556.52 million for the fiscal year ended December 2010. The company generated $28.66 million in net income for the period.

The company employs about 800 people in all office locations. About half of the company’s employees work in the Harrisburg, Pennsylvania headquarters office.

How Pennsylvania National Ranks Among Providers

Pennsylvania National competes most often with three other national auto insurance companies, Liberty Mutual, State Farm, and Allstate.

The company competes with Geico, Nationwide, Progressive, Farmers Group, The Travelers Companies, and The Hartford in its regional marketplace.

Personalized service and cost-effective property and casualty insurance services are its greatest claimed competitive advantages.

Some of its competitors, such as Allstate, operate on thin profit margins of about 4.18 percent. The Travelers enjoy wider profit margins of 13.49 percent in the regional market.