Penn National Earns ‘A-Excellent’ Rating

March 17, 2003

Penn National Insurance has earned an “A- Excellent” rating from the A.M. Best Company. This represents an increase from the company’s former “B++ Very Good” rating from A.M. Best.

According to A.M. Best, “The rating reflects the group’s solid capitalization, improved operating performance in recent years, enhanced agency management and the future benefits to be derived from management’s underwriting initiatives, agency culling and up-pricing. These positive rating attributes are derived from the group’s historically sound reserve posture, moderate underwriting leverage and improved underwriting experience. This rating also recognizes the group’s regional market presence, solid agency relationships and continued emphasis in the small to middle market commercial accounts, which account for more than 80 percent of its business.

“Best believes Penn National is also well positioned to take advantage of market opportunities in 2003 and, as a result, views the rating outlook as stable.”