Penn-America Group Notes Hurricane Losses

Pennsylvania-based Penn-America Group Inc. stated that based upon claims reported to date, it expects after-tax losses from Hurricanes Charley, Frances, Ivan and Jeanne, including additional reinsurance premiums, will be $3.4 million or $.23 per diluted share.

Jon Saltzman, president and CEO, noted, “Our operating principles include maintaining a strong balance sheet to protect our shareholders’ assets, in part by purchasing a catastrophic loss reinsurance treaty. The financial impact of this unprecedented series of storms has been mitigated by the strength of Penn-America’s reinsurance program.”

The company’s catastrophic loss reinsurance treaty, which includes reinsurance for 100% of $29.0 million per occurrence in excess of $1.0 million per occurrence, remains intact and is expected to provide sufficient aggregate capacity for future catastrophic events.