Penn-America Group, Inc. expects second quarter earnings estimates to be lower than the consensus estimate of $0.21 per share.
This lower expectation reflects losses in the company’s commercial property portfolio. The company expects to report second quarter earnings on the scheduled release date of July 19.
Jon Saltzman, president and CEO, said the soft insurance markets of 1999 resulted in higher than expected property losses during 2000. “However, during 2000, we have also seen robust growth in our core commercial insurance products. We’ve taken steps to capitalize on these improving market conditions by announcing a price increase in our commercial property lines ranging from 5 to 15 percent. Preliminary reports are that these prices are being accepted in the market place.”
Penn-America Group, Inc. is a specialty commercial property and casualty insurance holding company. The company’s “small thinking” — underwriting small policies for small entrepreneurial businesses in small “Main Street” towns through a small network of wholesale general agents — has delivered substantial long-term growth in the original E-business: serving entrepreneurs.
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