119TH ANNUAL REPORT - Pennsylvania Lumbermens Mutual

PENNSYLVANIA LUMBERMENS MUTUAL INSURANCE COMPANY + INDIANA LUMBERMENS MUTUAL INSURANCE COMPANY
119 TH ANNUAL REPORT
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03
MISSION STATEMENT
To be recognized by stakeholders as
America’s premier property and casualty
E
very organization should have a mission statement. It should be something that
suggests to the reader the direction or ultimate goal of the organization.
The mission statement should be more than just words on a piece of paper. It needs
to embody the spirit of the organization and be a touchstone that employees,
customers and other stakeholders can use to better understand the organization.
We at PLM have had a mission statement for many years. Along the way we may have
changed a word or two but we have never completely revised or rewritten it. With the
affiliation of ILM and PLM this past year, we decided the time had finally come.
Transition teams were created to help lead us forward through the affiliation. At one
of their first meetings, quite a bit of time was set aside to start the process with a few
open-ended questions: What are we hoping to accomplish? How are we going to
accomplish it? Who is going to do what? When? Why?
Out of this lengthy discussion grew the new mission statement that is outlined on the next
page. Please take a moment and consider its message. We think it tells you a lot about us.
insurance company serving the lumber
and building material industries by
establishing long-term relationships
built on stability in the marketplace,
superior service, industry-specific risk
management, quality products, and the
utmost professionalism as we consistently
strive for profitable growth.
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05
PRESIDENT’S LETTER
I
am happy to report that 2013 was a very successful
year for Pennsylvania Lumbermens Mutual Insurance
Company. We began the year with a number of major
issues and challenges to overcome. One concern was
heavy manufacturing – a key segment of our business. We
recognized the significant challenge to return this segment to
profitability, and we were optimistic that this could be done.
We also hoped to take advantage of what we sensed were
changing market conditions in the wood insurance niche. The
rebounding home building environment and the economy
in general lent support to our efforts. We launched a host
of programs, aware that the outcome they were designed
to produce was necessary for our ability to maintain a stable
marketplace into the future for our insureds who have come to
depend upon us.
It was not too far into the year before a unique opportunity
to open conversations with a historic competitor, Indiana
Lumbermens Mutual Insurance Company, arose. After careful
consideration, we realized that the opportunity of joining
together would enable us to change the landscape of the
lumber mutual insurance business.
The primary concern that we had was being able to take
the actions necessary to return PLM to profitability while
working our way through due diligence, negotiations, and
a contract between Indiana and Pennsylvania Lumbermens
Mutual Insurance Companies. It quickly became apparent that
we needed to create a special team within our organization.
While some of our senior leadership would continue to remain
ANNUAL REPORT 2013
exclusively focused on PLM’s organizational challenges, others
would have to focus on the opportunity at hand.
I am pleased to say that the leadership team rose to the
challenge. What followed was a remarkable story about 2013.
PLM and ILM leadership and staff engineered a significant
turnaround in PLM’s financial fortunes while at the same time
completed the affiliation of two great, established lumber mutual
insurance companies – both over a century old.
So, let’s look at some of 2013’s accomplishments…
From a PLM perspective, the financial results that are outlined
deeper in this report reflect a substantial change in our fortunes.
Premium on the PLM side alone jumped to approximately $161
million. This represents an increase of 5.6 percentage points. The
company generated an operating profit for the first time in three
years. Despite the failure to develop an underwriting profit from
our insurance operations, our underwriting loss improved by
59.4% on a year-over-year basis. This drove our loss ratio down
to 66.8%, an improvement of just under 10 percentage points.
Due primarily to affiliation-related expenses and increased
staffing expenses associated with it, our expense ratio slipped by
just under 1 percentage point to 37.2%. This yielded a combined
ratio of 104% (before dividends), an 8.4 point improvement on a
year-over-year basis. While higher than the industry average, we
surpassed our expectations and targets on a loss ratio, expense
ratio, and premium basis.
Much of the improvement is driven by a dramatic swing in
the results associated with our heavy manufacturing book of
business. We announced early in 2013 that we would be taking
significant, and in some cases, draconian measures to improve
this segment of our business’ results. If we did not see significant
improvement, we were prepared to exit the segment. Instead,
we saw considerable improvement in this area as a result of
closer implementation of our underwriting policy, the nonrenewal of businesses that have not maintained their facility or
lacked management discipline regarding safety, changes in terms
and conditions, and significant price increases. While we saw
improvement, I would not suggest we are out of the woods (no
pun intended) in this area. One year does not make a trend and
we will continue to be aggressive in this area of our business.
The second major accomplishment was the affiliation of
Pennsylvania Lumbermens and Indiana Lumbermens Mutual
Insurance Company. We opened discussions in early February,
signed an agreement to affiliate our organizations five months later,
received state insurance approvals in October, and closed the deal
on October 25. On the heels of closing the ILM deal, another door
swung open and we quickly entered into conversations with HCC
Insurance Holdings, Inc. regarding the potential of acquiring the
“renewal rights” to their book of lumber-related business. HCC had
decided to exit the wood niche and we agreed to work with them
to insure a smooth transition of their book of business. Within a 12
week period, we had consummated a deal, acquired the renewal
rights, communicated to impacted insureds and producers, and
began issuing replacement policies as HCC exited the niche.
Further, we are extremely pleased that after reviewing PLM and
ILM’s financial results and the affiliation agreement, A.M. Best not
only affirmed PLM’s A- (Excellent) financial rating and assigned
a stable outlook, but extended that rating to cover ILM and its
subsidiaries. This accomplishment was one of the major objectives
of the affiliation. We were able to bring PLM’s deep financial
stability and strength to ILM’s policyholders and producers.
As part of the affiliation process, we worked with our reinsurers in
the early fall to carry out a deal to “pool” Indiana and Pennsylvania
Lumbermens’ reinsurance programs effective November 1, 2013.
We were able to generate significant economies of scale as a result
of this pooling while at the same time replace, midterm, both
companies’ individual reinsurance programs. Our renewal coverage
has been purchased for a 14 month period of time and placed with
a number of strong reinsurance partners.
What follows is a unique annual report; one that talks about the
results of both Pennsylvania Lumbermens and to some degree,
Indiana Lumbermens. We will review where we have been as two
companies over the last 100 plus years, and where we are going as
one company over the next 100 years.
This past year, as discussed earlier, was truly a remarkable year for
Pennsylvania Lumbermens and Indiana Lumbermens. I would be
remiss if I didn’t take a moment to recognize the contribution by
the staff of both companies. This type of event, as many are aware,
is a traumatic time for all stakeholders, but we feel the staff of both
companies rose to the occasion. The challenges and opportunities
of the affiliation were met head-on with great success. There is
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PENNSYLVANIA LUMBERMENS MUTUAL INSURANCE COMPANY + INDIANA LUMBERMENS MUTUAL INSURANCE COMPANY
07
PRESIDENT’S LETTER
CONTINUED FROM PAGE 5
a massive amount of work left that needs to be accomplished to actually unite the companies below the
legal entity level. Twenty-five transition teams are toiling away at doing just that while still focusing on
their primary roles and delivering to our insureds and producers the professional expertise and service
expected from both organizations.
Undoubtedly, the Boards of Directors from both companies deserve to be recognized for the job
they did this past year. Difficult decisions had to be made and at no time did anyone on either board
not put the policyholder interest in the forefront. Their counsel, wisdom and advice were deeply
appreciated by the leadership team.
The end of 2013 also brought the retirement of longtime President & CEO of Indiana Lumbermens
Mutual Insurance Company, John Wolf. We would like to thank him for his 44 years of dedicated
service to ILM and to this industry. We are fortunate to continue to have his expertise and his valuable
guidance as he serves on our Board of Directors.
We would like to thank the producers for their continued support during the past year and for the
coming years as we work through a variety of transition-related issues that have a direct impact on them.
Finally, I would like to take a moment to thank the policyholders for the faith and confidence that they
placed in us. We were founded by lumbermen for the benefit of lumbermen. I believe we are doing
our very best as stewards of that charge laid down over 119 years ago by groups of lumbermen in
Philadelphia and in Indianapolis. As I look at the accomplishments of 2013, I wonder if those two
groups of founding lumbermen could have fathomed where we find ourselves today, what we have
become, and more importantly what we will become in the years ahead.
With my deepest respect and regards,
JOHN K. SMITH
PRESIDENT & CEO
PENNSYLVANIA LUMBERMENS MUTUAL INSURANCE COMPANY + INDIANA LUMBERMENS MUTUAL INSURANCE COMPANY
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OUR HISTORY
O
ur research has suggested that back in the
1870s, a group of lumbermen came together
in Philadelphia to form a mutual insurance
company. The Lumbermen’s Insurance Company
was formed by that group of lumbermen to provide
insurance coverages in the Philadelphia area on both lumber
and non-lumber businesses.
This company may or may not have been the forerunner to
the movement of the 1890s that resulted in the creation of
a number of different “lumber mutual” insurance companies
in a variety of geographic areas over a five year period.
Lumbermen in Boston and Philadelphia, recoiling at the
price that “stock” insurance companies charged for fire
insurance, gathered together and formed two separate and
distinct mutual insurance companies. Their actions led to the
formation of a number of lumber mutual insurance companies
throughout the United States over the late 1800s and early
1900s. The Boston company, which later became known as
Lumber Insurance Company, and the Philadelphia company,
Pennsylvania Lumbermens Mutual Insurance Company, were
followed by companies in Ohio, Indiana (Indiana Lumbermens
Mutual Insurance Company), Wisconsin, Texas, Nebraska,
Illinois and Missouri.
This group of individual companies focused primarily on writing fire
insurance on retail lumber yards in very distinct geographic areas.
During the early 1900s, the companies loosely associated and
formed a group known as the Associated Lumber Mutuals Group
for the purpose of standardizing their property rating and to assist
ANNUAL REPORT 2013
each other in providing coverage for larger, more complex risks. The
companies did not compete with each other. As time went on, they
broadened their coverage lines to include all property and casualty
coverages. Some added auto and general liability coverage for
lumber yards, and of course over time, many if not all made the
decision to pursue “general” business or non-lumber business.
By the late 1950s, a number of the companies were becoming
uncomfortable in operating only in their local area, and the
pooled approach to sharing larger risks was becoming difficult.
A number of them decided to venture out of their geographic
territory and compete with other lumber mutual insurance
companies for business. Before long, all of the companies were
competing with each other in broad geographic areas and
expanding throughout the country.
Over the years, many of the companies over-expanded their
territory or wandered into the general business arena with
disastrous results. Competition for business soared and rates
fell to levels that were unsustainable. One by one, the old
independent “lumber mutuals” started to disappear from the
insurance scene as a result of acquisition or business failure. By
the turn of the millennium, only three remained. Shortly after the
new millennium that number became two!
The history of the lumber business is littered with standard lines
(general business) insurance companies that have wandered into
the niche thinking that they could compete with the lumber mutual
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OUR HISTORY
CONTINUED FROM PAGE 8
insurance companies. They were attracted by what they perceived
to be higher rates charged in the niche and the lack of loss
frequency. In just about every case, what they failed to recognize
was that the lack of loss frequency had nothing to do with the loss
severity issue associated with the niche. It usually only took several
severe losses before those that had wandered in began to rethink
their strategy and pull out. Today, not many companies are looking
to jump into the lumber insurance business.
With the actions that have occurred in the last year, the affiliation
departments has created a loss control powerhouse with
expertise available within the group in just about every facet of
wood-related business operations. Whether it is property risk
evaluation, thermal imaging, auto driver training or analyzing
complex general liability exposures – no other company in
America today can provide the breadth, scope and specialization
to the niche than this new group can! At the time of a loss, we
would challenge any competitor to provide more timely and
professional support to our insureds’ businesses when they need
it most. The simple fact that we speak the insured’s language and
“Our Loss Control Department is focused on supporting businesses in the wood products niche. We
work with business owners and their suppliers to reduce the potential for loss. We know your industry.
PLM/ILM combines our knowledge and experience from insureds, national standards and internal
research to develop safety programs and standards to meet your loss control needs.”
Gregory Pianko, Vice President – Loss Control
of Indiana and Pennsylvania Lumbermens Mutual Insurance
Companies and the renewal rights deal with HCC, we have
assembled the largest book of wood-related business ever.
“Together we’re better” is more than just a slogan; it is a fact.
The affiliated companies will provide their customers with the
strongest underwriting expertise available to analyze the risk
associated with their ongoing lumber and building material
business as well as help our insureds as they consider new
operations. The combination of the PLM and ILM loss control
ANNUAL REPORT 2013
understand their operation and their equipment, helps ensure
an efficient and fair claim settlement. As a result, the insured
will be back in business quicker. The organizational structure we
have created allows both producers and insureds easy access
to final decision makers, even right up to our President and
Chief Executive Officer. No competitor can place a producer or
insured in front of the final decision maker as rapidly as the new
group can. In addition, no other competitor can ensure that the
final decision maker will have as deep a knowledge of the wood
business as those who occupy leadership roles at PLM/ILM.
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15
OUR GROWTH
P
LM’s growth was very reassuring this year as 653 new
accounts decided to place their faith and confidence
in PLM by allowing us the privilege of providing their
property and casualty insurance coverage. These
accounts generated over $25 million of new premium for PLM.
We had the opportunity to review over 3,400 submissions this
past year which is about level with the prior year. We declined
to provide a quotation to approximately 60% of the requests
importance of the mutuality form of ownership when
considering the value of a PLM relationship. Many insurance
companies are concerned about their ability to return a profit
to the shareholder. They are not only forced but also legally
required to operate with that concept forefront in their mind.
As a mutual company, we are not concerned with stockholders
– because there aren’t any. Every day we wake up with one
goal in mind. That goal is to provide the best possible value
“We very much appreciate and take seriously the faith and trust that our customers have placed in us to
protect their businesses. As a mutual company, we have no shareholders to serve. Instead, we put the
needs of our policyholders first. As a result, we firmly believe that the shared purpose and mutual values
we have in common with the customers we insure creates a stronger relationship.”
Stephan D. Firko, Vice President – Field Operations & Marketing
that we received for one reason or another which will be
addressed a little later on.
Almost 82% of our insureds decided to renew their coverage
with PLM. We believe it reflects the understanding by our
customers and the producers that represent them of the value
of dealing with a mutual insurance company, particularly one
that specializes in handling businesses in the wood niche.
We have continuously found that we share the same value
structure as our insureds and that we have a shared purpose.
We underscore with our customers and their brokers the
ANNUAL REPORT 2013
in the terms of coverage and service to our insureds who are
ultimately the owners of our company. There is not a single
individual on our payroll that has concern about delivering
value to any investor or stockholder, because we have neither.
The increase in new business and improvement in renewal
retention was further amplified from a premium growth
standpoint when we once again reached the $160 million level.
The new group (PLM+ILM) will have almost 7,000 insureds
developing over $200 million of premium within the wood
niche. It would be difficult to dispute that today we are the
largest underwriters of wood-related businesses in America.
With consumer confidence, home building/renovations
improving and mortgage money remaining relatively
inexpensive, we are seeing new family creations improving –
those new families have to live somewhere! Our insureds are
routinely seeing an increase in economic activity which has
caused them to reinvest in their plant and equipment. Many
have seen their sales increase, which is an exposure base we
use for rating a policy. Some are even talking about improved
gross margin! While we are not out of the woods yet, we are
on the right path.
the value of a PLM relationship at the time of loss! We
firmly believe that the time to discern whether you have a
competitive insurance proposal is not at the time of purchase,
but rather at the time of a loss when the insurance company
has to perform. That’s when you start thinking about the age
old adage, “you get what you pay for.”
We are pleased that once again in 2013 we were recognized
for our expertise and endorsed by twelve of our insureds’
associations and buying groups. Further, we were pleased to
pay out dividends on seven of those groups with dividend
programs totaling over $1 million dollars.
We are routinely receiving testimonials regarding our people’s
efforts that we find extremely rewarding. There is no greater
praise an employee can receive than a customer or a producer
taking a moment of their precious time to write a note
complimenting and recognizing an individual for service above
what is expected.
Our value is perhaps more clearly demonstrated by the fact
that this past year our own insureds referred us to almost 600
potential insureds.
We credit our ability to grow and achieve our production
objectives to the extremely talented field/business
development representatives, underwriters and loss control
representatives that on the front side deliver on the promise
that we make when we bind coverage. Obviously, the talented
and quite capable claims representatives clearly demonstrate
“Trusting your business to a company that knows your business helps you sleep at night. PLM/ILM’s
Claims Department focuses on putting you back in business as quickly as possible.”
Joseph W. McCrea, Senior Vice President – Claims
PENNSYLVANIA LUMBERMENS MUTUAL INSURANCE COMPANY + INDIANA LUMBERMENS MUTUAL INSURANCE COMPANY
WHAT OUR CLIENTS SAY
“I want you to know you have two exceptional employees, Terry Fricker and Ranada James. We would
like to convey our appreciation for the tireless effort made by both Terry and Ranada. In speaking with
our client’s Fleet Manager, he is so thankful and impressed by the immediate turn around and attention
provided on EVERY claim. This is a very large and important account to our office and all of their hard
work is greatly appreciated. It makes our job a little bit easier. Thank you!”
June Dulio, Senior Account Executive
Scirocco Financial Group, Inc.
“I deal with so many different carriers on a daily basis and sometimes it’s difficult to get a live voice on
the line or even a call back response on something urgent. Thank you for always picking up, helping out
and making my job a bit easier! PLM is lucky to have such a professional employee!”
Wang-See Lee, Senior Claims Specialist
Eastern Insurance Group
(Statement was in reference to Ray Rogers, Claims Examiner)
“I just wanted to let you know we had an OSHA SHARP inspection visit at our facility. During this inspection
the consultant asked me if anyone else had conducted an inspection at the facility. I advised, ‘Yes, our
Insurance Company.’ He then asked to see your visit recommendations. He advised after reviewing your
documents that he was very pleased with the direction your company and you are taking to address
explosive dust issues that are occurring in the industry today. He reviewed our dust collection system
and was happy to see we have already installed back draft dampers, duct spark detection and sprinkler
suppression systems in our ductwork system. He was asking about sprinkler heads for our baghouse and
we advised that work is in progress. We discussed hot work and welding and he was impressed to see your
company is providing their customers with smoke detectors and caution flashing lights for hot work.
The inspector wanted me to call you right then so he could express his thanks for the work you, and your
company are doing. We appreciate the safety materials your company is providing. The hot work smoke
detectors and warning flashing lights are a big plus.”
Larry Hensley, Safety Director
ITL Corporation
(Statement was in reference to Bret Williamson, Loss Control Services Consultant)
“I have many accounts with ILM and everyone there has been a joy to work with over the years!”
“Thank you for your help. The ILM group and its personnel are certainly professional and a pleasure to
work with. We hope to continue our relationship in the future and please, no more storms.”
Cindy Sleighter, Account Manager
Owen-Dunn Insurance
Richard Judd, Jr., President
Judd Lumber Company
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OUR PROFITABILITY
P
LM’s profitability rebounded strongly in 2013 and
while we did not produce an underwriting profit, we
once again achieved operating profitability (defined as
underwriting profit or loss plus investment income).
The reduction of the underwriting loss we experienced was
primarily due to three factors.
First, as explained in last year’s annual report and recent
LumberMemos and BrokerBulletins, we planned to fix the
The frank reality is that our work in this area is not done. We have
seen a dramatic improvement in the results, but this segment of
the niche is still unprofitable from an underwriting perspective.
It is clear that we are not being adequately compensated for the
risk that we are accepting. We will continue to closely review our
individual insureds and increase rates as needed; although we
do not expect them to approach the level of increases we took in
2013. We will redouble our efforts from a loss control viewpoint
to affirm that those risks that we continue to insure share our
total commitment to safety and loss control. We know that the
“We recognize that behind the stark financial results there are a plethora of stakeholders including
our clients and their families. Our commitment to reducing or mitigating your exposure to loss and
maintaining the health of the overall wood niche is unwavering. Our financial success is truly intertwined.
Together we are better!”
Richard A. Hall, Senior Vice President – Underwriting / Loss Control
profitability problem that we were experiencing in the heavy
manufacturing arena through significant rate increases and
much tighter underwriting review of new and renewal business.
We also considered exiting that segment of the niche. This was
indeed a painful process for our customers, producers and the
staff we allocated to implement this corrective action. We are
pleased to report that the progress we witnessed in the heavy
manufacturing segment of our book allows us to continue to be
committed to this segment of the niche at this juncture.
ANNUAL REPORT 2013
primary drivers of loss in the heavy manufacturing sector are
housekeeping, hot work and electrical. We will continue to look
at these three areas with a simple black and white perspective.
More importantly though, we will need to make certain that our
customers understand these issues and are committed to control
these exposures and more. Our goal here is twofold: to further
improve our loss picture in this segment of the niche and to
stabilize, over time, the pricing of this segment of our business.
While we recognize this is a tough stance, it is what it is.
Currently the PLM book of business is comprised of about 25%
heavy manufacturing, with the ILM book having less. We cannot
and will not allow our results in this area to color the overall
results of the company, nor will we ask the remaining lighter
hazard insureds to “foot the bill” so that we can underwrite and
insure these higher hazard businesses.
related claims which drove a drop in property loss frequency
of approximately 40%. We did not experience any significant
catastrophic weather event during the year. There was a drop in
Midwestern tornadoes and wind losses in general which resulted
in a significant improvement from the property loss perspective.
We previously implemented a number of weather-related actions
including wind and storm deductibles (not just in coastal areas),
We also benefited in 2013 from a significant drop in weather-
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PENNSYLVANIA LUMBERMENS MUTUAL INSURANCE COMPANY + INDIANA LUMBERMENS MUTUAL INSURANCE COMPANY
20
OUR PROFITABILITY
CONTINUED FROM PAGE 19
as well as cosmetic roof endorsements that seem to have helped
contain our losses.
Finally, new claims reports were down in every line of business
except the Auto line. This is somewhat surprising as many of
our insureds are adding exposures as their businesses begin
to rebound. Property losses were down 48.5% on a gross basis
while General Liability losses were down 22% on a gross basis.
We believe that the increase in auto losses is being driven by
increased sales activities of our insureds, which increases the
number of deliveries being made. We are also seeing an increase
in the number of vehicles being insured as our clients reinvest in
equipment and expand their delivery fleets.
We are pleased to see the Chinese drywall litigation put further
behind us, with no significant activity in this area in 2013. Further,
while we experienced some new asbestos losses, we continue
to take down old asbestos claims reserves that we feel are no
longer viable at a rate that exceeds the rise of new claims. On
the other hand, we are concerned about an upward swing in
the construction defect arena with a steady flow of these claims
starting to arrive on our doorstep. In many cases, we were
successful in avoiding any outright claim payments, but we are
generating significant legal expenses in fighting claims in this
broadening area of exposure to our customer base.
Loss adjustment expenses were well contained and actually
down on a year-over-year basis, particularly in the legal area.
Unfortunately, we did not have as strong a year as we would
have liked from a recovery (salvage and subrogation) viewpoint.
ANNUAL REPORT 2013
We did strengthen our Incurred But Not Reported (IBNR) loss
reserves during the year, and were pleased when our midyear early review of IBNR claims reserves was in line with our
past results. We expected, as a result of the affiliation, to see
some pressure in this area but we took steps late in the year to
strengthen ILM’s INBR (and thus the group’s). We are committed
to completing this process over the next 24 months.
From an Indiana Lumbermens perspective, their claim activity
looked very reasonable and its loss ratio, while somewhat higher
than PLM’s, was fully acceptable. With the affiliation agreement
signed, steps were taken in November that resulted in increased
reserves being booked for some old “general business” related
claims and bulk reserve that had been established for asbestosrelated activity. Further, there was a tightening of reserves on a
number of casualty claims that drove their number up.
Underwriting profitability was negatively impacted by the cost
associated with the affiliation transaction. At the end of the day,
it added better than three-quarters of a point to our combined
expense ratios.
2014 will be all about expense management efforts as an
affiliated organization. We fully expect to see a dramatic
improvement in our expense ratio as a result of those efforts and
significant premium growth. Otherwise, there were no unusual
expense related charges in 2013 to either company.
Both companies’ defined benefit pension programs were
scheduled to be frozen in 2013. The investment area saw an
improvement in the funding level of both companies’ pension
plans. PLM’s pension plan found a new high from an asset
standpoint and it appeared to be well funded and in good shape
at the time it was closed. Progress was made in the ILM pension
plan as a result of significant investment gain as well as funding
commitments made within the affiliation agreement in November
and December. We will spend the better part of 2014 considering
what the next steps might be from a pension viewpoint.
At year end, PLM enjoyed a combined ratio of 104% while ILM’s
combined ratio, in a large part due to charges and funding of
various expenses and reserves, came in at 135.7%. The group’s
combined ratio for the year ended at 111.1%. This is somewhat
higher than our plan, but based on the strong PLM results and
improvement in pension plan investments, we made the decision
to accelerate the funding of a number of ILM concerns in 2013
instead of spreading them out over 2014, 2015 and beyond.
Surplus remained stable in ILM and grew nicely in PLM (up
11.4%). From a combined vantage point, we finished the year
at $133.7 million.
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50.1%
GOVERNMENT / CORPORATE / MUNICIPAL / MORTGAGE-BACKED BONDS
OUR INVESTMENTS
W
e are pleased with the performance of our
PLM investment portfolio during 2013. Net
investment income was $8.8 million, down just
$225,000 over 2012. Our long-term commitment
to the marked to market aspect of the investment world led to
significant unrealized gains in our individual equity holdings,
and in a number of the equity funds that we utilize within our
investment portfolio. Master Limited Partnerships (MLPs) had a
good year as well. On the other hand, our Real Estate Investment
Trust (REIT) portfolio stumbled along through the year as we
went about restructuring this aspect of our holdings.
At times this past year our marked to market securities broached
the 40% threshold that is outlined as a benchmark in our
investment policy. Each time this occurred, management brought
this to the attention of the Board of Directors Investment
Committee and each time it was agreed that we should remain
fully invested. This strategy paid off handsomely as the equity
market rose to all time highs.
Our commitment to these areas remains strong. We will continue
to maintain our individual stock, stock mutual fund portfolio, MLP
and REIT investments. We recognize that there will be volatility
on the equity side and that the Master Limited Partnership
portfolio is probably entering a market phase where we will
not see the type of value appreciation that we have witnessed
over the past couple of years, but we expect that their yield will
remain strong. We fully expect the REIT portfolio to rebound
over the next 12 to 24 months.
ANNUAL REPORT 2013
10.6%
CONVERTIBLE BONDS
The affiliation and the reinsurance pooling resulted in a transfer
of assets and liabilities from the ILM balance sheet onto the PLM
balance sheet with the transfer having a total value of almost $30
million. Our goal as a result of this transfer was to strengthen
ILM’s balance sheet and as such we left almost all of ILM’s fixed
income assets on their balance sheet and moved any of the
assets that had equity risk onto PLM’s balance sheet. Of course,
these assets were accompanied by an offsetting transfer of
claims and liabilities (reserves). This action supported a dramatic
improvement in Indiana Lumbermens’ Risk Based Capital (RBC)
ratios, while not negatively impacting Pennsylvania’s RBC level
to any consequence. This allowed A.M. Best to upgrade ILM’s
rating as part of the group to an A- Excellent.
2.2%
7.9%
The bulk of the transferred assets were convertible bond
portfolios which are new to PLM. While this report is being
written, our investment committee and advisors are hard at
work determining whether we should remain invested in the
convertible bond marketplace.
1.2%
10.7%
9.3%
MASTER LIMITED PARTNERSHIPS
CONTINUED ON PAGE 24
8.0%
REAL ESTATE INVESTMENT TRUSTS
INDIVIDUAL EQUITIES
CASH
BOND MUTUAL FUNDS
EQUITY MUTUAL FUNDS
24
OUR INVESTMENTS
COMBINED RATIO (%)
CONTINUED FROM PAGE 22
DIRECT WRITTEN PREMIUM (IN MILLIONS)
* 2013
2012
$152.9
2011
$141.8
2010
$124
2009
*
$205.6
$160
2008
$163
2007
$168
YEAR 2013 NUMBERS ARE COMBINED PLM/ILM RESULTS. ALL YEARS PRIOR ARE PLM ONLY.
ANNUAL REPORT 2013
YEAR END LOSS RATIO (%)
* 2013
111.1
* 2013
70.1
2012
112.4
2012
76.3
2011
118.1
2011
80.1
2010
118.1
2010
73.5
2009
98.0
2009
63.9
2008
102.5
2008
69.1
2007
95.7
2007
62.2
YEAR END SURPLUS (IN MILLIONS)
DIVIDENDS (IN MILLIONS)
* 2013
$133.7
* 2013
$0.9
2012
$106.6
2012
$0.8
2011
$111.6
2011
$0.8
2010
$113
2010
$0.9
2009
$106
2009
$1.1
2008
$89
2008
$0.7
2007
$111
2007
$0.9
CONTINUED ON PAGE 26
26
27
PLM & ILM COMBINED
CONDENSED COMPARATIVE STATUTORY BALANCE SHEET
2013
VS. 2012 ($ IN MILLIONS)
ASSETS
2013
2012
2013 vs.
2012 CHANGE
Investments and Cash
Fixed Income Securities (at amortized cost)
$194.0 $190.3 $3.7
Equity Securities (at market)
104.3 90.9 13.4
Cash, Short Term and Other Investments
14.5 27.0 (12.5)
Total Cash and Investments
312.8 308.2 (4.6)
Receivables
Premiums Due
128.3 119.0 9.3
Reinsurance Recoverable on Paid Losses
3.5 6.9 (3.4)
Receivables for Securities Sold
- 0.1 (0.1)
Accrued Investment Income
2.3 2.4 (0.1)
Total Receivables
134.1 128.4 5.7
Other Assets
18.4 16.0 2.4
TOTAL ASSETS
$465.3 $452.6 $12.7
LIABILITIES AND SURPLUS
Liabilities
Loss Reserves
$150.7 $150.7 $0.0
Unearned Premium Reserves
137.0 131.5 5.5
Premium Due Reinsurers
(0.7)
3.7 (4.4)
Expenses Payable and Other Liabilities
44.6 43.1 1.5
Total Liabilities
331.6 329.0 2.6
Surplus
133.7 123.6 10.1
TOTAL LIABILITIES AND SURPLUS
$465.3 $452.6 $12.7
ANNUAL REPORT 2013
PLM & ILM COMBINED
CONDENSED COMPARATIVE STATUTORY OPERATING RESULTS
2013
VS. 2012 ($ IN MILLIONS)
2013 vs.
2013
2012
2012 CHANGE
Premiums Written – Direct
Premiums Written – Net
Premiums Earned
$205.6
$146.0
$140.5
$196.8
$145.5
$130.9
$8.8
$0.5
$9.6
Losses Incurred
98.5
101.1
Expenses Incurred
59.9
56.4
Total Losses and Expenses
158.4
157.5
Underwriting Profit/(Loss)
(17.9)
(26.6)
(2.6)
3.5
0.9
Dividends
8.7
0.9
1.2
(0.3)
(18.8)
(27.8)
9.0
9.2
9.8
(0.6)
(9.6)
4.4
(5.2)
-
(5.2)
(18.0)
4.2
(13.8)
0.1
(13.9)
8.4
0.2
8.6
(0.1)
8.7
Change in Unrealized Gains/(Losses)
(Net of Tax)
3.0 3.4
(0.4)
Other Surplus Increases/(Decreases)
Change in Surplus
12.3
$10.1
(3.1)
($13.6)
15.4
$23.7
$133.7
$123.6
$10.1
% Increase/(Decrease) in Surplus
8.2%
Underwriting Profit/(Loss) After Dividends
Net Investments Income
Pre-tax Operating Income
Realized Gains/(Losses) & Other
Pre-Tax Income/(Loss)
Federal Income Taxes
Net Income/(Loss)
Total Surplus
PENNSYLVANIA LUMBERMENS MUTUAL INSURANCE COMPANY + INDIANA LUMBERMENS MUTUAL INSURANCE COMPANY
28
29
THE FUTURE
T
he year 2014 and beyond will be an exciting
time for the new group as we streamline our
organization and shape it for the future. Critical to
our ability to service our insureds efficiently and
effectively is our ability to strengthen our systems platform.
At this time, we are identifying the best-of-breed systems
within the organization and implementing them across the
board. Further, we will use this opportunity to bring new
system capabilities into the organization when we are not
team. Supporting this effort is a new integrated phone system
that allows the entire team to communicate more effectively.
We will continue to work on several new products including
a business owner’s policy for home centers and hardware
stores to be implemented sometime in 2014. Our goal is to
spread the availability of surety-related products including
timber bonds and miscellaneous licensing bonds that ILM
has the capability of handling to our entire distribution
“One of the tangible benefits of the affiliation will be the introduction of our new Service Center staffed
with Customer Service Representatives. This will be the central point of contact for our insureds and
producers to help them with virtually all of their service needs.”
Susan Knotts, Vice President – Customer Service & Operations
comfortable with the systems of either ILM or PLM. By the
time this report is produced, we will have moved PLM’s policy
issuance to ILM’s paperless system thus allowing brokers easy
access to their policies from an internet portal as opposed to
having them delivered via U.S. mail. We will be transitioning
the ILM casualty lines of business into PLM’s QuickSolver
policy processing system in the near future. We hope that by
the time you read this we will have begun final development
of a billing system based on ILM’s current billing system.
Organizational structure has been streamlined, new roles
and responsibilities have been identified, titles have been
reassigned and people are beginning to work as a unified
ANNUAL REPORT 2013
system. We are evaluating a move into the timber harvesting
business and have streamlined underwriting appetite so that
both companies can begin to provide the same marketplace
to the producer community. The affiliation gives us a
foundation volume of business in California that will expand
our west coast presence to truly become a continental
insurer of wood-related businesses.
2014 will see us combine the two distribution systems and roll
out a refined producer model that will combine ILM’s agencydriven culture with PLM’s open brokerage approach. This will
assist us in encouraging producers who are committed to the
wood niche to place a more significant amount of their good
wood business with the group while still providing insureds
located any place in the country access to our products
through their local independent agent. ILM’s minimum
premium thresholds have been removed and our 2014
reinsurance placement has been secured providing us with
$100 million of in-house property capacity and $20 million of
in-house casualty capacity.
We will continue to review our insureds’ businesses to identify
emerging risks. When possible, we will either provide an inhouse solution or secure one within the reinsurance community.
This will assist our insureds by providing proper coverage while
helping them control, minimize or eliminate the risks associated
with growing profitably in their businesses.
We will continue to remain open to additional opportunities
to consolidate other insurance programs into the new group
and remain willing to discuss strategic alignments necessary
to do so. We won’t, however, in considering these issues ever
forget who we are and why we were founded!
We fully expect to move our heavy manufacturing book into a
separate company in the foreseeable future – one that is part of
the new affiliated PLM/ILM group. Doing this will allow us to better
control and be more aware of how that business is performing.
CONTINUED ON PAGE 30
PENNSYLVANIA LUMBERMENS MUTUAL INSURANCE COMPANY + INDIANA LUMBERMENS MUTUAL INSURANCE COMPANY
30
THE FUTURE
TRADE ASSOCIATIONS / BUYING GROUPS
CONTINUED FROM PAGE 29
Our goal in 2015 will be to purchase a separate reinsurance
program for heavy manufacturing business and tie our terms
and conditions to that specific reinsurance program. In order
to accomplish this task, one of our efforts in 2014 will be
to file and license one of the current ILM subsidiaries in all
states. Further, we hope to license another Indiana subsidiary
in all 50 states and begin developing a “preferred pricing
tier” to utilize with commercial auto and general liability
lines of business that meet enhanced or stricter underwriting
guidelines. This will probably not be available until 2015.
We will remain solely focused on building material and
wood-related businesses. We will not veer away from our
commitment to exclusively working within the wood niche.
structure allows us to focus exclusively on our policyholders
without regard to what Wall Street may have to say. The
mutual approach aligns our goals and values with those of
our policyholders more closely. It underscores the thought
that we have shared values and mutual goals. Further,
it allows management to take a long-term view of the
marketplace and business.
PLM/ILM should benefit from economies of scale as a result
of the affiliation. This will allow us to reinvest more heavily in
technology than either company could have accomplished
on its own. This will move us swiftly forward as we mate that
technology with the professional expertise that we already have
from an insurance and lumber perspective. We envision our
“We are also working on a new, more user-friendly, combined website which will support both PLM and
ILM. We have just upgraded our Customer Relationship Management System and plan on combining
this for both organizations shortly. Our combined Information Technology Department brought together
some very fine talent from both PLM and ILM which will assist us in the many new challenges we will face
in the future.”
Joseph M. McGurrin, Jr., Vice President – Information Technology
“Wood is all we do and it is all we are going to do” will
remain a touchstone as we consider opportunities.
We will remain a mutual insurance company. This ownership
ANNUAL REPORT 2013
future to be exciting and bright. Our products and services will
stand out amongst the competition and in combination with our
professional talent will allow us to maximize the value received
for the insurance premium dollar we collect!
Alabama Forestry Association
Mountain States Lumber & Building Material Dealers Association
Allied Building Stores, Inc.
National Hardwood Lumber Association
Appalachian Hardwood Manufacturers, Inc.
National Lumber & Building Material Dealers Association
Appalachian Lumbermen’s Club
National Wood Flooring Association
Architectural Woodwork Institute
National Wooden Pallet & Container Association
Association of Millwork Distributors
NEMEON
Building Material Suppliers Association, Inc.
New Jersey Building Materials Dealers Association
Cabinet Makers Association
North American Building Material Distribution Association
California Building Material Dealers Association, Inc.
North American Wholesale Lumber Association
Construction Suppliers Association, Inc.
North Carolina Forestry Association
Eastern Building Material Dealers Association
Northeastern Lumber Manufacturers Association
Empire State Forest Products Association
Northeastern Retail Lumber Association
ENAP, Inc.
Northwestern Lumber Association
Florida Building Material Association
Oklahoma Lumbermen’s Association
Georgia Forestry Association
Pennsylvania Forest Products Association
Illinois Lumber & Material Dealers Association
Penn-York Lumbermen’s Club
Independent Builders Supply Association
Progressive Affiliated Lumbermen Cooperative
Independent Dealers Education Association Services
Southeastern Lumber Manufacturers Association
Indiana Hardwood Lumbermen’s Association
Southern Forest Products Association
Indiana Lumber & Builders’ Supply Association
Structural Building Components Association
Kentucky Building Materials Association
Virginia Forest Products Association
Kentucky Forest Industries Association
Virginia Forestry Association
Lake States Lumber Association
Western Building Material Association
Lumbermen’s Association of Texas & Louisiana
Western Hardwood Association
Lumbermens Merchandising Corporation
Western Pallet Association
Michigan Lumber & Building Materials Association
Western Wood Products Association
Mid South Building Material Dealers Association
Wood Component Manufacturers Association
Mid-America Lumbermens Association
Wood Products Manufacturers Association
Missouri Forest Products Association
Moulding & Millwork Producers Association
32
33
GIVING BACK
A
s traditional in the annual report, we like to
address our corporate role and commitment to
giving back. We are pleased to encourage and
support our staff as they go about fulfilling their
responsibilities as good citizens in the communities where
they live and work. Whether it is coaching a local sports team,
working in their church or a local food bank, leading young
men and women through Boy Scouts and Girl Scouts, or
helping elderly neighbors; we are pleased and proud of the
many employees who are active in these areas.
Further, many of our employees are active politically.
Regardless of their viewpoint on issues, we recognize and
support their rights as citizens of our great nation to be
active in their government. We encourage participation
in a political process from an insurance viewpoint, like
supporting legislation at the state and federal level. In the
last couple of years, our activities in this area have spilled
over in support of issues that are important to our customers
as well! Corporately, we support and encourage our
employees to support the National Association of Mutual
Insurance Companies political action committee. We are
also active within the Hardwood Federation, which is the
political voice of the hardwood community, and LUDPAC,
the political voice of the National Lumber and Building
Material Dealers Association.
Just as our founders focused on the lumber business, we
encourage our employees to have active roles in a variety
of lumber-related organizations by supporting them with
ANNUAL REPORT 2013
their time and effort as committee and board members.
Corporately, we support many of these organizations with funding.
From an insurance industry perspective, we continue to
support the Griffith Insurance Educational Foundation and
its effort to educate high school students on the benefits of
insurance careers. The foundation also works with various
state and federal regulators in an effort to provide them and
their staff with a background on basic insurance fundamentals.
Financially, we are extremely proud of the track record we
established from a corporate giving viewpoint and continue
to be active in a number of charities within the Philadelphia
and Southeastern Pennsylvania area. Our goal is to become
more active in this area as well as in the Indianapolis
community in 2014.
As long-term supporters and standard bearers for companies
our size in Southeastern Pennsylvania, we were a little bit
behind this year in rolling out our campaign with the United
Way organization as we wrestled with a variety of affiliation
and transition related issues. We had the desire to broaden
our United Way involvement to include Indiana Lumbermens’
employees as well. So, our campaign was delayed and
compressed from a time standpoint. We were concerned
about maintaining our level of support to the United Way
organization and the various charities that our employees
fund through the United Way vehicle. We were particularly
concerned about introducing this program to a group of new
employees and wondered how it would be received. At the
PLM/ILM OFFICERS
STANDING LEFT TO RIGHT: JOSEPH M. MCGURRIN, JR., CHRISTOPHER H. CRUCITT, FRANCIS R. SANTORO, SUSAN KNOTTS, DON W. BLACKWELL, RICHARD A. HALL,
JOHN F. MARAZZO, STEPHAN D. FIRKO, GREGORY PIANKO
SEATED LEFT TO RIGHT: WILLIAM F. JOHNSON, JR., JOSEPH W. MCCREA, EILEEN M. SLEUTARIS, HAROLD L. JAMISON
NOT PICTURED: JOHN K. SMITH, W. CRAIG MYERS, THOMAS W. SUPPLEE
end of the day the answer was simply excellent. Better than
90% of our total employee population contributed to either
the United Way of Southeastern Pennsylvania and New Jersey
or the United Way of Indiana. Remote employees throughout
the country got on board and our level of employee giving
skyrocketed – including the PLM matching dollars that we
provide. This was truly a delightful result.
We believe it is important for companies to encourage their
employees to be active in their communities and to support
their neighbors in need, whether through their deeds or
donations. Apparently, our employees agree with us!
PENNSYLVANIA LUMBERMENS MUTUAL INSURANCE COMPANY + INDIANA LUMBERMENS MUTUAL INSURANCE COMPANY
34
EXCELLENCE IN SERVICE – PLM / ILM STAFF
CHARITABLE CONTRIBUTIONS
Alzheimer’s Association
Firemen’s Hall Museum
Pennsylvania Horticultural Society
James Adams
Pat Collopy
BJ Gardner
Nancy Leitch
Bryan Oliff
Lisa Staiber
American Heart Association
First United Methodist Church
Pennsylvania Society for the Prevention of
Dave Adams, II
Elizabeth Confair
Robin Garstkiewicz
Robert Lemieux
Vince Ortego
James Strope
American Institute for Chartered Property
Foundation for Economic Education
Cruelty to Animals (SPCA)
Judith Akey
Kelly Conlan
Sandy Geathers
Joe Lincke
Bill Osborne
Tom Supplee
Nancy Alexander
Alexa Craig
Gerrylynn Gibson
Maggie Lindsay
Diane Oxendine
Alden Swan
Mike Alexander
Carol Creuziger
Paul Gills
Maria Lubbers
Louis Palmarini
Rita Taylor
Frank Alizzi
Chris Crucitt
Brian Gilmore
Syed Mahmud
Ed Palmer
Jamie Taylor
Ken Anderson
Michael Culbreth
Sharon Gilpatrick
Theresa Maiorano
Jay Phillips, II
Deb Temcheshen
Anna Marie Baiocchi
Melanie Culp
Cindi Graat
Chris Mangano
Greg Pianko
Randy Thompson
Traci Barber
Ellie Curry
Theresa Gregory
Jeanne Mangano
Robin Pickens
Dimitri Unkow
Nate Bass
Roxane Cyr
Rich Hall
John Marazzo
Dean Pohlman
Paul Utrecht
Bob Belt
Kathleen Dalton
Angela Hamann
Greg Mautner
Candice Prendergast
Lori Vander Heyden
Jesse Benner
Dana Dean
Bill Heinick
Rachel McAtee
Richard Pumphrey
Jack Wallace
Casualty Underwriter (AICPCU)
Francis J. Marx Memorial
Philadelphia Fire Department
American Red Cross
Germantown Friends School
Historical Corporation
Amherst College
Gilkey School Community Center
Philadelphia Ronald McDonald House
Arc of Union County, The
Girl Scouts of Central & Southern New Jersey
Pope John Paul II High School
Astral Artists
Griffith Insurance Education Foundation
Property and Environment Research Center
Augustinian Defenders of the Rights of the Poor
Hampden-Sydney College
(PERC)
(A.D.R.O.P.)
Hardwood Federation
Safety Awareness Resources Change
Augustinian Fund
Heart of Camden
Salvation Army
Barnes Foundation
Holy Redeemer Hospice
Smile Train
Jason Bennett
Diane Della Pia
Steve Hicks
Brooke McCaslin
Gwen Randall
David Ward
Ben Franklin House
Honorable Order for the Blue Goose
St. Baldrick’s Foundation
Mark Bianchi
Sally Delp
Mark Hinkle
Phil McCown
Brandon Reavis
Jim Ward
Boy Scouts of America
IHLA Breast Cancer Fundraiser
St. Francis-in-the-Fields Episcopal Church
Larry Blackmon
Julie DeVine
Ada Hoffer-Perkins
Joe McCrea
Michelle Revelle
Tyrone Williams
Bryn Mawr Presbyterian Church
Independence Gala
St. Joseph University
Don Blackwell
Lindsey DiGangi
Joe Hoffman
Joe McGurrin, Jr.
Pamela Reynolds
Bret Williamson
Cape Fear Botanical Gardens
Insurance Institute for Business & Home Safety
St. Mark’s United Methodist Church
Linetta Blankenship
Sara Dippolito
Pam Holliday
Lorraine McKnight
Mike Richardson
Dee Winnals
Larry Dornink
Carl Howard
Belinda McNeil
Ray Rogers
Sue Winstel
Children’s Hospital of Philadelphia
Insurance Society of Philadelphia
Surrey Services
Jill Blocker
(CHOP) Foundation
Jefferson University Hospital
Sweet Briar College
Betty Blum
Bob Doroba
Chris Howell
Steve McNeill
Joseph Rossi
Shelly Wolf
Citizens for Fire Prevention Committee
Jewish Federation of Greater Philadelphia
Texas Christian University
Lisa Bragg
Seema Duggal
Dan Hubeli
Bob McSorley, Jr.
Tony Russo
Christine Woodward
Dan Braiman
John Ehlers
Andrew Hunting
Valerie Melchiorre
Herman Sanchez
Jill Young
Ted Bucci
Diane Fairlie
Debbie Jackson
Mike Metzler
Fran Santoro
Dan Younger
Donna Bunn
Ginny Farabelli
Ranada James
Sheila Michaud
Mike Scafide
Cheryl Zoog
Susan Burgess-DeMarco Jon Feigenbaum
Harold Jamison
Laura Mitchell
Carl Schalm
Rick Zorman
Tonya Burroughs
Dorothy Finnerty
Paul Johnson
Sheldon Mitchell
Brian Schnurbusch
Joe Burrows
Steve Firko
Bill Johnson
David Monte
Barbara Schuster
Natalie Cacciatore
Bridget Fisher
Tricia Kilrain
Kenny Moody
Paul Sells, Jr.
David Carmichael
Janice Fisher
Peter Kim
Ross Moore
Ryan Shance
Bruce Carter
Carissa Franklin
Diane King
Sandy Muldoon
Tom Shuee
Clemson University
Keep Indianapolis Beautiful, Inc.
Trinity Presbyterian Church
Cub Scout Pack 98
Melrose B’Nai Israel Emanu-El
Trustees of the University of Pennsylvania
Dawn’s Place
Metropolitan Golf Association
Union Presbyterian Seminary
Daylesford Abbey
MFPA Log A Load Committee
United States Golf Association
Dayton Rotary Foundation
Mother of Divine Providence Parish
United Way of Southeastern Pennsylvania
Deborah Hospital
National Guard State Family Readiness Council
University of Georgia
Disabled Veterans Insurance Careers, Inc.
National Multiple Sclerosis Society
Vassar College
Douglass College
National Shrine of Saint Rita of Cascia
Walnut Street Theatre
Drexel University
Needlework Guild of America (NGA)
West Mont Christian Academy
Marcelle Chamavonian
Lee Frantz
Lorraine Klock
Terry Murphy
Randy Skopecek
Elkins Park Fire Company
New Beginnings Outreach Ministries
West Trenton Presbyterian Church
Doug Chase
Terry Fricker
Susan Knotts
Lavondah Muse
Eileen Sleutaris
Emma Willard School
New York Law School
Wetlands Institute
Susan Cho
Charlotte Friend
Karen Korando
Craig Myers
Vance Smathers
Employment Source, Inc.
Ocean City Theatre Company
Wittenberg University
Louis Chow
Roger Fucilli
Richard Kunz
Ed Niewinski
John Smith
Fayetteville Urban Ministry (FUM)
One Boston Fund
Jim Clear
Joe Fuegel
Nick Lawlor
Brian Oddo
Steve Spica
ANNUAL REPORT 2013
36
BOARD OF DIRECTORS
J. William Lee
Chairman of the Board
Pennsylvania & Indiana Lumbermens
Mutual Insurance Companies
Philadelphia, PA
W.A. Bissette
Highland Lumber Co., Inc.
Fayetteville, NC
Anthony J. DeCarlo
DeCarlo Advisory Services
Berwyn, PA
C. Richard Peterson
Commercial Deposit Insurance
Radnor, PA
B U I L D I N G R E L AT I O N S H I P S .
TOGETHER WE’RE BETTER.
John K. Smith, CPCU
Stephen F. Boyd
George Hirschhorn, CPA
Thomas E. Beach
Timothy W. Callahan, II Esq.
Harvey E. Kroiz
Pennsylvania & Indiana Lumbermens
Mutual Insurance Companies
Philadelphia, PA
Beach Investment Counsel, Inc.
Radnor, PA
ANNUAL REPORT 2013
Manufacturers Reserve
Supply, Inc.
Irvington, NJ
Saul Ewing LLP
Philadelphia, PA
Hirschhorn, Fry & Associates
Philadelphia, PA
First Capital Realty, Inc.
Plymouth Meeting, PA
John F. Wolf
Retired President & CEO
Indiana Lumbermens Mutual
Insurance Company
Indianapolis, IN
ONE COMMERCE SQUARE
MAIN 800.752.1895
|
2005 MARKET STREET, SUITE 1200
FAX 215.625.9097
|
PHILADELPHIA, PA 19103-7008
WEB WWW.PLMINS.COM & WWW.ILMGROUP.COM