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A.M. Best Announces Financial Strength Ratings

Posted by on Aug 27, 2019 in News

A.M. Best Affirms Financial Strength Ratings of Pekin Life Insurance Company

A.M. Best has affirmed the “A-” (Excellent) Financial Strength Rating (FSR) for Pekin Life Insurance Company. The outlook remains stable. The ratings of Pekin Life Insurance Company reflect a very strong balance sheet, its strategic role within the organization, diversified product offerings, and a high quality investment portfolio.

A.M. Best Downgrades Financial Strength Ratings of The Farmers Automobile Insurance Association and Pekin Insurance Company

A.M. Best has downgraded the FSR of Pekin Insurance® Group and our two intercompany pool members, The Farmers Automobile Insurance Association and its wholly owned subsidiary, Pekin Insurance Company from “A” (Excellent) to “A-” (Excellent). This rating represents their independent opinion of our financial strength and our excellent ability to meet ongoing insurance obligations. The change is primarily attributable to the ongoing impact of catastrophe and automobile losses upon our operating results. The rating of “A-” (Excellent) reflects our balance sheet strength which A.M. Best categorizes as very strong, as well as our neutral business profile and appropriate enterprise risk management. Strong risk-adjusted capitalization is driven by our conservative investment portfolio, historically favorable loss reserve developments, and prudent reinsurance program.

The outlook for the FSR is upgraded to stable.

Pekin Insurance recognizes its vulnerability to losses from wind, hail, and tornado and in recent years has taken many significant steps to mitigate our exposure, including entry into Arizona, preparing for entry to more southwestern states, restructuring of reinsurance contracts, utilization of actual cash value settlement policy language, and implementation of predictive modeling. The strength of our financial position allows us to take a longer-term view of operations, and we continue to invest in software and technology through our Pekin Insurance Virtual Overall Transformation project. The new policy administration platform will give us a competitive edge and enable efficient growth and profitability for many years.

Key strategic goals that will improve our operating results are:

  • Increase our commercial lines writings as a percentage of our total writings
  • Improve our combined ratio by expanding our use of predictive modeling and realizing operating efficiencies through significant technology upgrades
  • Increased efforts toward profitable growth in new and existing states
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Pekin Insurance® Holds Annual Meeting

Posted by on Feb 12, 2019 in News

The Farmers Automobile Insurance Association held its annual meeting on Tuesday, February 12, 2019, at their Home Office in Pekin, Illinois.
The following directors were elected for three-year terms: Scott A. Martin, Chillicothe, Illinois; and Thomas C. Hornstein and Christine A. Schwartz, both of Pekin, Illinois.

Subscribers elected, Scott A. Martin, Chillicothe, Illinois; and Thomas C. Hornstein and Christine A. Schwartz, both of Pekin, Illinois, to the Advisory Committee.

Pekin Insurance officers elected included: Scott A. Martin, Chairman of the Board, President, and Chief Executive Officer; Steven R. Anderson, Vice Chairman of the Board; Daniel V. Connell, Senior Vice President and Chief Financial Officer; Todd A. Clark, Senior Vice President and Chief Operating Officer – Property/Casualty; Brian K. Lee, Senior Vice President and Chief Operating Officer – Life; Amy M. Darling, Vice President – Life Claims; Curtis A. Eeten, Vice President – Claims; Gregory L. Feller, Vice President – Sales; Joel M. Jackson, Vice President – Marketing; Subhasis Mukherjee, Vice President – Chief Information Officer; Edward A. Mulvey, Vice President – Personal Lines Underwriting and Assistant Secretary; Tyler D. Petersen, Vice President – General Counsel and Secretary; Kimberly S. Remmert, Vice President – Human Resources; Joseph C. Ricigliano, Vice President – Commercial Lines Underwriting and Assistant Secretary; Diane K. Steiner, Vice President – Life Underwriting and Assistant Secretary; Michael A. Zabinski, Vice President – Controller; Amber J. Stenger, Assistant Treasurer; Michele E. Ginther, Assistant Treasurer; and Aaron Z. Potacki, Assistant Secretary.

Pekin Insurance is a group name adopted to designate the combined operation of The Farmers Automobile Insurance Association, Pekin Insurance Company, PAC, Inc., and Pekin Life Insurance Company.

Pekin Insurance has been in business since 1921, and is one of the leading insurers in the state of Illinois, providing multiple lines of insurance. Pekin Insurance offers insurance coverage in Arizona, Illinois, Indiana, Iowa, Ohio, and Wisconsin through its growing agency force which now totals 1,054 independent agencies and 8,300 insurance producers in the six-state area. The company is headquartered in Pekin, Illinois, with service offices at Phoenix, Arizona; O’Fallon, Rockford, and Warrenville, Illinois; Indianapolis, Indiana; Des Moines, Iowa; Columbus, Ohio; and Appleton, Wisconsin.

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A.M. Best Affirms Financial Strength Ratings

Posted by on Aug 20, 2018 in News

The Farmers Automobile Insurance Association and Pekin Insurance Company

A.M. Best has affirmed the Financial Strength Rating (FSR) of “A” (Excellent) of Pekin Insurance® Group and our two intercompany pool members, The Farmers Automobile Insurance Association and its wholly owned subsidiary, Pekin Insurance Company. Financial Strength Ratings are published in A.M. Best’s Insurance Reports and represent their independent opinion of an insurer’s financial strength and ability to meet its ongoing insurance policy and contract obligations. The affirmed rating reflects our balance sheet strength which A.M. Best categorizes as strongest, as well as adequate operating performance, neutral business profile, and appropriate enterprise risk management. Strong risk-adjusted capitalization is driven by our conservative investment portfolio and historically favorable loss reserve developments. This rating acknowledges our expectation for improved operating results based on underwriting initiatives and upgraded technology. A.M. Best also noted management’s efforts to continually enhance our enterprise risk management program to support our organization’s risk profile.

The outlook for the FSR remains negative. A.M. Best stated that the outlook reflects deterioration in underwriting performance, driven by weather-related losses and rising loss costs in the auto business. Pekin Insurance recognizes its vulnerability to losses from wind, hail, and tornado and in recent years has taken many significant steps to mitigate our exposure, including entry into Arizona, preparation for entry into another southwestern state, restructuring of reinsurance contracts, utilization of actual cash value settlement policy language, and implementation of By-Peril rating. The reasons behind the poor automobile results are well-documented in public forums and include more cars on the road driving more miles, higher medical costs, higher repair costs for newer vehicles, and distracted driving. To address this continuing trend, among other measures, we have tightened eligibility guidelines, revised financial stability scores, updated factors for violations and accidents, and continued the development of predictive analytic modeling.

The strength of our financial position allows us to take a longer-term view of operations, and we continue to invest in software and technology through our Pekin Insurance Virtual Overall Transformation project. The new policy administration platform will give us a competitive edge and enable efficient growth and profitability for many years.

Pekin Life Insurance Company

A.M. Best has also affirmed the FSR of “A-” (Excellent) for Pekin Life Insurance Company. The outlook remains stable. The ratings of Pekin Life Insurance Company reflect its integral role and positive contribution to the Pekin Insurance Group, as well as its strong risk-adjusted capitalization and a diversified product portfolio.

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Pekin Life Insurance Company Holds Annual Meeting

Posted by on May 9, 2018 in News

Pekin Life Insurance Company held its annual meeting on Tuesday, May 8, 2018, at the Company’s Home Office in Pekin, Illinois.

The Company reported net income of $7.4 million. Premium income decreased by 10.4 percent to $199.3 million. Life Insurance in force exceeded $17.7 billion in the year 2017.

At the meeting, shareholders elected directors Craig W. Concklin, Hinsdale, Illinois; Daniel V. Connell, Tremont, Illinois; and John S. Heller, East Peoria, Illinois, to three year terms to expire in May 2021.

Other directors whose terms continue are: Steven R. Anderson, Loves Park, Illinois; Byron A. Dodd, Anna, Illinois; Scott A. Martin, Chillicothe, Illinois; and Thomas C. Hornstein, Brian K. Lee, and Christine A. Schwartz, all from Pekin, Illinois.

Pekin Life Insurance Company is an integral part of the Pekin Insurance® group of companies.

Pekin Life Insurance Company stock trades under the symbol “PKIN” and is listed on the OTC Pink Marketplace.

A multi-line company, Pekin Life Insurance Company offers individual life which includes term life, whole life, universal life, as well as medicare supplement, annuity, credit insurance, debt protection, and pre-need coverages. Additionally, Pekin Life Insurance Company has a third party claims administration division, Group Plan Solutions, which is designed to provide employer-based, self-funded health plan administration.

Other products offered by the Pekin Insurance group include personal automobile, homeowners, motorcycle, recreational vehicle, boatowners, personal umbrella, commercial automobile, businessowners, commercial property and liability, workers compensation, commercial umbrella and bonds.

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Pekin Insurance® Holds Annual Meeting

Posted by on Feb 13, 2018 in News

The Farmers Automobile Insurance Association held its annual meeting on Tuesday, February 13, 2018, at their Home Office in Pekin, Illinois.

The following directors were elected for three year terms: Craig W. Concklin Hinsdale, Illinois; Daniel V. Connell, Tremont, Illinois; and John S. Heller, East Peoria, Illinois.

Subscribers elected, Craig W. Concklin Hinsdale, Illinois; and John S. Heller, East Peoria, Illinois, to the Advisory Committee.

Pekin Insurance officers elected included: Scott A. Martin, Chairman of the Board, President, and Chief Executive Officer; Steven R. Anderson, Vice Chairman of the Board; Daniel V. Connell, Senior Vice President, Chief Financial Officer, and Secretary; Todd A. Clark, Senior Vice President and Chief Operating Officer – Property/Casualty; Brian K. Lee, Senior Vice President and Chief Operating Officer -Life; Curtis A. Eeten, Vice President – Claims; Gregory L. Feller, Vice President – Sales; Joel M. Jackson, Vice President – Marketing; Subhasis Mukherjee, Vice President – Chief Information Officer; Edward A. Mulvey, Vice President – Personal Lines Underwriting and Assistant Secretary; Tyler D. Petersen, Vice President – General Counsel and Assistant Secretary; Kimberly S. Remmert, Vice President – Human Resources; Joseph C. Ricigliano, Vice President – Commercial, Lines Underwriting and Assistant Secretary; Diane K. Steiner, Vice President – Life Underwriting and Assistant Secretary; Michael A. Zabinski, Vice President- Controller; Amber J. Stenger, Assistant Treasurer; Michele E. Ginther, Assistant Treasurer; and Aaron Z. Potacki, Assistant Secretary.

Pekin Insurance is a group name adopted to designate the combined operation of The Farmers Automobile Insurance Association, Pekin Insurance Company, PAC, Inc., and Pekin Life Insurance Company.

Pekin Insurance has been in business since 1921, and is one of the leading insurers in the State of Illinois, providing multiple lines of insurance. Pekin Insurance offers insurance coverage in Arizona, Illinois, Indiana, Iowa, Ohio, and Wisconsin through its growing agency force which now totals 1,079 in_dependent agencies and 8, 183 insurance producers in the six state area. The company is headquartered in Pekin, Illinois, with service offices at Phoenix, Arizona; Mount Vernon, Rockford, and Warrenville, Illinois; Indianapolis, Indiana; Des Moines, Iowa; Columbus, Ohio; and Appleton, Wisconsin.

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