PROFESSIONAL CASUALTY ASSOCIATION

FINANCIAL HIGHLIGHTS

By any definition, calendar year 2009 was a successful one for the company. In the midst of a continuing soft underwriting and investment environment, and despite increased competition from both regional and national insurers, PCA managed to show year over year improvements in all but one of the defining metrics by which insurers are commonly measured:
Assets, Combined Ratio, Policyholders Surplus and Premium - to - Surplus Ratio.
Written premium was the only metric in which PCA posted a result slightly lower (2%) than the prior year.

This performance takes on even greater significance when one considers that as of December 31, 2009, PCA has returned in excess of $1.6 million in subscriber’s fees to policyholders under a program approved in 2006 by the Pennsylvania Department of Insurance. It is equally important to note that more than $900,000 in additional fees is projected to be returned by the scheduled completion of the initiative in 2011.

We take this opportunity to thank our policyholders and appointed brokers and agents for their continued support. Without it, none of PCA’s success to date would have been possible. As we begin a brand new decade, we will press forward with the same level of focus and commitment that have become the foundation of our service delivery, while maintaining the kind of flexibility and creativity in our product offerings that meet and exceed policyholder expectations.