Exhibit 99.1
PRESS RELEASE
For Immediate Release
Contact: Michael O. Banks — 570-200-1340
Penn Millers Announces Second Quarter 2011 Catastrophe Losses
Wilkes-Barre, Pennsylvania, (Business Wire) June 29, 2011 — Penn Millers Holding Corporation
(NASDAQ: PMIC), (“Penn Millers” or “the Company”) today announced that it estimates that it
incurred pre-tax catastrophe losses, net of reinsurance, of approximately $6.7 million for the
second quarter ending June 30, 2011. The majority of the losses arose from multiple devastating
tornadoes, wind storms and hail storms, mostly in the Midwest and Southeast that affected
insureds primarily in the Company’s Agribusiness segment.
The Company typically experiences the highest level of weather-related loss activity in the
second quarter of the year. Over the last five years, the loss ratio from catastrophes in the
second quarter has averaged about 13 points. The catastrophe losses in the second quarter of
2011are estimated to add about 39 loss ratio points for the quarter and will cause the Company to
incur a loss from operations for the same period.
The Company expects to file its second quarter Form 10-Q with the Securities and Exchange
Commission on, or before, August 15, 2011.
Penn Millers Holding Corporation provides property and casualty insurance through its wholly
owned subsidiary, Penn Millers Insurance Company. Penn Millers Insurance Company provides
agribusiness insurance and commercial lines insurance in 34 states. The Company is located at 72
North Franklin Street in Wilkes-Barre, PA. The Company’s web address is
http://www.pennmillers.com.
Some of the statements contained in herein are “forward-looking statements” within the
meaning of the Private Securities Litigation Reform Act of 1995. In some cases, you can identify
forward-looking statements by terminology such as “may,” “will,” “should,” “expect,” “plan,”
“intend,” “anticipate,” “believe,” “estimate,” “predict,” “potential” or “continue,” or the
negative of these terms or other terminology. Forward-looking statements are based on the
opinions and estimates of management at the time the statements are made and are subject to
certain risks and uncertainties that could cause actual results to differ materially from those
anticipated in the forward-looking statements. Factors that could affect the Company’s actual
results include, among others, the fact that our loss reserves are based on estimates and may be
inadequate to cover our actual losses; the uncertain effects of emerging claim and coverage
issues on our business, including the effects of climate change; the geographic concentration of
our business; an inability to obtain or collect on our reinsurance protection; a downgrade in the
A.M. Best rating of our insurance subsidiaries; the impact of extensive regulation of the
insurance industry and legislative and regulatory changes; a failure to realize our investment
objectives; the effects of intense competition; the loss of one or more principal employees; the
inability to acquire additional capital on favorable terms; a failure of independent insurance
brokers to adequately market our products; and the effects of acts of terrorism or war. More
information about these and other factors that potentially could affect our financial results is
included in our Annual Report on Form 10-K, filed with the SEC and in our other public filings
with the SEC. Readers are cautioned not to place undue reliance upon these forward-looking
statements, which speak only as of the date of this release. The Company undertakes no obligation
to update any forward-looking statements.
Contact: Michael O. Banks of Penn Millers Holding Corporation, (570) 200-1340
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