Timeline

The Philadelphia Contributionship, the first successful insurance company in America, was founded by Benjamin Franklin in Philadelphia. Along with the  growing popularity of mutual insurance companies, it helped pave the way for the establishment of PLM.

The Lumber Merchants Exchange of Philadelphia, later to be called The Lumbermens Exchange, was formed to serve as a buying cooperative to reduce expenses, increase buying power, and share information and services.

A need for insurance arose from the flourishing lumber industry in Pennsylvania. Due to the unfair rates being charged by stock companies, Edward Henson, a successful lumber executive who headed up the Insurance Committee for The Lumbermens Exchange, formed with other lumbermen, Pennsylvania Lumbermens Mutual Fire Insurance Company, later to be Pennsylvania Lumbermens Mutual Insurance Company (PLM).

PLM recorded its best year to date with new business totaling more than $2,225,000 with cash assets of $520,000 and surplus at $340,000. This strong performance continued to grow, reaffirming that lumber mutuals were a force to be reckoned with in the insurance marketplace.

PLM passed $1 million in Net Surplus. This milestone was the launching point for rapid escalation of revenues, which characterized the company’s earnings performance for the next ten years. Assets grew from $1.5 million to $2.6 million. Net Surplus more than doubled, and the company paid a 40% dividend throughout the decade.

A major loss at the Bailey lumber yard (one of PLM’s oldest policyholders) was one of the losses which prompted an increase in fire prevention and loss control programs as practical means of risk reduction.

Despite World War II, PLM continued to grow throughout the 1940s, doubling assets to $11.2 million by the fifties. In 1948, the company moved into a new facility at the Market Street National Bank Building to accommodate the growing staff.

With expansion into new lines beyond lumber and geographically with branch offices in California, Arizona and North Carolina, the company was now selling insurance in 42 states through more than 1,200 agents. Official records in 1955 lists the year as PLM’s “greatest year”, since assets hit an all-time high.

The Fifties also mark a decade of diversification. With manufacturing trends utilizing metals and other “modern” materials,  the woodworking and manufacturing industries responded with new inventions and applications for their products, requiring the development of new coverages. With the advances into allied building materials, PLM began to step-up its loss control efforts with a more formalized prevention program.

By the end of the 1950’s, PLM had made many gains in the areas of employee benefits, office equipment and office innovation. PLM moved to its fifth location at 211 South Broad Street. The building, which was the former Ritz-Carlton Hotel, was renovated and re-named “The Pennsylvania Lumbermens Mutual Insurance Building”. PLM’s colorful approach to the interior design of its new facilities challenged the times when most commercial office interiors consisted of bland shades of grey and dark paneling.

Throughout the Sixties, hurricanes and natural disasters caused severe damage in the country, depleting PLM’s resources  and exposing its vulnerability in the General Business sector. A forest fire in the Los Angeles area racked up the highest loss at that time, at $1,209,042. PLM’s focus shifted with a renewed emphasis on the company’s traditionally profitable lumber line.

By 1966, the company gradually reduced General Business activity and transferred resources to Lumber Operations. The retail lumber and building material industries in the late 1960s were a period of unprecedented prosperity. During these years, PLM began to build up its stores of reserves with the company surplus between 1968 and 1978 more than tripling. PLM was once again becoming a formidable financial force.

Under the leadership of Frank Braceland, PLM re-established important connections with lumber, woodworking and building material associations. Under his tutelage, employees actively participated in industry programs, authored safety articles and attended conventions regularly.

Closer ties with the industries it was created to serve and new technological advances prompted PLM to strengthen its Loss Control programs. While the company had always provided educational and informational materials on fire prevention and safety in the workplace – as far back as 1915 – PLM now established a formal Loss Control Department.

Since its inception, PLM had operated as part of a cooperative group: The Associated Lumber Mutuals. However, after three-quarters of a century of shared marketing and reinsurance, the “Lumber Mutuals” were no more. This immediately increased competition among the former allies and created a new opportunity for stock companies to slice a larger piece of the market. PLM met the challenge by expanding its force of Field Representative and increasing advertising and promotional programs. By the last half of the decade, the company reached an all-time high in assets and surplus.

With increased competition from other lumber mutual and stock companies; the economic downturn during the early 1990s; a soft insurance market, and a shrinking lumber industry, PLM experienced unprecedented strains during this period. But PLM rose to the challenge, rolling out a multi-faceted underwriting and marking program. New lines, re-packaged programs, expansion of existing plans, forays into new areas of risk, and an aggressive sales and broad marketing agenda kept PLM solidly positioned as an insurance specialist.

PLM affiliates with longtime competitor Indiana Lumbermens Mutual Insurance Company. The combination of the two companies creates the opportunity to capitalize on the strengths of each organization and offer a broader and financially stronger market for policyholders.

The United Way of Greater Philadelphia and Southern NJ honors PLM/ILM as one of two recipients of the “Culture of Caring Award”. Over 90% of employees contributed to the Southeastern Pennsylvania and New Jersey or Indiana United Way campaigns in 2013-14. Read more about the award

In August of 2015, PLM adds EPLI to its policies, an important coverage that can help employers prevent or defend against employment claims alleging age, gender or race discrimination, sexual harassment, wrongful termination or other wrongful employment acts.

Later in December of 2017, Cyber Liability coverage is introduced to PLM policies to help protect our customers from fallout of cyberattacks and data breaches.

PLM named a Top Insurance Workplace by Insurance Business America.
Read more about the award

President & CEO John Smith awarded the Distinguished Leadership Award at the Insurance Society of Philadelphia Independence Gala. PLM and its supporters and partners worked together to raise around $44,820 and 300 smoke detectors to the Philadelphia Fire Department Foundation at the Gala. Read more about the award and the Gala here

PLM recognized as a 2019 Top Workplace by The Philadelphia Inquirer. The Philadelphia Inquirer recognized 125 Companies and Organizations in Philadelphia as Top Workplaces for 2019 based on surveys about the workplace completed by their employees.

A.M. Best Rating affirmed as A- (Excellent) with a Stable Outlook Read More

125th Anniversary of PLM’s Founding

PLM recognized as a 2020 Top Workplace by The Philadelphia Inquirer. The Philadelphia Inquirer recognized 125 Companies and Organizations in Philadelphia as Top Workplaces for 2020 based on surveys about the workplace completed by their employees. PLM was the highest scoring company in the survey for “I get the formal training I want for my career.”

PLM recognized as one of the 2021 Top Workplaces in the US.

PLM recognized as a 2021 Top Workplace by The Philadelphia Inquirer. In its 12th year, the Awards program recognizes the best employers in Greater Philadelphia in the public, private, nonprofit and government sectors.