The 257-year-old insurance company founded by Benjamin Franklin will undergo reorganization under a plan approved by Pennsylvania Insurance Commissioner Joel Ario. The Philadelphia Contributorship for the Insurance of Houses from Loss by Fire wants to set up a holding company, making it easier to merge with other firms and finance the company's home-alarm business. According to the plan, policyholders who are now members of the Contributorship will become members of the new holding company once members approve it.
Incidentally, Benjamin Franklin would be proud of how his company is doing in the 21st century. The Philadelphia Contributorship has a $190 million surplus, giving new meaning to its founder’s observation that “A penny saved is a penny earned.”
November 17, 2009