Moody's: Penn National view to negative

Moody's Investors Service said it affirmed the A3 insurance financial strength ratings of Penn National Insurance Group's operating subsidiaries and the Baa3 (hyb) rating on the surplus notes issued by Pennsylvania National Mutual Casualty Insurance Co.

The outlook was changed to negative from stable due to the uncertainty around lead paint claim reserves, despite improved core operating earnings in 2013.

"While earnings improved during 2013 due to lower catastrophe losses and relatively stable accident year combined ratios, Penn National faces uncertainty surrounding its legacy lead paint claims, which could pressure future earnings," Moody's vice president Enrico Leo said in a news release.

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