President’s Commentary

By Steve Firko, President

I hope you and your families enjoyed a safe, relaxing summer and found time to recharge.

As we move into the final months of 2026, I want to share a brief update on our business and the trends we’re seeing across the industry. Through July, PLM has written nearly $275 million in premium. While we remain below our original growth plan, our team is focused on closing that gap and finishing the year strong. New business activity continues to be challenging across many segments of the market, with 252 new accounts added through the first seven months of the year totaling $13.6 million in premium.

Staying Focused on Responsible Growth

Part of our production shortfall reflects a deliberate and controlled underwriting approach. In a small number of cases, we chose not to renew large accounts where we had concerns about safety practices, loss control, or overall risk management. While walking away from business is never an easy decision, we believe disciplined underwriting remains one of the most important responsibilities we have. Maintaining financial strength enables us to fulfill our commitments when losses occur and continue investing in the resources and services our customers rely upon. In other situations, competitors offered pricing that we believe does not adequately reflect the exposure involved. While market conditions may occasionally create pressure to pursue growth at any cost, we remain committed to making sound decisions that protect our policyholders, business partners, and the long-term strength of our company. Our focus remains unchanged: to be the leading insurance and risk management partner for wood-related businesses.

From a pricing perspective, we continue to balance competitive market conditions with responsible underwriting practices. Our approach remains targeted and data-driven, taking into account each customer’s unique operations, exposures, valuations, and overall risk profile.

Built on Strong Relationships

What continues to encourage me most, however, is the confidence our customers place in us. Our renewal retention rate remains strong at 89%, exceeding our target and reflecting the trust you place in our team year-after-year. We never take that confidence for granted. Long-term relationships are at the heart of our business, and many of our customers have trusted PLM for decades. That trust motivates us every day to deliver the expertise, service, and protection your business depends on.

Green Tree Risk Partners, our wholesale brokerage operation, continues to perform well. Through July, Green Tree has grown to more than $17 million in premium and now serves nearly 800 active clients, reinforcing our commitment to providing the lumber and building materials industries with additional resources and insurance solutions.

Turning Risk Insights Into Action

Like many insurers across the country, we continue to face profitability pressures, particularly within our casualty lines of business. Through July, our year-to-date underwriting loss totaled approximately $20.1 million. Rising litigation activity, increasing settlement costs, and an increasingly complex claims environment are affecting casualty coverages throughout the industry, including general liability, commercial auto, and umbrella liability. On a positive note, our property business continues to perform well and build upon the strong results we have achieved in recent years.

As I discussed in the previous issue, our Loss Control and Business Development teams have increased their presence in the field, working directly with customers to identify opportunities to reduce risk and prevent losses. Through July, our representatives have visited more than 6,700 locations and provided over 8,500 recommendations designed to improve safety and strengthen risk management practices. We are encouraged by the positive feedback we’ve received, as well as the exceptionally strong Net Promoter Scores associated with these visits, which reinforce the value they provide. These efforts are an important part of our commitment to helping customers address the trends driving casualty losses across the industry. You’ll see that commitment reflected throughout many of the articles in this issue.

Preparing for What’s Ahead

Looking ahead, we are excited to enter the busy fall season. Like many of our customers, we are already planning for the year ahead through forecasting and budgeting activities. We have also begun discussions with our domestic and international reinsurance partners as we work toward renewing our reinsurance program for 2027.

Last month, several of our reinsurance partners visited our Philadelphia office to meet with our underwriting and claims teams and gain a deeper understanding of our operations. The visit concluded with a tour of longtime PLM customer Woodhaven Lumber & Millwork in Lakewood, New Jersey. I would like to extend my sincere thanks to David Robinson, Louis Caruso, and the entire Woodhaven team for their hospitality and generosity in providing a firsthand look at their impressive operation. Opportunities like these help strengthen the partnerships that support our industry.

We also look forward to connecting with many of you in person as we attend 49 industry events and trade shows between September and December. These events provide valuable opportunities for our team to hear directly from customers, learn about the challenges facing your businesses, and gather feedback on how we can better serve the industry. Those conversations often shape the initiatives and investments we make throughout the year. If our paths cross, I hope you’ll take a moment to say hello.

Continuing to Strengthen Our Service

In previous issues of the Lumber Memo, I discussed the service challenges we’ve experienced in certain areas of our organization and the steps we’re taking to address them. We have made important investments in increased staffing, enhanced training, and a renewed focus on delivering the high level of service our customers expect. While we are encouraged by the improvements we’ve seen, we recognize that progress is only meaningful when our customers experience it firsthand. That’s why we continue to closely monitor our performance, refine our processes, and hold ourselves accountable for delivering the responsiveness and service that have long been hallmarks of PLM.

Resolving these issues remains a top priority, and we are committed to continuing that work until we consistently meet the standards we set for ourselves. We greatly appreciate your patience and understanding along the way. Most importantly, thank you for the trust you place in us. We remain committed to earning that trust every day.

A Transition in Claims Leadership

Finally, I would like to recognize and thank John Kennealy, Vice President of Claims, who retired in early August after seven years of dedicated service to PLM and our customers. His leadership, expertise, and professionalism have left a lasting impact on our company, and we wish him all the best in retirement.

At the same time, I am pleased to welcome Courtney Flanagan as PLM’s new Vice President of Claims. Courtney brings extensive industry experience and will lead our claims operations and strategy moving forward. Her focus will be on continuing to enhance claims performance and ensuring we provide the responsive, expert service our customers have come to expect. You’ll have an opportunity to learn more about this leadership transition later in this issue.

The strength of PLM has always been tied to the strength of the industry we serve. We remain optimistic about the future and committed to helping our customers succeed. Thank you for your continued partnership and, most importantly, for the trust you place in PLM.

As always, please do not hesitate to reach out to me directly with your thoughts and comments at sfirko@plmins.com.