PEMCO Insurance Company
PEMCO Insurance Company
325 Eastlake Avenue
East Seattle, WA 98109
The name PEMCO stands for Public Employees Mutual Casualty Company. Based in Washington, PEMCO Mutual focuses on providing insurance policies against fire, casualties or damages against personal automobiles and boats, as well as other properties to public employees such as teachers.
For residents of the state of Washington, PEMCO focuses on homeowner business, offering homeowner and renter’s insurance as well as personal liability umbrella insurance plans.
The company was founded by Robert J. Handy, a journalism and math teacher from Seattle. He saw the newly legalized credit union concept as an opportunity to establish the Seattle Teachers Credit Union (which is currently the School Employees Credit Union of Washington). This was established in 1936, three years after the legalization of authorized credit unions in the state.
In order to get by and supplement his income, Handy serviced for a general insurance agency, which was owned by his friend and colleague. It is in this company that he would sell automobile insurance to teachers or educators who inquired to the credit union about new car loans.
It was in the year 1949 that Handy formally established the Public Employees Mutual Insurance Company (PEMIC, which was later on changed to PMIC in 1989) It is here where he offered fire as well as burglary insurance policies and vehicle collision, comprehensive, theft, and fire insurance.
In order to come up with a capital of $400,000, which was then the requirement of the state to establish a company. Handy initiated another team of insurance professionals which he called PEMCO. He sold this company to his co-teachers, and with the money raised from its bond sales, PEMCO Corporation bought guarantee bonds which were issued by PEMCO Insurance.
In 1950, Handy added writing liability insurance to PEMCO. It was in 1977, it merged with PEMIC after a change in the law of the sate, which no longer required separate companies for liability and property types of insurance.
!n 1963, Handy created the PEMCO Life Insurance Company to be able to sell life insurance policies at a low-cost to its credit union members. In the course of the times since its establishment, this insurance company has grown from premiums of $8,500 during the year 1949 to $322 million in the year 2006.
Stan W. McNaughton is President and Chief Executive Officer and the son of its previous President, Stanley O. McNaughton.
The company’s niche market is called “preferred risk” since its clients or policy holders are those least likely to obtain vehicle accidents or traffic tickets. They also take proactive steps to preserve and protect their own property by having smoke detectors, car alarms, as well as deadbolt locks.
A.M Best, an organization that rates the financial strength of companies that focus on financial services has given PEMCO a rating of A-. This means that the insurance company has an excellent ability to handle its financial obligations to its clients.
Presently, PEMCO focuses its attention on providing insurance policies for responsible individuals in the state of Washington. It has earned a reputation for unfailingly delivering the services it offers to its clients.