Following approval by the Pennsylvania Insurance Department to convert from a mutual insurer to a stock company, Farmers’ Mutual Insurance Co. is now Elizabethtown Insurance Co.

The Elizabethtown, Pa.-based company adopted its new name July 1 and is now a subsidiary of Franklin Homeowners Group of Exton, Pa., according to company officials.

Howard Stevens

Howard Stevens, president and CEO for Elizabethtown Insurance, told IFAwebnews.com the company is “looking forward” to working with Franklin “to develop the synergies between our two great companies.”

“The immediate addition and ease of writing flood insurance for our agents will be a big plus,” Stevens said.

Farmers’ Mutual, established in 1844, adopted the new name that is “more reflective of the insurance we write,” according the company, which said it also received a $3 million cash infusion to better protect policyholders. The funds came from the stock sale of the demutualized Farmers’ when it became Elizabethtown Insurance, according to Stevens.

Elizabethtown Insurance, which offers property-casualty coverage exclusively in Pennsylvania, wrote $4.3 million in premiums in 2008 for its more than 9,000 policyholders, according to the company’s website.

The company will continue operations in Elizabethtown and its current staff will remain in place, with Stevens continuing as president and CEO. Local directors Robert Enck and Jamie Rowley will continue to serve the company.

Following its conversion from a mutual insurer to a stock company, Elizabethtown Insurance received a financial strength rating of A from financial analysis and actuarial service Demotech, based mainly on its $3 million capital infusion.