The Wilkes Barre, Pa., parent company of Penn Millers Insurance Co. plans to repurchase up to 5% of its issued and outstanding shares of common stock.

Penn Miller Holding Corp.’s board of directors authorized the purchase Oct. 27.

The repurchased shares will be held as treasury shares and may be issued in connection with a future stock-based compensation plan, should such a plan be approved by the company’s shareholders at a meeting to be held in April 2010, company officials said in a statement.

Penn Millers Insurance Co. is a wholly owned subsidiary of Penn Millers Holding Corp., offering agribusiness insurance in 33 states and commercial lines insurance in eight states.