Penn-America bucks insurance industry trend. (Penn-America Group Inc.)

HATBORO - It's obvious when you see its offices that the Penn-America Group Inc. differs from other insurance companies.

Located in the old Hatboro-Horsham High School, the place is filled with character - from the structure itself to the personal effects that decorate it.

But more important to shareholders is how Penn-America differs from other insurance companies when you compare results. While the industry as a whole has been losing money writing property and casualty insurance, specialty property and casualty insurer Penn-America has prospered.

"Their performance has exceeded that of the overall industry," said John B. Keefe, vice president at Ferris, Baker Watts Inc. of Baltimore, who has been following PennAmerica since it went public in the fall of 1993. "These guys tend to underpromise and overperform."

Penn-America has gained much of its momentum by capitalizing on the inability of large insurers to reach or continue to serve Penn-America's main focus: "The Business of Main Street." …