Penn Treaty studying its future

Penn Treaty American Corp. has hired a consultant to help chart the company's future, which could include a sale or a merger.

The Salisbury Township insurer said Monday it has retained Friedman, Billings, Ramsey and Co., an Arlington, Va., investment banking firm, to consider ''strategic partnerships, business combination transactions or the sale of certain assets.''

In addition, Penn Treaty said it is conducting a review to determine if it has enough claims reserves. Based on a preliminary report, the company believes it will need to increase the reserves to pay possible claims from existing policies and for projected new business. Read more