PAULA Financial operates with its subsidiaries as a specialty distributor of commercial insurance products. The Companys subsidiaries, Pan American Underwriters, Inc. and Pan American Underwriters Insurance Agents and Brokers in Arizona (Pan Am), place commercial insurance products for their customers. Through the PAULA Trading Co. (PTC), a wholly owned subsidiary, Paula Financial affiliates with insurance agencies of similar size and operating histories to Pan Am. In addition, the Company owns Pan Pacific Benefit Administrators (PPBA), a third-party administration (TPA) operation with minimal operating activity. PAULA Financials Pan Am subsidiary is an agency with commission income derived from the placement of group health, property and casualty (including workers compensation) and some life and disability insurance products. In 2002, approximately 45% of commission revenue was derived from the workers compensation line of business.