UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form N-Q

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES

811-21227
Investment Company Act File Number

Eaton Vance Insured Pennsylvania Municipal Bond Fund

(Exact Name of Registrant as Specified in Charter)

The Eaton Vance Building, 255 State Street, Boston, Massachusetts 02109
(Address of Principal Executive Offices)

Maureen A. Gemma
Eaton Vance Management, 255 State Street, Boston, Massachusetts 02109
(Name and Address of Agent for Services)

(617) 482-8260
(Registrant’s Telephone Number, Including Area Code)

September 30
Date of Fiscal Year End

December 31, 2008
Date of Reporting Period

 

 

Item 1. Schedule of Investments

Principal Amount
(000’s omitted)				Security		Value
$	1,755			Pennsylvania Higher Educational Facilities Authority, (Temple University), (MBIA), 4.50%, 4/1/36		$	1,434,011
	500			Pennsylvania Higher Educational Facilities Authority, (University of the Sciences in Philadelphia), (AGC), 5.00%, 11/1/37			465,380
						$	4,266,937
Insured-Public Education — 18.1%
$	500			Lycoming County Authority, (Pennsylvania College of Technology), (AGC), 5.50%, 10/1/37		$	474,405
	2,400			Lycoming County Authority, (Pennsylvania College of Technology), (AMBAC), 5.25%, 5/1/32			2,155,896
	1,000			Pennsylvania Higher Educational Facilities Authority, (Clarion University Foundation), (XLCA), 5.00%, 7/1/33			729,020
	500			State Public School Building Authority, (Delaware County Community College), (FSA), 5.00%, 10/1/27			484,000
	375			State Public School Building Authority, (Delaware County Community College), (FSA), 5.00%, 10/1/29			352,376
	875			State Public School Building Authority, (Delaware County Community College), (FSA), 5.00%, 10/1/32			806,426
						$	5,002,123
Insured-Sewer Revenue — 19.7%
$	1,500			Allegheny County Sanitation Authority, (BHAC), (MBIA), 5.00%, 12/1/22(2)		$	1,527,675
	1,000			Ambridge Borough Municipal Authority, Sewer Revenue, (FSA), 4.60%, 10/15/41			779,460
	1,920			Erie Sewer Authority, (AMBAC), 0.00%, 12/1/26			627,533
	1,555			Erie Sewer Authority, Series A, (AMBAC), 0.00%, 12/1/25			548,106
	2,155			Erie Sewer Authority, Series B, (AMBAC), 0.00%, 12/1/25			759,595
	1,500			University Area Joint Authority, (MBIA), 5.00%, 11/1/26			1,225,305
						$	5,467,674
Insured-Special Tax Revenue — 18.4%
$	4,350			Pittsburgh and Allegheny County Public Auditorium Authority, (AMBAC), 5.00%, 2/1/29		$	3,591,926
	24,665			Puerto Rico Sales Tax Financing, (AMBAC), 0.00%, 8/1/54			906,192
	1,775			Puerto Rico Sales Tax Financing, (MBIA), 0.00%, 8/1/44			152,384
	3,520			Puerto Rico Sales Tax Financing, (MBIA), 0.00%, 8/1/45			280,861
	2,220			Puerto Rico Sales Tax Financing, (MBIA), 0.00%, 8/1/46			164,102
						$	5,095,465
Insured-Transportation — 23.2%
$	2,000			Allegheny County Port Authority, (FGIC), 5.00%, 3/1/25		$	1,741,280
	1,000			Allegheny County Port Authority, (FGIC), 5.00%, 3/1/29			833,160
	2,075			Pennsylvania Turnpike Commission, (FSA), 5.25%, 7/15/30			2,115,359
	2,100			Puerto Rico Highway and Transportation Authority, (AGC), (CIFG), 5.25%, 7/1/41(1)			1,732,143
						$	6,421,942
Insured-Utilities — 8.1%
$	3,000			Philadelphia Gas Works Revenue, (AMBAC), 5.00%, 10/1/37		$	2,253,720
						$	2,253,720
Insured-Water and Sewer — 0.5%
$	150			Saxonburg Water and Sewer Authority, (AGC), 5.00%, 3/1/35		$	132,831
						$	132,831
Insured-Water Revenue — 4.2%
$	1,530			Philadelphia Water and Wastewater, (AMBAC), 4.25%, 11/1/31		$	1,155,227
						$	1,155,227

Principal Amount
(000’s omitted)				Security		Value
Private Education — 9.7%
$	3,000			Pennsylvania Higher Educational Facilities Authority, (University of Pennsylvania), 4.75%, 7/15/35		$	2,676,270
						$	2,676,270
Senior Living/Life Care — 1.2%
$	200			Montgomery County Industrial Development Authority, (Foulkeways at Gwynedd), 5.00%, 12/1/24		$	142,886
	300			Montgomery County Industrial Development Authority, (Foulkeways at Gwynedd), 5.00%, 12/1/30			195,620
						$	338,506
Total Tax-Exempt Investments — 185.8%
(identified cost $61,976,217)						$	51,445,642
Auction Preferred Shares Plus Cumulative Unpaid Dividends — (78.5)%						$	(21,725,000	)
Other Assets, Less Liabilities — (7.3)%						$	(2,030,062	)
Net Assets Applicable to Common Shares — 100.0%						$	27,690,580

AGC		-  Assured Guaranty Corp.
AMBAC		-  AMBAC Financial Group, Inc.
BHAC		-  Berkshire Hathaway Assurance Corp.
CIFG		-  CIFG Assurance North America, Inc.
FGIC		-  Financial Guaranty Insurance Company
FSA		-  Financial Security Assurance, Inc.
MBIA		-  Municipal Bond Insurance Association
XLCA		-  XL Capital Assurance, Inc.
		The Fund invests primarily in debt securities issued by Pennsylvania municipalities. The ability of the issuers of the debt securities to meet their obligations may be affected by economic developments in a specific industry or municipality. In order to reduce the risk associated with such economic developments, at December 31, 2008, 87.5% of total investments are backed by bond insurance of various financial institutions and financial guaranty assurance agencies. The aggregate percentage insured by an individual financial institution ranged from 2.4% to 27.1% of total investments.
(1)		Security represents the underlying municipal bond of a tender option bond trust.
(2)		Security (or a portion thereof) has been segregated to cover margin requirements on open financial futures contracts.

A summary of financial instruments at December 31, 2008 is as follows:

Futures Contracts

Expiration						Aggregate								Net Unrealized
Date		Contracts		Position		Cost				Value				Depreciation
3/09		105 U.S. Treasury Bond		Short		$	(13,082,792	)		$	(14,494,922	)		$	(1,412,130	)

Interest Rate Swaps

Annual

Floating

Effective Date/

Notional

Fixed Rate

Rate

Termination

Net Unrealized

Counterparty

Amount

Paid By Fund

Paid To Fund

Date

Depreciation

3-month

September 14, 2009 /

JPMorgan Chase Co.

$

725,000

4.743%

USD-LIBOR-BBA

September 14, 2039

$

(273,662

)

3-month

June 11, 2009 /

Morgan Stanley Capital Services, Inc.

1,050,000

4.691

USD-LIBOR-BBA

June 11, 2039

(394,017

)

$

(667,679

)

The effective date represents the date on which the Fund and the counterparty to the interest rate swap contract begin interest payment accruals.

At December 31, 2008, the Fund had sufficient cash and/or securities to cover commitments under these contracts.

The cost and unrealized appreciation (depreciation) of investments of the Fund at December 31, 2008, as determined on a federal income tax basis, were as follows:

Aggregate cost		$	59,619,933
Gross unrealized appreciation		$	188,966
Gross unrealized depreciation			(10,223,256	)
Net unrealized depreciation		$	(10,034,290	)

The Fund adopted Financial Accounting Standards Board Statement of Financial Accounting Standards No. 157 (FAS 157), “Fair Value Measurements”, effective October 1, 2008. FAS 157 established a three-tier hierarchy to prioritize the assumptions, referred to as inputs, used in valuation techniques to measure fair value. The three-tier hierarchy of inputs is summarized in the three broad levels listed below.

	•		Level 1 – quoted prices in active markets for identical investments
	•		Level 2 – other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, credit risk, etc.)
	•		Level 3 – significant unobservable inputs (including a fund’s own assumptions in determining the fair value of investments)

The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.

At December 31, 2008, the inputs used in valuing the Fund’s investments, which are carried at value, were as follows:

						Investments in				Other Financial
				Valuation Inputs		Securities				Instruments*
Level 1				Quoted Prices		$	—			$	(1,412,130	)
Level 2				Other Significant Observable Inputs			51,445,642				(667,679	)
Level 3				Significant Unobservable Inputs			—				—
Total						$	51,445,642			$	(2,079,809	)

The Fund held no investments or other financial instruments as of September 30, 2008 whose fair value was determined using Level 3 inputs.

For information on the Fund’s policy regarding valuation of investments and other significant accounting policies, please refer to the Fund’s most recent financial statements included in its semiannual or annual report to shareholders.

Item 2. Controls and Procedures

(a) It is the conclusion of the registrant’s principal executive officer and principal financial officer that the effectiveness of the registrant’s current disclosure controls and procedures (such disclosure controls and procedures having been evaluated within 90 days of the date of this filing) provide reasonable assurance that the information required to be disclosed by the registrant on this Form N-Q has been recorded, processed, summarized and reported within the time period specified in the Commission’s rules and forms and that the information required to be disclosed by the registrant on this Form N-Q has been accumulated and communicated to the registrant’s principal executive officer and principal financial officer in order to allow timely decisions regarding required disclosure.

(b) There have been no changes in the registrant’s internal controls over financial reporting during the fiscal quarter for which the report is being filed that have materially affected, or are reasonably likely to materially affect the registrant’s internal control over financial reporting.

Signatures

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

Eaton Vance Insured Pennsylvania Municipal Bond Fund

By:		/s/ Cynthia J. Clemson   Cynthia J. Clemson
		President
Date:		February 23, 2009

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

By:		/s/ Cynthia J. Clemson   Cynthia J. Clemson
		President
Date:		February 23, 2009
By:		/s/ Barbara E. Campbell
		Barbara E. Campbell
		Treasurer
Date:		February 23, 2009