OLDWICK, N.J.--(BUSINESS WIRE)--A.M. Best has revised the outlooks to stable from negative and affirmed the Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Ratings of “a-” of Pennsylvania Lumbermens Mutual Insurance Company (PLM) (Philadelphia, PA), Indiana Lumbermens Mutual Insurance Company (ILM) and ILM’s subsidiary, National Building Material Assurance Company (NBMA), collectively known as Pennsylvania Lumbermens Group, which operate under an inter-company pooling agreement. ILM and its subsidiary are domiciled in Indianapolis, IN.
The Credit Ratings (ratings) reflect Pennsylvania Lumbermens Group’s balance sheet strength, which A.M. Best categorizes as very strong, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management.
The outlook revisions to stable reflect the group’s very strong balance sheet strength and adequate results over the past three years, with operating income reported since 2015, which are expected to continue in the near term. Driving more favorable performance in recent years has been improved underwriting results due to management’s commitment to corrective actions taken, including rate increases and a tightening of terms and conditions, as well as a firming of market conditions in the wood products and building materials niche.
Positive rating actions could occur if underwriting and operating results show a sustained favorable trend. Negative rating actions could occur if underwriting and operating results are not maintained at recently more favorable levels as expected based on management’s projections, or if risk-adjusted capitalization materially weakens.
This press release relates to Credit Ratings that have been published on A.M. Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see A.M. Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Understanding Best’s Credit Ratings. For information on the proper media use of Best’s Credit Ratings and A.M. Best press releases, please view Guide for Media - Proper Use of Best’s Credit Ratings and A.M. Best Rating Action Press Releases.
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