OLDWICK, N.J.--(BUSINESS WIRE)--A.M. Best has placed under review with developing implications the Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Rating of “a-” of National Building Material Assurance Company (NBMA) (Indianapolis, IN).
The rating action follows the recent disclosure that NBMA’s parent, Indiana Lumbermens Mutual Insurance Company (ILM), has entered into a definitive agreement to sell its 100% ownership in NBMA to Clear Blue Specialty Insurance Company. The transaction is expected to close on or after June 30, 2018, subject to regulatory approvals.
Prior to the sale, the inter-company pooling agreement between Pennsylvania Lumbermens Mutual Insurance Company, ILM and NBMA, collectively known as Pennsylvania Lumbermens Group, will be revised, making NBMA a clean shell at the time of sale.
The under review with developing implications status for NBMA reflects the likelihood that A.M. Best will, in accordance with its policies and procedures, withdraw the ratings of NBMA once the pooling agreement is amended and A.M. Best completes its review of the revised agreement.
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