Best’s News & Research Service - February 15, 2024 11:25 AM (EST)
AM Best Affirms Credit Ratings of Pennsylvania Lumbermens Mutual Insurance Company
- February 15, 2024 11:25 AM (EST)
//BestWire// - AM Best has affirmed the Financial Strength Rating (FSR) of A- (Excellent) and the Long-Term Issuer Credit Rating (Long-Term ICR) of “a-” (Excellent) of Pennsylvania Lumbermens Mutual Insurance Company (PLM) (Philadelphia, PA). The outlook of these Credit Ratings (ratings) is stable.
The ratings of PLM reflect its balance sheet strength, which AM Best assesses as very strong, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management (ERM).
Concurrently, AM Best has withdrawn the FSR of A- (Excellent) and the Long-Term ICR of “a-” (Excellent) of Indiana Lumbermens Insurance Company (ILIC) (Indianapolis, IN). At the time of the ratings withdrawal the outlooks were stable. The ratings withdrawal is due to the sale of ILIC as a shell to another party in December 2023. AM Best’s procedure is for a final rating opinion to be produced in conjunction with the rating withdrawal. However, a final rating opinion could not be produced for ILIC, as it was effectively sold as a shell.
The ratings of PLM recognize the company’s very strong level of balance sheet strength and profitable operating results in recent years. More favorable underwriting performance has been evident in recent years due to management’s commitment to underwriting actions taken, including rate increases and a tightening of terms and conditions, as the insurer continues to demonstrate its deep expertise in the wood products and building materials niche despite challenging economic conditions.
This press release relates to Credit Ratings that have been published on AM 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 AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best's Credit Ratings. For information on the proper use of Best’s Credit Ratings, Best’s Performance Assessments, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments. AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City.