Indiana Lumbermens Mutual Insurance Co. (ILM) and Pennsylvania Lumbermens Mutual Insurance Co. (PLMI) executed agreements to affiliate their companies, which will result in common management, shared services and pooled reinsurance, the companies announced July 10.
The headquarters of the newly affiliated group will be in Philadelphia, with significant operations in Indianapolis. John F. Wolf, currently president and CEO of ILM, will retire and join the board of directors of both companies.
"This combination is an opportunity to capitalize on the strengths of each organization for the benefit of all,” said PLMI president and CEO John K. Smith. “It will allow us to offer a broader and financially stronger market for the insureds of both companies, and a more secure workplace for employees.”
"I truly believe that we are building the premiere property and casualty insurance marketplace for wood products and building material businesses in the United States,” said Smith who will also become CEO of the combined organization.
Wolf said, “The potential for a new service center is something that I am particularly excited about, since it will capitalize on many of the workforce strengths that we have here in Indianapolis."
The affiliation agreements are subject to approval by the applicable departments of insurance, a process that management expects will be successfully completed by year's end. Management has consulted with the A.M. Best Company, and anticipates that the affiliated group and its members will be assigned a Financial Strength Rating of A-.