AMELIA, Ohio, Feb. 22, 2016 /PRNewswire/ -- American Modern Insurance Group today announced it will be exiting the lender-placed insurance (LPI) business, which provides the banking and lending industries with insurance products and services.
The LPI business has been facing a challenging environment, which includes decreasing premium volume and ongoing rate pressure. The company made this decision as it has become clear this business model can no longer achieve acceptable returns in the foreseeable future.
Exiting this line will enable the company to redeploy resources to its profitable personal lines segment, where it is currently implementing a state-of-the art business processing platform. The personal lines segment represented about 80 percent of American Modern's business in 2015.
"This will allow us to better focus our efforts on delivering highly innovative, complementary specialty personal lines products and services, which are the foundation of the company. It is where we started, where we see significant opportunities and where we can produce the greatest future results," said Tony Kuczinski, Chairman of American Modern.
"The most difficult part of this decision is the impact it will have on staff and partners," said Kuczinski. "All affected associates will be treated fairly and with respect and, where possible, redeployed to other business areas." He said a comprehensive benefits package will be available as well as outplacement and other support services.
Approximately 325 of American Modern's 1,400 employees support its lender-placed insurance business, but it is unknown how many jobs will ultimately be impacted. The company will wind down this business over the next 15 to 24 months, during which time a certain amount of attrition and internal redeployment will occur.
About American Modern Insurance Group
American Modern is a widely recognized specialty insurance leader that delivers products and services for residential property-- like manufactured homes and specialty dwellings--and for consumers in the recreational market, including owners of boats, personal watercraft, classic cars, motorcycles, ATVs and snowmobiles. The company also provides products and services to protect financial institutions and their customers. American Modern is licensed in all 50 states through six property and casualty companies, which are part of an insurance group that enjoys an A+ (superior) rating by the A.M. Best Company, a leading independent insurance analyst. These companies insure more than 1.7 million policyholders countrywide and have been recognized as a Best Place to Work by the Cincinnati Business Courier and a Top Workplace by the Cincinnati Enquirer. Policies are written by one of the licensed insurers of American Modern Insurance Group, Inc., including American Modern Home Insurance company d/b/a in CA American Modern Insurance Company (Lic.No 2222-8).
SOURCE American Modern Insurance Group