AmFam discontinues large habitational programs, offers employee packages
AmFam discontinues large habitational programs, offers employee packages | Insurance Business America
Insurance News
AmFam discontinues large habitational programs, offers employee packages
Employees offered separation packages or new roles as part of the company’s shift
Insurance News
By
Kenneth Araullo
The American Family Insurance Group has announced that employees at its St Joseph, Mo., location have been offered separation packages or new roles after the company discontinued its large habitational programs within its commercial lines.
A spokesperson for the insurer did not disclose how many employees were impacted at the Missouri location.
The change is part of a broader strategy aimed at improving the long-term viability of the company’s commercial lines and positioning its exclusive agent network for growth, according to a report from AM Best.
The large habitational programs affected include coverages for condominium and townhouse associations, homeowners associations, apartments, and bed & breakfast establishments. These coverages will no longer be offered under American Family’s commercial product line.
However, the company said coverage will still be available through its Brokerage and Alliances area and partner carriers. The company also stated that it will work with non-renewing customers to provide alternative solutions, while continuing to offer coverage for rental dwellings and condominium unit rentals.
In a statement, American Family Insurance said that employees affected by the changes in St. Joseph either opted for separation packages, which included financial support, benefits, and outplacement services, or accepted other roles within the company. No employees were subject to severance or involuntary layoffs as part of this transition.
Last month, Sentry Insurance announced an agreement to acquire The General from American Family Insurance in a $1.7 billion transaction, which will extend Sentry’s presence in the nonstandard auto market.
The deal includes $1.1 billion in cash, as well as assumed liabilities and required capital. The acquisition is expected to close by the end of 2024, pending regulatory approval.
In September, American Family Insurance Group also revealed plans to raise its minimum wage to $25 per hour starting in 2025. The company stated that the increase is part of its effort to attract and retain talent.
In addition, American Family announced enhancements to its parental leave policy, extending paid leave to 16 weeks for birthing mothers and eight weeks for other parents, including foster and adoptive parents.
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