Jobs in jeopardy at American Modern Insurance

Posted at 2:53 PM, Feb 23, 2016
and last updated 2016-02-23 18:03:59-05

AMELIA, Ohio -- American Modern Insurance is exiting one of its product lines, potentially putting up to 325 local jobs in jeopardy.

The Amelia-based company announced Tuesday it is leaving the lender-placed insurance -- or 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," company officials said in a news released. "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, officials said. 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," said American Modern Chairman Tony Kuczinski.

About 325 of American Modern's 1,400 employees support its lender-placed insurance business, but officials there said 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, officials said.