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American Modern Insurance pulls plug on lender-placed insurance business

American Modern Insurance Group (AMIG) has unveiled plans to exit from the lender-placed insurance (LPI) business.

AMIG

The LPI business offers insurance products and services to the banking and lending industries.

AMIG plans to end the operations of the business in the next 15 to 24 months due to unacceptable returns.

The LPI business has suffered in recent years because of decreasing premium volume and rate pressure.

About 325 of the company’s 1,400 employees support its LPI business and there is no clarity on how many jobs will be affected.

The company said exiting line will allow it to redeploy resources to its personal lines segment, which represented about 80% of its business in 2015.

AMIG chairman Tony Kuczinski said: "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."

AMIG provides products and services for residential property, including manufactured homes and specialty dwellings.

It also offers products for consumers in the recreational market, such as owners of boats, personal watercraft, classic cars, motorcycles, ATVs and snowmobiles.


Image: AMIG will deploy employees from LPI business in its personal lines segment. Photo: courtesy of Stuart Miles / FreeDigitalPhotos.net.