AmFam discontinues major housing programs and offers employee packages

American Family Insurance Group announced that St Joseph, Missouri employees were offered separation packages or new roles after the company discontinued its large housing programs within its business lines.

A spokesperson for the insurer did not reveal how many employees were affected at the Missouri location.

The move is part of a broader strategy that aims to improve the long-term viability of the company’s commercial lines and position its network of exclusive agents for growth, according to a report from AM Best.

The large housing programs affected include coverage for condominium and townhouse associations, homeowners associations, apartments and bed and breakfast establishments. These coverages will no longer be offered across American Family’s commercial product line.

However, the company reported that coverage will still be available through its Brokerage and Alliances area and partner operators. The company further stated that it will work with non-renewing customers to provide alternative solutions, while continuing to offer coverage for rental properties and condominium unit rentals.

In a statement, American Family Insurance said employees affected by the changes at St. Joseph 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 pay 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 that will expand Sentry’s presence in the nonstandard automotive market.

The deal includes $1.1 billion in cash, as well as assumed liabilities and required capital. The acquisition is expected to be completed by the end of 2024, pending regulatory approval.

In September, American Family Insurance Group also revealed plans to increase the minimum wage to $25 per hour starting in 2025. The company said the increase is part of its effort to attract and retain talent.

Additionally, American Family announced improvements to its parental leave policy, expanding paid leave to 16 weeks for mothers giving birth and eight weeks for other parents, including foster and adoptive parents.

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