Lafayette Life’s Exit of Group Life and Disability Will Affect 30 Employees

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October 9, 2008 Thursday 03:57 PM EST

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Lafayette Life's Exit of Group Life and Disability Will Affect 30 Employees

Fran Lysiak

LAFAYETTE, Ind.

Lafayette Life Insurance Co. said it's no longer offering group life and disability insurance because it wants to focus on its core lines of business. American United Life Insurance Co. will become the carrier for most of its existing group insurance policyholders, the company said.

With the change, about 30 Lafayette Life employees working in its group division in Lafayette, Ind., and other states will be affected starting in December 2008.

"We will continue our efforts to minimize the number of colleagues who have to leave us and will do our best to provide the rest with help in finding new employment in Lafayette, Indianapolis, or other locations," said William F. Olds, senior vice president and chief operating officer of Lafayette Life, in a statement.

Lafayette Life, a unit of Cincinnati-based Western & Southern Financial Group, sells life insurance and annuities to individuals and small businesses through multiple distribution channels. American United Life, a unit of OneAmerica, Indianapolis, sells life insurance, annuities and employee benefits.

"This step allows us to apply all our resources and efforts to growing our very successful core lines of business - individual life insurance and annuities, group annuities, and retirement services," said Jerry B. Stillwell, chief executive of Lafayette Life, in a statement. "The group life and disability insurance business, where we have a very small presence, is extremely competitive and outside our major areas of concentration."

American United has a long history in the group insurance business, he said.

Lafayette Life said it will work with brokers, policyholders and American United to let policyholders apply for group insurance coverage with American United and transition the group insurance policies to American United by the end of this year.

Lafayette Life currently has a Best Financial Strength Rating of A++ (Superior), while American United Life currently has a Best Financial Strength Rating of A (Excellent).

(By Fran Matso Lysiak, senior associate editor, BestWeek: [email protected])

October 10, 2008