Cedar Rapids-based United Fire Group said it will turn over much of its personal lines of insurance — about six percent of its overall business — to Nationwide Mutual Insurance, effective in the third quarter.
Personal lines of insurance includes homeowner’s and renter’s, automobile, health and other types of property-and-casualty coverage.
“UFG’s decision to exit the personal lines market was purely a strategic one as we concentrate our efforts on the growth and profitability of our core commercial lines business, including commercial insurance, excess and surplus lines insurance and surety bonds,” UFG President and CEO Randy Ramlo said in a statement.
The move is not related to market conditions from the COVID-19 pandemic, the company said on its website.
UFG works through independent insurance agents, who will continue to handle the individual policies. UFG will retain the 12 employees who work in its personal lines division.
Personal lines policies in Florida and Louisiana are not part of the agreement. Nationwide is headquartered in Columbus, Ohio.