Unity Mutual looks to rebuild after downsizing

CNY Business Journal (1996+), Apr 4, 2008 by Martino, Kristina

BOTW

PROFILE

Patrick A. Mannion

President and CEO

Unity Mutual Life Insurance Co.

* Age: 51

* Education: Bachelor's degree from University of Notre Dame; M.B.A. from Syracuse University

* Residence: Fayetteville

* Family: Wife; six children

* Year became CEO: 1998

* Favorite part of job: Constant change and challenge in a dynamic industry and competitive environment

* Hobbies: Emergency-medical services and firefighting

* Favorite book: "The March of Folly" by Barbara Tuckman

* Favorite movie: "Dr. Strangelove"

BOTW FACTS

Unity Mutual Life Insurance Co.

507 Plum St.

Syracuse, N.Y. 13204

Phone: (315) 448-7000

Fax: (315) 448-7100

www.unitylife.com

* Type of business: Insurance company

* Products/services offered: Small-face life insurance; also services products sold in prior years including annuities, whole life, universal life, and accident and health insurances

* Year founded: 1903

* Employees: 80

* Company officers: Patrick A. Mannion, president and CEO; Joseph Massella, executive vice president; Phil Holstein, executive vice president

* Annual sales: $8.1 million in 2007

SYRACUSE - In the aftermath of Unity Mutual Life Insurance Co.'s recently announced plan to cut nearly half its staff in the next six to eight months, a company official says it looks forward to rebuilding once the transition is completed.

Rebuilding efforts include expanding Unity Mutual's client base and offering more products in an effort to strengthen the 105-year-old company.

As The Business Journal first reported in its March 24 e-mail news alert, Unity Mutual, located at 507 Plum St. in Syracuse, plans to eliminate 35 of its 80 positions to reduce operating costs by 10 percent to 15 percent annually. Jobs to be cut include customer-service, claims, commission, and some technical staff.

"These cuts are going to be very painful for Unity but were looking at this phase in our history as a rebuilding phase," says Jeanne Clarke, senior vice president of insurance operations at Unity Mutual.

The company plans to transfer the eliminated job functions to Wisconsin-based Madison National Life Insurance Co., a subsidiary of Independence Holding Company (NYSE: H).

In addition to the job cuts, Unity Mutual also plans to reinsure up to 25 percent of its existing, life insurance and annuity business with Madison National and also plans to reinvest future life-insurance policies with the company. Unity Mutual says that this move will boost its capital from $19 million to $28 million.

In 2007, Unity Mutual generated $8.1 million in sales. It currently handles about 225,000 policies and has about $300 million in assets. The company's primary product is low face-amount life insurance.

Until the job cuts are completed, Unity Mutual will invest much of its time into ensuring the transition goes smoothly

"Our most important goal is to provide a seamless transition to Madison National Life for our policyholders. We at Unity need to be sure that our policyholders receive the same level of service that, they do today," Clarke says. "This will be our focus for the next six to 12 months."

Reinsurance of existing policies began April 1 and once the cuts are completed, Unity Mutual will launch its rebuilding phase, Clarke says.

"Unity will continue to focus on the final expense market and continue to build new relationships that will allow us continued success in the market," Clarke says.

Clarke contends that Unity Mutual employees will focus on maintaining relationships with existing sales agents while looking to open sales to others.

"We will also consider adding additional insurance products to our portfolio," Clarke says. She adds that it's too early to provide more detailed information about this plan.

Unity Mutual's executive, accounting, marketing, and staff support will remain at the Plum Street office.

Unity Mutual describes itself as a "final-expense life-insurance company." The insurance covers an older person's funeral expenses and provides a way to leave behind money for family members.

"Since the company's inception, we have focused on providing insurance for the lower and lower-to-middle income families," Clarke says.

She explains that the average size policy sold by Unity Mutual is $10,000.

The company also services products sold in prior years including annuities, whole life, universal life, and accident and health insurance.

Unity Mutual leases space at the Plum Street office. Clarke couldn't provide the square footage of the office.

Patrick A. Mannion is president and CEO of Unity Mutual. The company's more than 200,000 policyholders own Unity Mutual.