American Family has confirmed recent reports of layoffs, saying that it is “working to increase efficiency and manage costs” across its five insurance companies.

The insurer did not provide specifics regarding the amount of employees, positions, or companies most affected but in an email to Insurance Journal, American Family said it has been “bringing together areas that provide similar functions across our companies.” American Family has acquired or merged with four other insurance companies since 2012, and has 12,500 employees across all companies.

“These efforts have had some impact on positions across our companies nationally,” the company said. “Impacted employees are treated with care and respect, including through financial and outplacement support.”

Madison, Wisconsin-based American Family said that improving efficiencies allow it to “reinvest in products and services and deliver strong value to customers,” and added that is a “stable employer” that expects to continue hiring where needed.

The five insurance companies that comprise the American Family Insurance group are American Family Insurance; CONNECT, powered by American Family Insurance; auto insurer The General; Homesite; and Florida-based Main Street America Insurance Co. The group sells multiple brands in all 50 states through a variety of channels including American Family agents, independent agents, call centers, partners, and online.

Earlier this month, insurance rating agency AM Best affirmed the financial strength rating of A (Excellent) of American Family Insurance and its affiliates. American Family Insurance in March reported a 2022 net underwriting loss of $1.5 billion in its property/casualty lines, up from an underwriting loss of $460 million in 2021. The company cited the impacts of inflation and catastrophes on loss costs to explain the jump. The group reported a 2022 combined ratio of 111.4 for all P/C lines—auto, homeowners and commercial—up from 103.8 in 2021.

This article was originally published by Insurance Journal. Reporter Chad Hemenway is the National Editor of Insurance Journal.