OneAmerica lays off 114 workers-WEB ONLY

Even the strong are cutting jobs.

OneAmerica Financial Partners Inc., one of few life insurance companies not crippled by investment losses, has laid off 114 workers, the Indianapolis-based company announced today.

Of the people cut, 101 worked in Indianapolis. OneAmerica now employs more than 1,200 in Indianapolis and nearly 300 more around the country. All laid-off employees received severance and outplacement services.

The company also said it was cutting other “non-salary expenses” such as travel costs.

The company has yet to report year-end financial results, but company officials indicated that profit fell last year and that they expect revenue to fall this year.

“As we adjust to the struggling financial markets, our stewardship responsibility also dictates that we bring our expenses in line with projected revenues,” CEO Dayton Molendorp said in a statement.

As of Sept. 30, OneAmerica had avoided the worst investment losses sustained by other life insurers. It had investment losses of $7 million through the first nine months of 2008, out of a total portfolio of $9.7 billion.

As recently as February, OneAmerica had its financial strength rating affirmed by Standard & Poor’s Ratings Service.

But the company’s profits were trending down even before the economy really soured in the fourth quarter. As of Sept. 30, OneAmerica profit totaled nearly $49 million, down 29 percent from the first nine months of the previous year.

“We were solidly profitable in 2008 despite earnings being lower than the previous year due to the significant stock market decline,” said Chief Financial Officer Scott Davison. “The measures announced today will help us remain a financially sound organization that is positioned to keep its commitments to customers.”