American Family is extending its suspension of new private passenger auto business in Michigan for another year, citing an inability to achieve sustainable profitability in the state.

According to a filing submitted to the Michigan Department of Insurance and Financial Services on June 12, 2026, the insurer plans to continue its pause on writing new private passenger auto policies from September 1, 2026, through September 1, 2027. The company first suspended new business in Michigan under an earlier filing submitted in 2025.

In a letter signed by Vice President of Auto Darryl Osman, the company stated that it has “struggled with profitability and volatility in Michigan with its Private Passenger Automobile insurance line for several years” and that efforts to improve results “have not achieved the desired goals.”

As of April 30, 2026, American Family Connect had 4,815 private passenger auto policies in force in Michigan, representing approximately $13.5 million in direct written premium over the preceding 12 months.

Despite reporting improved underwriting results in 2025, the carrier indicated that the business remains too small and volatile to justify reopening the market. The filing shows a 2025 direct incurred loss and LAE ratio of 58.3% and a combined ratio of 74.1%, a significant improvement from prior years that included combined ratios of 178.9% in 2022, 127.6% in 2023, and 113.4% in 2024.

American Family Connect characterized itself as a minor participant in Michigan’s auto market, noting that its market share is below 0.11%. The company argued that continuing the suspension “will not adversely affect the maintenance of a competitive market.”

The filing states that existing policyholders will not be affected by the decision. American Family Connect will continue servicing current customers and handling claims while the suspension remains in place.