GuideOne Insurance will close seven of its 12 national claims offices next year, and will sell a portion of its high-risk auto insurance to GMAC Insurance. GMAC, based in Winston-Salem, N.C., is expected to buy GuideOne’s nonstandard auto business in 11 states. Terms were not disclosed.
The business represents about $50 million in annual premiums. Last month, GuideOne said it would exit a number of business lines to focus on core insurance niches.
The firm projected 200 layoffs at corporate headquarters and more cuts in field offices nationwide. GuideOne employs about 1,800 nationally. Over the last year, the company acquired Carnegie Holding of Camariollo, Calif., a specialty insurance holding company; Personal Service Insurance Co. of Columbus, Ohio, an auto insurance company for high-risk drivers; an American Summit Insurance Co. and J.E. Murphy Cos. of Scottsdale, Ariz., mobile home insurance companies; and National Lloyds Insurance Co. of Waco., a specialty home insurance company, including mobile homes.
Employees of National Lloyd’s have declined comment on the matter, and GuideOne executives have refused to discuss how the layoffs will affect the recent acquisitions. But one source close to the issue told the Insurance Journal the four acquisitions will most likely not experience layoffs, but would probably be sold.
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