Calabasas, Calif.-based Amwest Insurance Group Inc. announced it will reduce its work force from 347 to about 255 and close branches as part of a strategic business reorganization plan. Under this plan, the company’s operations will be restructured in line with its renewed a focus on smaller, more specialized surety accounts.
While Amwest has historically operated through 29 branches nationwide, its business will henceforth be concentrated in five regional offices: California, Illinois, Texas and New York.
The company announced it is negotiating the terms of its outstanding loan with Union Bank of California and restructuring its reinsurance program. Amwest also said it will take a charge in the first quarter 2001 in connection with the restructuring.
Chairman and interim CEO Charles L. Schultz stated that the restructuring plan was designed to get the company’s focus back on the business which it wrote profitably in the past. Amwest Insurance Group is an insurance holding company which underwrites surety and property and casualty insurance through Amwest Surety Insurance Company and Far West Insurance Company.