Following the decision to cancel all of its remaining policies by next month, the Pawtucket Mutual Insurance Co. announced it would layoff 36 employees this week due to the reduced workload.
The 155-year-old company is now employing only 33 of the 173 workers who were on its payroll last May when it was ordered into rehabilitation by the court. The company was placed in rehabilitation plan after its surplus dipped dangerously low.
The insurance company is being run under the oversight of Marilyn Shannon McConagh as rehabiliatator. McConaghy, director of the state’s Department of Business Regulation, said PMIC and its wholly-owned stock subsidiary, Narragansett Bay Insurance Co., are proceeding with plans to sell the companies or successfully runoff all claim liabilities if there is no sale.
She said two potemtial buyers remain interested.
The insurers were forced to begin canceling approximately 7,500 remaining homeowner and automobile policies in mid-term due to the high cost of reinsurance. McConaghy told Insurance Journal that reserves remain “adequate” to cover claims.
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