Nevada workers’ comp insurer to cut 14 percent of jobs

By Steve Green

Friday, Jan. 23, 2009 | 11 a.m.

A big Nevada insurance company said today it's cutting its workforce by about 14 percent.

Employers Holdings Inc., parent of Employers Insurance Company of Nevada, said the layoffs are in response to the economic downturn and are part of a restructuring plan following the company's acquisition of AmCOMP Inc.

Officials could not immediately be reached to say how many workers would lose their jobs. The company didn't say if the reductions would affect its office in Henderson near Interstate 215 and St. Rose Parkway.

In regulatory filings before the AmCOMP purchase, Employers last year said it had 665 employees in Nevada and other states and that it leased about 45,000 square feet of office space in Henderson.

Employers, which provides workers' compensation insurance to employers, said it's the No. 2 workers' compensation insurer in Nevada.

The company said previous initiatives and today's actions, including a consolidation of corporate functions into its Reno headquarters, should result in pre-tax savings of approximately $12 million in 2009 and annual savings of $20 to $22 million beginning in 2010.

"The strategic restructuring plan announced today will enable Employers to maximize the value of the AmCOMP acquisition, including staffing reductions consistent with the objectives established when we announced the transaction in January 2008," said Chief Executive Douglas Dirks.

"Given the unprecedented economic climate we and our customers face, additional measures are being taken that we believe are necessary to continue providing competitively priced products and quality services," he said. "These decisions are carefully considered and difficult to make, but required given the current environment."

The job eliminations are anticipated to be in large part complete by mid-year 2009 and all of those affected will be eligible for severance benefits and outplacement support, the company said.

Employers said the $223.5 million acquisition of AmCOMP of North Palm Beach, Fla., expanded its workers' compensation insurance operations to 29 states and 17 branch offices. While Employers did business primarily in the West, AmCOMP's business was mainly in the Southeast and Midwest, Employers said.

Steve Green can be reached at 990-7714 or [email protected].