Alfa Alliance has not been writing new insurance policies in Virginia since Aug. 1. (Michael Schwartz)
A large insurance company is shutting down operations of its main Virginia brand and will close its 52-person office in Innsbrook.
Alfa Alliance, an arm of Montgomery, Alabama-based Alfa Insurance Group, no longer is writing new policies in the state, effective Aug. 1, ending a 17-year run that began when it entered the market by acquiring the former Virginia Mutual Insurance Co.
Alfa spokesman Jeff Helms confirmed that Alfa Alliance is exiting Virginia, and that its operations and employees in Henrico will be phased out over time.
The local office at 4480 Cox Road – Alfa’s only office in the state – is run by Ken Gee, who referred inquiries to corporate.
Helms said the decision was based on the financial performance of Alfa Alliance, which failed to sustain profitability.
“This is a not a decision that was made lightly,” Helms said. “It’s been something we’ve been working on for a number of years and tried different strategies to make it a consistently profitable business and be sustainable. And unfortunately, we just have not been able to get it to that place.”
Helms said the Innsbrook office had 52 employees when the company began winding down process Aug. 1.
“It’s a process that’s going to take a few months,” he said. “There are employees that will continue to be there until the operation is wound down.”
Alfa bought its way into the Virginia market in 2001 when it absorbed Virginia Mutual. It later did away with the Virginia Mutual brand in favor of Alfa Alliance in 2006.
Alfa Alliance offered property and casualty policies, which included commercial auto, homeowners and private auto. In 2017, it reported a total of $54 million in written premiums in Virginia, according the State Corporation Commission.
However the company struggled to raise its market share in the state, as it was unable to gain more than 1 percent of the market in any of the policy segments it sold here.
By comparison, State Farm, the state’s market-share leader in 2017, reported more than $1 billion in written premiums between its auto and fire and casualty arms.
Virginia had more than $13 billion in written premiums in 2017 from dozens of competitors.
Alfa Alliance policies were sold exclusively through independent agents around Virginia. The company gave those agents 90 days’ notice that it was ceasing operations in a letter sent Aug. 1.
Katha Treanor, spokeswoman for the SCC, said the state Bureau of Insurance has been informed of Alfa Alliance’s closure. She said the bureau will help ensure an orderly wind-down for the protection of policyholders.
“Alfa’s policies will be nonrenewed and the bureau anticipates it will take 12-24 months for those to run their course,” Treanor said.
Alfa Alliance has not been writing new insurance policies in Virginia since Aug. 1. (Michael Schwartz)
A large insurance company is shutting down operations of its main Virginia brand and will close its 52-person office in Innsbrook.
Alfa Alliance, an arm of Montgomery, Alabama-based Alfa Insurance Group, no longer is writing new policies in the state, effective Aug. 1, ending a 17-year run that began when it entered the market by acquiring the former Virginia Mutual Insurance Co.
Alfa spokesman Jeff Helms confirmed that Alfa Alliance is exiting Virginia, and that its operations and employees in Henrico will be phased out over time.
The local office at 4480 Cox Road – Alfa’s only office in the state – is run by Ken Gee, who referred inquiries to corporate.
Helms said the decision was based on the financial performance of Alfa Alliance, which failed to sustain profitability.
“This is a not a decision that was made lightly,” Helms said. “It’s been something we’ve been working on for a number of years and tried different strategies to make it a consistently profitable business and be sustainable. And unfortunately, we just have not been able to get it to that place.”
Helms said the Innsbrook office had 52 employees when the company began winding down process Aug. 1.
“It’s a process that’s going to take a few months,” he said. “There are employees that will continue to be there until the operation is wound down.”
Alfa bought its way into the Virginia market in 2001 when it absorbed Virginia Mutual. It later did away with the Virginia Mutual brand in favor of Alfa Alliance in 2006.
Alfa Alliance offered property and casualty policies, which included commercial auto, homeowners and private auto. In 2017, it reported a total of $54 million in written premiums in Virginia, according the State Corporation Commission.
However the company struggled to raise its market share in the state, as it was unable to gain more than 1 percent of the market in any of the policy segments it sold here.
By comparison, State Farm, the state’s market-share leader in 2017, reported more than $1 billion in written premiums between its auto and fire and casualty arms.
Virginia had more than $13 billion in written premiums in 2017 from dozens of competitors.
Alfa Alliance policies were sold exclusively through independent agents around Virginia. The company gave those agents 90 days’ notice that it was ceasing operations in a letter sent Aug. 1.
Katha Treanor, spokeswoman for the SCC, said the state Bureau of Insurance has been informed of Alfa Alliance’s closure. She said the bureau will help ensure an orderly wind-down for the protection of policyholders.
“Alfa’s policies will be nonrenewed and the bureau anticipates it will take 12-24 months for those to run their course,” Treanor said.
great news from my interactions with them, and their reputation.