Peninsula Insurance in Salisbury, MD is shutting up shop this summer, with most of its 50 employees to be laid off.
Parent company Donegal Group said that Peninsula’s closure is set for July 02, 2018. About 40 employees will be laid off, while the remaining staff will be folded into Donegal’s headquarters in Marietta, PA, Donegal Group chief financial officer Jeffrey D. Miller told LNP in an earlier statement.
Founded in 1960, Peninsula originally focused on auto insurance, but later expanded its product line. Today, the insurer is known for its specialized program for commercial garage policies for auto repair and service businesses.
Donegal purchased Peninsula in 2004 for $23 million.
A release noted that Donegal is expecting to pay up to $2 million in employee termination costs in relation to Peninsula’s closure. The same release also noted that Peninsula’s closure will save Donegal about $3.7 million yearly in the long run.
Donegal also revealed that it has plans to sell Peninsula’s office on East Market Street following the closure.
