Tuesday, January 10, 2017

More layoffs coming for Greensboro; "Job Cuts in Store as Arch Absorbs United Guaranty"

"There will be some job cuts and United Guaranty Corp. will eventually be rebranded now that the purchase of the private mortgage insurer by Arch Capital Group Ltd. has been completed.

There will be cuts in the sales force. Prior to the completion of the deal, UG had a 100-person sales organization, while Arch had a 75-person team.

"Having a 175-sales person team for a sales operation for any MI company is probably way too many people. UG had the right size sales force for the size operation they were," [said Andrew Rippert, the CEO of Arch Capital's global mortgage group]...

..."Even if it was one and one equals two from a market share perspective, which there is a chance it could be, you still don't need a sales force the size of the combined sales force of both organizations," Rippert said. "It still doesn't require that number of people."

Prior to the deal, Arch Global MI had 400 employees and the transaction added about another 1,000, Rippert said."