GAINSCO
 | This article contains promotional content. (May 2018) |
| Industry | Financial services |
|---|---|
| Founded | 1978 Fort Worth, Texas, U.S. |
| Headquarters | , |
Area served |
|
Key people | Michael S. Johnston (President and Chief Executive Officer) |
| Products |
|
Number of employees | 600 (2021) |
| Website | www |
GAINSCO is a Dallas, Texas-based holding company established in 1978 in Fort Worth, Texas by Joseph Macchia, who resigned from the enterprise in 1998 to pursue other interests.
History
[edit]GAINSCO's insurance operation was originally chartered as an underwriter of Commercial risks; operations that were discontinued in 2002. It marketed its commercial insurance through managing general agents, using “GAINSCO” and the block super-scribed letters “GA” as its primary logo identifiers. These letters were derived from the abbreviated version of the name of the company's primary insurance subsidiary at that time, General Agents Insurance Company of America, Inc. This commercial insurance company was sold in 2007.
In the late 1990s a Florida-based managing general agency and claims operation specializing in the non-standard personal automobile business established the cornerstone for GAINSCO's insurance marketing focus today. The company completed a capital restructuring in 2005 which set the base for developing its business model including transferring most operations to Dallas, Texas.
Through its insurance brand, GAINSCO Auto Insurance, the company specializes in minimum-limits personal auto coverage and actively distributes its nonstandard personal auto products through independent retail agents across the United States. Its insurance company subsidiary (domiciled in Texas) is MGA Insurance Company, Inc.
Beginning in 2005, a newly created GAINSCO logo mark incorporated a rising arrow in its name to inspire a progressively upward company. Registered marks include GAINSCO Auto Insurance[1] and Are You Driven.[2]
The Company—in early 2011—approved the voluntary suspension of its duty to file reports with the SEC and the voluntary deregistration of its common stock. The company was eligible to suspend its reporting obligations and deregister its common stock because there were fewer than 300 holders of record of the company's common stock. This decision resulted in expense savings and reduced reporting burdens.[3] The company's board of directors and named executive officers own a significant majority of the outstanding common stock.
GAINSCO's insurance operations consist of about 600 employees with about 400 employees in its Dallas home office. A separate regional field office in Miami was closed in 2023 with its employees transitioning to remote working. The balance of the population is field-based across the multiple states of operation.
The A.M. Best rating of the insurance subsidiary has increased multiple times moving from a “Vulnerable” financial strength rating of “B−” to the current “Excellent” financial strength rating of “A−”.
On December 31 2020, State Farm Insurance announced its acquisition of GAINSCO as an owned subsidiary for $400 million.[4][5]
Leadership
[edit]In 2023, Glenn W. Anderson announced his retirement as president and chief executive officer of the company. After a 49-year career in the insurance industry, including 25 years leading GAINSCO, Anderson chose to retire on December 31, 2023. Anderson started his career at Fireman’s Fund Insurance in 1974, where he served in various leadership roles in commercial insurance. He joined USF&G in 1992 as senior vice president of Commercial Lines and later served as executive vice president of USF&G Corporation and president of USF&G’s Commercial Insurance Group. In April 1998, he joined GAINSCO as president, chief executive officer, and director. During his tenure, Anderson led the repositioning of GAINSCO from a focus on commercial insurance to a successful nonstandard personal auto insurance company. Under his leadership, GAINSCO grew to serve customers in 21 states with plans to continue expanding.[citation needed]
Effective January 1, 2024, Michael S. Johnston was promoted to chief executive officer of the company and continues to serve as president of the company, as previously appointed on November 22, 2022. He was previously with GAINSCO for 30 years, and in his first 25 years, Johnston was a driving force in the Miami regional office, providing leadership for the Southeast Regional Operation. In 2018, he relocated to Dallas where he played a role in reshaping Field Operations in Dallas. He was previously named chief operating officer in May 2021.[citation needed]
References
[edit]- ^ "GAINSCO AUTO INSURANCE Trademark of GAINSCO, Inc. - Registration Number 3186968 - Serial Number 78809663 :: Justia Trademarks". trademarks.justia.com. Retrieved 2016-08-04.
- ^ "ARE YOU DRIVEN? Trademark of GAINSCO Service Corp. - Registration Number 3139665 - Serial Number 76630000 :: Justia Trademarks". trademarks.justia.com. Retrieved 2016-08-04.
- ^ "Stocks". Bloomberg.com. Retrieved 2016-08-04.
- ^ "In a First, State Farm to Acquire Texas Nonstandard Auto Insurer GAINSCO". Insurance Journal. 2020-09-17. Retrieved 2020-10-05.
- ^ "State Farm to acquire Dallas insurance company GAINSCO for $400 million". Dallas News. 2020-09-17. Retrieved 2020-10-05.