Insurer selling Melville auto unit

A Minnesota-based insurance company has agreed to sell its auto insurance business, including its Melville location, which employs 103 people.

Pending regulatory approval, OneBeacon Insurance Group will sell its AutoOne unit, including the Melville operation, to Interboro Holdings of Mineola.

It isn't clear if the new owner will keep all the local employees. But OneBeacon spokeswoman Carmen Durate, said Monday, "They definitely plan to hire many of our employees."

Her comment echoed an August news release announcing the sale that said that as part of the transaction OneBeacon "will transfer substantially all of the AutoOne infrastructure, including staff, systems and office space."

Interboro didn't return repeated phone calls seeking comment.

OneBeacon hopes to close the sale in the fourth quarter, Duarte said. The company filed a mandatory state notice on Friday that mentioned the sale and the number of employees affected. Companies with at least 50 full-time employees have to file a notice under the Worker Adjustment and Retraining Notification act, or WARN, in advance of a mass layoff or closing.

OneBeacon formed the AutoOne division in 2001 to provide products and services to high-risk markets primarily in New York and New Jersey.

"This transaction allows us to continue our focus on our higher performing specialty operation, while aligning AutoOne with an owner committed to serving the personal automobile insurance market," chief executive Mike Miller said in the news release.