Pemco to cut 31 IT jobs

Pemco Insurance has sold its electronic payment-processing business and plans to cut 31 jobs from its information-technology staff as it wrestles with increasing competition in its only market, Washington.

The Seattle-based constellation of financial-services firms notified employees Thursday that 31 local IT positions would be eliminated by January, said spokesman Jon Osterberg. The cuts are the result of an efficiency assessment that began in September, he said, and "we went in anticipating there would be some reduction."

The 845-employee company this week also completed the sale of Pemco Technologies, which processes ATM and debit or credit-card transactions for credit unions and others. That unit, which employs more than 100 people nationwide, was acquired by Jack Henry & Associates of Monett, Mo., for an undisclosed amount.

"We did this because Pemco is actively taking steps to narrow our focus to our core business competence, which is insurance," Osterberg said. The company is contending with stronger marketing efforts from national players, he said.

The Pemco group includes a mutual-insurance company that sells auto, home and life policies to the general public, and a separate company that insures educators.