WDBJ7 Roanoke News and Weather NRV Lynchburg Danville | Shenandoah Life officials speak out about merger talks

Shenandoah Life officials speak out about merger talks

It was business as usual at Shenandoah Life, just hours after it was announced the company may be sold.

Leaders say their survival depends on it.

"What we see is that the economic environment and the investment environment in particular is extremely challenging right now," says Cynthia Light, a Shenandoah Life spokesperson.

Part of the blame has to do with the meltdown of Fannie Mae and Freddie Mac.

Shenandoah Life invested heavily in both and as a result the company had a net loss of more than $61 million dollars compared to the net income of nearly $5 million dollars last year.

Shenandoah Life has been in Roanoke since 1914 and at it's Brambleton Avenue location since 1949. Company representatives are quick to stress the company is going nowhere, that it plans to stay right here in Roanoke.

Shenandoah Life believes a merger will strengthen the company and may even lead to an expansion in Roanoke.

Area business leaders say we can expect more of these mergers in the future.

"In the face of the kind of economic turmoil we have in you have to look at the opportunities what they have done. They have looked for and have found an opportunity that will strengthen and keep them in the region," says Joyce Waugh with the Roanoke Regional Chamber of Commerce.

It's unclear how many, if any of the nearly 300 employees at Shenandoah Life will lose their jobs.

"I think perhaps they may be nervous, but I think the overall sentiment in the building is positive," says Light.

The company says its more than 400,000 policy holders will see no immediate changes if the merger goes through.

The hope is to have it finalized by the middle of next year.