About one-third of the employees at Shenandoah Life Insurance Co. in Roanoke have left since the company's plunge into financial hardship brought about the intervention of state regulators, according to a company memo [PDF] provided this week to The Roanoke Times.

"Attrition has accounted for the voluntary departures of approximately one-third of Shenandoah employees since the start of receivership," said the Feb. 12 memo to company insurance agents marking the one-year anniversary of the takeover.

The last time the Roanoke-based company discussed its work force, a spokeswoman said in the fall of 2008 that there were 280 employees. The departure of one-third would leave approximately 185.

The memo, which was not signed and came from the receivership team, was provided to the newspaper by an agent who asked that he not be identified because of a concern it might damage his relationship with the company.

Don Beatty, on-site manager for the Virginia State Corporation Commission, declined to elaborate on the memo.

The memo said the remainder of the work force can carry out all necessary functions to support the company's return to normal operations.

The memo also touches on the hardship faced by some policyholders who contend they have been improperly denied access to their money to meet urgent expenses.

Lucy Gubenski of Philadelphia, for example, said she wants to tap her life savings currently held by Shenandoah Life in an annuity to replace a 15-year-old car. The company declined. Her appeal is pending.

"The deputy receiver and receivership team recognize that certain receivership decisions have imposed burdens on the Company's valued policyholders and its marketing force," the memo said.

"These decisions have been necessary for rehabilitation efforts, and have been implemented so as to cause the minimum disruption possible under the circumstances. "

Regulators said one of their more important efforts has been the pursuit of a "strategic alliance or acquisition."

One such deal, attempted before state regulators took control, fell through.

Shenandoah said in November 2008 it would merge with Indiana-based American United Mutual Insurance Holding Co. for growth and stability, but American United later withdrew.

In October, Assurant Employee Benefits of Kansas City, Mo., purchased Shenandoah's group life, accidental death and dismemberment, dental, disability and vision insurance businesses for $500,000.

Regulators are now at work on other strategic moves. The memo reports there has been progress toward an alliance or acquisition.

If successful, those efforts "will preserve the operations in Roanoke and result in a robust resumption of development and marketing of the Company's products," the memo said.

"We will report more details about these efforts as and when we can without compromising their probability of success."