esure - one of the country's leading general insurers - is planning to expand its Glasgow operations by 500 jobs within five years.
The decision follows rapid sustained growth by the company during 2008 and the company's need for extra service and claims staff to keep ahead of its business expectations in the coming years.
esure's Chairman, Peter Wood - who has created over 2,500 jobs in the City since bringing Direct Line to Glasgow in 1987 - said: "In these terrible economic times, I'm absolutely delighted to be able to make a commitment to Scotland and to Glasgow. The combination of excellent people, superb infrastructure and a can-do ethic makes this a perfect place to do business and I cannot understand why anyone with telephone and internet-centred businesses would choose anywhere else.
"It would have been easy for esure to choose to consolidate and stem growth in the current market conditions but more customers are choosing us as their insurer and we are selling a mandatory product so expansion is the right option."
The growth plans have been supported by a Regional Selective Assistance grant of £1.4m from the Scottish Government. Peter Wood said: "The assistance we are receiving from the Scottish Government has been key to helping us take this opportunity to reaffirm our faith in Glasgow as a centre for business."
The Right Honourable First Minister of Scotland, Alex Salmond MSP MP, said: "Today's news is a ringing endorsement of one of Scotland's greatest strengths - our human capital. The skills, expertise and commitment of our workforce have secured this investment and expansion for esure's Glasgow operations.
"I would like to personally thank Peter Wood and esure's senior management for their continued investment in Scotland, their endorsement of our skills and workforce and their ongoing commitment to the Scottish economy. I wish esure and all its staff, current and future, the very best for the future."
Jack Perry, chief executive of Scottish Enterprise which has worked closely with esure said: "This announcement by esure is a welcome boost for Glasgow's Internanternational Financial Services District and a vote of confidence for the Scottish economy at a time when we are all facing the unprecedented challenges of the global downturn.
"esure's continued commitment shows that Scotland continues to be an attractive location for international companies operating in the financial services sector. This investment will enhance Scotland's reputation as a centre for financial services excellence, built on factors such as the skills of our people, a competitive-cost base and a well-developed business infrastructure.
"Scottish Enterprise will continue to work closely with esure to help them realise their ambitious plans for growth."
esure opened its office - The Equinox - in the heart of Glasgow's Financial Services District in 2002. It is the largest of esure's three offices and currently employs over 600 staff in a range of sales, customer services and claims roles.