Mercury General Corp. said it took action Monday to eliminate approximately 360 employee positions, around 7 percent of the insurance company’s workforce, a move it estimates should save an annual $22 million.

The Los Angeles automobile and property insurer, which posted a $3.07 per share net loss in its fourth quarter, said in a Tuesday regulatory filing that the staff reductions would improve its costs structure. It expects to record an $8 million charge in the first quarter of 2009 for severance and other employee termination costs

Mercury General shares closed up $1.30, or nearly 6 percent, to $23.98 on the New York Stock Exchange