Esure employs more than 600 people at its Glasgow headquarters
The internet and telephone insurance company esure is to create 500 jobs by expanding its operations in Glasgow.
Half of the new posts will be brought in over the next 18 months in customer services with a further 250 jobs created by 2014.
Esure's expansion is being supported by a £1.4m Regional Selective Assistance grant from the Scottish Government.
The firm employs just over 600 people at the Glasgow office, which serves as its main operational UK headquarters.
The announcement was attended by First Minister Alex Salmond who described it as "a ringing endorsement" of Scotland's workforce.
"While Scotland is not immune from the effects of recession we must not forget that we have real strengths that will help our economy recover strongly," he said.
"Not least of these is our outstanding workforce and global reputation for excellence in a number of key sectors including renewable energy, life sciences and financial services.
"Esure's decision is a strong reminder that, despite the huge challenges that key financial services companies are facing across the world, there are parts of the sector, like pensions and insurance, which are continuing to perform strongly in Scotland."
Esure's building in Cadogan Street is located in Glasgow's international financial services district, which runs between St Vincent Street and the River Clyde.
The 10-year, £1bn project, aims to deliver more than two million square feet of new office space and 20,000 new jobs.
Glasgow City Council leader, Councillor Steven Purcell, said the jobs announcement was "fantastic news" for the city.
"Esure's decision to substantially expand its presence in Glasgow is testament to the availability and quality of the people it has employed here.
"It also underlines Glasgow's status as a major UK centre for the insurance sector."