The Ontario Superior Court has appointed two committees that will negotiate how benefits will be allocated as
Economical Insurance makes its transition from a mutual to a publicly traded company.
Those committees can now start discussions over where financial benefits will go during the demutualization process.
Learn more about Economical insurance products here.
All of those conversations will be confidential, protected by a court order.
Over the next few months, proposals will get hammered out over where and how the money will go.
The proposals are expected to be presented to the Office of the Superintendent of Financial Institutions (OSFI) within one year, and will then be debated by the policyholders’ committees.
Following OFSI approval, policyholders will be empowered to vote on whether Economical should amend its bylaws allowing non-mutual policyholders to become part of the conversion conversation.
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If the vote passes, Economical will deliver the results to the Minister of Finance and if rubber-stamped, will begin a public offering.
“Demutualization remains critical to our long-term strategy and will give Economical the tools it needs to take its place among the leaders of Canada’s P&C industry,” said John Bowey, Board Chair of Economical Insurance. “It is a future we look forward to sharing with our broker partners, employees, and future investors.”
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