Everett Cash Mutual Insurance Co. has taken steps to convert from a mutual insurer to a stock company, merge with Ever-Greene Mutual Insurance Co., and proceed with its previously announced acquisition by Old Republic International Corp., according to filings submitted to the Pennsylvania Department of Insurance.

The transaction is valued between $153 million and $207 million, based on a Dec. 4 filing with the US Securities and Exchange Commission. 

According to a report from BestWire, if ECM's stock offering generates less than $153 million, Old Republic will fund the shortfall through a cash contribution to ensure the agreed purchase amount. 

The deal was first disclosed in October and is expected to close once ECM completes its restructuring into a stock insurer. In addition to filings related to the acquisition of ECM, Old Republic has submitted paperwork in Pennsylvania concerning the purchase of ECM’s subsidiary, 1st Choice Advantage Insurance Co. Inc., the report said.

Mutual-to-stock conversions have been a recurring feature of insurance market consolidation as carriers seek greater access to capital and improved scale. Converting to stock form enables an insurer to issue shares and align ownership structures with acquisition terms.

For buyers, transactions involving mutual companies often allow entry into niche regional markets or expansion of distribution capabilities.

Following the initial acquisition announcement, AM Best placed ECM under review with positive implications, noting expected benefits from integration into Old Republic’s broader operating platform. The rating agency reported that the deal could improve ECM’s capital strength and operating profile.

At the same time, Ever-Greene Mutual was placed under review with potential negative implications due to the planned merger and license surrender. Ratings will remain under review until closing and subsequent analysis, according to the report.

ECM operates in 48 states and Washington, D.C. The insurer reported $237 million in direct written premium in 2024 and ended that year with $130.7 million in policyholder surplus. Old Republic stated that ECM brings business volume and geographic reach to its portfolio.

Old Republic entities currently hold Best’s Financial Strength Ratings between A+ and A-, while ECM is rated A and Ever-Greene holds a B++ rating.