Investing.com - Financial Markets Worldwide
Black Friday is Now! Don’t miss out on up to 60% OFF InvestingProCLAIM SALE

Economical Insurance gets policyholders' approval to demutualize

Published 2015-12-14, 08:25 p/m
© Reuters. Economical Insurance gets policyholders' approval to demutualize

Dec 14 (Reuters) - Economical Insurance's mutual
policyholders voted on Monday to allow the Canadian property and
casualty insurance firm to demutualize.
Demutualization is a regulated process in which a mutual
insurance company converts to a share company with share capital
and voting shareholders.
Mutual policyholders of the firm voted in favor of
commencing negotiations with non-mutual policyholders on the
allocation of demutualization benefits, at a special meeting in
Kitchener, Ontario, the firm said.
Economical Insurance in February welcomed rules released by
the government of Canada that paved a path for it to potentially
seek a public listing or a sale.
Many of Canada's largest life insurance firms went through
the process in the 1990s, but until now regulations did not
exist for property and casualty insurers to follow that path. In
2011, the Canadian government began a process to create a
regulatory framework to allow property and casualty insurers to
demutualize.
Economical said it would prepare and mail a formal notice to
all eligible policyholders which has to be approved by the
federal regulator, the Office of the Superintendent of Financial
Institutions.

Latest comments

Install Our App
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.