Significant milestone in the implementation of a framework for P&C insurance company demutualizations
WATERLOO, ON, June 23, 2014 /CNW/ - Economical Mutual Insurance Company today announced that Bill C-31, the 2014 budget implementation bill, has recently received Royal Assent enacting, among other things, amendments to the Insurance Companies Act (Canada) (ICA) to broaden the Governor in Council's regulation-making authority under the act. These powers support the eventual implementation of the regulations that will allow federally regulated mutual property and casualty (P&C) insurance companies that choose to do so to demutualize.
"We are pleased that this step in the development of a federal demutualization framework is complete," said John Bowey, chair of Economical's special committee on demutualization. "Now that the budget implementation bill has been enacted, the next step would be for the Department of Finance to release draft demutualization regulations, which are expected to be subject to a public comment period before coming into force. At that point, Economical's board of directors will be in a position to determine whether demutualization within the final regulatory framework would be in the best interests of the company."
Economical will continue to provide regular updates on the demutualization process and stakeholders are encouraged to visit the company's website, www.economicalinsurance.com for information.
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Founded in 1871, Economical Insurance is one of Canada's leading property and casualty insurers, with $1.9 billion in annual premium volume and $5.0 billion in assets as at March 31, 2014. Based in Waterloo, this Canadian-owned and operated group services the insurance needs of more than one million customers across the country. In 2010, Economical announced its decision to become the first federally-regulated mutual property and casualty insurance company to pursue demutualization. Economical Insurance conducts business under the following brands: Economical Insurance, Economical, Western General, Economical Select, Perth Insurance, Family Insurance Solutions, Federation Insurance and Economical Financial.
SOURCE: Economical Insurance