Company takes next step towards creating a more competitive business
WATERLOO, ON, Dec. 14, 2015 /CNW/ - Mutual policyholders of Economical Insurance participated in an historic vote today, paving the way for Economical to become the first property and casualty insurer in Canada to demutualize.
At a special meeting in Kitchener, Ontario, mutual policyholders overwhelmingly voted in favour of commencing negotiations with non-mutual policyholders on the allocation of demutualization benefits through court-appointed policyholder committees, surpassing the required two-thirds majority (of those voting) required for a successful vote.
"We would like to thank our mutual policyholders for their support, today and during the past few years. The work ahead to demutualize the company is significant, but the opportunity to build for growth is equally important," said John Bowey, chair of the special committee on demutualization at Economical. "Our board and management teams are focused on taking the steps needed to enhance our competitiveness and improve access to capital. This is an exciting time for our company and we look forward to completing a successful process that will unlock our full potential."
The next step in the regulatory process will see Economical prepare and mail a formal notice to all eligible policyholders. The notice has to be approved by the Office of the Superintendent of Financial Institutions (OSFI), our federal regulator. After approval by OSFI and mailing of the notice, Economical will file an application with the court for an initial order setting out the procedure for the negotiations.
"We have built a strong business within our current structure and are pleased with our progress. Through demutualization, we will be able to drive growth in new and exciting ways," said Gerald Hooper, chair of the board of directors.
Economical encourages all stakeholders to stay informed on demutualization and to visit www.joininourfuture.com for updates. This website will be updated regularly and provides information about the latest news and access to demutualization-related resources.
Forward looking statements
Certain statements in this press release regarding our current and future plans, expectations and intentions, results, levels of activity, performance, goals or achievements, or any other future events or developments constitute forward-looking statements. The words "may", "will", "would", "should", "could", "expects", "plans", "intends", "trends", "indications", "anticipates", "believes", "estimates", "predicts", "likely" or "potential" or the negative or other variations of these words or other similar or comparable words or phrases, are intended to identify forward-looking statements.
Forward-looking statements are based on estimates and assumptions made by management based on management's experience and perception of historical trends, current conditions and expected future developments, as well as other factors that management believes are appropriate in the circumstances. Many factors could cause Economical's actual results, performance or achievements or future events or developments to differ materially from those expressed or implied by the forward-looking statements, including, without limitation, the following factors: Economical's ability to implement its strategy or operate its business as management currently expects; unfavourable capital market developments or other factors; government regulations; litigation and regulatory actions; periodic negative publicity regarding the insurance industry; intense competition; success and timing of the demutualization process; the outcome of a demutualization transaction; and general economic, financial and political conditions.
All of the forward-looking statements included in this press release are qualified by these cautionary statements. These factors are not intended to represent a complete list of the factors that could impact Economical, however, these factors should be considered carefully, and readers should not place undue reliance on forward-looking statements we make. We are under no obligation and have no intention to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.
Founded in 1871, Economical Insurance is one of Canada's leading property and casualty insurers, with $2.0 billion in annual premium volume and $5.3 billion in assets as at September 30, 2015. Based in Waterloo, this Canadian-owned and operated group services the insurance needs of more than one million customers across the country. 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
For further information: For media inquiries, contact: Doug Maybee, http://www.economicalinsurance.com/, (T) 519.570.8249, (C) 519.404.0989, [email protected]; For general policyholder inquiries, contact : 1-866-302-6046 (toll-free) or 1-514-982-8708 (local/international), [email protected]