1 February 2019 13:30
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It is in 2011 thatthe Insurance Company began the process to demutualize. The 20 march is expected to mark a new step in this quest.
If everything goes as planned, its mutual policyholders should give him permission to demutualize. This vote follows the one held on the 14 December 2015, by the shareholders of mutual Economical, which had authorized the demutualization process.
The following steps
This new vote will, however, not the end of the process Economical to demutualize. A third vote will take place, where both the shareholders that the underwriters of policy will be convened to allow the transformation plan of the company. If this vote is positive, the federal government will then have to give its approval to go forward. At this time, the Company may issue shares and become a publicly traded company.
“It is a long process, but we persisted. Demutualization is of vital importance to the future of Economical and to become one of the largest property and casualty insurers in Canada, ” said John Bowey, chair of the board of directors of the insurer, in a video posted on the website of the company.
Creation of a foundation
Mr. Bowey has also announced the creation of a foundation to the result of the demutualization of Economical. Named The Economical Insurance Heritage Foundation, it will begin its activities with a product of $ 100 million, from profits which will be distributed following the demutualization.
The distribution of profits
Read how will be distributed the benefits of the demutualization Monday in FlashFinance.ca, a weekly newsletter belonging to the Journal of the insurance.
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