20 March 2019 13:30
Subscribers eligible of mutual policies voted today to 99 % in favour of the continuation of the demutualization ofInsurance Company during a special meeting.
“We are the first company of property and casualty insurance in Canada to move forward with the demutualization under the regulation. The journey has been long and complex, but we are grateful for the overwhelming support of our policyholders that are eligible for mutual policies at this important time in our history. Today, we moved more of our ambitious vision for the Company, ” stresses John Bowey, chair of the board of directors, Economical Insurance.
Three steps before the realization
It is now time that the Company receives the approval of the Office of the superintendent of financial institutions (OSFI) to hold a third extraordinary meeting, with 630 000 subscribers of fonts, keep the meeting to vote on the approval of the plan of conversion and to make a request for final approval of demutualization in the federal ministry of Finance.
“The confidence shown by the result of today’s vote supports the transformation sought by the Company to become an independent insurer of high performance in Canada,” adds Rowan Saunders, president and chief executive officer of the insurer. We are creating a momentum within the company to unleash our full potential and become a leader in our industry, recognized for our innovation, enterprise and the way we take care of our customers. “
Profit arising from investment
Mr. Saunders said that the company is currently focused to achieve profits arising from strategic investments. “In the end, the price of the shares sold in our ipo is this that determines the value of the benefits arising out of the demutualization distributed to policyholders that are eligible for fonts. “
The policyholders who are eligible for a share of 939 million dollars ($M), representing 20% of the profits derived from the demutualization, said the insurer in its special instruction published last February.
Economical has ended the year 2018 in the red, making a loss of$ 73 Million. The weather conditions and the investments made in Vyne and Sonnet are in question, according to the insurer.