Economical Insurance calls special meeting of eligible mutual policyholders as the next step on the road to demutualization

Waterloo, Ont.-based Economical Insurance announced on Friday that the first special meeting of eligible mutual policyholders will be held on Dec. 14.

The meeting will be held in the Bingemans Ballroom, at 425 Bingemans Centre Drive in Kitchener, Ont., Economical said in a press release. Registration will begin at 12:30 p.m. EST, and the formal meeting will start at 2 p.m. EST.

Attendance is by invitation only.

At the meeting, eligible mutual policyholders will consider and vote on a special resolution to authorize the start of negotiations of the allocation of demutualization benefits with eligible non-mutual policyholders, Economical explained. If the resolution is passed, it will allow Economical to continue in the demutualization process.

“This special meeting of mutual policyholders is a very important next step in our Economical demutualization process,” said John Bowey, chair of the Economical special committee, in the press release. “The demutualization framework is the result of many years of public consultation and is designed to treat policyholders fairly and equitably. Eligible policyholders will be empowered through court-appointed committees to negotiate the allocation of benefits, and will have the right to vote on the conversion proposal that ultimately emerges from the subsequent regulatory process.”

Economical encourages all stakeholders to stay informed on demutualization and to visit www.joininourfuture.com for policyholder updates. The website will be updated regularly and provides information about the latest news and access to demutualization-related resources.

Economical’s board of directors “formally decided” to proceed with demutualization on Nov. 3. If successful, the money raised from demutualization would “likely be tied around acquisition activity,” Economical CEO Karen Gavan told Canadian Underwriter at the time.