Economical's demutualization reaches major milestone
Waterloo - After months of complex negotiations, the committees representing eligible mutual policyholders and eligible non-mutual policyholders have reached an agreement in principle on the allocation of financial benefits that would result from the planned demutualization of Economical.
"The level of complexity in the demutualization process is equaled only by its importance. Policyholder committees reviewed significant volumes of information and considered unique issues during negotiations," stated John Bowey, Chair of the Economical Board of Directors and its Special Committee on demutualization. "The company greatly appreciates the commitment and dedication that committee members and their advisors brought to the process."
The agreement reached by the policyholder committees remains subject to finalizing a formal resolution documenting the details of the agreement. Economical has been informed by the policyholder committees that they expect to pass the resolution soon.
Confidentiality of allocation details will be strictly maintained
Details of the conversion proposal, including the allocation of financial benefits, remain confidential. They will be made public at a later date in policyholder information circulars that will be sent to eligible policyholders and made available on the demutualization website hosted at joininourfuture.com.
In addition, there is a court order in place that prohibits the committees, the company or any advisor that participated in the process from disclosing information about the negotiations or the agreed-upon allocation. This confidentiality was critical to the success of the negotiations and will continue to be critical to the integrity of the regulatory review process.