Economical Insurance has taken the steps to convert from a mutual insurance company to a company with share capital. Notably, it created a new entity: Definity Financial Corporation.

Definity has obtained permission from the securities regulatory authorities in each province and territory in Canada to issue a preliminary prospectus, leading to an IPO, Economical announced on August 27. The number and price of the common shares to be sold have not yet been determined.

After the IPO, Definity will be the parent company of Economical Insurance, Family Insurance Solutions Inc., Petline Insurance Company, and Sonnet Insurance Company. The IPO will complete the demutualization process that began a decade ago.

BMO Capital Markets, RBC Capital Markets and Barclays are acting as global coordinators of the Definity IPO. Scotia Capital and TD Securities will also participate in the offering.