Economical Insurance has called the third and final special meeting on its demutualization.The results of the meeting could advance the insurer's plan to convert from a mutual company to a publicly-traded share company.
All 630,000 eligible policyholders can participate in this final special meeting to be held May 20 at 9:00 a.m. ET via live webcast. The special meeting has adopted an online-only format due to the COVID-19 pandemic, said the company in a March 15 announcement.
At the meeting, eligible policyholders will be asked to consider a special resolution, which is required to continue the company’s demutualization process. Assuming a successful vote at this final special meeting, Economical is planning to complete its demutualization in Fall 2021.
The company adds that a new charitable foundation would be seeded with $100 million from the proceeds of a successful demutualization. The foundation would be established to support communities in need.
"I am incredibly proud of the momentum Economical has built to get us to this important meeting, having achieved historically strong underwriting income in our full year 2020 financial results," stated John Bowey, Board Chair of Economical. "Our demutualization journey has been long, but has been guided by our Board's consistent focus on building the capabilities, performance, and value that will give investors the confidence that we can compete as a strong, Canadian public company over the long term."