Economical Mutual Insurance Company will send out an application on or after Feb. 1 to incorporate a new insurance company to be called Economical Holdings Corporation.
A notice of this application was published in the Canada Gazette on Jan. 9.
The company intends to file “an application for the Minister of Finance to issue letters patent incorporating an insurance company to own and operate property and casualty insurance businesses in Canada, to provide services to its affiliates and to carry on such other activities as its board may approve from time to time,” the Canada Gazette reports.
The corporation’s head office would remain in Waterloo, Ontario.
Economical mentions that the publication of the notice should not be construed as evidence that letters patent will be issued to incorporate the property and casualty insurance company.
In fact, Economical is the first property and casualty insurer in Canada to have gone the demutualization route. Last June, the insurer announced that it was postponing demutualization until 2021, a decade after it set the process in motion.
