Negotiations update

June 26, 2018 – Economical's conversion plan, a detailed document that outlines how Economical intends to convert from a mutual company to a widely-held company with share capital, has been submitted to the Office of the Superintendent of Financial Institutions (OSFI). The conversion plan includes the agreed-upon method of allocating financial benefits resulting from demutualization, opinions from actuarial and financial experts, and the detailed legal particulars to effect demutualization.

The conversion plan will remain confidential as it is reviewed by our federal regulator.

  1. February 8, 2018 Update

    February 8, 2018 — 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 will result from the planned demutualization of Economical. The agreement 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.

    Due to the complexity of the process, more time is required to complete the conversion proposal and the professional opinions that are required to be submitted to the Office of the Superintendent of Financial Institutions (OSFI), the principal regulator for Economical. OSFI has extended the deadline for submitting those documents from February 22, 2018 to June 30, 2018.

    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 joininourfuture.com.

  1. August 11, 2017 Update

    August 11, 2017 - Since their appointment in February, the policyholder committees have begun the process to negotiate the allocation of benefits resulting from a demutualization of Economical. As Economical is the first insurance company proceeding to demutualize under new federal regulations, these negotiations are breaking new ground. The committees, along with their appointed counsel and advisors, have been working diligently to understand the complex issues that affect the allocation of financial benefits that would result from a demutualization of a 146-year-old company.

    Economical has been actively providing information to all parties so that the committees can negotiate from an informed position. Each policyholder committee has hired financial advisors and actuarial consultants who, along with appointed counsel, will assist in the negotiations and work to promote a demutualization process that is efficient, effective, and reaches completion. They have also received information from the appointed actuary and independent actuary, who are required to assess the allocation the committees negotiate and provide fairness opinions.

    The policyholder committees must reach an agreement on allocation, and the appointed and independent actuaries must provide their opinions on that allocation, before Economical can submit its conversion plan to OSFI. The conversion plan must be submitted by February 22, 2018*.

    The details and substance of negotiations will remain confidential pursuant to court order.

    *In January 2018, OSFI extend this deadline to June 30, 2018.

Negotiating the allocation of benefits

Phase 3 of the demutualization process involved two policyholder committees, one representing eligible mutual policyholders and one representing eligible non-mutual policyholders, negotiating the allocation of financial benefits from demutualization. These committee members, along with lawyers or “counsel” to assist them, were selected and appointed by the Ontario Superior Court of Justice.

These negotiations took place over the course of months. The confidentiality of the committees' negotiation is strictly protected by court order. This means that Economical, the members of the policyholder committees, and the policyholder counsel are not permitted to discuss or comment on the negotiations or the positions of the parties.

This confidentiality is key to the success of the negotiations. It allowed each committee the opportunity to consider their positions and the best outcome on behalf of their policyholder class without the risk of their discussions and strategy becoming public.

After the allocation was negotiated, Economical completed the conversion plan (with information relevant to the negotiated allocation) and submitted it to OSFI for its review, along with required actuarial opinions.

Eligible policyholders will have the opportunity to review the conversion plan, including the negotiated allocation, prior to any vote.

Appointed policyholder counsel

On September 22, 2016, the court appointed McCarthy Tétrault LLP Opens in a new window to represent the eligible mutual policyholder class and Thornton Grout Finnigan LLP Opens in a new window to represent the eligible non-mutual policyholder class. These counsel assisted the policyholder committees to negotiate and decide on the allocation. Eligible policyholders with questions about the negotiation process may contact the law firm appointed to represent their policyholder class. However, please appreciate that the court order for confidentiality prevents policyholder counsel from sharing information about the negotiations.

Appointed policyholder counsel - Show more

Appointed policyholder counsel

On September 22, 2016, the court appointed McCarthy Tétrault LLP to represent the eligible mutual policyholder class and Thornton Grout Finnigan LLP to represent the eligible non-mutual policyholder class. These counsel assisted the policyholder committees to negotiate and decide on the allocation.

Counsel for the eligible mutual policyholders

McCarthy Tétrault LLP
Suite 5300, 66 Wellington Street West
P.O. Box 48, TD Bank Tower
Toronto, ON M5K 1E6

Tel: 1-877-244-7711 x548114
Email: economical@mccarthy.ca

www.mccarthy.ca Opens in a new window

Counsel for the eligible non-mutual policyholders

Thornton Grout Finnigan LLP
Suite 3200, 100 Wellington Street West
TD West Tower
Toronto, ON M5K 1K7

Tel: 1-888-717-0975
Email: applications@tgf.ca

www.tgf.ca Opens in a new window


Eligible policyholders with questions about the negotiation process may contact the law firm appointed to represent their policyholder class. However, please appreciate that the court order for confidentiality prevents policyholder counsel from sharing information about the negotiations.

Appointed policyholder counsel - Show less

Appointed committee members

On February 22, 2017, the court appointed nine committee members to represent the eligible mutual policyholder class and six committee members to represent the eligible non-mutual policyholder class. These committees negotiated the allocation of benefits resulting from the demutualization of Economical.

Committee appointment process Show more

Appointed committee members

On February 22, 2017, the court appointed nine committee members to represent the eligible mutual policyholder class and six committee members to represent the eligible non-mutual policyholder class. The members were appointed based on recommendations by counsel representing each policyholder group. These committees negotiated the allocation of benefits resulting from the demutualization of Economical.

Eligible mutual policyholder committee members

Rick Charnuski
Patrick Collins
Gordon Dowsley
Craig Glynn
Brendon Hunt
Ralph Hunter
Rose Mailloux
William Wayne McKinnon
William McCrea

Eligible non-mutual policyholder committee members

Adriana Davies
Paul Duncan
George Fowlie
Guy Legault
William Paul McCrossan (Resigned January 23, 2018)
Wilberdien Robinson
 
 
 


Committee appointment process Show less

Court documents

These documents relate to Economical's demutualization proceeding in the Ontario Superior Court of Justice. They include the initial order and any other orders, along with any documents filed with the court relating to the policyholder committee process.

Court documents - Show more

Court documents

These documents relate to Economical's demutualization proceeding in the Ontario Superior Court of Justice. They include the initial order and any other orders, along with any documents filed with the court relating to the policyholder committee process.

  1. Court orders

    July 15, 2016 - Initial Order.pdf Opens in new window (.pdf 872KB)
    September 22, 2016 - Endorsement of Hainey J. (Counsel Appointments) Opens in new window (.pdf 360KB)
    September 22, 2016 - Order of Hainey J. (Counsel Appointments) Opens in new window (.pdf 106KB)
    September 29, 2016 - Amendment to the Initial Order Opens in new window (.pdf 761KB)
    November 25, 2016 - Second amendment to the Initial Order Opens in new window (.pdf 1.15MB)
    February 1, 2017 - Third amendment to the Initial Order Opens in new window (.pdf 779KB)
    February 22, 2017 - Order of Hainey J. (Confidentiality Order) Opens in new window (.pdf 867KB)
    February 22, 2017 - Endorsement of Hainey J. (Mutual PH Committee Endorsement) Opens in new window (.pdf 337KB)
    February 22, 2017 - Endorsement of Hainey J. (Non-Mutual PH Committee Endorsement) Opens in new window (.pdf 47KB)
    February 22, 2017 - Endorsement of Hainey J. (Confidentiality Order Endorsement) Opens in new window (.pdf 75KB)
    February 27, 2017 - Endorsement of Hainey J. (Committee Appointments) Opens in new window (.pdf 1.4MB)
    February 28, 2017 - Order of Hainey J. (Mutual PH Committee Appointment) Opens in new window (.pdf 116KB)
    February 28, 2017 - Order of Hainey J. (Non-Mutual PH Committee Appointment) Opens in new window (.pdf 1.7MB)
    April 12, 2017 - Order of Hainey J. (Approval of Non-Mutual PH Counsel Fees) Opens in new window (.pdf 92KB)
    April 12, 2017 - Order of Hainey J. (Approval of Mutual PH Counsel Fees) Opens in new window (.pdf 80KB)
    July 11, 2017 - Order of Hainey J. (Approval of Non-Mutual PH Counsel Fees) Opens in new window (.pdf 123KB)
    July 14, 2017 - Order of Hainey J. (Approval of Mutual PH Financial Advisor Fees) Opens in new window (.pdf 33KB)
    August 18, 2017 - Order of Hainey J. (Approval of Non-Mutual PH Financial Advisor Fees) Opens in new window (.pdf 916KB)
    November 16, 2017 - Order of Hainey J. (Approval of Non-Mutual PH Counsel Fees) Opens in new window (.pdf 186KB)
    December 19, 2017 - Order of Hainey J. (Amendment of Mutual and Non-Mutual Committee Appointment Orders) Opens in new window (.pdf 127KB)
    February 16, 2018 - Order of Hainey J. (Approval of Non-Mutual PH Counsel Fees and Amendment of Non-Mutual Committee Appointment Order) Opens in new window (.pdf 204KB)
    June 22, 2018 - Order of Hainey J. (Approval of Mutual PH Counsel Fees) Opens in new window (.pdf 152KB)
    July 24, 2018 - Order of Hainey J. (Approval of Non-Mutual PH Counsel Fees) Opens in new window (.pdf 934KB)
    August 21, 2018 - Order of Hainey J. (Approval of Mutual PH Counsel Fees) Opens in new window (.pdf 144KB)
    August 24, 2018 - Order of Hainey J. (Approval of Non-Mutual PH Counsel Fees) Opens in new window (.pdf 1.22MB)

  2. Counsel appointment motions

    August 9, 2016 - McCarthy Motion Record Opens in new window (.pdf 2.2MB)
    August 11, 2016 - TGF Motion Record Opens in new window (.pdf 1.3MB)
    August 12, 2016 - Goodmans Motion Record Opens in new window (.pdf 407KB)
    August 12, 2016 - Gowling Motion Record Opens in new window (.pdf 348KB)
    August 12, 2016 - Siskinds Motion Record Opens in new window (.pdf 2.2MB)
    August 12, 2016 - Torys Motion Record Opens in new window (.pdf 2.8MB)
    August 26, 2016 - Economical Responding Record Opens in new window (.pdf 6.6MB)
    August 26, 2016 - Notice of Abandonment of Goodmans Opens in new window (.pdf 50KB)
    September 6, 2016 - Economical Supplementary Responding Record (redacted) Opens in new window (.pdf 2.6MB)
    September 9, 2016 - Torys Supplementary Motion Record Opens in new window (.pdf 8.6MB)
    September 12, 2016 - Factum of Economical Opens in new window (.pdf 274KB)
    September 12, 2016 - Factum of McCarthy Tetrault Opens in new window (.pdf 37KB)
    September 12, 2016 - Factum of Siskinds Opens in new window (.pdf 5.6MB)
    September 12, 2016 - Factum of TGF Opens in new window (.pdf 16.6MB)
    September 12, 2016 - Factum of Torys Opens in new window (.pdf 397KB)

  3. Committee appointment motions


Court documents - Show less
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