Posted on March 31, 2020

Staying Connected – A COVID-19 Update

Amid the circumstances faced by the outbreak of COVID-19, I want to take this opportunity to reach out and connect with you, our policyholders, to convey our wishes for your personal safety and good health during this uncertain time.

I am writing to reassure you that Economical is doing everything in its power to manage and minimize the impact of the current environment, focusing on the health and well-being of our people, while maintaining the important connection to our customers and business operations. Economical has initiated a comprehensive and highly responsive business continuity plan to ensure we meet the needs of our policyholders, broker partners, and employees. We continue to be thoughtful, measured, and adaptable through these new realities.

Our teams are adapting to new ways of working. Most of our employees are now working remotely and we’ve increased our protections and social distancing for anybody remaining in our offices. To further protect everyone, we are now handling our broker and policyholder interactions by phone, email, and other available channels.

Our ability to take these actions is rooted in the resilience and dedication of our employees during this pandemic. In addition, we are able to take these actions because of the platforms we built in preparation for becoming a publicly traded company. Sonnet, our consumer direct offering, enables policyholders to manage their insurance needs directly through the online platform. Vyne, our broker service platform, similarly allows brokers to directly source policy and quote information and submit policy changes for their customers in real time. In both examples, these functionalities are a big advantage for Economical, our brokers and our policyholders at a time when the demands of social distancing have become a necessary part of everyday life.

With respect to the demutualization process, we continue to prepare for the next steps of the regulatory approval process and the third special meeting. At the same time, the outbreak of COVID-19 has adversely affected economic and capital market conditions in Canada and around the world. Earlier in March, I had shared an update on our demutualization process and the anticipated timing of our next Special Meeting. Our Board and management are actively monitoring capital market dynamics before determining whether any re-assessment on timing is necessary for a successful initial public offering.

As we manage through these circumstances, we will continue to keep you apprised of developments in our demutualization process on our joininourfuture.com, and to those signed up, through email updates. If you have questions concerning this update, please contact us via email: joininourfuture@economical.com.

On behalf of the team at Economical, I send our best wishes to you and your family during this unprecedented time.


Sincerely,
John Bowey
Chair of the Board of Directors of Economical Mutual Insurance Company

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