Why are you demutualizing?
What's in it for Economical?
It is our vision to be a leading property and casualty insurance company in Canada. To do that, we need to better compete with other insurance companies, many of which are share companies. After demutualization, as a widely-held company with common shares, we will have greater access to the capital that will allow us to make strategic acquisitions, investments in the business, and strengthen our financial position and flexibility.
What's in it for me?
Eligible Economical policyholders
Eligible policyholders have the unique chance to participate in the conversion of Economical to a widely-held company with common shares after more than 145 years as a mutual company. As part of this, you may receive cash or shares in Economical.
Shareholders are usually entitled, among other things, to vote at meetings of shareholders and to receive dividends on their shares as declared by the board of directors. Shares can also be sold to investors, for example in an initial public offering, for cash.
The details about the distribution are contained in the information circular for the second special meeting. The value of Economical shares won't be known until much later in the process.
Brokers
Demutualizing is a key strategy in fulfilling our vision of becoming a leading Canadian P&C insurance company. We're a strong, stable business that provides choice and dependable claims service to your customers. Successfully fulfilling our vision will enable us to remain a longstanding business partner.
Employees
For over 145 years, Economical has been a strong Canadian business, providing rewarding career opportunities in the P&C insurance industry. Demutualization is a key strategy to achieve our vision of becoming a leading insurance company. Realizing this vision will enable us to stand the test of time and continue to be a great place to work.
Community members
Economical began in 1871 as a group of "neighbours helping neighbours" and has remained committed to being a responsible, reliable corporate citizen. Demutualizing is a key strategy in fulfilling our vision of becoming a leading Canadian insurance company. Realizing this vision will help us continue our legacy and be there for policyholders and our community members when they need us most in the years ahead.
In addition, a new charitable foundation is being established as part of Economical’s planned demutualization – the Economical Insurance Heritage Foundation. If demutualization is successful, the Foundation will receive a $100 million gift from the proceeds of the demutualization, as was negotiated by the policyholder committees as part of their agreement on financial benefits.