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Learn about the benefits of creating your demutualization account


Learn About Demutualization


Phase

  • PHASE 1 Board Decision

     

    • Board decision

      The Economical Board of Directors initiates the demutualization process on November 3, 2015.

  • PHASE 2 Current Phase

     

    • First special meeting

      Eligible mutual policyholders voted in favour to negotiate with eligible non-mutual policyholders on allocation of benefits on December 14, 2015.

  • PHASE 3 Current Phase

     

    • Policyholder committees

      Two committees are appointed by the court, one representing eligible mutual policyholders and the other representing eligible non-mutual policyholders. The committees negotiate the allocation of financial benefits (i.e., how to divide the financial benefits) and Economical prepares the conversion proposal. The conversion proposal is sent to our regulator for approval.

  • PHASE 4a Second special meeting

     

    • Second special meeting

      Eligible mutual policyholders vote on changing the bylaws of Economical in order to continue the process. The bylaw change allows eligible non-mutual policyholders to vote on the conversion proposal.

  • PHASE 4b Third special meeting

     

    • Third special meeting

      The conversion proposal is sent to all eligible policyholders, who vote together to approve it at the third special meeting. If this vote passes, Economical can then apply to the Minister of Finance to demutualize.


Learn about Demutualization

Learn About Demutualization

Learn more about demutualization, what's in it for you, and how you can join in our future.

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Learn about Demutualization

Learn About Demutualization

Economical Mutual Insurance Company ("Economical") is currently a mutual company. Unlike most companies, it does not have shareholders who own the company.

After 145 years as a mutual company, Economical has decided to change. We have begun a process to become a public share company. This process is called a demutualization. After the process finishes, Economical intends to list our shares on a public stock exchange.

Demutualization is an exciting opportunity to unlock Economical's potential – allowing it to continue its pursuit of innovation, growth, and exceptional service.

Demutualization is also a unique opportunity for "eligible policyholders" to participate in this change and get financial benefits from it. As part of demutualization, eligible policyholders may receive financial benefits such as cash or shares in Economical.

Imagine, just by being a loyal customer of Economical, you could possibly become one of its new shareholders.

Learn more about demutualization, what's in it for you, and how you can join in our future.

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5 Things to Know about Demutualization

Received a letter from us? Log in to set up your demutualization account.

Eligible policyholders should have received a letter with login details for their personalized demutualization account. This account gives eligible policyholders access to their own details about demutualization. Log in and set up your account.

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Learn about Demutualization

Received a letter from us? Log in to set up your demutualization account.

Eligible policyholders should have received a letter from us with login details for their personalized demutualization account. This self-serve account allows eligible policyholders to

  • track their status as an eligible policyholder
  • view policy details that relate to demutualization to ensure we have the right information
  • update contact information for demutualization
  • receive demutualization materials electronically
  • sign up for demutualization updates
  • see voting information and the benefits they may receive (to come later)

Log in and set up your account

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5 Things to Know about Demutualization

5 Things to Know About Demutualization

Demutualization may be a complex process, but understanding some key facts will help you understand why Economical is demutualizing and follow our progress. Here are the top 5 things to know about demutualization.

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5 Things to Know about Demutualization

5 Things to Know About Demutualization

Demutualization may be a complex process, but understanding some key facts will help you follow our progress. Here are the top 5 things to know as we travel the road to demutualization.

1

It’s good for Economical.


Our industry is changing rapidly and companies that do not keep pace will be left behind. Mutual companies have limited options to raise capital for their business. This means that Economical is limited in its ability to compete with other insurance companies, many of which are share companies. Demutualization will give us access to the capital that will allow us to invest in our business, acquire other companies and strengthen our financial position. A successful demutualization is critical to our long-term strategy.

2

It promotes our long-term success.


Economical is demutualizing to position itself for long-term success as the insurance partner Canadians choose to protect what they value most. We have a vision of becoming a top property and casualty insurer in Canada, and demutualization helps us get to that goal.

3

It’s a complex process that will take time to complete.


The demutualization process is set out in regulations from the federal Department of Finance. It is a complex process that involves significant participation by policyholders, government approvals and many steps to complete. As a result, we estimate it will take more than 2 years to complete, assuming all the steps are successful.

4

It does not distribute Economical assets.


In demutualization, eligible policyholders may receive financial benefits such as cash or shares in Economical. These cash and shares do not come from Economical assets. Demutualization is not about dividing up the company’s assets. The shares are newly created during demutualization and the cash would be from selling those shares to investors in an initial public offering (IPO).

5

It lets you join in our future.


After demutualization, we intend to list our shares on a public stock exchange. As well, eligible policyholders may have the opportunity to become our shareholders. If you are an eligible policyholder, you can participate by reading the information you receive from us and, when asked to do so, attend meetings and cast your vote.

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