Posted on March 24, 2021

The Time to Vote is Now – A Special Meeting Update from John Bowey, Chair of the Board of Directors, March 2021

As we announced on March 15, 2021, the final special meeting in Economical’s demutualization process will be held via webcast on May 20, 2021. At this meeting, all eligible policyholders will be asked to consider a special resolution, which is required to continue the demutualization process. An information circular with details of the meeting and voting information for the resolution is currently being distributed to the approximately 630,000 policyholders who are eligible to vote at this meeting. Eligible policyholders can also find this information at www.joininourfuture.com.

We encourage all eligible policyholders to read the materials carefully. To be successful, the demutualization resolution must be approved by at least two-thirds of eligible policyholders who vote at the meeting. Our Board unanimously recommends that eligible policyholders vote FOR the demutualization resolution.

This is a one-time vote that, if passed, will benefit Economical, our eligible policyholders, and communities across the country. In addition to providing financial benefits for eligible policyholders, this is a rare opportunity to help launch a new $100 million charitable foundation that will positively impact our communities. If the vote fails, our demutualization process will end and there will be no financial benefits for policyholders or the charitable foundation. It is worth noting that the demutualization process does not impact insurance coverage or premiums, including ongoing claims for insurance benefits or payments of those benefits.

A vote FOR the resolution is critical to move forward with demutualization. With that in mind, our efforts to solicit support for a favourable outcome will continue over the coming weeks, so eligible policyholders may hear from us directly or through the professional firm we have hired to help us solicit support, Laurel Hill. In order for votes to be counted, they must be received by specified deadlines which are outlined in the information circular. To facilitate an orderly meeting and accommodate the number of potential participants, eligible policyholders are strongly encouraged to vote FOR the demutualization resolution ahead of May 10, 2021, when our advance voting period ends.

We have reached a critical milestone in our 150-year history, one that is the result of many years of focus and disciplined execution to not only navigate the complexities of a novel demutualization process but, more importantly to get Economical ready for life as a public company. Our demutualization journey has been long but has been guided by our Board’s consistent focus on building the capabilities, performance, and value that will give investors the confidence that we can compete as a strong, Canadian public company over the long term.

Economical is now on the verge of an exciting new chapter with plans to become Canada’s first property and casualty insurer to demutualize and in so doing become a stronger, more competitive leader in the Canadian market. Our eligible policyholders’ vote FOR the demutualization resolution is necessary for us to take that next step.

On behalf of our Board of Directors, I want to thank our policyholders for their continued support. We look forward to sharing the results of the vote at the special meeting and to moving forward through the final stages of our demutualization journey, together.


Sincerely,
John Bowey
Chair of the Board of Directors
Waterloo, Ontario
Economical Mutual Insurance Company
March 24, 2021

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