June 27, 2018 11:30
Economical insurance has filed its demutualization plan to the Office of the superintendent of financial institutions. The document sets out how the insurer intends to move from a mutual company into a company with common shares.
There is also described the distribution of financial benefits arising from the transformation, the opinions of experts in finance and actuarial science, and the legal details detailed to conduct the demutualization.
«The transformation plan is a key element of our demutualization, and his submission to our regulatory body the principal meets an important deadline, in addition to maintaining our momentum on the way to the stock market,» said John Bowey, chair of the committee of directors of Economical.
Review by OSFI
Now that the plan has been filed, OSFI will consider the submission of Economical, that will provide other information required by the demutualization regulations and updated financial information. The details of the plan remain confidential, the time of his study.
The company will hold its second extraordinary assembly of demutualization after having obtained the approval of OSFI, for which the insurer does not have a specific time limit, » he says. Subscribers eligible of mutual policies will then decide whether the process can continue.
Finally, the Company points out that a third special meeting will be held to accept the transformation plan and the insurer may make an application for the approval of demutualization final to the federal minister of Finance.