By: Luke Jones, Published on February 11, 2018 05:51 PM, Last Update on March 1, 2018 02:52 PM
Economical Insurance has moved close to demutualization, but has taken an extension towards making its proposal. The waterloo company will now have until June 30 to draft its proposal and present if to the federal Office of the Superintendent of the Financial Institutions (OSFI).
The Waterloo, Ont.-based insurance provider was supposed to present its proposal to OSFI by Feb. 22, but an extension has been granted. Economical is still working on its demutualization proposal, which will see the insurer become a stock company to be publically traded.
Economical Insurance is currently federally-regulated, but took advantage of a 2015 change in federal law that allows mutual insurers to demutualize. In 2015, the company’s board of directors and policyholders voted favorably to move to being a stock company.
“Due to the complexity of the process, more time is required to complete the conversion proposal and the professional opinions that are required to be submitted [to OSFI],” Economical added.
“If this vote passes, there will be a third special meeting where all eligible policyholders vote to approve the conversion proposal and to authorize Economical to seek final approval from the federal Minister of Finance,” Economical reported earlier.