Canada’s Economical Insurance goes through demutualization process

Economical Insurance is one of Canada’s largest insurance company, transferring to become a public company after its board approval of its demutualization

The insurer stated that Economical Insurance’s board of directors including 10 members who recommended transforming into a shareholder-owned company.


The vote is the first out of several steps in bringing the firm onto the public markets.

the company also said that it would take at least two years so that the Minister of Finance could approve the final proposal.

Other canada’s leading life insurers passed through this process over a decade ago.

For example, Manulife Financial Corp demutualized in September 1999 and Sun Life Financial Inc demutualized 15 years ago.

Founded in 1871, four years after Canada became a country, Economical Insurance has 2,200 staffs.

In comparison with Intact Financial Corp, the largest provider of P&C coverage which had annual revenue of C$7.9 billion in 2014, Economical Insurance gained revenue of C$2 billion( equal to $1.53 billion).

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