Church Mutual Completes Conversion to a Mutual Holding Company
MERRILL, Wis.--(BUSINESS WIRE)--Jan 2, 2020--
Church Mutual has completed the conversion of its corporate structure to a mutual holding company, effective January 1, 2020. The move provides the organization more flexibility to pursue customer-driven initiatives while preserving its commitment to protect the greater good and serve the long-term interests of policyholders. The conversion was previously approved by Church Mutual’s board of directors and the Wisconsin Office of the Commissioner of Insurance, as well as the company’s policyholders.
“Our new corporate structure allows us to preserve our mutuality and ability to operate with a focus on the long-term interests of policyholders,” said Rich Poirier, Church Mutual president and CEO. “Additionally, it enhances Church Mutual’s ability to acquire new businesses, if desired, and grow business in compatible markets.”
Insurance coverage, premiums, benefits and service under existing Church Mutual policies were not affected by the change. Policyholders of Church Mutual became members of the new mutual holding company and enjoy the same rights they had as members of Church Mutual Insurance Company. Church Mutual’s board members, officers and other employees did not receive any additional compensation, stock or benefits because of the change.
About the mutual insurance company structure
A mutual holding company is a legal entity organized under state law to serve as the parent company of an insurance company that has been converted from a mutual company to a stock company.
Previously, Church Mutual was organized as a mutual insurance company. Under the new restructure, Church Mutual converted to a stock insurance company that is wholly owned by a newly organized mutual insurance holding company (MHC). Effective January 1, 2020, the stock insurance company’s name became Church Mutual Insurance Company, S.I.
The mutual holding company, Church Mutual Holding Company, Inc., is the parent company to Church Mutual Insurance Company, S. I., as well as CM Regent Insurance Company, CM Vantage Specialty Insurance Company, CM Select Insurance Company, CM Indemnity Insurance Company, and a new, intermediate stock holding company named CM Companies, Inc., where CM Solutions resides as well as other entities that are not insurance companies. The mutual holding company is domiciled in Wisconsin. The board of directors and officers of the holding company are the same as the board of directors and officers of Church Mutual Insurance Company prior to the change.
Concluded Poirier, “As a mutual holding company, we’re able to expand through subsidiaries and strengthen our financial position, making it easier to get funding for business opportunities, expansion and other improvements. In short, this transition provides us a promising path for future growth for the organization and our employees.”
About Church Mutual
Church Mutual Insurance Company, S.I. founded in 1897, offers specialized insurance for religious organizations of all denominations, public and private K-12 schools, colleges and universities, senior living facilities, camps and conference centers and nonprofit and human services organizations throughout the United States. Church Mutual markets most lines of commercial property and liability insurance, including multi-peril, workers’ compensation and commercial auto insurance. In addition to insurance, Church Mutual provides a spectrum of value-added solutions that benefit its customers. Church Mutual holds the following honors:
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CONTACT: Dawn Bernatz
Director of corporate communications
KEYWORD: WISCONSIN UNITED STATES NORTH AMERICA
INDUSTRY KEYWORD: FINANCE CONSUMER RELIGION PROFESSIONAL SERVICES INSURANCE
SOURCE: Church Mutual Insurance Company
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PUB: 01/02/2020 01:00 PM/DISC: 01/02/2020 01:01 PM