AM Best Comments on Credit Ratings of Economical Mutual Insurance Company Following Announcement of Demutualization Vote
OLDWICK, N.J.--(BUSINESS WIRE)--Jun 4, 2021--
AM Best has commented that the Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Rating (Long-Term ICR) of “a-” (Excellent) of Economical Mutual Insurance Company (EMIC) (Waterloo, Ontario, Canada) remain unchanged following the company’s recently conducted vote on demutualization.
On May 20, 2021, EMIC called its third and final special meeting on its demutualization. The vote was nearly unanimous, carrying the approval of 97% of eligible voters. This approval will advance the company’s well-established plan to convert from a mutual company to a publicly traded share company through an anticipated initial public offering. The company has not made official the timing of the demutualization and subsequent IPO, as it will rely on market conditions, governmental approvals, company performance and other relevant factors.
AM Best notes that the demutualization has been a longstanding piece of the company’s strategic plan, and has proceeded in accordance with the management team’s expectations, albeit at a decelerated pace given the novelty of the process to regulators and COVID-19-related delays.
This press release relates to Credit Ratings that have been published on AM Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best’s Credit Ratings. For information on the proper media use of Best’s Credit Ratings and AM Best press releases, please view Guide for Media - Proper Use of Best’s Credit Ratings and AM Best Rating Action Press Releases.
AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.
Copyright © 2021 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.
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KEYWORD: NEW JERSEY EUROPE UNITED STATES NORTH AMERICA
INDUSTRY KEYWORD: INSURANCE PROFESSIONAL SERVICES
SOURCE: AM Best
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PUB: 06/04/2021 02:50 PM/DISC: 06/04/2021 02:51 PM