OLDWICK, N.J.--(BUSINESS WIRE)--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.
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