OLDWICK, N.J.--(BUSINESS WIRE)--AM Best has commented that the Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Rating of “a-” (Excellent) of Economical Mutual Insurance Company (Economical Insurance) (Waterloo, Ontario, Canada) remain unchanged following the company’s recent announcement that Definity Financial Corporation (Definity) has filed a preliminary base PREP prospectus for a proposed initial public offering (IPO) of common shares of Definity.
Definity is a newly created entity incorporated under the Insurance Companies Act (Canada). It will be the parent company of Economical Insurance and its subsidiaries, directly owning all the outstanding shares of Economical Insurance, following the completion of the demutualization. The offering of common shares of Definity is being made to advance Economical Insurance’s well-established strategic plan to convert from a mutual insurance company to a publicly traded share company. Concurrent with the offering are separate common share purchase commitments from Healthcare of Ontario Pension Plan and Swiss Re Investments Holding Company Ltd.
AM Best will continue to monitor the ultimate organizational structure of Economical Insurance and its risk-adjusted capital position, following completion of the IPO.
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