In the previous RickardsRead column on this subject (No. 284, posted March 15, 2015) I should have made clear (but did not) in my introduction of comments by Claude Gingras about the draft federal regulations governing the demutualization of federally regulated property and casualty (P & C) insurance companies that his comments — and mine — specifically related to the set of draft regulations involving companies with both non-voting policyholders and voting/mutual policyholders like Economical Mutual Insurance.
Our comments did not and do not apply to the other set of draft regulations relating to those P & C companies all of whose policyholders have mutual/voting status.
I will also repeat here for readers’ information what I have stated previously: I am not now nor have I ever been a policyholder of Economical Mutual Insurance Co. or any of its subsidiary P & C companies. I have no financial interest in the outcome of any demutualization of Economical under the federal Finance Department’s yet-to-be finalized regulatory regime.
MORE COMMENTS FOR THE FEDERAL DEPARTMENT OF
FINANCE ON THE DRAFT P & C REGULATIONS
I do not intend to rehearse here either the comments I made in the previous column or those of Claude Gingras (both in No.284). I expressed my agreement with all of his analysis.
However there are other aspects of and changes needed to the draft federal regulations which would govern any attempt to demutualize by the Economical Mutual Insurance Co. — or indeed any other P & C company in the same category.
Alastair Rickard –Â RickardsRead – March 29, 2015
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