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Economical Insurance policyholders give approval for demutualization

Economical Insurance Group Ltd. policyholders have overwhelmingly voted for the company's demutualization process to move forward.

At a special meeting March 20, 99% of eligible mutual policyholders voted in favor of the demutualization.

The company will be able to complete a planned IPO after accomplishing the remaining steps in the process. That includes seeking authorization from the Office of the Superintendent of Financial Institutions to hold a third special meeting. About 630,000 policyholders would vote on the conversion plan in that meeting.

If the vote at the third special meeting is successful, the company will apply for final regulatory approval of its demutualization.