In reality, however, not only did the managers of a mutual life insurance company have to decide whether to demutualize
, they also had to choose from different types of demutualization, including a full (or traditional) demutualization (2) and a mutual holding company (MHC) conversion.
Directors of the CBOE had approved plans to demutualize
and complete an initial public offering of CBOE Holdings, Inc, the holding company.
In 1994 Midland decided to demutualize
and become a stock company.
Over the past few days, The Mutual officials have been sending its 45,668 policyholders in 12 Caribbean countries copies of The Mutual Proposal To Demutualize
, which informs of plans to transform the company into one owned by shareholders rather than policyholders.
Although the National Office stated that the taxpayer had to capitalize costs incurred to demutualize
, it pointed out that the taxpayer had capitalized certain costs directly connected with the demutualization.
Although a substantial proportion of the property and casualty insurers of the United States are owned by their policyholders, the current industry trend for these mutual insurers is to demutualize
Principal Financial Group, for example, converted to an MHC in 1998 and now wants to fully demutualize
because the amount of capital that can be raised under an MHC is limited.
3) Viswanathan and Cummins (2003) focus on the motivation for a mutual company to demutualize
On May 12, 1998, John Hancock Mutual Life Insurance Company made an announcement about its plan to demutualize
and issue stock through an initial public offering (IPO).
However, the move to demutualize
has left a major gap in the training of agents, French noted.
And even though the potential of an improved equity market and economy could tempt some to demutualize
, most mutual holding companies are comfortable where they are.
The Board of Directors of Security Mutual has agreed to adopt a plan of reorganization under which the company will demutualize
in order to convert from a mutual insurance company to a stock company and become a wholly owned subsidiary of The Ohio National Life Insurance Company.