demutualize

In the following package, Best's Review reports on companies that are choosing to demutualize; stock companies choosing to turn into mutuals and how mainstays of the mutual community are staying innovative and agile.

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. They want to become publicly held stock companies so that they can compete more effectively, diversify engage in mergers and acquisitions, and get access to their huge reserves of capital.

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.

However, the move to demutualize has left a major gap in the training of agents, French noted.