Policyholders of Jewelers Mutual Insurance Company have voted to approve the company’s plan to convert its corporate structure to a mutual holding company.
The conversion was approved yesterday at Jewelers Mutual’s headquarters in Neenah, Wisconsin, where it received 87.1 percent support from votes cast by proxy or in person, surpassing the required approval of two thirds of voting members.
The conversion to a mutual holding company, previously approved by the Wisconsin Office of the Commissioner of Insurance and Jewelers Mutual board of directors, will become effective upon issuance of a certificate of authority by the Wisconsin Office of the Commissioner, which is expected on or shortly after January 1, 2020.
Under the new structure, Jewelers Mutual Holding Company will become the group’s new parent company, with Jewelers Mutual Insurance Company, SI becoming a stock subsidiary company wholly owned by the mutual holding company.
“Today’s approval confirms our policyholders’ support and trust in Jewelers Mutual,” said Scott Murphy, president and CEO of Jewelers Mutual. “We are dedicated to supporting our customers, and we are now better able to evolve our company to serve the needs of our policyholders without structural limitations.”
Conversion provides flexibility
Jewelers Mutual is dedicated to its policyholders and the jewelry industry and, as a result, continues to develop product and service offerings beyond its traditional insurance products. By creating a mutual holding company, Jewelers Mutual will enhance its ability to innovate and bring new value to its customers — and the jewelry industry — with new ventures. In recent years, Jewelers Mutual has already taken steps to expand its product offerings, including its JM Shipping Solution™ and JM Care Plan™ solutions.
Preserving policyholder ownership
A mutual holding company structure also retains Jewelers Mutual’s 100-plus year history as a company operated solely for the benefit of its policyholder members.
Policyholders of Jewelers Mutual will receive essentially the identical membership rights in the mutual holding company that they have today.
While a mutual holding company structure would allow Jewelers Mutual to consider the sale of stock to raise capital, it has no plans to do so.
Coverage, premium rates and claims handling under existing Jewelers Mutual insurance policies are unaffected by the change to a mutual holding company. Company and agent operations are also unaffected.
About Jewelers Mutual Group
The Jewelers Mutual Group companies, which are dedicated solely to serving the jewelry industry in the United States and Canada, began in 1913 when a group of Wisconsin jewelers came together to meet their unique insurance needs. Today, the Group’s companies remain the trusted insurance advisor and loss-prevention expert for jewelry retailers large and small, wholesalers, manufacturers, custom designers, and appraisers — and for consumers who protect their personal jewelry and the special moments it represents. For more information, please visit www.jewelersmutual.com.
