Waterloo, ON (Oct. 22, 2012) – Economical Insurance today announced the latest steps in its business transformation program, a continuing investment in its future competitiveness. The company is taking further action to streamline, simplify, and automate its operations to increase productivity, reduce costs and improve its service to brokers and customers.
“Constant evaluation and adjustment is necessary for the long-term health of any business. In the increasingly competitive Canadian property and casualty insurance industry, it is vital,” said Karen Gavan, president & CEO of Economical. “Over the past several years, Economical has focused on improving the fundamentals of our underwriting and pricing to establish a strong foundation. The fruits of those efforts are shown in the strength of our recent financial results. Our next focus is to build on that foundation by improving our productivity with industry-leading processes to foster future growth and sustainable competitive advantage.”
The measures announced today will result in the reduction of 145 positions at 14 Economical offices across the country, improving the effectiveness and efficiency of a number of operational roles, processes and support functions.
“We have kept our people informed about the business transformation program and that staff reductions could be expected to help address the changing needs of our company,” Ms. Gavan said. “Even so, this has been a difficult decision and we recognize the challenges facing the affected employees. We are committed to helping them with this transition and are proud of the contributions they have made to the Company. We wish them well as they move forward.”
Economical will recognize the costs associated with the staff reduction in the Company’s fourth quarter financial results.
About Economical Insurance
Founded in 1871, Economical Insurance is one of Canada’s leading property and casualty insurers, with more than $1.7 billion in premiums and $4.7 billion in assets. Based in Waterloo, this Canadian-owned and operated group services the insurance needs of more than one million customers through 17 branches and service offices across the country. In 2010, Economical announced its decision to become the first federally-regulated mutual property and casualty insurance company to demutualize. Economical is currently reviewing strategic options and will submit a comprehensive demutualization proposal for mutual policyholder approval after the federal government’s completion of demutualization regulations.
Economical Insurance conducts business under the following brands: Economical Insurance, Economical, Western General, Economical Select, Perth Insurance, Federation Insurance and Economical Financial.