Waterloo, ON (Mar. 22, 2014) – After a thorough review of its business in the province, Economical Insurance has announced that it will discontinue writing insurance in Newfoundland and Labrador beginning October 1, 2014. Limited opportunities for profitable growth combined with a challenging regulatory environment were key considerations in making this decision.
Existing policies with Economical Mutual Insurance Company (“Economical”) or its subsidiary, Federation Insurance Company of Canada (“Federation”), will be honoured in full as per the coverage terms and conditions up to the expiry date stated on the policy. Economical Insurance is informing individual policyholders that once their Economical or Federation policies expire, they will no longer have the option to buy insurance with Economical or Federation and are being advised to consult their insurance broker to find another insurance provider to meet their insurance needs for a seamless transition of their coverage. Economical Insurance is actively supporting its broker partners to find alternate markets with other insurers serving the province.
About Economical Insurance
Founded in 1871, Economical Insurance is one of Canada’s leading property and casualty insurers, with $1.9 billion in annual premium volume and $5.1 billion in assets as at December 31, 2013. Based in Waterloo, this Canadian-owned and operated company services the insurance needs of more than one million customers across the country. In 2010, Economical announced its decision to become the first federally-regulated mutual property and casualty insurance company to pursue demutualization. Economical Insurance conducts business under the following brands: Economical Insurance, Economical, Western General, Economical Select, Perth Insurance, Family Insurance Solutions, Federation Insurance and Economical Financial. Visit economicalinsurance.com for more information.
Forward looking statements
Certain of the statements in this press release regarding our current and future plans, expectations and intentions, results, levels of activity, performance, goals or achievements, or any other future events or developments constitute forward-looking statements. The words “will”, “would”, “may”, “should”, “could”, “expects”, “plans”, “intends”, “trends”, “indications”, “anticipates”, “believes”, “estimates”, “predicts”, “likely” or “potential” or the negative or other variations of these words or other similar or comparable words or phrases, are intended to identify forward-looking statements.
Forward-looking statements are based on estimates and assumptions made by management based on management’s experience and perception of historical trends, current conditions and expected future developments, as well as other factors that management believes are appropriate in the circumstances. Many factors could cause Economical’s actual results, performance or achievements or future events or developments to differ materially from those expressed or implied by the forward-looking statements, including, without limitation, the following factors: Economical’s ability to implement its strategy or operate its business as management currently expects; its ability to accurately assess the risks associated with the insurance policies that it writes; unfavourable capital market developments or other factors which may affect Economical’s investments and funding obligations under its pension plans; the cyclical nature of the P&C industry; management’s ability to accurately predict future claims frequency or severity; government regulations; litigation and regulatory actions; periodic negative publicity regarding the insurance industry; intense competition; Economical’s reliance on information technology and telecommunications systems; Economical’s dependence on key employees; and general economic, financial and political conditions.
All of the forward-looking statements included in this press release are qualified by these cautionary statements. These factors are not intended to represent a complete list of the factors that could impact Economical, however, these factors should be considered carefully, and readers should not place undue reliance on forward-looking statements we make. We are under no obligation and have no intention to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.