The conversion to a mutual holding company, previously approved by the Wisconsin Office of the Commissioner of Insurance and the Jewelers Mutual board of directors, will be effective upon issuance of a certificate of authority by the Wisconsin Office of the Commissioner, which is expected on or shortly after Jan. 1.
The change to a mutual holding company structure provides Jewelers Mutual with more flexibility to develop new and innovative products and services beyond its traditional insurance products, according to CEO and President Scott Murphy. In recent years, the company has launched its JM Shipping solution and JM Care Plan solutions.
“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,” he said.
Under the new structure, Jewelers Mutual Holding Co. will become the group’s new parent company, with Jewelers Mutual Insurance Co., SI becoming a stock subsidiary company wholly owned by the mutual holding company.
While a mutual holding company structure would allow Jewelers Mutual to consider the sale of stock to raise capital, Murphy said it has no plans to do so. The company will continue to operate solely for the benefit of its policyholder members, and policyholders will have essentially the identical membership rights in the mutual holding company that they have today.