Policyholders vote unanimously to approve merger of Howick, Grey & Bruce Mutual

A merger between two mid-western Ontario mutual insurance companies will take effect Jan. 1, and corporate documents suggest the benefits could include increased staff specialization and the ability to handle auto accident benefit claims in-house.

Last month, the Financial Services Commission of Ontario gave permission for Howick Mutual Insurance Company and Grey & Bruce Mutual Insurance Company to amalgamate. The boards of both companies had agreed to merge earlier this year.

Then the policyholders voted unanimously in favour of the merger, said Kevin Inglis, president and chief executive officer of Howick Mutual, who will lead the merged company.

The amalgamated firm will be based in the community of Wroxeter, on the Maitland River about 80 kilometres northwest of Waterloo, in Howick Township.

“The policyholders of both companies supported it 100%,” he told Canadian Underwriter. “I don’t think that’s ever happened before to have that type of support.”

An amalgamation committee appointed by the companies determined there will be “continued use of existing brokers,” according to an information package for policyholders posted to the Grey & Bruce Mutual website. “A noted benefit of the new large volume amalgamated mutual will be the ability to explore new broker appointment opportunities.”

But Inglis said it is “not in the immediate plans” to appoint new brokers.

“One of the nice things about the amalgamation was there was no overlap in brokers, so the broker field has expanded with the amalgamation itself,” he said.

Grey & Bruce Mutual, which was incorporated in 1878, is based in Hanover, about 100 kilometres northwest of Waterloo. Howick was founded in 1873 and is based about 45 kilometres south of Hanover.

Under the terms of the agreement, Howick and Grey & Bruce will amalgamate Jan. 1 to form a new company under the name of Howick Mutual Insurance Company. All assets, liabilities and surplus of both companies will be transferred to Howick mutual. The new firm will keep a Hanover branch office.

“Both companies concentrate on property business in rural mid-western Ontario and avoid writings in large urban centres,” according to the information package for policyholders. “The amalgamation committee has confirmed that this focus will not be altered in the new amalgamated Company.”

In addition to Inglis’s appointment as president and CEO of the new firm, Carol Murray — currently general manager of Grey & Bruce — will be a “key member of” the senior management team.

All 22 employees of both firms were offered jobs with the merged company, Inglis said.

“Some roles will change but all existing staff will be retained within the amalgamated company.”

Inglis noted the merged firm will be able to save money by having its own staff handle auto accident benefit claims.

“Grey & Bruce was putting all their AB claim files out to independents, so we will be able to bring those back in house and there will be savings associated with that.”

Both firms “had identified each other as potential amalgamation partners” in 2012, according to the information package.

“It is anticipated that the new amalgamated company will be able to invest more in technology than the two individual companies are currently able to expense.

New IT projects could include a document management system, knowledge management and web based computing.