PID Sets Hearing Date for Provident Mutual’s Proposed Sponsored Demutualization

The Pennsylvania Insurance Department has set Thursday, May 23, 2002, as the date for a public informational hearing on Provident Mutual’s proposed sponsored demutualization.

“Under the proposed sponsored demutualization, Provident Mutual would convert from a mutual insurance company to a stock company and become a wholly-owned subsidiary of Nationwide Financial. In the transaction, eligible members of Provident Mutual would be entitled to receive consideration in the form of Nationwide Financial Class A common stock, cash or policy credits,” said the announcement by the two companies.

Their bulletin explained that “Under Pennsylvania law, the Plan of Conversion must be approved by the Pennsylvania Insurance Department and by Provident Mutual’s eligible members,” generally policyholders and annuity contract holders who owned a Provident Mutual policy or contract that was in force on December 14, 2001, the date the Provident Mutual’s Board of Directors adopted the Plan of Conversion.

“If the Department approves the Plan of Conversion following the public informational hearing, the eligible members of Provident Mutual will have the opportunity to vote on the Plan of Conversion at a special meeting of members,” the announcement continued. “If the Plan of Conversion receives both approvals, Provident Mutual expects the sponsored demutualization to close in the third quarter of 2002.”

Topics Pennsylvania