Nevada Insurance Commissioner of Insurance Alice A. Molasky-Arman announced that EIG Mutual Holding Co., a Nevada domestic insurer specializing in workers’ compensation, has completed its demutualization. The demutualization culminated on Jan. 31, 2007, with the initial public offering of Employers Holdings Inc. (NYSE: EIG) and sale of 26,750,000 shares at $17. In addition to the 26.7 million shares sold, the underwriters exercised the over-allotment option, which resulted in the issuance of an additional 4 million shares, bringing the total issued to 30.7 million.
Molasky-Arman said, “Employers is the first Nevada domestic mutual organization that has converted to a publicly traded company, making it an historical and monumental moment in Nevada’s history. I am pleased with the outcome of EIG’s IPO. This is very good news for Nevada and its employers who have a stake in this company.”
Approximately $463 million in cash will be distributed to eligible members by mid-March, unless the time period for distribution is extended with the Commissioner’s approval. Also, 22.7 million shares of EIG common stock will be issued to eligible members who did not elect to receive cash on the IPO date, worth an estimated $450 million. The total market value of EIG now exceeds $1 billion, based on the close on Friday, Feb. 2, 2007.
On Jan. 13, 2007, EIG held a special stockholders meeting, where it received the necessary votes from its policyholders on the proposed conversion. Commissioner Molasky-Arman subsequently issued her Final Order in the proceeding, which was among the final steps of the process to enable EIG Mutual Holding Co. to convert to a stock holding company.
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