WATERLOO, ON, February 26, 2018 — Economical Insurance, one of Canada’s leading property and casualty insurance companies, announced today that it will be updating its operational structure over the next 18 months to optimize efficiency and simplicity for broker partners and customers. These changes complement the ongoing development of innovative business initiatives such as Vyne™ and Sonnet, as Economical continues its ambitious agenda along the path to becoming a publicly-traded company.
“Economical has been committed to delivering exceptional experiences that exceed customer and broker expectations, while at the same time improving how we operate,” said Rowan Saunders, President and CEO, Economical Insurance. “Our valued broker partners and customers increasingly expect convenient, streamlined ways of doing business and we’ve been making the significant, long-term investments that are needed to meet that challenge and transform our business.”
Economical consolidates brands for streamlined broker experience
The Economical products currently offered under the brand names Western General, Economical Select, and Perth will take on the Economical Insurance brand name later this year. Complementing the legal entity consolidation announced in 2017, this will bolster the ease of doing business that Vyne will offer broker partners for personal lines and individually-rated commercial auto (IRCA). Economical will continue to offer farm, group, and special risk coverage and service under the Economical brand through a more streamlined and broader offering, allowing brokers to serve their customers with greater efficiency and reliability.
Economical to improve operating efficiency through organizational changes
Economical is optimizing its organizational structure and support functions by streamlining workflow and improving its ability to execute on its strategic plans efficiently.
Change over the next 18 months will include headcount reductions of approximately 10% to its current workforce, and substantial third-party cost reductions. While these changes are expected to impact 2018 financial performance, they are designed to improve future operating results.
“We have great ambitions for our company and are focused on nothing short of excellence,” said Saunders. “Economical has grown to become one of Canada’s largest P&C insurers over the past 146 years. We are making a commitment to our legacy, with our sights set on a long and profitable future as we prepare to become a public company.”
The resulting structure will be better suited to support strategic initiatives and address public company expectations with increasingly effective teams and support in place. Economical will ensure that an appropriate mix of talent is in place with the capabilities required to continue its transformation into a strong, independent publicly-traded company.
About Economical Insurance
Founded in 1871, Economical is one of Canada’s leading property and casualty insurers, with more than $2.2 billion in annualized premium volume and more than $5.6 billion in assets as at December 31, 2017. Headquartered in Waterloo, ON, this Canadian-owned and operated company services the insurance needs of more than one million customers across the country. Economical conducts business under the following brands: Economical Insurance, Economical, Western General, Economical Select, Perth Insurance, Sonnet, Petsecure, Economical Financial, and Family Insurance Solutions.
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