News

Jan. 04, 2021

Mutual holding company formation now in effect

Effective Jan. 1, 2021, Encova Insurance reorganized its six affiliated mutual insurance companies, as well as its property and casualty stock companies owned by these mutuals, into a mutual insurance holding company structure.

This does not change the coverage and service Encova provides its agents, policyholders and the communities they support. In addition, its brand, leadership team, profit center model, culture and strategic initiatives remain unchanged.

Fundamentally, this new structure allows the company to streamline its governance process and consolidate the functions performed by all boards of directors into a single board of the new mutual holding company, Encova Mutual Insurance Group, Inc. The Encova board of directors now provides direction and oversight to the entire group under the leadership of Greg Burton, executive chairman.

This structure offers greater opportunity for growth, organizational flexibility and financial stability, while preserving the benefits of mutuality that sit at the policyholder level. The names of the underwriting companies do not change. However, the policyholders who make up these companies will have their membership interest transferred to the mutual holding company, and all of such policyholders' membership interests will now be in one company. Accordingly, Encova remains a mutual company.