Mutual holding company formation
In April, we announced our intention to reorganize our six affiliated mutual insurance companies, as well as our property and casualty stock companies owned by these mutuals, into a mutual insurance holding company structure. We are happy to announce this new structure will take effect on Jan. 1.
This will not change the coverage and service we provide to our agents, policyholders and the communities we serve. In addition, our brand, management team, profit center model, culture and strategic initiatives will remain unchanged.
Fundamentally, this new structure will allow us to streamline our governance process and consolidate the functions performed by all of our boards of directors into a single board at the new mutual holding company, Encova Mutual Insurance Group, Inc. Our Motorists Mutual board of directors will become our Encova board of directors to provide direction and oversight to the entire group under the leadership of Greg Burton, our executive chairman.
This structure will also offer greater opportunity for growth, organizational flexibility and financial stability, while preserving the benefits of mutuality that sit at the policyholder level. The names of our underwriting companies will not change. However, the policyholders who make up these companies will have their membership interest transferred up to the mutual holding company, and all of such policyholders' membership interests will now be in one company. Accordingly, Encova remains a mutual company.
This transformation will better reflect the direction we are headed as a company and propel us to make further advances and secure the long-term success of Encova.