Central Insurance, a property/casualty mutual insurance company, and its affiliates have reorganized under Ohio law into a mutual holding company structure, the company announced.

The reorganization, creating a new mutual holding company, Central Mutual Holding Company (CMHC) that directly or indirectly owns all of the Central Insurance affiliates, is effective January 1, 2025.

Central Insurance has also converted to a stock insurance company, Central Insurance Company (CIC), an indirect, wholly owned subsidiary of CMHC.

The insurance company will continue to present itself in the marketplace as Central Insurance.

Central will continue to be governed by its policyholders and provide insurance coverage through its agency partners—the same way in which it operates today.

In a media statement, Evan Purmort, chair, chief executive officer and president of Central explained that the reorganization “underscores Central’s commitment to our long-term success, ensuring we remain vigilant in the face of volatility while innovating for the future.”

He continued: “We are excited for this organizational change and the flexibility and growth opportunities it provides.”

According to analyst at S&P Global Market Intelligence, Tim Zawacki, insurance sector strategist, mutual insurance holding company conversions have been becoming more popular in the P/C insurance sector—a trend that S&P GMI expects to continue. Speaking in December, during a Standard & Poor’s webinar titled “IN/sights: Outlook & Trends for U.S. Insurers 2025 & Beyond,” Zawacki said, “We’re also seeing a particularly elevated level of mutual insurance holding company conversions where mutuals will gain some additional financial flexibility by adopting the mutual holding company structure,” he said. “By our count right now, we’re on pace for a record year for MIHC conversions,” he said, reporting that seven took effect in 2024, topping a prior record of six in a single year.

These “companies, whether by choice or by force, are responding to pressures that they’re facing from a financial standpoint, from a reinsurance availability standpoint and from a financial flexibility standpoint,” Zawacki said.

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The reorganization announced by Central Insurance also involves the creation two new intermediate holding companies: CMIC Holdings, Inc. and 1876 Holdings, Inc.

Central Insurance provides personal and commercial coverage to individuals and businesses across the country. The company writes business in 25 states through a network of independent agents and four regional offices located in Boston, Atlanta, Dallas, and Van Wert, Ohio where its headquarters remain. Additionally, Central Insurance operates satellite offices in Columbus and Salt Lake City. CMHC has combined assets of more than $2 billion.

Source: Central Insurance