Last Updated: December 20, 2019
Information on the Restructuring of Sentry Insurance a Mutual Company to a Mutual Holding Company and a Stock Insurance Company
On November 20, 2019, Sentry Insurance a Mutual Company (“SIAMCO"), a Wisconsin mutual insurance company, filed a proposed plan for a mutual holding company restructuring pursuant to Chapter 644 of the Wisconsin Insurance code. As described in the filing, the effect of the restructuring will cause the following to occur:
- SIAMCO will become a Wisconsin stock insurance company
- SIAMCO shall incorporate Sentry Holdings, Inc. (“SHI") under Chapter 180 of the Wisconsin Statutes
- Sentry Mutual Holding Company (“SHMC") will be incorporated under Chapter 644 of the Wisconsin Insurance Code.
- All Membership interests and rights in surplus of SIAMCO will be extinguished and the members of SIAMCO will become members in the newly created SHMC with such rights and privileges, including membership interests and rights in surplus of SHMC. In keeping with one of the advantages of a mutual holding company restructuring, membership interests and rights in surplus of SMHC will also be granted to policyholders of several property and casualty insurance companies known as Sentry Member Companies, designated in accordance with the Articles of Incorporation and Bylaws of SMHC.
- SHI will be issued 100% of the initial voting stock of Sentry Insurance Company.
- SHMC will be issued 100% of the initial shares of voting stock of SHI
- SIAMCO will transfer 100% of the limited liability company membership interests or shares of voting stock of the following SIAMCO subsidiaries to SHI:
- John Parker Development, L.L.C.,
- Sentry Services, L.L.C.,
- Productivity Advantage, Inc.,
- Sentry Aviation Services, Inc., and
- WAULECO, Inc.
State law allows for a mutual insurance company to convert to a stock insurance company by placing the mutual policyholders' ownership rights in a mutual holding company that then becomes the owner of the newly converted stock insurance company. This transaction needs to be filed with and approved by OCI before it can be completed.
The restructuring plan filed by SIAMCO, along with key correspondence and statutorily required information will be placed in this section of OCI's website. This transaction requires a public hearing to be held before a decision is made by the OCI on the restructuring plan.
Application Materials Filed with OCI on November 20, 2019: