NU Online News Service, Aug. 8, 10:03 a.m. – Nationwide Financial Services Inc., Columbus, Ohio, has agreed to acquire Provident Mutual Life Insurance Co., Berwyn, Pa., through a “sponsored demutualization.”
Provident Mutual is now a policyholder-owned mutual insurer.
The deal agreement calls for Nationwide to become the new owner of Provident Mutual. Nationwide would compensate the policyholders for their loss of policy-based ownership rights by giving them the equivalent of about $1.6 billion in cash, policy credits and Nationwide stock.
The boards of both companies have approved the acquistion, Nationwide says.