NU Online News Service, Dec. 17, 3:10 p.m. – Provident Mutual Life Insurance Company, Cincinnati, says its board has unanimously approved a plan to convert to a stock charter, from a mutual charter.
Mutuals are owned by their policyholders, while stock companies are owned shareholders.
National Financial Services, Inc., Berwyn, Pa., agreed to acquire Provident Mutual in August. The proposed conversion is a step in the acquisition process.
Provident Mutual still needs approval from Pennsylvania insurance regulators and its own policyholders for the conversion plan and the acquisition plan.
Provident Mutual says it hopes to complete the transactions by mid-2002.
The company says it expects to send copies of the conversion plan to its members by the end of the month.