Demutualization of an Insurer

[A_Hamilton]

I was wondering if anyone had any insights into how the demutualization process of insurers works. If I am a policy holder, do I just get a prorata share of the company based on the number of policies outstanding, or is it based on premiums that I've paid in the past? Curious if anyone knows how this works as I am looking at moving my insurance coverages around and wondering if it would be fun/possible to create some deep out of the money call options by getting my insurance through some small/midsized mutuals.

[twacowfca]

I was wondering if anyone had any insights into how the demutualization process of insurers works. If I am a policy holder, do I just get a prorata share of the company based on the number of policies outstanding, or is it based on premiums that I've paid in the past? Curious if anyone knows how this works as I am looking at moving my insurance coverages around and wondering if it would be fun/possible to create some deep out of the money call options by getting my insurance through some small/midsized mutuals.

 

Been there, done that.  :(

[gurjot]

unless you are sure when certain compnay will be demutualized its only then worth looking into.  otherwise no.

number of shares you get will depend on what kind of policy you own.  if you own term or universal life then you dont get any shares because only dividend paying policy (participating) is eligable.  and the premium you pay for such a policy is usually very expensive.  hope it helps.