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36-694: The Mutual Life Assurance Company of Canada was a Canadian insurance company that existed from 1868 to 2002. The company's articles of incorporation received royal assent in the Parliament of Ontario on 19 December 1868 as the Ontario Mutual Life Assurance Company. In 1900, it changed its name to the Mutual Life Assurance Company of Canada. At the end of the 20th century, Mutual Life was Canada's fourth largest insurance company. On 10 June 1999, shareholders voted to demutualise

72-551: A mutual holding company (MHC) . In any type of demutualization, insurance policies, outstanding loans, etc., are not directly affected by the organization's change of legal form. Mutual holding companies are not allowed in New York where attempts by mutual insurance to pass permissible legislation failed. Opponents of mutual insurance holding companies referred to the establishment of mutual holding companies in New York as "Legalized Theft". Some MHC demutualizations have been planned as

108-673: A decline in customer service to the extent that customers', management's and shareholders' interests diverge. A very early example of demutualization were the changes to the structure of the Union Insurance Society of Canton initiated by its secretary N.J. Ede between 1873 and 1882 leading to its re-registration as a limited company having originated as a mutual assurance society for traders in Canton in 1835. There are three general methods in which an organization might demutualize, full demutualization , sponsored demutualization , and into

144-465: A mutual organization, therefore, the legal roles of customer and owner are united in one form ("members"), whereas in the joint stock company the roles are distinct. This allows a broader capital base if the customers cannot or will not provide sufficient financing to the organization. However, a joint stock company must also try to maximize the return for its owners instead of only maximizing the return and customer services to its customers. This can lead to

180-480: A similar process of demutualization and was publicly traded. SIX Group , a global financial service provider based in Switzerland, represents an extra ordinary form of a mutualised organisation. The owners are limited to an exclusive group of service consumers, in particular Swiss and foreign banks. This entails a closer relationship with the customer, since a customer might influence the customer-oriented behavior by

216-555: Is a stub . You can help Misplaced Pages by expanding it . Demutualization The mutual traditionally raises capital from its customer members in order to provide services to them (for example building societies , where members' savings enable the provision of mortgages to members). It redistributes some profits to its members. By contrast, a joint stock company raises capital from its shareholders and other financial sources in order to provide services to its customers, with profits or assets distributed to equity or debt investors. In

252-563: Is another large example. A building society is a form of mutual mortgage provision organization that emerged in the UK in the 19th century, for personal savings and home mortgages. For much of the 20th century, building societies had a large share of the retail savings market, and they had their zenith after the deregulation under the Building Societies Act 1986. Following that Act, many of the larger societies, beginning with Abbey National ,

288-512: Is the exclusive life insurance partner of the AARP . New York Life Investments is a subsidiary global asset management business which serves both institutional and retail clients. It ranks No. 26 by total worldwide institutional assets under management, according to Pensions & Investments' Largest Money Managers Survey 2017. The group manages money through independent investment boutiques. These boutiques include: New York Life Foundation

324-601: Is the insurance company's philanthropic arm. Its areas of focus include childhood bereavement. New York Life Foundation first became involved in childhood bereavement programs when it supported the Comfort Zone Camp in 2007. Its partners and programs include the National Alliance of Grieving Children, Grief Reach, Coalition to Support Grieving Students, Camp Erin/Moyer Foundation, Tragedy Assistance Program for Survivors and Boys and Girls Clubs of America . It sponsored

360-759: Is the third-largest life insurance company and the largest mutual life insurance company in the United States, and is ranked #71 on the 2023 Fortune 500 list of the largest U.S. corporations by total revenue. In 2023, NYLIC achieved the best possible ratings by the four independent rating companies ( Standard & Poor's , AM Best , Moody's and Fitch Ratings ). Other New York Life affiliates provide an array of securities products and services, as well as institutional and retail mutual funds . New York Life Insurance Company first opened in Manhattan 's Financial District as Nautilus Mutual Life in 1841, 10 years after

396-729: The HBO documentary One Last Hug . The company also emphasizes giving to various cultural communities, including the African-American community. The company also funded a $ 10 million endowment to the Colin Powell Center for Policy Studies at the City College of New York called the New York Life Endowment for Emerging African-American Issues in 2006. In 2017 Fortune named New York Life among its Most Admired Companies in

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432-489: The Nationwide Building Society , the largest remaining mutual, adopted poison pill clauses in their rules as a defense against carpetbaggers. These took the form of a charitable assignment provision that requires new members to assign any compensation from demutualization to charity. The UK motorists' organization, The Automobile Association , demutualized and was purchased by Centrica plc in 1999. The sale

468-527: The 2013 acquisition of Dexia Asset Management, later renamed Candriam Investors Group, New York Life Investments became one of the largest asset managers worldwide, with access to markets in Europe, Asia and Australia, in addition to the United States. In November 2021, the company announced that company president Craig DeSanto was replacing CEO Ted Mathas. The transition was finalized in April 2022, and Mathas stayed with

504-463: The 34-story skyscraper in 1929. Later that year, New York Life's assets survived the stock market crash ; state regulation and company investing policy had led New York Life to invest in government bonds and real estate, not common stocks. Following World War II , New York Life further diversified; it invested in real estate development in the late 1940s and launched a mortgage-loan program for veterans in 1946. In 1957, New York Life hired one of

540-572: The Australian Exchange (1998) and Toronto, Hong Kong and London Stock Exchanges in 2000. The Chicago Mercantile Exchange became a shareholder-owned public corporation in 2000 through a public offering . "The road to this initial public offering began in June 2000, when Exchange members voted overwhelmingly to transform the then not-for-profit, membership-owned organization into a for-profit, shareholder-owned corporation. On November 13, 2000, CME became

576-453: The claims process for missing persons in the wake of the September 11 attacks . Fearful of the stability of the market during the two years prior to the financial crisis of 2007–2008 , New York Life moved its cash into other investments such as treasury bonds . In the ensuing financial crisis, New York Life Insurance Company rejected assistance from the U.S. Treasury Department . Following

612-483: The company and to change its name to the Clarica Life Insurance Company. Clarica determined a valuation of CAD 865 million, and on 15 July 1999 made its initial public offering of 42.2 million shares valued at CAD 20.50 per. In December 2001, Sun Life made a CAD 7.1 billion offer to acquire Clarica. Shareholders voted in favour of the takeover on 6 March 2002, and the deal was completed on 29 May. Upon

648-473: The company as a non-executive chairman. As of 2016, New York Life Insurance Company was the country's third-largest life insurance company. A mutual insurance company, New York Life is owned by its policyholders and has no outside shareholders. As a mutual, New York Life distributes a portion of its earnings to eligible policyholders as annual dividends. As of 2016, the company has paid a dividend every year since 1854. Through Seguros Monterrey New York Life,

684-583: The company became the first US-based insurance provider to offer life insurance to women at the same cost as men; social reformer Susan B. Anthony was one of the company's first female policyholders. In 1896, New York Life became the first company to insure people with disabilities or in hazardous occupations. The New York Life Building at 51 Madison Avenue in Manhattan, designed by American architect Cass Gilbert , opened in December 1928. The company moved into

720-503: The company offers insurance in Mexico. New York Life's core product is whole life insurance , a type of life insurance offering lifelong protection that builds cash value over time. New York Life also sells term life insurance , universal life insurance , variable universal life insurance , long-term care insurance , annuities and disability insurance . The company operates New York Life Direct, selling direct-to-consumer policies, and

756-478: The day including Aetna and US Life , insured the lives of slaves for their owners. By 1847 these accounted for one‑third of New York Life's policies. The board of trustees voted to end the sale of insurance policies on slaves in 1848. The company also sold policies to soldiers and civilians involved in combat during the American Civil War and paid claims under a flag of truce during that time. In

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792-569: The end of 2006 there were fewer than 80 mutual life insurers in the United States. Some of these mutual companies award dividends to their policyowners. For example, Northwestern Mutual expects to pay more than $ 5 billion in dividends to participating policyowners in 2008. Northwestern Mutual has paid its policyowners more than $ 65 billion in dividends, since the company was founded 151 years ago. Mass Mutual Financial Group's Web site defines life insurance policy dividends. Numerous agricultural supply and marketing cooperatives have demutualized. One of

828-434: The first life insurance charter was granted in the United States. Originally chartered in 1841, the company also sold fire and marine insurance . The company's first president, James De Peyster Ogden , was appointed in 1845. Nautilus renamed itself New York Life Insurance Company in 1845 to concentrate on its life insurance business. In its early years (1846–1848) the company, along with other insurance companies of

864-430: The first U.S. exchange or commodities exchange to demutualize into a joint stock corporation." The Chicago Mercantile Exchange had its IPO on December 6, 2002. The Chicago Board of Trade similarly carried out an IPO in 2005, having previously been "a self-governing, self-regulated Delaware not-for-profit, non-stock corporation that serves individuals and member firms". The Stock Exchange of Hong Kong underwent

900-927: The first of a two-stage process. The second stage would be full demutualization once the transition pains into MHC status are complete. In other cases, the MHC is the final stage. Note that some mutual companies, such as Nationwide Mutual Insurance Company and the MassMutual , have owned stock companies listed on a stock exchange. Nationwide bought back its subsidiary stock company in full, on December 31, 2008. These are not MHCs, however; they are simply mutual companies which have majority control over one or more stock companies. Other mutual companies may own some of another company's stock, but as simply an asset, not something they actually control. Finally, many mutual companies, including Nationwide and MassMutual, have wholly owned subsidiaries. The subsidiaries may technically be stock companies, but

936-490: The industry's first black agents, Cirilo McSween. In the 1970s, New York Life began selling annuities and mutual funds. In the late 1990s and early 2000s, as other mutual life insurance companies became publicly traded corporations, New York Life remained a mutual company. New York Life entered the Mexican market in 1999 when it acquired Seguros Monterrey from Aetna . New York Life, along with other insurance companies, relaxed

972-400: The largest, CF Industries , a manufacturer and distributor of fertilizers in the United States, was for 56 years a cooperative federation . CF then demutualized and made an initial public offering of equity stock in 2005. Another large example is Kerry Co-operative Creameries of Ireland , a milk and meat processor that partially demutualized in 1986 under the so-called Irish model, with

1008-489: The late 1800s, the company began employing female agents. New York Life continued to grow throughout its first 100 years as the national population and the market for life insurance increased. New York Life's growth was in part fueled by its introduction of a system by which the company used agents to find new business. In 1892, company President John A. McCall introduced the branch office system: offices that served as liaisons between New York and field agents. In 1894,

1044-460: The magnitude of its own equity holding of SIX Group – in this category the subsidiary SIX Swiss Exchange AG . Over 200 US mutual life insurance companies have demutualized since 1930. At the end of the 20th century and beginning of the 21st century numerous large mutuals such as Prudential , MetLife , John Hancock , Mutual of New York , Manulife , Sun Life , Principal , and Phoenix Mutual decided to demutualize and return to policyowners all

1080-642: The mutual owns all the stock. For example, the New York Life Insurance and Annuity Corporation (NYLIAC) is a wholly owned subsidiary of the New York Life Insurance Company (NYLIC). A person may purchase an insurance policy from either company, but only those who own participating policies from NYLIC are mutual members. Other policyholders are customers. The Stockholm Stock Exchange was the first exchange to demutualize in 1993, followed by Helsinki (1995), Copenhagen (1996), Amsterdam (1997),

1116-505: The primary business of the co-operative transferred to a publicly traded company Kerry Group and the shareholding split between the co-operative and its farmer members. Since this partial demutualisation, the co-operative has gradually reduced its holding in the Kerry Group in order to fund an extensive redemption scheme of its own co-operative shares held by farmer members. Murray Goulburn Co-operative and Australia's 2016 dairy crisis

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1152-759: The profits they had accumulated as mutual life insurers. Policyowners were awarded cash, stock and policy credits exceeding $ 100 billion in a wave of demutualizations, which have been regarded by some as very rewarding to the new owners although the effect on customers is not discussed. Others show that the demutualization process is detrimental to customers. The boards of directors of other mutual companies, which include Northwestern Mutual , Massachusetts Mutual , New York Life , Pacific Life , Penn Mutual , Guardian Life , Minnesota Life , Ohio National Life , National Life Group , Union Central Life , Acacia life , and Ameritas Life decided to either remain mutual or they decided to form mutual insurance holding companies. At

1188-472: The purchase, Sun Life overtook Manulife to become Canada's largest insurance company. After the sale, Clarica was merged into the Sun Life Assurance Company of Canada, and the corporation was dissolved at the end of 2002. That year, Sun transferred the headquarters of its Canadian operations from Toronto to Waterloo, where they remain today. This article about a Canadian corporation or company

1224-482: The second largest, in 1989, and including the Halifax Building Society , the largest, soon converted into joint stock banking companies, some of which were subsequently acquired by other banks. Many societies soon became targets of speculative " carpetbaggers ", who opened savings accounts in order to obtain a windfall, in cash or shares, in the event of demutualisation. Most of the remaining societies, such as

1260-565: The tiny Scottish retailer, Musselburgh and Fisherrow Co-operative Society , completed most or all of the steps necessary to demutualize. In 2008, a Swiss competition regulator recommended demutualization to Switzerland's leading supermarket chains, Coop and Migros . Irish grocer-owned retailers' cooperative , ADM Londis , changed its capital structure in 2004 to an unlisted public limited company , allowing its owners to trade its stock privately at market value. New York Life Insurance Company New York Life Insurance Company ( NYLIC )

1296-482: Was completed in July 2000 for £1.1 billion. As well as the many agricultural supply cooperatives that demutualized, a small number of general retail consumer's cooperatives have demutualized or considered demutualization. In 1997, Andrew Regan launched an unsuccessful hostile takeover bid to demutualize the UK's giant Co-operative Wholesale Society , which, despite its name, was a large retailer in its own right. In 2007,

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