The Savings Bank Life Insurance Co. of Massachusetts (SBLI) has completed its reconversion from a stock insurance company owned by 30 shareholder banks to a mutual insurance company owned by its policyholders.

Following the conversion, the company’s name will change to The Savings Bank Mutual Life Insurance Co. of Massachusetts.

The conversion was approved by approximately 92 percent of SBLI policyholders and holders of annuity contracts who voted at a special policyholder meeting on June 28 or by other means in advance of the meeting. Prior to the policyholder vote, the proposed plan of conversion had been approved by the Massachusetts Commissioner of Insurance, the shareholders and by unanimous votes of the SBLI board of directors and Policyholder Advisory Board.

The conversion was facilitated by the issuance of $57.3 million in surplus notes by SBLI, the proceeds of which were used to pay the shareholder banks $57.3 million for all of their outstanding shares of SBLI stock.

“The management and board of directors of SBLI are pleased to have received the overwhelming support of the policyholder vote in favor of the conversion,” SBLI President and CEO James Morgan said in a statement. “We believe that moving forward as a mutual company is in the best interests of SBLI and its policyholders, and look forward to continuing our mission of providing our customers with safe, low-cost life insurance to protect their families.”

As a result of the conversion, SBLI is now owned by its policyholders and holders of annuity contracts, who have gained membership rights in the mutual company, including the right to annually elect directors and to consider such other matters as are considered at annual and special meetings. The conversion will have no effect on existing insurance policies or annuity contracts or on policyholder dividends, nor will it change the operation of the company.

SBLI Transitions Into Mutual Insurance Company

by Banker & Tradesman time to read: 1 min