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At MagMutual, we are continuously evolving to meet the changing needs of our PolicyOwners. This is your company – owned by you and governed by your fellow physicians and policyholders and we are focused on putting your best interests first.

To make your company even stronger and better able to provide the best product at the lowest sustainable cost, we are proposing to form a Mutual Holding Company (MHC). We will very shortly be sending all our PolicyOwners a full information packet outlining the details of this change. As a PolicyOwner, you will have the ability to vote on the change. Should we proceed, you will still own 100% of the holding company, and therefore, 100% of MagMutual Insurance Company.

This change will not adversely affect dividends, the Owners Circle® or any other benefit you currently enjoy. No capital will leave the company and no director or officer will see any increase in their compensation packages as a result of this change. It will however, enable us to continually manage your company to be better equipped to grow and adapt to the changing healthcare industry.

The main reasons for making this change are to achieve the following: 

  • Operational Effectiveness – to better realize economies of scale and efficiencies across the company
  • Enhanced Risk Management – allowing us to utilize our own capital and pool risks for greater reinsurance efficiencies
  • Future Growth – provides a greater opportunity for growth, including through mergers and acquisitions
  • Greater Capital Flexibility – an ability to distribute, deploy and raise additional funds, as well as invest more effectively into initiatives that directly benefit our policyholders

The MagMutual Board of Directors’ chief aim is to understand, represent and protect your interests. With this in mind, the board and the executive team have been evaluating the benefits of forming an MHC for well over a year now.

Together, we’ve concluded that MagMutual’s long-term role as an industry leader in serving the interests of our physicians, hospitals and healthcare providers is considerably enhanced by forming an MHC. The board has consulted with independent outside accounting and law firms for their expertise on all of the legal, accounting and tax issues inherent in an MHC.

Our aim is to preserve and protect the policyholder ownership of the insurance company and the rights to control the insurer’s operations by electing representatives to serve on the Board of Directors of the MHC, and to vote on certain key corporate matters. The maintenance of policyholder control is of paramount importance; as is our ability to provide enhanced capabilities and opportunities to better serve you and MagMutual.

Should the MHC proceed, MagMutual will continue to be a closely and vigorously regulated company. We routinely make filings with, and our operations are closely monitored by, the insurance commissioners in over 20 states, where we are authorized to do business. Their responsibility is the protection of you, as a policyholder.

As a mutual company that works for its PolicyOwners’ benefit, MagMutual is continually looking for ways to provide greater value to PolicyOwners to keep them informed, safe, protected and rewarded.

If you have any further questions or concerns, please don’t hesitate to call us: 404-842-5511.

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