Poolman Approves Pioneer Mutual Life Insurance Company Reorganization
Posted on 10/9/2001
FOR IMMEDIATE RELEASE
Contact: Jim Poolman
October 9, 2001
Bismarck, ND - Commissioner Jim Poolman today granted regulatory approval for Pioneer Mutual Insurance Company to become part of a mutual insurance holding company named American United Mutual Insurance Holding Company (AUMIHC). A public hearing on the matter was held in Bismarck on September 6, 2001.
Poolman concluded that the plan of reorganization met all of the statutory requirements set out in North Dakota law.
"This reorganization will allow Pioneer Mutual the ability to better access capital to make them even more competitive in the future. Consequently, Pioneer Mutual will become financially stronger and be able to provide more products and services for the people of North Dakota," according to Poolman.
The plan for Pioneer Mutual Life Insurance Company is to reorganize from a mutual insurance company to a stock insurance company under the control of AUMIHC and its intermediate stock holding company, OneAmerica Financial Partners, Inc. an Indiana company. As a mutual company, Pioneer Mutual has no capital stock or stockholders; each policyholder has a membership within the company.
Pioneer Mutual Life Insurance Co, which is based in Fargo, was formed in 1868 as a fraternal benefit society. Pioneer has approximately 65 employees in Fargo and is licensed to conduct business in approximately 40 states and the District of Columbia. Pioneer has contracts with approximately 800 independent agents across the country.
The Commissioner determined there would be no adverse effects to policyholders. "In the rapidly changing world of financial services, it is sometimes necessary for companies like Pioneer Mutual to find strategic partnerships. I have been assured that members of Pioneer Mutual will have the same policies, and the same customer service they have always received," Poolman said.
The members (policyholders) of Pioneer Mutual Life Insurance Company will have the final approval of the reorganization plan. A majority vote of members must approve the reorganization plan for it to be effective. Members will be receiving proxy votes in mail.