DCBS Media Release
January 14, 1999
Hearing Set on Standard Insurance Company Demutualization Plan
The Oregon Department of Consumer and Business Services (DCBS) will hold a hearing Jan. 27 in Portland to receive public comments on Standard Insurance Company's proposed demutualization plan.
Standard's board of directors is proposing to convert the firm from a mutual life insurance company, owned by its policyholders, to a publicly held stock life insurance company. Under state law, the DCBS director must approve Standard's plan. If the director approves the plan, the next step in the process will be a vote of the company's approximately 125,000 policyholders, 30,000 of whom represent groups.
The public hearing will begin at 6 p.m. (PST) in the auditorium of the World Trade Center, Building 2, 25 SW Salmon St., in Portland. DCBS Director Mike Greenfield will take oral testimony at the hearing. Written statements concerning the plan also may be submitted at the hearing or mailed to: Director, DCBS, 350 Winter St. NE, Salem, Oregon 97301-3883. Written statements must be received no later than Feb. 8, 1999. All comments received will be part of the public record.
State law gives the DCBS director 30 days after the hearing to issue an order approving, conditionally approving or disapproving the plan.
If the plan is approved by the DCBS director and a majority of policyholders voting, Standard intends to conduct an initial public offering (IPO). The plan becomes effective when the IPO is completed, and the company's equity will be distributed to eligible policyholders, primarily in the form of stock, in exchange for their ownership interests in the mutual company.
Standard is one of the country's largest mutual insurers. Founded in Portland in 1906, the company operates nationwide, offering group and individual life and disability insurance and retirement plans, and group dental insurance.
If the plan moves forward, the company name will remain the same: Standard Insurance Company. A new, publicly-held holding company, which will be named StanCorp Financial Group, Inc., will be formed to hold the shares of stock of the company.