FinancialsMay 17, 2024
Richemont Appoints Van Cleef & Arpels’ Nicolas Bos as New CEOThe announcement coincided with its full-year results, with growth driven by its jewelry brands.
MajorsApr 25, 2019
Jewelers Mutual Plans Transition to Mutual Holding Company
The Wisconsin insurance commissioner and company policyholders must approve the plan in order for it to move forward.
Neenah, Wis.—Jewelers Mutual Insurance Company is planning to transition to a mutual holding company, it announced last week, as it looks to extend the scope of its operations beyond insurance.
The company currently is organized as a mutual insurance company, meaning it’s an insurer owned by its policyholders, rather than stockholders.
Changing to a mutual holding company, or MHC, would allow Jewelers Mutual to become a wholly-owned stock subsidiary of the new MHC while preserving mutual policyholder rights, Mark Willson, vice president and general counsel at Jewelers Mutual, explained to National Jeweler.
The company does not plan to go public and will leave ultimate control of the company in the hands of member policyholders, he said.
The plan is subject to approval by both the insurance commissioner in Wisconsin, where Jewelers Mutual is based, and policyholders.
In a press release announcing the planned transition, CEO Scott Murphy noted that Jewelers Mutual, which has been in business since 1913, has to evolve in order to better serve its policyholders, who are adjusting to the changing needs of the industry.
Transitioning to an MHC will allow for more flexibility, enabling the company to better operate its current business as well as pursue other opportunities in the future, he said.
For example, Willson said the company currently faces limitations on its ancillary operations—divisions like JM Shipping Solution and JM Care Plan, the service contract and extended warranty product jewelers can offer to customers—even if they benefit its core insurance operations.
Becoming a mutual holding company would remove those limitations while still giving the company board oversight and control.
The change will also allow the company to extend membership rights to policyholders of current and future subsidiaries of Jewelers Mutual who would not have them otherwise.
“A tangible example of another component of this additional flexibility is that JM Specialty policyholders would become MHC members under the filed plan and be able to vote for members of the board of directors, extending the company’s ‘mutuality’ to more members than is possible today,” Willson said.
JM Specialty Insurance Company, an insurance underwriting company within Jewelers Mutual, is a new insurer that is set to begin writing business later this year.
The planned transition will not affect any of the current coverages, premium rates, loss prevention or claims-handling processes, the company confirmed.
Jewelers Mutual also noted that its board of directors and officers would remain the same and would not receive any additional compensation because of the transition.
And,
policyholders’ right to vote for board members at the company’s annual meeting will remain intact.
The company’s board of directors already has unanimously approved the change and the plan has since been filed with the Wisconsin Office of the Commissioner of Insurance.
If approved by the commissioner’s office, it then goes to existing and eligible policyholders for a vote.
Policyholders will be able to vote by proxy via mail or email, or can choose to attend a special policyholders meeting.
Dates have not been set for the administrative hearing, proxy mailing or policyholder meeting, but the company said it hopes to complete the transition by the end of 2019.
For more information on the plan, policyholders can call 888-884-2424 or visit JewelersMutual.com.
The company’s board of directors already has unanimously approved the change and the plan has since been filed with the Wisconsin Office of the Commissioner of Insurance.
If approved by the commissioner’s office, it then goes to existing and eligible policyholders for a vote.
Policyholders will be able to vote by proxy via mail or email, or can choose to attend a special policyholders meeting.
Dates have not been set for the administrative hearing, proxy mailing or policyholder meeting, but the company said it hopes to complete the transition by the end of 2019.
For more information on the plan, policyholders can call 888-884-2424 or visit JewelersMutual.com.
More on Majors
The Latest
FinancialsMay 17, 2024
Watches of Switzerland’s Fiscal-Year Sales Flat Looking ahead, the retailer said it sees “enormous potential” in Roberto Coin’s ability to boost its branded jewelry business.
Recorded WebinarsMay 17, 2024
Watch: Preparing for Trade Show SuccessJewelry trade show veterans share strategies for engaging buyers, managing your time effectively, and packing the right shoes.
Brought to you by
Record Gold Prices Have Consumers Undeterred. Here’s Why.Despite the rising prices, consumers continue to seek out the precious metal.
AuctionsMay 17, 2024
Piece of the Week: Cartier’s Ring-Tailed LemurThis little guy’s name is Ricky and he just sold for more than $200,000 at Sotheby’s Geneva jewelry auction.
Weekly QuizMay 16, 2024
This Week’s QuizTest your jewelry news knowledge by answering these seven questions.
AuctionsMay 16, 2024
Christie’s Holds 2 Sales Despite CyberattackThough its website has been down for a week, Christie’s proceeded with its jewelry and watch auctions on May 13-14, bringing in nearly $80 million.
AuctionsMay 16, 2024
Sotheby’s Withdraws 101-Carat Yellow Diamond from AuctionDespite the absence of “The Allnatt,” Sotheby’s Geneva jewelry auction totaled $34 million, with 90 percent of lots sold.
Brought to you by
From Registration to Return: 10 Tips to Protect You Before, During and After a TradeshowTradeshow risks are real. Get tips to protect yourself before, during and after and gain safety and security awareness for your business.
ColumnistsMay 16, 2024
The PR Adviser: What the Designer Should’ve DoneLilian Raji gives advice to designers on how to make the most of great publicity opportunities.
SourcingMay 16, 2024
Lucapa to Shed Stake in Lesotho Diamond Mine The mining company wants to divest its 70 percent holding in the Mothae Diamond Mine in an effort to streamline its portfolio.
ColumnistsMay 15, 2024
Squirrel Spotting: Why Retailers Struggle to Fire BrandsWhy do so many jewelers keep lines that are not selling? Peter Smith thinks the answer lies in these two behavioral principles.
AuctionsMay 15, 2024
Red Diamond Breaks Records at Phillips GenevaThe “Argyle Phoenix” sold for more than $4 million at the auction house’s second jewels sale.
Events & AwardsMay 15, 2024
See Who’s in JA’s 2024 ‘20 Under 40’ ClassThe annual list recognizes young professionals making an impact in jewelry retail.
IndependentsMay 15, 2024
David Mann Jewelers in Upstate NY to Close After 35 YearsOwner David Mann is heading into retirement.
FinancialsMay 15, 2024
Brilliant Earth’s Sales Fall Flat in Q1 While overall sales were sluggish, the retailer said its non-bridal fine jewelry was a popular choice for Valentine’s Day.
SourcingMay 14, 2024
Anglo American Confirms It Is Looking to Sell De Beers The mining giant also wants to offload its platinum business as part of an overhaul designed to “unlock significant value.”
AuctionsMay 14, 2024
2 Huge Yellow Diamonds Are Heading to AuctionChristie's is selling one of the diamonds, moving forward with its Geneva jewelry auction despite the cyberattack that took down its website.
GradingMay 14, 2024
Instappraise Adds Trifold Brochure to Appraisal OfferingsRetailers can customize and print the appraisal brochures from their store.
Lab-GrownMay 13, 2024
Lab-Grown Diamond Brand Lightbox Cuts Prices by 25 to 40%The move follows a price-drop test run in Q4 and comes with the addition of a “quality assurance card” from GIA for some loose diamonds.
TechnologyMay 13, 2024
Christie’s Website Brought Down by Hackers, Watch Auction Postponed The site has been down since Thursday evening, just ahead of its spring auctions.
AuctionsMay 13, 2024
Madeleine Albright’s Jewelry, Pins a White-Glove Sale at Freeman’s | HindmanThe late former U.S. Secretary’s collection went for quadruple the sale’s pre-sale estimate.
IndependentsMay 13, 2024
Zachary’s Jewelers Names Mother’s Day Jewelry Contest WinnersThree fifth graders’ winning designs were turned into custom jewelry pieces in time for Mother’s Day.
IndependentsMay 10, 2024
Frank Adams Jewelers Names New CEOKimberly Adams Russell is taking over the role from her father, David Adams, marking the third generation to hold the title.
CollectionsMay 10, 2024
Piece of the Week: Carina Hardy’s ‘Birth of Venus’ NecklaceAs a token of womanhood, this necklace depicts when Venus was born from the sea.
TrendsMay 09, 2024
Amanda’s Style File: Shine Bright, Moms Show your mother some love with a piece of fine jewelry.
IndependentsMay 09, 2024
Kyle Edward Fine Jewelry to Close Salisbury StoreThe company’s Easton location will remain open.
MajorsMay 09, 2024
JBT Elects New ChairmanBrian D. Fleming of Carla Corporation was elected to serve a one-year term in the role.
