Implications of Dynamic Financial Analysis on Demutualization

Special Topics (narrow topic or advanced); Recent announcements such as the Prudential's plan to fully demutualize have brought the issue of demutualization to the forefront of the insurance industry. The Center for Insurance Research estimates that one in six households may be impacted by the demutualization of Prudential alone. A number of other mutuals have also discussed plans to demutualize or are currently in the process of demutualizing: John Hancock, Standard Life, General American Life, Pacific Life, Mercer Mutual, Metropolitan Life and Farmers Casualty Company Mutual, to list a few. UNUM, Equitable, Reliastar and Allmerica represent a few of the growing number of companies that have successfully demutualized over the last decade. Keywords: Dynamic Financial Analysis, DFA