CompSource Mutual Insurance Co. plans to reorganize as a stock company through a new holding structure, a move it says qualifies as a “non-recognized” transaction for federal income tax purposes.
The company submitted the plan to the Oklahoma Insurance Department and is seeking regulatory approval.
Under the filing, a mutual holding company, CompSource MHC, would be formed along with a wholly owned subsidiary, Intermediate Holdings.
The reorganized insurer, to be named CompSource Mutual Insurance Co., S.I., would be a wholly owned subsidiary of Intermediate Holdings. The company said it has no plans to distribute or sell any stock within six months after the effective date of the transaction.
The board approved the plan on April 25. State regulators have scheduled a public comment hearing for Aug. 28 as part of their review process.
If the insurance commissioner approves the plan, eligible members of CompSource Mutual would vote on the proposal. At least two-thirds of voting members would need to approve for the reorganization to proceed, according to documents filed with the department.
The filing states the transition is in the company’s interest, protects policyholders’ interests, and is fair and equitable. It also states the transaction would qualify as a “non-recognized” event for federal tax purposes.
CompSource Mutual, based in Oklahoma City with additional operations in Tulsa, has provided workers’ compensation coverage to businesses across the state for more than 85 years. Established in Oklahoma’s capital, the company has adapted alongside the state’s changing economic landscape while maintaining a focus on serving local employers and their employees.
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