. The company was established when a group of people in Berlin (now
Kitchener), Ontario created a plan to protect themselves and their neighbours from the hardships caused by fire and lightning in 1871. On November 25, Economical Mutual Fire Insurance Company of Berlin issued its first policy on a house and barn. In 1887 the company opened its headquarters on the main street of the Berlin. During World War I, the company became involved in controversy when its general manager, ex-mayor W. H. Schmaltz, opposed the renaming of the town of Berlin to Kitchener. However, the following year, president Euler announced that preliminary estimates had been so high that the board had to revise its initial plans. On 24 September 1949, Economical awarded the building contract to Horton Bros. Limited, and the sod was turned that month. The accounting and fire departments moved into the second floor on 12 July 1951, and the remaining departments moved in September and October of that year. On 22 February 1952, the company held an official opening and tour of the new headquarters. Economical acquired The Missisquoi and Rouville Insurance Company of Quebec, The Perth Mutual of Stratford, Waterloo County Mutual Fire Insurance Company, the insurance-related assets of the Family Group of Companies of British Columbia, Federation Insurance, Hartford Insurance Company of Canada in 1956, 1968, 1980, 1999, 2000, and 2001 respectively. In 2006, The Mattei Companies of Seattle, Washington joined Economical Insurance, becoming the company's first subsidiary outside Canada. Throughout these changes and additions, the company's headquarters remained in the same municipality, now the city of Kitchener-Waterloo. By 2001, Economic Insurance Group was writing over one billion dollars in premiums annually. By 2014, this had increased to $2 billion. In December 2010, the board of Economical Mutual Insurance Company announced its intention to pursue
demutualization, which would mean that some of its policy holders would become shareholders. It is the first Property & Casualty Insurance company in Canada to do this. However, as of 2014, the demutualization was temporarily on hold, pending finalization of new federal regulations governing this process. According to the
Globe and Mail, the upcoming demutualization has made the company a potential target for takeover bids from other Canadian and international insurance companies. In 2012 and 2013, Economical reduced its staff by laying off more than 280 of its employees. The final vote to approve demutualization is slated for Spring 2021. == Awards and recognition ==