For Immediate Release:
March 5, 2026
Oklahoma Insurance Commissioner Approves CompSource Mutual’s Plan to Reorganize
OKLAHOMA CITY – Insurance Commissioner Glen Mulready approved today the reorganization of CompSource Mutual Insurance Company (“CompSource”) into a mutual holding company structure. Under the approved plan, CompSource will convert into a stock insurance company, called CompSource Mutual Insurance Company, S.I. CompSource policyholders will become members of a newly formed mutual insurance holding company, CompSource Mutual Insurance Holding Company, which will own 100% of the converted stock insurer indirectly through CompSource Intermediate Holding Company.
This process of converting to this type of mutual holding company system was established in Oklahoma law in 2024 through HB 3090 in order to streamline the transitioning of mutual insurance structures and foster a more flexible and competitive insurance market. CompSource’s conversion will be the first of its kind in Oklahoma.
This law requires the plan of reorganization to first be submitted to the Insurance Commissioner for approval. The reorganization plan must then be approved by a vote of at least two-thirds of the eligible members (policyholders) voting on the plan.
“Protection of policyholders has been our greatest concern in this review process,” said Insurance Commissioner Glen Mulready. “My office has employed significant due diligence in its review. Though not required, I held a public comment hearing and offered a written public comment period because I wanted to hear any concerns from the public. In addition to our own review, I also exercised my authority under the law to engage an independent and qualified third-party expert to review and ensure the plan of reorganization is fair and equitable to policyholders and protects policyholders’ rights.”
Holding a public comment hearing also provided the means to publicly disclose the Plan of Reorganization, which otherwise is confidential under Oklahoma law.
As detailed further in the Order, the Commissioner found that the plan protects policyholder rights, is fair and equitable to members, and does not substantially reduce the security or services provided to policyholders. Every policy in force on the effective date will remain in force under existing terms, and premiums will not be increased or changed mid-term solely as a result of the conversion. Membership voting rights in CompSource will be replaced with substantially similar voting rights and rights in surplus in the parent company.
The plan also satisfies capital and surplus requirements for a domestic stock insurer, ensuring the company is financially stable. The competency, experience, and integrity of those controlling the new stock insurer are not contrary to policyholder or public interests.
To further protect policyholders, the Approval Order includes conditions and safeguards, among them: maintaining a minimum 300% risk-based capital for three (3) years; OID pre-approval of any dividends issued by the stock insurer for three (3) years; advance notice to OID of director or officer changes for three (3) years; OID approval for any stock distribution or sale for five (5) years with independent valuation; and prohibiting stock or stock option grants to officers or management for five (5) years.
A copy of the Plan of Reorganization was attached to the Notice of Comment Hearing issued in August 2025 and is available at this link: https://www.oid.ok.gov/wp-content/uploads/2025/08/25-0697-TRN-CompSource-Mutual-IC_Notice-of-Hearing_with-Attachments-v2.pdf.