The Tidewater Life and Health Insurance Company is owned by its policy owners, who are entitled to certain rights as owners of the company, and it issues both participating and nonparticipating insurance policies. Tidewater is considering converting to the type of company that is owned by individuals who purchase shares of the company's stock. Tidewater is incorporated under the laws of Illinois, but it conducts business in the Canadian provinces of Ontario and Manitoba. Tidewater established the Diversified Corporation, which then acquired various subsidiary firms that produce unrelated products and services. Tidewater remains an independent corporation and continues to own Diversified and the subsidiaries. In order to create and maintain a common vision and goals among the subsidiaries, the management of Diversified makes decisions about strategic planning and budgeting for each of the businesses. In order to become the type of company that is owned by people who purchase shares of the company's stock, Tidewater must undergo a process known as

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Demutualization is the process by which a company owned by its policyholders, such as Tidewater, converts to a company owned by shareholders who purchase shares of the company's stock. This would mean that Tidewater's policyholders would receive shares in the newly formed company in exchange for their ownership rights in the old company. This process typically occurs when a company wants to access new sources of capital and increase its ability to compete with other companies in the industry. While Tidewater is incorporated in Illinois, its business operations in Canada may also be subject to specific regulatory requirements for demutualization in those provinces. The fact that Tidewater owns Diversified and its subsidiaries is not directly relevant to the process of demutualization.

The Tidewater Life and Health Insurance Company Is Owned by Its