UFSC Continuance and Westport Reinsurance

Summary#

This Canada Gazette item contains two notices about Canadian insurance organisations. One says UFSC Heritage Life Insurance Fraternal Society plans to leave federal insurance regulation and continue as a not-for-profit corporation under the Canada Not-for-profit Corporations Act. The other says the Canadian branch of Westport Insurance Corporation plans to apply to transfer most or all of its liabilities by reinsurance to the proposed Canadian branch of North American Specialty Insurance Corporation (with conditions and required approvals).

What it does#

• UFSC Heritage Life Insurance Fraternal Society

  • Intends to apply to the Minister of Finance (Canada) on or after March 15, 2022 to switch from the Insurance Companies Act (Canada) to the Canada Not-for-profit Corporations Act.
  • Proposes to change its legal name to UFSC Heritage Life Association once that continuance is in effect.
  • Allows people to object to the move by writing to the Superintendent of Financial Institutions by March 15, 2022.

• Westport Insurance Corporation

  • The Canadian branch plans to apply to the Superintendent of Financial Institutions on or after March 29, 2022 to reinsure, on an assumption basis, all or substantially all of its liabilities with the proposed Canadian branch of North American Specialty Insurance Corporation.
  • A copy of the proposed reinsurance agreement will be available for inspection by Westport policyholders at its Toronto office for a 30-day period after the notice was published.
  • The transaction is conditional on regulatory approvals. North American Specialty Insurance Corporation has not yet received an order to insure risks in Canada, and any approval would depend on that and other reviews. Subject to U.S. approvals, North American Specialty Insurance Corporation intends to change its name to Swiss Re Corporate Solutions America Insurance Corporation.

Who's affected#

• Members and policyholders of UFSC Heritage Life Insurance Fraternal Society (or the group that would become UFSC Heritage Life Association).
• Policyholders of the Canadian branch of Westport Insurance Corporation — they can inspect the proposed reinsurance agreement and may be affected if liabilities are moved.
• The notice also involves North American Specialty Insurance Corporation (and its proposed name Swiss Re Corporate Solutions America Insurance Corporation) and federal regulators (the Minister of Finance (Canada) and the Superintendent of Financial Institutions).
• If it’s unclear who will be affected in detail, that is because the notices describe intended applications and proposed transactions that still need regulatory approval.

Why it matters#

• The UFSC notice signals a change in how that organization would be governed and regulated — from a federally regulated insurance company to a not-for-profit corporation. That can matter for governance, oversight, and possibly how members and policyholders interact with the organisation.
• The Westport notice warns policyholders that their insurer is planning to transfer most liabilities to another insurer’s Canadian branch. If approved, claims handling, the legal insurer, or the brand on policies could change.
• Both items are proposals or applications that depend on regulatory approval, so the changes are not guaranteed.