Allianz reinsurance and Scotiabank trust merger

Summary#

• Allianz Life Insurance Company of North America plans to ask the federal regulator for permission to have its Canadian policies taken over (reinsured) by Assumption Mutual Life Insurance Company. Policyholders can inspect the deal documents for 30 days after this notice.
• MD Private Trust Company and The Bank of Nova Scotia Trust Company plan to apply to the federal government to merge into one trust company under the name The Bank of Nova Scotia Trust Company, with a proposed effective date of May 1, 2024.

What it does#

• Reinsurance notice:
  • Allianz Life Insurance Company of North America intends to apply, on or after January 17, 2024, to the Superintendent of Financial Institutions (Canada) for approval to have its Canadian branch’s insurance policies reinsured on an assumption basis by Assumption Mutual Life Insurance Company.
  • A proposed assumption reinsurance agreement and an independent actuary’s report will be available for policyholders to inspect during business hours at the Chief Agent’s office in Toronto for 30 days after this notice was published.
  • Policyholders can request copies in writing from the Chief Agent.
• Amalgamation notice:
  • MD Private Trust Company and The Bank of Nova Scotia Trust Company intend to apply, on or after December 18, 2023, to the Minister of Finance under the Trust and Loan Companies Act (Canada) for letters patent to amalgamate.
  • The merged company would use the name The Bank of Nova Scotia Trust Company (English) and La Société de Fiducie Banque de Nouvelle-Écosse (French). The proposed head office would be in Toronto and the proposed effective date is May 1, 2024.
  • The notice says publication is not proof that the merger will be approved; final approval is up to the Minister and the normal review process.

Who's affected#

• For the Allianz reinsurance:
  • Policyholders of Allianz Life Insurance Company of North America in Canada are the primary group affected. They can inspect the agreement and actuary report and may want to understand any change in who legally backs their policy.
  • The companies involved and federal regulators (the Superintendent of Financial Institutions (Canada)) are also directly involved.
• For the trust company amalgamation:
  • Customers and account holders of MD Private Trust Company and The Bank of Nova Scotia Trust Company may be affected if the amalgamation goes ahead.
  • Employees, business partners, and anyone who deals with those trust services could notice administrative or account changes.
• In both cases:
  • The notices are applications or intentions, not final approvals. The public impact depends on whether the regulators approve them.

Why it matters#

• The Allianz notice matters because an assumption reinsurance shifts legal responsibility for Canadian policies from one insurer to another if approved. That can affect who manages claims and the financial backing behind policies. Policyholders have a limited window (30 days) to see the documents and ask questions.
• The amalgamation matters because combining two trust companies can simplify operations, change account administration, or alter where decisions are made. Customers should watch for communications from their trust company about any changes after approvals.