Co-operators and COSECO to Merge; Nordic Auto Reinsurance

Summary#

• The Canada Gazette published two insurance notices on September 25, 2021.
• One says Co-operators General Insurance Company and COSECO Insurance Company plan to apply to merge into a single company. The other says The Nordic Insurance Company of Canada plans to ask the federal regulator to allow Belair Insurance Company Inc. to take on some of Nordic’s auto-insurance liabilities.

What it does#

• Merger notice:

  • Co-operators General Insurance Company and COSECO Insurance Company intend to apply, under the Insurance Companies Act (Canada), for letters patent to amalgamate into one company named Co-operators General Insurance Company (French name given in the notice).
  • The combined company’s head office would be in Guelph, Ontario.
  • The proposed effective date is December 31, 2021 (or another date set by the letters patent).
  • The application would be made on or after October 4, 2021.

• Assumption reinsurance notice:

  • The Nordic Insurance Company of Canada intends to apply to the Superintendent of Financial Institutions for approval to be reinsured, on an assumption basis, by Belair Insurance Company Inc.
  • The proposal covers Nordic’s remaining liabilities for personal and commercial automobile insurance that Nordic previously wrote in Ontario.
  • The arrangement would not include any structured settlement arrangements.
  • A copy of the proposed agreement would be available for inspection at Nordic’s head office for 30 days after the notice. The application would be made on or after October 26, 2021.

Who's affected#

• Customers and policyholders of:
  • Co-operators General Insurance Company and COSECO Insurance Company (if the merger goes ahead).
  • The Nordic Insurance Company of Canada who hold personal or commercial auto policies written in Ontario (if the reinsurance is approved).
• Insurance agents, brokers, employees, and claims handlers at the companies involved.
• The federal regulator (Superintendent of Financial Institutions) and the Minister of Finance, who must approve these changes.
• If it’s unclear who is affected: the notices do not spell out every consequence, so some groups (for example, third‑party claimants or long‑term policyholders) may be affected but are not specifically named.

Why it matters#

• A merger can change who manages policies, handles claims, and where a company is based. That can affect billing, renewals, customer service, and claims processing even if coverages remain the same.
• If the reinsurance approval is granted, Belair Insurance Company Inc. would take on certain auto-insurance liabilities from The Nordic Insurance Company of Canada, which could change who ultimately pays or manages some claims.
• Policyholders who want details have the right to review the Nordic–Belair agreement at Nordic’s head office for 30 days after the notice.