AXA seeks permission to release Canadian assets

Summary#

AXA Insurance Company told the federal regulator that it plans to apply for permission to “release” the assets it keeps in Canada under the Insurance Companies Act (Canada). The company said it will apply on or after February 22, 2020 and invited any policyholder or creditor who objects to file an opposition by February 22, 2020.

What it does#

• Says AXA Insurance Company will ask the Office of the Superintendent of Financial Institutions (Canada) for an order allowing the company to release assets it maintains in Canada (the notice references section 651 of the Insurance Companies Act (Canada)).
• Gives a deadline and ways to object: objections must be filed by February 22, 2020 by mail to OSFI’s Regulatory Affairs Division at 255 Albert Street, Ottawa, Ontario K1A 0H2, or by email to approvalsandprecedents@osfi‑bsif.gc.ca.

Who's affected#

• Policyholders of AXA Insurance Company in Canada.
• Creditors of AXA Insurance Company’s Canadian insurance business.
• It is unclear from the notice whether other groups (employees, brokers, or other businesses) would be affected.

Why it matters#

• A release of assets could change which funds are held in Canada and therefore could affect how claims and obligations are secured.
• Policyholders and creditors who are concerned can file an objection by February 22, 2020.
• The notice does not explain the exact practical effects of the asset release, so anyone affected may want to contact OSFI or seek more information.