BMO Life reinsurance and Safety National asset release

Summary#

This notice contains two related items.

• BMO Life Assurance Company says it will apply for approval to have its Canadian life and related insurance policies reinsured on an assumption basis by Union Life, Mutual Assurance Company, with the application to be made on or after May 26, 2025 and the transaction expected on or after May 30, 2025 (subject to approvals).
• Safety National Casualty Corporation says it will apply for an order to release the assets it holds in Canada under the Insurance Companies Act, with the application to be made on or after June 2, 2025; objections must be filed by June 2, 2025.

What it does#

• For BMO Life Assurance Company:

  • Seeks regulatory approval for Union Life, Mutual Assurance Company to assume (take over) the risks on a range of BMO Life policies sold in Canada, including direct-marketed life, accident and sickness, pre-need life, participating life, and group administered retirement savings plan risks.
  • Intends to go ahead even though some of the affected contracts contain non-assignment clauses.
  • Makes the proposed assumption reinsurance agreement and the independent actuary’s report available for inspection for 30 days at 250 Yonge Street, 9th Floor, Toronto, Ontario M5B 2L7, and provides a way to request copies by email (Contact.BMOInsurance@bmo.com) or mail. Policyholders can also call 1‑800‑387‑9855 (English) or 1‑800‑387‑9554 (French) Monday–Friday, 9:00 a.m. to 5:00 p.m. EST.

• For Safety National Casualty Corporation:

  • Intends to ask the Superintendent of Financial Institutions for an order allowing the company to release the assets it keeps in Canada under section 651 of the Insurance Companies Act.
  • Invites any policyholder or creditor who opposes that release to file an opposition by mail to Office of the Superintendent of Financial Institutions (Canada), Regulatory Affairs Directorate, 255 Albert Street, Ottawa, Ontario K1A 0H2, or by email to approvals-approbations@osfi-bsif.gc.ca on or before June 2, 2025.

Who's affected#

• Policyholders of BMO Life Assurance Company whose contracts are included in the reinsurance plan: people with direct-marketed life, accident and sickness, pre-need life, participating life, and certain group retirement-savings plan policies in Canada. They can inspect the agreement and the actuary’s report or contact BMO with questions.
• Policyholders and creditors of Safety National Casualty Corporation linked to its Canadian insurance business. Those who object to the planned release of assets can file an opposition by June 2, 2025.
• If it’s unclear which specific individual contracts or creditors are affected, the notices direct those people to the documents and contacts listed above.

Why it matters#

• For people with affected BMO Life policies, the practical effect could be that a different company (Union Life) becomes responsible for the insurance risk and for paying claims. That can affect who you call for service or claims and may raise questions about contract terms when non-assignment clauses exist.
• For policyholders and creditors of Safety National, releasing the assets it holds in Canada could change how claims or creditor claims are secured or paid. Interested parties have a set time to object.
• In both cases these are planned regulatory applications, not final decisions. Approval by the regulator is still required before the changes take effect.