BMO Life reinsured by Union Life

Summary#

BMO Life Assurance Company says it will apply to the Superintendent of Financial Institutions for approval to have Union Life, Mutual Assurance Company assume its Canadian life and related insurance risks. If regulators agree, the transfer is expected to be completed on or after May 30, 2025. Policyholders can inspect the proposed agreement and an independent actuary’s report for 30 days after the notice.

What it does#

• BMO Life Assurance Company will apply on or after May 26, 2025 to be reinsured, on an assumption basis, by Union Life, Mutual Assurance Company.
• The reinsurance would cover all of BMO Life’s direct-marketed life and accident & sickness insurance, pre-needs life insurance, participating life insurance, and group administered retirement savings plan risks issued in Canada.
• The company intends to go ahead even for some contracts that contain non-assignment clauses.
• The proposed assumption reinsurance agreement and the independent actuary’s report are available for inspection at BMO Life’s offices for 30 days after publication. Requests can also be made by email or by calling the toll-free numbers 1‑800‑387‑9855 (English) or 1‑800‑387‑9554 (French).

Who's affected#

• Holders of policies issued by BMO Life Assurance Company, especially people with:
  • direct-marketed life and accident & sickness insurance,
  • pre-needs life insurance,
  • participating life insurance,
  • group administered retirement savings plan contracts.
• Others who may notice the change include beneficiaries, agents, and financial advisors who work with those policies.
• The notice does not say whether any other parties will be affected.

Why it matters#

• If approved, the insurance risks for the listed policies would be moved from BMO Life Assurance Company to Union Life, Mutual Assurance Company, meaning a different company would be taking on the obligations behind those policies.
• Some contracts have non-assignment language. BMO Life’s stated intention to proceed despite that could raise questions for policyholders about their contracts and rights.
• Policyholders who are concerned or have questions can review the agreement and actuary’s report or contact BMO Life using the provided contact information.