Heartland and Kings Insurance Amalgamation

Summary#

• Heartland Farm Mutual Inc. and The Kings Mutual Insurance Company plan to combine into a single company called Heartland Farm Mutual Inc., with the merger expected to take effect on June 30, 2021.
• Virginia Surety Company, Inc. says it will apply for permission to release the assets it keeps in Canada, and anyone who opposes that plan has until May 1, 2021 to file an objection with the federal regulator.

What it does#

• For the merger:

  • The two insurers will ask the federal government for letters patent of amalgamation under the Insurance Companies Act (Canada) so they can continue as one company named Heartland Farm Mutual Inc..
  • The merged company’s head office would be in Waterloo, Ontario.
  • The proposed effective date is June 30, 2021, or another date set in the letters patent.
  • An independent actuary prepared a report about the merger; policyholders of each company can inspect that report during business hours or request a copy in writing from the companies’ corporate secretaries at their listed addresses.

• For Virginia Surety:

  • Virginia Surety Company, Inc. intends to apply to the Office of the Superintendent of Financial Institutions (Canada) for an order allowing it to release the assets it holds in Canada.
  • Policyholders or creditors who oppose that release can send a written opposition by mail or email to the regulator by May 1, 2021.

Who's affected#

• Policyholders of Heartland Farm Mutual Inc. and The Kings Mutual Insurance Company may see their policies administered by the merged company and can review the actuary’s report.
• Policyholders and creditors of Virginia Surety Company, Inc. in Canada could be affected if the company withdraws its Canadian assets.
• If it’s unclear whether your policy or creditor claim is with these companies, contact your insurer or the companies listed in the notice.

Why it matters#

• A merger can change who you deal with for claims, billing, or policy questions. The actuary’s report is meant to show how the merger affects policyholders’ interests.
• If Virginia Surety Company, Inc. is allowed to release its Canadian assets, that could affect the company’s ability to pay claims or meet obligations in Canada. The opposition deadline (May 1, 2021) is the last chance for affected parties to formally object to the regulator.