Heartland-Kings Merger and Virginia Surety Asset Release

Summary#

This notice includes two items about insurance companies. First, Heartland Farm Mutual Inc. and The Kings Mutual Insurance Company plan to apply to merge into a single company called Heartland Farm Mutual Inc., with a proposed effective date of June 30, 2021. Second, Virginia Surety Company, Inc. plans to ask the federal regulator for permission to release the assets it holds in Canada; oppositions must be filed by May 1, 2021.

What it does#

• Amalgamation:
  • Heartland Farm Mutual Inc. and The Kings Mutual Insurance Company intend to apply to the Minister of Finance on or after April 27, 2021 for letters patent to amalgamate and continue as one company named Heartland Farm Mutual Inc.
  • The proposed head office would be in Waterloo, Ontario. The proposed effective date is June 30, 2021, or another date set by the letters patent.
  • A report from an independent actuary (and a summary) will be available for inspection by policyholders at addresses for each company. Policyholders can request copies by writing to the Corporate Secretary at the listed addresses.
  • The application process references the Insurance Companies Act (Canada).
• Release of assets:
  • Virginia Surety Company, Inc. intends to apply to the Superintendent of Financial Institutions on or after May 1, 2021 for an order allowing it to release the assets it maintains in Canada, under the Insurance Companies Act (Canada) (section 651).
  • Any policyholder or creditor who opposes that release is asked to file an opposition by May 1, 2021 with the Office of the Superintendent of Financial Institutions (contact details are provided in the notice).

Who's affected#

• Policyholders of Heartland Farm Mutual Inc. and The Kings Mutual Insurance Company — they can inspect or request the actuary report and will be directly affected by the merger if it goes ahead.
• Policyholders and creditors of Virginia Surety Company, Inc. — they have a chance to oppose the proposed release of Canadian assets by May 1, 2021.
• It's unclear from the notice how many individual policyholders or how large an effect these actions would have; the notice gives the formal steps and where to get more information.

Why it matters#

• A merger can change which company administers policies, where the company is based, and who handles claims and customer service. Policyholders may want to review the actuary report to understand financial impacts.
• Allowing a company to release its Canadian assets could reduce the assets held in Canada to back policies or pay creditors. That is why the notice gives a deadline and a process for objections.
• These are formal, public-step notices. They don't say the applications are approved — they announce planned applications and provide ways for affected people to see information or object.