Insurance incorporation, asset releases, amalgamation

Summary#

This Canada Gazette entry collects several short notices about insurance companies. It announces that Property and Casualty Insurance Compensation Corporation (PACICC) plans to apply to create PACICC‑SIMA General Insurance Company, that Validus Reinsurance, Ltd. and Westport Insurance Corporation plan to ask for orders to release their Canadian assets, and that Western Assurance Company, Intact Insurance Company and 13130126 Canada Inc. intend to seek approval to amalgamate, effective January 1, 2025.

What it does#

• PACICC proposes to incorporate PACICC‑SIMA General Insurance Company / Compagnie d’Assurance Générale PACICC‑SIMA with a head office in Toronto. The notice says the new company would not carry on business except in special circumstances decided by the PACICC board. Objections may be sent to Office of the Superintendent of Financial Institutions (OSFI) by October 22, 2024.
• Validus Reinsurance, Ltd. intends to apply for an order under the Insurance Companies Act (Canada) authorizing the release of the assets it holds in Canada. Oppositions from policyholders or creditors must be filed with OSFI by October 7, 2024.
• Western Assurance Company, Intact Insurance Company and 13130126 Canada Inc. plan to seek letters patent to amalgamate and continue under the name Intact Insurance Company (English) / Intact Compagnie d’assurance (French). The filing with the Minister of Finance is planned on or after September 9, 2024, and the proposed effective date is January 1, 2025. A report from an independent actuary will be available to policyholders on request.
• Westport Insurance Corporation intends to apply for an order under the Insurance Companies Act (Canada) to release its Canadian assets. Oppositions must be filed with OSFI by September 30, 2024.

Who's affected#

• Policyholders and creditors of Validus Reinsurance, Ltd. and Westport Insurance Corporation — they are explicitly invited to file oppositions by the listed deadlines.
• Policyholders of Intact Insurance Company and Western Assurance Company — the amalgamation could affect who administers policies and where corporate records are kept; an actuary’s report will be available to them.
• Members of PACICC and parties involved in property and casualty insurance oversight — they may watch the new insurer proposal and any future use of that company.
• If you are not a policyholder, creditor, or stakeholder in these firms, the changes are unlikely to affect you directly.

Why it matters#

• Applications to release assets can change where a company’s Canadian assets are held and could affect how claims or creditor rights are handled if approved. Opposition deadlines give affected people a chance to raise concerns.
• The proposed amalgamation consolidates three related companies into one. That can simplify operations but may also change who manages policies or where records are kept. Policyholders can request the actuary’s report to learn more.
• The PACICC plan to incorporate a standby insurer matters because it provides a legal vehicle that could be used in special circumstances to respond to insurance events. The notice establishes who can object and the deadline to do so.