St. Paul and Travelers propose policy swap

Summary#

The Canada Gazette notice (published September 6, 2025) says two insurance branches plan to swap some lines of business through separate assumption reinsurance agreements. On or after October 7, 2025, each company will apply to the federal regulator for approval to have the other assume specified types of policies.

What it does#

• St. Paul Fire and Marine Insurance Company, carrying on business in Canada as a branch, intends to apply to the Superintendent of Financial Institutions (Canada) to be reinsured, on an assumption basis, by Travelers Insurance Company of Canada for its commercial insurance business — except for surety insurance, home warranty insurance, and assumed reinsurance.
• Travelers Insurance Company of Canada intends to apply to the Superintendent of Financial Institutions (Canada) to be reinsured, on an assumption basis, by the Canadian branch of St. Paul Fire and Marine Insurance Company for its surety insurance business and home warranty insurance business.
• Both proposed applications are planned for on or after October 7, 2025.
• A copy of each proposed assumption reinsurance agreement will be available for inspection by affected policyholders or bondholders at 165 University Avenue, Toronto, Ontario M5H 3B9 for 30 days after publication, and can be requested by writing or by email to RegGovNo@travelers.com.

Who's affected#

• Policyholders of the St. Paul Fire and Marine Insurance Company branch with commercial insurance policies (other than surety and home warranty).
• Bondholders and policyholders of Travelers Insurance Company of Canada who hold surety insurance or home warranty insurance.
• The federal regulator, Superintendent of Financial Institutions (Canada), which will review and must approve the proposed transactions.
• It is unclear from the notice whether other parties (agents, brokers, or insureds in other lines) will be affected.

Why it matters#

• If approved, some policies could be formally moved from one insurer to the other. That can change who handles claims, policy administration, and where to send notices.
• Affected policyholders have a chance to read the proposed agreements for 30 days and can request a copy to understand the details.
• These are planned applications, not final decisions. Approval by the regulator is required before any change takes effect.