J.P. Morgan Canada Liquidates; Hagelunie Seeks Canadian Branch

Summary#

• J.P. Morgan Canada has started a voluntary liquidation after approval to dissolve was granted under the Bank Act, with that approval recorded as effective August 27, 2001. The notice was published on March 7, 2020.
• N.V. Hagelunie, a Netherlands-based insurer, says it will apply to the Superintendent of Financial Institutions to open a Canadian branch and write property and hail insurance in Canada. The company intends to file its application on or after March 15, 2020.

What it does#

• J.P. Morgan Canada
  • Announces that, following approval under subsection 345(2) of the Bank Act, it has applied for letters patent of dissolution and has begun voluntary liquidation.
  • The approval is recorded as effective August 27, 2001.
• N.V. Hagelunie
  • Intends to file, under section 574 of the Insurance Companies Act (Canada), an application to insure risks in Canada under the name Hagelunie.
  • Plans to offer coverage in the property and hail insurance classes and to locate its Canadian chief agency in Toronto, Ontario.
  • The planned filing date is on or after March 15, 2020.

Who's affected#

• For J.P. Morgan Canada
  • People or businesses that had relationships with the bank (customers, creditors, counterparties) and the bank’s employees. The notice does not list specific customers or liabilities.
• For N.V. Hagelunie
  • Property owners, farmers, businesses, insurance brokers, and existing insurers who deal with property and hail insurance in Canada.
  • The public and industry should note this is a planned application; approval is not yet reported.

Why it matters#

• The J.P. Morgan Canada notice signals that the bank is winding up its affairs. That can affect anyone with outstanding claims, contracts, or employment ties to the bank. The timing is unclear from the notice because the approval is shown as effective August 27, 2001 while the publication date is March 7, 2020.
• The N.V. Hagelunie notice shows a foreign insurer seeking to enter the Canadian market for property and hail coverage. If approved, it could add another option for those seeking this kind of insurance in Canada and may matter to brokers and competing insurers.