Sunderland Marine seeks release of Canadian assets

Summary#

On July 18, 2020, Sunderland Marine Insurance Company Limited (Canada Branch) gave notice that it plans to ask the Office of the Superintendent of Financial Institutions (Canada) for permission to release the assets it holds in Canada under the Insurance Companies Act. Policyholders or creditors who oppose that plan were asked to file an objection by August 29, 2020.

What it does#

• The company will apply on or after August 29, 2020 for an order allowing the release of assets it maintains in Canada under the Insurance Companies Act.
• The notice invites any policyholder or creditor who opposes the release to file an objection by mail to the Office of the Superintendent of Financial Institutions (Canada), Legislation and Approvals Division, 255 Albert Street, Ottawa, Ontario K1A 0H2, or by email at approvalsandprecedents@osfi-bsif.gc.ca, on or before August 29, 2020.

Who's affected#

• People or businesses who hold insurance policies issued by Sunderland Marine Insurance Company Limited (Canada Branch).
• Creditors who are owed money by the same Canada branch.
• It is unclear from the notice whether other groups (for example, brokers or reinsurers) are affected.

Why it matters#

• If the Superintendent approves the release, the company could remove or otherwise free up assets kept in Canada. That might reduce the pool of assets available locally to pay claims or satisfy creditor claims.
• The notice gives affected policyholders and creditors a deadline—August 29, 2020—to object if they want the Superintendent to consider their concerns.