Validus and Westport asset releases; Intact amalgamation

Summary#

The Canada Gazette published three insurance notices: one saying Validus Reinsurance, Ltd. plans to ask for permission to release the assets it holds in Canada, another saying Westport Insurance Corporation plans to do the same, and a third announcing that Western Assurance Company, Intact Insurance Company and 13130126 Canada Inc. intend to apply to merge into a single company named Intact Insurance Company (English) / Intact Compagnie d’assurance (French). The notices set opposition deadlines of October 7, 2024 (Validus) and September 30, 2024 (Westport), and give a proposed amalgamation effective date of January 1, 2025.

What it does#

• Validus Reinsurance, Ltd. intends to apply under the Insurance Companies Act (Canada) to the Superintendent of Financial Institutions (Canada) for an order allowing it to release the assets it keeps in Canada. The company plans to apply on or after October 7, 2024. The notice invites any policyholder or creditor who objects to file an opposition with the Office of the Superintendent of Financial Institutions (Canada) by October 7, 2024 (mail or email provided in the Gazette).
• Westport Insurance Corporation intends to make a similar application under the Insurance Companies Act (Canada) to release assets it maintains in Canada. It plans to apply on or after September 30, 2024, and invites objections from policyholders or creditors by September 30, 2024.
• Western Assurance Company, Intact Insurance Company and 13130126 Canada Inc. (the Applicants) intend to apply to the Minister of Finance on or after September 9, 2024 for letters patent of amalgamation under the Insurance Companies Act (Canada) so the three firms would continue as one company named Intact Insurance Company / Intact Compagnie d’assurance, with a head office in Toronto and a proposed effective date of January 1, 2025. The independent actuary’s report will be available to policyholders and can be requested from the corporate secretary at the address in the notice.

Who's affected#

• Policyholders and creditors of Validus Reinsurance, Ltd. — they are explicitly invited to object before October 7, 2024.
• Policyholders and creditors of Westport Insurance Corporation — they can object before September 30, 2024.
• Policyholders of Western Assurance Company and Intact Insurance Company — they can inspect or request the independent actuary’s report about the proposed amalgamation.
• It is unclear from the notice whether other groups (employees, brokers, or other business partners) will be directly affected; the notices focus on policyholders and creditors.

Why it matters#

• A company asking to “release” its Canadian assets means it wants permission to move or stop holding certain assets in Canada. That can affect how policy obligations are supported in Canada and is why policyholders and creditors are invited to raise objections.
• An amalgamation would consolidate two insurers and a holding company into a single legal entity. That can change which company legally holds insurance contracts and where the company is headquartered, although the amalgamation still needs regulatory and ministerial approval.
• None of these actions are final yet. They are applications or intentions that start a review process and, in the case of the amalgamation, the Gazette notice warns that publication is not proof the merger will be approved.