Endurance branch and KOHO bank applications

Summary#

Two notices were published in the Canada Gazette on February 17, 2024. One says Endurance Specialty Insurance Ltd. plans to apply to open a Canadian branch to sell several types of insurance. The other says KOHO Financial Inc. intends to apply to become a Schedule I bank called KOHO Bank (English) / Banque KOHO.

What it does#

• Endurance Specialty Insurance Ltd. will file an application under the Insurance Companies Act on or after March 17, 2024 to be allowed to insure risks in Canada under the English name “Endurance Specialty Insurance Ltd.” and the French name “Assurances spécialisées Endurance ltée”.
  • It plans to offer insurance in the classes of property, liability, boiler and machinery, fidelity, automobile, marine, surety, and aircraft.
  • Its head office is in Hamilton, Bermuda, and its Canadian chief agency would be in Toronto, Ontario.
  • Its ultimate parent is Sompo Holdings, Inc. and the filing was submitted by solicitors Torys LLP.
• KOHO Financial Inc. intends to apply for letters patent under the Bank Act (a step to create a bank) to carry on banking in Canada under the name KOHO Bank / Banque KOHO.
  • The planned bank would offer deposit and lending products such as savings accounts, prepaid cards, and retail loans to Canadian residents.
  • Anyone who objects can write to the Office of the Superintendent of Financial Institutions (OSFI) by April 18, 2024.
• Both notices are statements of intent. They are not approvals. Further regulatory review and decisions will follow.

Who's affected#

• People and businesses looking for insurance in the listed classes (property, liability, automobile, marine, etc.) could gain another insurer if the branch is approved.
• Canadian residents who might use KOHO Bank for savings, prepaid cards, or loans.
• Existing Canadian insurers and banks, since new entrants can affect competition.
• Regulators: OSFI and the Minister of Finance will handle the applications and any objections.

Why it matters#

• These applications could bring new choices for insurance and everyday banking products in Canada if approved.
• Consumers may see more competition, which can affect prices, product variety, or customer service.
• There is a public window to object to the proposed bank (deadline April 18, 2024), so interested people and organizations can make their views known before a decision is made.