Liberty Specialty Markets Asset Release

Summary#

Liberty Specialty Markets Bermuda Limited says it will apply to the Superintendent of Financial Institutions (Canada) for permission to release the assets it keeps in Canada under section 651 of the Insurance Companies Act (Canada). The company gave notice on November 30, 2019, and anyone who objects was asked to file opposition by January 4, 2020.

What it does#

• The notice says Liberty Specialty Markets Bermuda Limited intends to ask the federal regulator for an order allowing it to release assets that it currently holds in Canada.
• The action is being taken under section 651 of the Insurance Companies Act (Canada).
• People who oppose the release were invited to send an objection by mail to the Office of the Superintendent of Financial Institutions (Canada), Regulatory Affairs Division, 255 Albert Street, Ottawa, Ontario K1A 0H2, or by email to approvalsandprecedents@osfi-bsif.gc.ca, on or before January 4, 2020.

Who's affected#

• Policyholders of Liberty Specialty Markets Bermuda Limited in Canada.
• Creditors with claims against the company’s insurance business in Canada.
• It is unclear from the notice whether other groups (for example, brokers or provincial regulators) will be directly affected.

Why it matters#

• If the company is allowed to release its Canadian assets, there may be fewer local funds available to pay claims or satisfy creditors in Canada.
• Policyholders and creditors who are concerned had a chance to object by the stated deadline.
• This is a notice about an intended application to the federal regulator. The notice itself does not say whether the order was or will be granted.