Insurance notices: PACICC, SNCC, Validus

Summary#

This Canada Gazette entry collects three short notices under the Insurance Companies Act (Canada) about upcoming insurance-company actions. It announces that Property and Casualty Insurance Compensation Corporation (PACICC) plans to incorporate a standby insurer, Safety National Casualty Corporation (SNCC) plans to seek approval to have its Canadian business reinsured by Tokio Marine Canada Ltd., and Validus Reinsurance, Ltd. plans to ask to release assets it holds in Canada.

What it does#

• Property and Casualty Insurance Compensation Corporation (PACICC) intends to apply for letters patent to create PACICC‑SIMA General Insurance Company / Compagnie d’Assurance Générale PACICC‑SIMA, with a head office in Toronto. The company would not operate unless the PACICC board decides it is needed. Objections can be sent to Office of the Superintendent of Financial Institutions (OSFI) by October 22, 2024.
• Safety National Casualty Corporation (SNCC) intends to apply to the Superintendent for approval to be reinsured, on an assumption basis, by Tokio Marine Canada Ltd. on or after October 21, 2024. A copy of the proposed assumption reinsurance agreement will be available for inspection at SNCC’s Canadian branch office (77 King Street West, Suite 400, Toronto) for 30 days after this notice. Policyholders can request a copy in writing.
• Validus Reinsurance, Ltd. intends to apply for an order allowing the release of assets it keeps in Canada on or after October 7, 2024. Policyholders or creditors opposing that release may file an opposition with OSFI by October 7, 2024.

Who's affected#

• Policyholders of Safety National Casualty Corporation (SNCC) who may want to see the proposed reinsurance agreement or are affected if risk is transferred.
• Policyholders and creditors of Validus Reinsurance, Ltd. who could be affected if Canadian assets are released.
• Members and stakeholders of Property and Casualty Insurance Compensation Corporation (PACICC) and anyone with an interest in whether a new insurer (PACICC‑SIMA General Insurance Company) is created for special circumstances.
• OSFI is the federal office handling objections and applications. It is unclear beyond these groups whether other parts of the public will notice any immediate change.

Why it matters#

• Creating PACICC‑SIMA General Insurance Company sets up a legal vehicle that could be used later if PACICC’s board decides it is needed. That matters to policyholders and insurers because it could affect who provides coverage in special cases.
• If SNCC is officially reinsured by Tokio Marine Canada Ltd., the financial responsibility for some Canadian policies could move from one company to another. Policyholders have a short window to review the agreement.
• Allowing Validus Reinsurance, Ltd. to release assets held in Canada could change how claims and creditor claims are satisfied in Canada. Opposed parties must act by the deadline to raise concerns.
• These notices are announcements of intended applications and inspections, not approvals. Final decisions will come later from regulators.