PACICC Incorporation; SNCC Reinsurance; Validus Asset Release

Summary#

This Gazette notice contains three separate insurance-related notices. It says that Property and Casualty Insurance Compensation Corporation (PACICC) plans to apply to create PACICC‑SIMA General Insurance Company, Safety National Casualty Corporation (SNCC) plans to seek approval for an assumption reinsurance deal with Tokio Marine Canada Ltd., and Validus Reinsurance, Ltd. plans to apply to release the assets it holds in Canada. Deadlines for objections or related actions include October 22, 2024, on or after October 21, 2024, and October 7, 2024.

What it does#

• PACICC notice:

  • Announces an intended application to incorporate PACICC‑SIMA General Insurance Company / Compagnie d’Assurance Générale PACICC‑SIMA with a head office in Toronto.
  • Says the new company would not operate normally and would only act in special circumstances decided by the PACICC board.
  • Invites written objections to be sent to the Office of the Superintendent of Financial Institutions (OSFI) by October 22, 2024.

• SNCC reinsurance notice:

  • Announces that Safety National Casualty Corporation intends to apply to the Superintendent for approval to be reinsured, on an assumption basis, by Tokio Marine Canada Ltd.
  • States a copy of the proposed reinsurance agreement will be available for policyholders to inspect at SNCC’s Canadian branch for 30 days after publication.

• Validus notice:

  • Announces that Validus Reinsurance, Ltd. intends to apply for an order to release the assets it keeps in Canada under the Insurance Companies Act (Canada).
  • Invites policyholders or creditors who oppose that release to file an objection with OSFI by October 7, 2024.

Who's affected#

• Policyholders of Safety National Casualty Corporation and policyholders of any insurer whose reinsurance is being transferred could be affected if claims responsibilities move to Tokio Marine Canada Ltd.
• Policyholders and creditors of Validus Reinsurance, Ltd. could be affected if assets held in Canada are released.
• People or groups who want to object (including members of the public) are invited to send written objections to OSFI by the stated deadlines.
• For the proposed PACICC‑SIMA company, the general public is unlikely to notice any change unless the company is actually activated under the special circumstances described.

Why it matters#

• Incorporating a standby insurer like PACICC‑SIMA could be a way for the compensation body to have a vehicle available in unusual or emergency situations. That may help manage payouts after a major insurer failure, but it does not mean the new company will start operating now.
• An assumption reinsurance transaction could change which company is responsible for paying claims. Policyholders should know where to inspect the agreement and watch for any notices about their specific policies.
• Allowing Validus Reinsurance, Ltd. to release assets held in Canada could affect how and when Canadian policyholders or creditors are paid. Opponents have a limited window to object.
• All three steps are subject to regulatory review by OSFI and other approvals; they are proposals or planned applications, not final decisions.