Banking Circle branch and RSA reinsurance

Summary#

• The Canada Gazette published two routine notices on August 10, 2024.
• Banking Circle S.A. says it will apply under the Bank Act to open a full-service branch in Toronto, and Royal & Sun Alliance Insurance Company of Canada says it will apply under the Insurance Companies Act (Canada) to transfer its travel-insurance liabilities to Belair Insurance Company Inc..
• Both are applications or proposed transactions, not approvals.

What it does#

• Banking Circle S.A.

  • Plans to apply for an order that would let it operate a full-service foreign-bank branch in Canada under the name Banking Circle S.A. - Canada Branch.
  • The branch would have its principal office in Toronto, Ontario.
  • The ultimate controlling shareholder is EQT Fund Management S.à r.l., acting as manager of EQT VIII.
  • People who object can send written objections to the Office of the Superintendent of Financial Institutions (Canada) by September 9, 2024.
  • Publication does not mean the government will approve the application; approval is subject to the usual review and the Minister’s decision.

• Royal & Sun Alliance Insurance Company of Canada

  • Intends to apply for the Minister’s approval to have most or all of its travel-insurance policy liabilities assumed by Belair Insurance Company Inc. (an assumption reinsurance).
  • A copy of the proposed agreement is available for policyholders to inspect at RSA Canada’s head office for 30 days after this notice.
  • RSA Canada expects to apply on or after September 10, 2024.

Who's affected#

• Customers and potential customers in Toronto or elsewhere in Canada who might use services from Banking Circle S.A. if the branch opens.
• Policyholders of Royal & Sun Alliance Insurance Company of Canada who hold travel insurance, because their policy liabilities are proposed to move to Belair Insurance Company Inc..
• Regulators, competitors, and investors who follow cross-border banking entries and insurance-company reorganizations.
• If it’s unclear who will be affected in a specific way (for example, whether existing accounts or service terms would change), the notices do not provide those operational details.

Why it matters#

• A new foreign-bank branch in Toronto could add banking options or competition, and might affect where people and businesses choose to bank.
• A change in who is legally responsible for travel-insurance policies can affect claim handling, customer service, and where customers send future claims.
• Deadlines and inspection rights give affected people a chance to see the proposed reinsurance contract or to raise objections before any approvals are granted.