Intact Amalgamation; Westport Asset Release

Summary#

Two notices were published in the Canada Gazette on August 17, 2024 about Canadian insurance companies. One says Western Assurance Company, Intact Insurance Company and 13130126 Canada Inc. intend to apply to combine into a single company called Intact Insurance Company / Intact Compagnie d’assurance, with a proposed effective date of January 1, 2025. The other says Westport Insurance Corporation plans to ask the federal regulator to allow it to release the assets it keeps in Canada, and gives a deadline for objections of September 30, 2024.

What it does#

• Amalgamation notice

  • The three companies — Western Assurance Company, Intact Insurance Company and 13130126 Canada Inc. — plan to file for letters patent to amalgamate and continue as one company called Intact Insurance Company / Intact Compagnie d’assurance.
  • The proposed head office would be in Toronto, Ontario.
  • Policyholders of Intact Insurance Company and Western Assurance Company can inspect a report from an independent actuary or request a copy from the Corporate Secretary at the company’s Toronto address.
  • The companies say the proposed effective date would be January 1, 2025, or another date set in the letters patent. Publication of the notice does not mean approval has been granted.

• Asset-release notice

  • Westport Insurance Corporation intends to apply to the Office of the Superintendent of Financial Institutions (Canada) for an order under the Insurance Companies Act (Canada) allowing it to release the assets it holds in Canada.
  • Any policyholder or creditor who opposes that release was invited to file an objection with OSFI by September 30, 2024 (by mail or email to approvals-approbations@osfi-bsif.gc.ca). The company plans to apply on or after September 30, 2024.

Who's affected#

• Policyholders of Intact Insurance Company and Western Assurance Company — they can review the actuary’s report and will be directly affected if the amalgamation goes ahead.
• Policyholders and creditors of Westport Insurance Corporation — they may be affected if assets that support Canadian insurance business are released from Canada, and they have a chance to object by September 30, 2024.
• Insurers’ employees, brokers and business partners could notice administrative or operational changes if the amalgamation or asset release proceeds.
• If it is unclear who else might be affected, the notices do not provide further detail.

Why it matters#

• An amalgamation can change who runs a company, where its head office is, and how its finances are managed. Policyholders often want to see an actuary’s report to understand the financial impact.
• If Westport Insurance Corporation is allowed to release its Canadian assets, it could affect how well policy obligations in Canada are supported. That’s why policyholders and creditors were explicitly invited to object.
• Neither action is final yet. Both depend on approvals by federal authorities, so the notices are the start of a process rather than confirmation of change.