BMO reinsurance and Safety National asset release

Summary#

Two separate notices were published. One says BMO Life Assurance Company plans to ask the regulator to let Union Life, Mutual Assurance Company take on many of its Canadian life and group retirement risks. The other says Safety National Casualty Corporation plans to ask the regulator for permission to release the assets it holds in Canada, and invites objections.

What it does#

• BMO Life Assurance Company

  • Will apply on or after May 26, 2025 to the Superintendent of Financial Institutions for approval of an assumption reinsurance deal with Union Life, Mutual Assurance Company.
  • The proposal covers all of BMO Life’s Canada-issued direct marketed life and accident & sickness insurance, pre-needs life insurance, participating life insurance, and group administered retirement savings plan risks.
  • The companies currently intend to complete the transaction on or after May 30, 2025.
  • BMO Life says it intends to proceed even for some contracts that contain non-assignment clauses.
  • A copy of the proposed assumption reinsurance agreement and the independent actuary’s report will be available for inspection for 30 days after publication at BMO Life’s Toronto office, and can be requested by email. Policyholders can also call BMO Life’s toll-free numbers for questions.

• Safety National Casualty Corporation

  • Will apply on or after June 2, 2025 for an order under section 651 of the Insurance Companies Act (Canada) to authorize the release of the assets it holds in Canada.
  • Any policyholder or creditor who opposes the release may file an objection with the Office of the Superintendent of Financial Institutions (Canada) by mail or email on or before June 2, 2025.

Who's affected#

• Policyholders of BMO Life Assurance Company in Canada who hold:
  • direct-marketed life and accident & sickness policies,
  • pre-needs life insurance,
  • participating life insurance,
  • group administered retirement savings plan products.
• Policyholders and creditors of Safety National Casualty Corporation in Canada who might be affected by a release of assets.
• More broadly, anyone who wants to review the proposed BMO reinsurance deal or who wishes to oppose Safety National’s asset release.

If it is unclear whether a specific contract or person is affected, the notices offer contact points and documents to check the details.

Why it matters#

• If the BMO reinsurance on an assumption basis is approved, Union Life would take on the insurance risks covered by the deal. That can change who administers policies and handles claims, so affected policyholders may want to review the agreement and actuarial report or ask questions.
• The Safety National notice is important for policyholders and creditors because a court or regulator-approved release of assets could affect how claims and creditor claims are handled in Canada. The notice gives a deadline and a way to object.
• Both notices give stakeholders a chance to see the documents and, in the case of Safety National, to formally oppose the move.