Endurance Specialty Seeks Canadian Branch

Summary#

Endurance Specialty Insurance Ltd., an insurer incorporated in Bermuda, says it will apply to open a Canadian branch and to be allowed to write certain kinds of insurance in Canada. The company plans to file the application on or after March 17, 2024 and says its Canadian chief agency would be in Toronto, Ontario.

What it does#

• The company will file an application under section 574 of the Insurance Companies Act to be allowed to insure risks in Canada.
• It seeks permission to underwrite these classes of insurance: property, liability, boiler and machinery, fidelity, automobile, marine, surety, and aircraft.
• The insurer’s head office would remain in Hamilton, Bermuda, and its ultimate corporate parent is Sompo Holdings, Inc. (a Japanese company).

Who's affected#

• People and businesses that buy commercial or personal insurance in the listed classes (property, liability, auto, marine, aircraft, surety, fidelity, boiler and machinery) could see a new insurance option if the application is approved.
• Insurance brokers, agents, and competing insurers may notice market effects.
• The application will be considered by the federal regulator responsible for such approvals (the Canada Gazette notice does not say whether or how long that process will take).

Why it matters#

• If approved, this would let a foreign-based insurer operate in Canada through a Canadian branch. That can create more choice and capacity for buyers in the listed insurance markets.
• The notice is a first step: it says the company intends to apply but does not mean the branch is approved yet.