Life Insurer Amalgamation and Reinsurance Transfer

Summary#

Two notices in the Canada Gazette say that several life-insurance companies are planning corporate moves and will ask regulators for permission. One is a planned merger of Co-operators Life Insurance Company and CUMIS Life Insurance Company; the other is an insurance-liability transfer between the Canadian branch of Partner Reinsurance Company Ltd. and PartnerRe Life Reinsurance Company of Canada.

What it does#

• Amalgamation (merger)

  • Co-operators Life Insurance Company and CUMIS Life Insurance Company intend to apply to the Minister of Finance for letters patent to merge into one company called Co-operators Life Insurance Company (English) / Co-operators Compagnie d’Assurance-Vie (French).
  • The merged company’s head office would be in Regina, Saskatchewan.
  • The proposed effective date is December 31, 2021, or another date set by the letters patent.
  • Policyholders can inspect the independent actuary’s report and summary at the companies’ business addresses and can request copies by writing to the Corporate Secretary at those addresses.

• Assumption reinsurance transaction (transfer of liabilities between reinsurers)

  • The Canadian branch of Partner Reinsurance Company Ltd. (PRCL) intends to apply to the Superintendent of Financial Institutions (Canada) under section 587.1 of the Insurance Companies Act (Canada) for approval to have PartnerRe Life Reinsurance Company of Canada (PLRC) assume all of PRCL’s insurance liabilities.
  • A copy of the proposed agreement and the independent actuary’s report will be available for inspection at the PRCL Canadian branch office and PLRC head office for 30 days after the notice was published. Policyholders can request copies by writing to the Chief Agent of PRCL or the CEO of PLRC.

Who's affected#

• Policyholders of Co-operators Life Insurance Company and CUMIS Life Insurance Company — they may see the two companies combined under one name and a Regina head office.
• Policyholders of the Canadian branch of Partner Reinsurance Company Ltd. and of PartnerRe Life Reinsurance Company of Canada — their policies’ backing could move from one legal entity to another if regulators approve.
• Employees, counterparties, and advisors of the companies could be affected as the corporate structures change.
• The notices are applications to regulators; no change happens unless approval is granted.

Why it matters#

• For policyholders, these moves can change which legal entity is ultimately responsible for claims, even though companies usually plan such transactions to keep policy terms intact.
• Documents (actuary reports and the draft agreements) are available for inspection or by request, so affected policyholders can review the financial reasoning behind the deals.
• Both transactions require regulatory approval, so they are not final yet; the public can note the dates and follow up if they have concerns or need copies of the reports.