Ascentus to reduce capital and amalgamate

Summary#

Ascentus Insurance Ltd. says it will ask the regulator to reduce the stated capital of its common shares to $1.00 and plans to join with Intact Insurance Company in a formal amalgamation. Both steps are subject to approval by the relevant federal authorities and are not final just because of this notice (published June 11, 2022).

What it does#

• Ascentus will apply to the Superintendent of Financial Institutions (Canada) to reduce the stated capital account for its common shares to $1.00, with no payment to the sole shareholder, under section 79 of the Insurance Companies Act (Canada). The shareholder passed a special resolution on May 30, 2022 to authorize this.
• The companies (Ascentus and Intact Insurance Company) intend to apply for letters patent to amalgamate. They plan to continue under the name Intact Insurance Company (French: Intact Compagnie d’assurance) with a head office in Toronto.
• The joint application for amalgamation is to be made on or after July 4, 2022, and the proposed effective date of the amalgamation is January 1, 2023 (or another date set by the letters patent).
• The notices say publication does not mean approval has been granted; final permission depends on the normal review and the discretion of the regulator or minister.

Who's affected#

• The main parties are Ascentus Insurance Ltd. and Intact Insurance Company and their sole shareholder(s).
• Other groups who might notice or care include policyholders, creditors, employees, and business partners of those companies.
• The ultimate effects on customers or the public are not spelled out in the notice.

Why it matters#

• These are corporate restructuring steps that could change how the two insurers are organized and run if approvals are granted.
• For customers and partners, such changes can affect who manages policies or claims, but the notice does not detail any operational or service changes.
• The outcome depends on regulator and ministerial approvals, so this is a notice of intent rather than a completed change.