PACICC standby insurer; amalgamation and asset releases

Summary#

This page collects several short notices about Canadian property-and-casualty insurers and regulator actions. It includes: an application by Property and Casualty Insurance Compensation Corporation (PACICC) to create a standby insurer called PACICC‑SIMA General Insurance Company; plans by Validus Reinsurance, Ltd. and Westport Insurance Corporation to apply to release assets they hold in Canada; and a proposed amalgamation of Western Assurance Company, Intact Insurance Company and 13130126 Canada Inc. into Intact Insurance Company (proposed effective January 1, 2025).

What it does#

• PACICC will apply for permission (letters patent) to set up PACICC‑SIMA General Insurance Company with a head office in Toronto.

  • The new company is intended to remain inactive except in special situations decided by the PACICC board.
  • Objections can be sent in writing to Office of the Superintendent of Financial Institutions (OSFI) on or before October 22, 2024.
  • This step refers to the Insurance Companies Act (Canada).

• Validus Reinsurance, Ltd. plans to ask the Superintendent of Financial Institutions (Canada) for an order to release the assets it keeps in Canada.

  • That application is to take place on or after October 7, 2024.
  • Policyholders or creditors who oppose this can file an objection by October 7, 2024.

• Western Assurance Company, Intact Insurance Company and 13130126 Canada Inc. intend to seek letters patent to merge into a single company named Intact Insurance Company (French name: Intact Compagnie d’assurance).

  • The amalgamation application is to be made on or after September 9, 2024, with a proposed effective date of January 1, 2025.
  • A report from the independent actuary will be available for inspection or can be requested from the companies’ Corporate Secretary.

• Westport Insurance Corporation plans to apply for an order to release the assets it holds in Canada.

  • That application is to be made on or after September 30, 2024.
  • Policyholders or creditors who oppose this can file an objection by September 30, 2024.

• In all cases the notices say publication does not guarantee approval. The applications will be considered under the Insurance Companies Act (Canada) and by federal regulators.

Who's affected#

• Policyholders and creditors of Validus Reinsurance, Ltd. and Westport Insurance Corporation — they are explicitly invited to oppose the proposed asset releases.
• Policyholders of Western Assurance Company and Intact Insurance Company — they may see administrative or servicing changes if the amalgamation goes ahead. Affected policyholders can request the actuary’s report.
• Members and stakeholders of PACICC and other insurers — the new company is meant to be a contingency vehicle and could be used in special situations.
• If you are unsure whether you are affected, the notices list contact points at OSFI for objections or requests.

Why it matters#

• A company asking to release or move assets held in Canada can change how easy it is for Canadian policyholders and creditors to make claims or be paid. That is why regulators notify affected parties and give them a chance to object.
• An amalgamation can change which company handles your policy, claims, or customer service. That can affect where you send claims and who you contact.
• The creation of a standby insurer by PACICC is a contingency measure. It is unlikely to change day‑to‑day coverage now, but it could be used in an emergency or special situation to protect policyholders or manage industry risk.
• The notices are routine regulatory steps; they do not mean the changes are approved. The outcomes depend on later regulatory decisions.