Insurance company incorporations and asset releases

Summary#

This Canada Gazette entry publishes several notices about planned corporate steps by insurance companies and related bodies. It includes a notice that Property and Casualty Insurance Compensation Corporation (PACICC) intends to create a standby insurer, two companies (Validus Reinsurance, Ltd. and Westport Insurance Corporation) intend to apply to release assets held in Canada, and an amalgamation proposal among Western Assurance Company, Intact Insurance Company, and 13130126 Canada Inc.. The notices set deadlines for objections in September and October 2024.

What it does#

• Property and Casualty Insurance Compensation Corporation (PACICC) intends to apply for letters patent to incorporate a new company called PACICC-SIMA General Insurance Company / Compagnie d’Assurance Générale PACICC-SIMA. Its head office would be in Toronto, Ontario. The notice says the new company would not do business except in certain special circumstances decided by the PACICC board. Objections can be sent to Office of the Superintendent of Financial Institutions (OSFI) by October 22, 2024.
• Validus Reinsurance, Ltd. plans to apply to Office of the Superintendent of Financial Institutions (OSFI) for permission to release the assets it holds in Canada under the Insurance Companies Act (Canada). Policyholders or creditors who oppose that release can file an opposition by mail or email by October 7, 2024.
• Western Assurance Company, Intact Insurance Company, and 13130126 Canada Inc. plan to apply for letters patent to amalgamate and continue as Intact Insurance Company (English) / Intact Compagnie d’assurance (French). The head office would be in Toronto, and the proposed effective date is January 1, 2025 (or another date set in the letters patent). A report from the independent actuary is available to policyholders on request. The joint application to the Minister of Finance is planned for on or after September 9, 2024.
• Westport Insurance Corporation intends to apply to OSFI for an order to release its assets held in Canada under the Insurance Companies Act (Canada). Policyholders or creditors who oppose that release can file an opposition by mail or email by September 30, 2024.

Who's affected#

• Policyholders and creditors of Validus Reinsurance, Ltd. and Westport Insurance Corporation — they are explicitly invited to file oppositions if they object to the proposed asset releases.
• Policyholders of Western Assurance Company and Intact Insurance Company — they may want to see the independent actuary’s report and note the proposed amalgamation and its January 1, 2025 effective date.
• Brokers, agents, and other insurance-sector businesses that deal with these companies may notice administrative or counterparty changes.
• The general public or other parties may be affected only if any of these actions change who pays claims or where assets are held. The notices do not say these outcomes are final.

Why it matters#

• A new PACICC-linked insurer could be a standby vehicle used in special circumstances; that may affect how certain claims are handled in a crisis, although the notice says it won’t operate unless the PACICC board decides it’s needed.
• Requests by Validus and Westport to release assets from Canada could change the security or availability of funds that back Canadian insurance claims. Opposing policyholders and creditors have a limited window to object.
• The proposed amalgamation would combine companies under the Intact Insurance Company name. That can simplify corporate structure and change who policyholders interact with, but regulatory approvals are still required.
• None of these steps are final. They must go through regulatory reviews and approvals, and the notices give the public a short opportunity to object.