Intact and Ascentus to Amalgamate

Summary#

This notice announces two related insurance-company moves published in the Canada Gazette. First, Intact Insurance Company and Ascentus Insurance Ltd. plan to apply to merge into a single company named Intact Insurance Company. Second, Quebec Assurance Company intends to have its policies reinsured by Intact Insurance Company and to change its corporate status under the Canada Business Corporations Act.

What it does#

• Intact Insurance Company and Ascentus Insurance Ltd. say they will apply to the Minister of Finance on or after July 4, 2022 for letters patent to amalgamate and continue as Intact Insurance Company (French: Intact Compagnie d’assurance). The proposed effective date is January 1, 2023 (or another date set in the letters patent).
• Quebec Assurance Company intends to apply to the Minister of Finance on or after July 5, 2022 for approval to be reinsured, on an assumption basis, for all of its policy liabilities by Intact Insurance Company. A copy of the proposed assumption reinsurance agreement is available for policyholders to inspect for 30 days after the notice was published.
• Quebec Assurance Company also intends to apply to the Minister on or after June 27, 2022 for approval to seek a certificate of continuance under the Canada Business Corporations Act so it can continue as a corporation under that federal law.

Who's affected#

• Policyholders of Quebec Assurance Company. They can review the proposed reinsurance agreement and may want to know who will ultimately be responsible for claims.
• Customers, employees, and business partners of Intact Insurance Company and Ascentus Insurance Ltd., who may be affected by the merger.
• Anyone who wishes to object to Quebec Assurance Company’s continuance can send an objection to the Office of the Superintendent of Financial Institutions by email on or before June 27, 2022.

Why it matters#

• Merging insurers and shifting policy liabilities by reinsurance can change which company handles claims, payments, customer service, and legal responsibility. Policyholders may see changes in how their policies are managed even if coverage terms stay the same.
• The notices give policyholders a chance to read the proposed reinsurance deal and to object to the continuance. But these plans are not final. They depend on approvals under the Insurance Companies Act (Canada) and the discretion of the Minister of Finance.