Definity Insurance Amalgamation

Summary#

The Office of the Superintendent of Financial Institutions issued letters patent that legally combine four insurers into one company named Definity Insurance Company (French: Compagnie d’assurance Definity). The decision takes effect on January 1, 2024, and authorizes the new company to start carrying on business in several classes of insurance under the Insurance Companies Act.

What it does#

• Issues letters patent amalgamating Definity Insurance Company, The Missisquoi Insurance Company, Perth Insurance Company, and Waterloo Insurance Company into a single firm called Definity Insurance Company / Compagnie d’assurance Definity, effective January 1, 2024.
• Grants an order allowing the newly amalgamated Definity Insurance Company to commence and carry on business, and to insure risks in these classes: accident and sickness, automobile, boiler and machinery, fidelity, legal expense, liability, property, and surety.
• The action was issued under the Insurance Companies Act on December 16, 2023 by Peter Routledge, Superintendent of Financial Institutions.

Who's affected#

• Existing and future policyholders of the four merging insurers.
• Employees, agents, and insurance brokers who deal with those companies.
• Businesses or organizations that currently hold policies or place risk with any of the four insurers.
• It may also be relevant to competitors and regulators who monitor insurance-sector structure and licensing.

If it is unclear whether a specific policy, office, or contract will change, policyholders should contact their insurer or broker.

Why it matters#

• The four companies are becoming a single legal entity. That can simplify corporate structure and customer communications.
• The new company is officially authorized to sell and manage policies in the listed insurance classes, so customers in those lines will continue to have coverage options from the combined firm.
• Policyholders and agents may see administrative changes (for example, new paperwork, contact points, or branding) around January 1, 2024; the notice does not provide details about operational or customer-service changes.