Foresters Indemnity Seeks Continuance; Hagelunie Branch

Summary#

• Foresters Indemnity Company says it will apply for permission from the federal regulator to continue as a corporation under the Canada Business Corporations Act, with that application to be made on or after March 31, 2020.
• The Canada Gazette also corrects a previous item about J.P. Morgan Canada (a notice that “should not have been printed”) and publishes a notice that N.V. Hagelunie, a Dutch insurer, intends to apply to open a Canadian branch to write property and hail insurance on or after March 15, 2020.

What it does#

• Foresters Indemnity Company:
  • Announces an intent to ask the Superintendent of Financial Institutions (Canada) for approval to apply for a certificate of continuance so it can continue as a corporation under the Canada Business Corporations Act.
• J.P. Morgan Canada:
  • Notes that an earlier notice about J.P. Morgan Canada's voluntary liquidation and dissolution (published on March 7, 2020) should not have been printed. This is an erratum, not a new action.
• N.V. Hagelunie:
  • Announces that N.V. Hagelunie, incorporated in the Netherlands, intends to file under section 574 of the Insurance Companies Act (Canada) for approval to insure risks in Canada under the name Hagelunie.
  • Says the company plans to insure risks in the classes of property and hail insurance and that its Canadian chief agency will be in Toronto, Ontario.

Who's affected#

• For Foresters Indemnity Company:
  • The company’s shareholders, creditors, employees and anyone with legal or financial ties to it may be affected if the continuance goes ahead.
  • The federal regulator, Superintendent of Financial Institutions (Canada), will review the request.
• For N.V. Hagelunie:
  • Property owners and businesses looking for property or hail insurance could be affected if the insurer is approved and starts writing business in Canada.
  • Insurance brokers, provincial regulators, and competitors in the property/hail market may notice activity from a new foreign-based entrant.
• For the J.P. Morgan Canada erratum:
  • People who read or relied on the earlier notice may need to ignore or correct that information.
• If it is unclear who will be affected by a particular detail, the notice does not provide more specifics.

Why it matters#

• A continuance under the Canada Business Corporations Act can change how a company is organized and regulated. That can affect creditors, policyholders and corporate governance, so interested parties may want to watch for the regulator’s decision.
• A new foreign insurer setting up a Canadian branch could increase options for property and hail insurance buyers, and could change competition in those lines of insurance.
• The erratum about J.P. Morgan Canada is a housekeeping correction. It matters mainly to anyone who acted on or was tracking that earlier notice.