Intact to Amalgamate; Quebec Assurance Reinsured

Summary#

This notice says that Intact Insurance Company and Ascentus Insurance Ltd. plan to apply to merge and continue as one company under the name Intact Insurance Company / Intact Compagnie d’assurance, with an intended effective date of January 1, 2023. The notice also says Quebec Assurance Company plans to have all of its policy liabilities assumed (reinsured) by Intact Insurance Company and to seek a corporate continuance under the Canada Business Corporations Act.

What it does#

• Announces a planned application for letters patent of amalgamation by Intact Insurance Company and Ascentus Insurance Ltd., to be filed on or after July 4, 2022. The merged company would have its head office in Toronto and the proposed effective date is January 1, 2023 (or another date set in the letters patent). The notice says publication is not proof the amalgamation will be approved.
• Announces that Quebec Assurance Company intends to apply on or after July 5, 2022 for the Minister of Finance’s approval to have Intact Insurance Company assume all of QAC’s policy liabilities under an assumption reinsurance agreement.
• States that a copy of the proposed assumption reinsurance agreement will be available for QAC policyholders to inspect at QAC’s Toronto head office for 30 days after the notice was published. Policyholders can request a copy in writing.
• Announces that Quebec Assurance Company intends to apply on or after June 27, 2022 for approval to seek a certificate of continuance under the Canada Business Corporations Act. The QAC board can withdraw that continuance application before it is acted on.

Who's affected#

• Policyholders of Quebec Assurance Company — they are explicitly told where and how to see the reinsurance agreement and may be directly affected if their insurer’s liabilities are transferred.
• Customers, agents, brokers, and employees of Intact Insurance Company and Ascentus Insurance Ltd. — these groups could see administrative or service changes if the amalgamation goes ahead.
• The Office of the Superintendent of Financial Institutions (OSFI) and the Minister of Finance — they are the officials who will review and decide on the filings.
• It is unclear from the notice whether any other parties (for example, policyholders of other related companies) will be affected.

Why it matters#

• A merger and the shifting of one company’s policy liabilities to another can change who handles claims, customer service, and where policies are managed — even if the policy terms stay the same.
• Policyholders have a short window to inspect the reinsurance agreement and can raise objections to regulators (the notice gives a deadline of June 27, 2022 for objections to OSFI).
• These are notices of intended applications, not final approvals. The changes only happen if the Minister and regulators approve them.