Liberty Bermuda: Asset Release Application

Summary#

Liberty Specialty Markets Bermuda Limited says it will apply to the Office of the Superintendent of Financial Institutions (Canada) for permission to release the assets it keeps in Canada under the Insurance Companies Act (Canada). The company intends to apply on or after January 4, 2020 and asks that any opposing policyholder or creditor file an objection by that date.

What it does#

• Under section 651 of the Insurance Companies Act (Canada), Liberty Specialty Markets Bermuda Limited plans to ask the Office of the Superintendent of Financial Institutions (Canada) for an order allowing the company to release the assets it maintains in Canada.
• Policyholders or creditors who oppose that release are invited to file an objection by January 4, 2020.
• Objections can be sent by mail to the Regulatory Affairs Division, 255 Albert Street, Ottawa, Ontario K1A 0H2, or by email to approvalsandprecedents@osfi-bsif.gc.ca.
• The notice was signed in Toronto on November 30, 2019 by Garth Pepper, Chief Agent in Canada.

Who's affected#

• Policyholders of Liberty Specialty Markets Bermuda Limited’s insurance business in Canada.
• Creditors who have claims against the company in Canada.
• It is not clear from the notice how many policyholders or creditors this involves.

Why it matters#

• If the release is approved, assets that currently sit in Canada and might secure claims could be removed or used differently, which could affect how and when claimants and creditors are paid.
• Anyone who thinks they would be harmed by the release has a limited time (until January 4, 2020) to file an objection with the federal regulator.