Asset Releases and Intact Amalgamation

Summary#

This Canada Gazette item contains three public notices from insurance companies about planned legal steps. Two companies, Validus Reinsurance, Ltd. and Westport Insurance Corporation, say they will ask the federal regulator to allow them to release assets they hold in Canada. Three companies — Western Assurance Company, Intact Insurance Company and 13130126 Canada Inc. — say they plan to apply to the Minister of Finance to combine into one company called "Intact Insurance Company" / "Intact Compagnie d’assurance" with a proposed effective date of January 1, 2025.

What it does#

• Validus Reinsurance, Ltd. intends to apply to the Office of the Superintendent of Financial Institutions (Canada) under the Insurance Companies Act (Canada) for an order allowing it to release the assets it keeps in Canada. The company said it will apply on or after October 7, 2024.
• Westport Insurance Corporation gave the same type of notice about releasing assets it holds in Canada, saying it will apply on or after September 30, 2024.
• Western Assurance Company, Intact Insurance Company and 13130126 Canada Inc. plan to apply for letters patent of amalgamation under the Insurance Companies Act (Canada) on or after September 9, 2024 so the three would continue as a single company under the name "Intact Insurance Company" / "Intact Compagnie d’assurance". The applicants list a proposed effective date of January 1, 2025, or another date set by the letters patent.
• The amalgamation notice says a report from an independent actuary will be available for inspection by policyholders and can be requested from the companies’ Corporate Secretary.

Who's affected#

• Policyholders and creditors of Validus Reinsurance, Ltd. and Westport Insurance Corporation — these are the groups explicitly invited to oppose the proposed releases of assets.
• Policyholders of Western Assurance Company and Intact Insurance Company — they can view or request the independent actuary’s report about the planned amalgamation.
• The Office of the Superintendent of Financial Institutions (Canada) and the Minister of Finance, who will review the applications and decide whether to approve them.
• It is unclear from the notice whether other groups (employees, brokers, or provincial regulators) will be directly affected.

Why it matters#

• If a company is allowed to release assets held in Canada, that could change what resources are available in Canada to pay claims or satisfy creditors. Policyholders and creditors who are concerned can file an opposition by the stated deadline.
• An amalgamation changes which legal company holds the insurance obligations. That can affect how policies are administered, who issues statements to customers, and where official corporate records are kept. The actuary’s report is a technical review meant to show the financial effects for policyholders.
• These are notices of intended applications, not approvals. The regulator or the Minister could still refuse or require conditions. Deadlines to oppose or request documents are short, so affected people who want to act should note the dates and follow the contact instructions in the notices.