AXA Equitable seeks assumption reinsurance

Summary#

Equitable Financial Life Insurance Company, doing business in Canada as AXA Equitable Life Insurance Company, intends to apply for approval to have its Canadian individual life insurance policies and annuities reinsured on an assumption basis by Assumption Mutual Life Insurance Company. The company says it will file the application on or after November 9, 2021. Policyholders can inspect the proposed agreement and an independent actuary’s report for 30 days after this notice was published.

What it does#

• Equitable Financial Life Insurance Company plans to ask the Superintendent of Financial Institutions for permission to transfer the insurance risk for its Canadian individual policies and annuities to Assumption Mutual Life Insurance Company (this is called an assumption reinsurance agreement under the Insurance Companies Act).
• If approved, Assumption Mutual Life Insurance Company would take on the risks for those individual policies and annuities in Canada.
• A copy of the proposed assumption reinsurance agreement and the independent actuary’s report will be available for inspection by policyholders at Equitable’s Chief Agency at 100 Consilium Place, Scarborough, Ontario M1H 3E3, c/o CIGNA Life Insurance Company of Canada, during regular business hours for 30 days after the notice was published.
• A policyholder can get a copy of the proposed agreement by sending a written request.

Who's affected#

• People who hold individual life insurance policies or annuities issued by Equitable Financial Life Insurance Company (operating as AXA Equitable Life Insurance Company) in Canada.
• Beneficiaries or anyone who manages those policies or annuities may also be affected because the insurer responsible for the contracts could change.
• The notice is aimed at policyholders; it does not say it affects group policies or other products.

Why it matters#

• If the application is approved, the legal responsibility for paying claims on the affected individual policies and annuities would move from Equitable to Assumption Mutual Life Insurance Company.
• That could affect who you contact about your policy, who pays claims, or who manages policy service — though the notice does not say that policy terms, benefits or guarantees will change.
• Policyholders who are concerned should inspect the proposed agreement and the actuary’s report (available for 30 days) or request a copy in writing to see the details.
• The application date (November 9, 2021) signals when the formal approval process could begin; this notice is about a planned application, not a final decision.