The Ontario Superior Court of Justice has ordered the winding-up of Union of Canada Life, finding that the company had insufficient capital to ensure long-term viability. The court has named Grant Thornton Limited as liquidator.
“Union of Canada Life was faced with unique challenges that caused the company to seek court protection,” said Gordon Dunning, president and CEO of Assuris. “Our analysis indicates this company had extremely high strategic, market and operational risks and insufficient capital to ensure the long-term viability of the company in a low interest rate environment.”
Policyholders are not expected to suffer any loss of benefits, as all life insurance policyholders are protected by Assuris. The non-profit organization will work with the liquidator to communicate with Union of Canada Life’s policyholders regarding how their respective benefits are protected.
“The Canadian life insurance industry is very stable,” Dunning said, “and Canada has one of the best regulatory systems monitoring financial institutions. The Financial Services Commission of Ontario (FSCO) has been closely monitoring Union of Canada Life and has kept Assuris fully informed of all developments.”
The liquidator will arrange the transfer of policies to another life insurance company, while operations of Union of Canada Life will continue from its head office in Ottawa.
“If full recovery of policyholders’ benefits is not achieved in the transfer process, Assuris is committed to providing its protection to all policyholders” said Gordon Dunning, president and CEO of Assuris.
Union of Canada Life services approximately 22,000 policies across Canada, mostly in Quebec.
For more information, visit www.GrantThornton.ca/Union_Canada_Life.