ICP 6 Changes of Control and Portfolio Transfers

The supervisor assesses and decides on proposals:

  • to acquire significant ownership of, or an interest in, an insurer that results in a person (legal or natural), directly or indirectly, alone or with an associate, exercising control over the insurer; and
  • for portfolio transfers.


Change of Control


6.1
Legislation addresses change of control of insurers, including:
  • having a definition of control; and
  • oversight and enforcement of requirements related to change of control.


6.2

The supervisor requires the insurer to provide notification of a proposed change of control of the insurer. The supervisor assesses and decides on proposals for change of control.


(De)Mutualisation


6.3

A change of a mutual company to a stock company, or vice versa, is subject to the supervisor’s approval.

 


Portfolio Transfer


6.4

The supervisor assesses and decides on the transfer of all or a part of an insurer’s business portfolio taking into account at least the financial condition of the transferee and the transferor and whether the interests of the policyholders of both the transferee and transferor will be protected.