Canadian ops of The Home Insurance Co. face liquidation

The Canadian branches of U.S.-based The Home Insurance Co. have been placed in liquidation by the Ontario Superior Court of Justice. The move follows a wind-up order issued for the U.S parent company on June 13 of this year, which occurred after the company had been placed in March under rehabilitation control of the Commissioner of Insurance for the state of New Hampshire.
The Ontario court has appointed Deloitte and Touche Inc. as provisional liquidator of the Canadian operation. The Property and Casualty Insurance Compensation Corp. (PACICC) has been named as an inspector in the liquidation. The Home’s Canadian operation fell under control of the Office of the Superintendent of Financial Services (OSFI) on June 18 of this year after the fate of the U.S. parent became known. The Canadian operation had, however, been in “run off” since 1997 when OSFI froze its local assets and restricted the company to servicing of existing policies.
Operating from Toronto through an external chief agent, The Home wrote primarily commercial business in the classes of property, accident and sickness, auto, boiler and machinery, aircraft, fidelity, liability and surety. The company did not have any local staff.
Alex Kennedy, president of PACICC, notes that aircraft, fidelity and surety covers are not protected by the corporation. “PACICC will work closely with the liquidator to ensure that valid claims for loss or damage are paid within a reasonable time. As no new policies have been issued recently by The Home (Canada), PACICC appears unexposed to claims for unearned premiums.”