Omega General Insurance Company celebrates completion of 10th assumption reinsurance transaction

Omega General Insurance Company is celebrating the conclusion of its tenth assumption reinsurance transaction in Canada.
“The [Omega] board would like to congratulate management and staff at Omega General for this significant achievement, which validates the company’s goal of providing a viable exit strategy for insurers and reinsurers wishing to leave the Canadian market,” the company said in a press release.
“Omega General and its sister company, Focus Group Inc., will continue to provide balance sheet solutions for foreign and domestic insurers or reinsurers looking to ‘right-size’ their Canadian operations.”
Assumption reinsurance transfers all insurance liabilities from one Canadian regulated financial institution to another Canadian regulated financial institution.
It presents insurance and reinsurance companies with a way of exiting Canada.
Without such a transaction, the branches of a company wishing to exit the Canadian market would have to remain in place until all liabilities are discharged or otherwise extinguished in the normal course. This can take many years to accomplish.
In the meantime, the branches would have to maintain assets in trust in Canada, which are often significantly higher than the remaining liabilities. Not only that, but the branches would have to incur the costs associated with maintaining the branch in Canada (chief agency expenses, regulatory assessments, audit and actuarial etc.).
Thus far, Omega has completed assumption reinsurance transactions with Lumbermens Mutual Casualty Company, British Aviation Insurance Company, Eagle Star Insurance Company, Centennial Insurance Company, Pohjola Non-Life Insurance Company, Providence Washington Insurance Company, Specialty National Insurance Company and Pearl Assurance Company.
Two of its most recent transactions remain undisclosed because they are still going through the regulatory approval process.
Omega also noted the 25th anniversary of its subsidiary, Focus Group Inc.