TORONTO, Feb. 2, 2012 – Today, the Ontario Superior Court of Justice ordered the winding-up of Union of Canada Life and appointed Grant Thornton Limited as liquidator.
Union of Canada Life, incorporated in Ontario, services approximately 22,000 policies across Canada with most policies being in Quebec. The company faced unique challenges, business risks and insufficient capital to ensure long-term viability, which caused it ultimately to seek court protection.
“We will be focused on arranging the transfer of the policies to another life insurance company expeditiously in order to ensure the policyholders continue to be served seamlessly. In the interim, operations of Union of Canada Life will continue from its head office in Ottawa”, said Michael Creber, the Grant Thornton partner in charge of the liquidation.
The Liquidator will be working closely with Assuris, the not for profit organization that protects Canadian policyholders in the event their life insurance company fails. In general, during the transition period, policies will continue and benefits will be paid. It is also anticipated that the policyholders will suffer no loss of benefits. “However, 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.
All policyholders will be receiving a letter directly from the Liquidator on how their respective benefits are protected. Other parties affected by the liquidation order will also be receiving a separate letter. In the interim, policyholders are advised to continue paying their premiums as usual in order to ensure there is no interruption in their insurance coverage.