Confederation Life
Encyclopedia
Confederation Life Insurance Company, also known as Confederation Life, was a major Canadian
insurance
company and financial services
provider. Its global head office was located in Toronto
in what is now the Rogers Building
. The company had operations in Canada, the United States, the United Kingdom, and Bermuda, and an inactive office in Cuba.
Confederation Life was forced into liquidation in 1994. The process began on August 11 of that year. Due to the international operations of the company, the liquidation process was somewhat complex. The company had financial obligations to 260 000 individual policyholders in Canada, and it also had another 1.5 million people who were members of a group insurance plan through the company. During the liquidation process, CompCorp (who was by then called Assuris
) was able to guarantee the assets of all policyholders, and the process only cost the compensation fund CA$5 million. The various blocks of business held by the company were taken over by several different Canadian and American insurance companies. The liquidator is KPMG
in Toronto, who is responsible for distribution of funds to the various creditors. As of 2010, the process was still ongoing.
This was the third liquidation of an insurance company in Canada, and as of 2010, was the last such liquidation.
Canada
Canada is a North American country consisting of ten provinces and three territories. Located in the northern part of the continent, it extends from the Atlantic Ocean in the east to the Pacific Ocean in the west, and northward into the Arctic Ocean...
insurance
Insurance
In law and economics, insurance is a form of risk management primarily used to hedge against the risk of a contingent, uncertain loss. Insurance is defined as the equitable transfer of the risk of a loss, from one entity to another, in exchange for payment. An insurer is a company selling the...
company and financial services
Financial services
Financial services refer to services provided by the finance industry. The finance industry encompasses a broad range of organizations that deal with the management of money. Among these organizations are credit unions, banks, credit card companies, insurance companies, consumer finance companies,...
provider. Its global head office was located in Toronto
Toronto
Toronto is the provincial capital of Ontario and the largest city in Canada. It is located in Southern Ontario on the northwestern shore of Lake Ontario. A relatively modern city, Toronto's history dates back to the late-18th century, when its land was first purchased by the British monarchy from...
in what is now the Rogers Building
Rogers Building (Canada)
The Rogers Building, located in Toronto, Ontario, Canada, is the corporate head office of Canadian media conglomerate Rogers Communications, as well as the home of most, but not all, of the company's Toronto operations....
. The company had operations in Canada, the United States, the United Kingdom, and Bermuda, and an inactive office in Cuba.
Confederation Life was forced into liquidation in 1994. The process began on August 11 of that year. Due to the international operations of the company, the liquidation process was somewhat complex. The company had financial obligations to 260 000 individual policyholders in Canada, and it also had another 1.5 million people who were members of a group insurance plan through the company. During the liquidation process, CompCorp (who was by then called Assuris
Assuris
Assuris is a non-profit organization under Canadian Federal regulation to protect policyholders in the event that a life insurer should become insolvent. It is designed to allow a block of policies to be transferred to a solvent company, where the polices will continue to be honoured...
) was able to guarantee the assets of all policyholders, and the process only cost the compensation fund CA$5 million. The various blocks of business held by the company were taken over by several different Canadian and American insurance companies. The liquidator is KPMG
KPMG
KPMG is one of the largest professional services networks in the world and one of the Big Four auditors, along with Deloitte, Ernst & Young and PwC. Its global headquarters is located in Amstelveen, Netherlands....
in Toronto, who is responsible for distribution of funds to the various creditors. As of 2010, the process was still ongoing.
This was the third liquidation of an insurance company in Canada, and as of 2010, was the last such liquidation.