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Annual Report
Financial Services Commission of Ontario
2013–14

Table of Contents

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Message from the Chair and the Chief Executive Officer

John M. Solursh, Chair, Financial Services Commission of Ontario, Financial Services Tribunal

John M. Solursh
Chair

Financial Services Commission of Ontario
Financial Services Tribunal

Philip Howell, Chief Executive Officer and Superintendent of Financial Services, Financial Services Commission of Ontario

Philip Howell
Chief Executive Officer and Superintendent of Financial Services

Financial Services Commission of Ontario

 

We are pleased to present the 2013–14 Annual Report of the Financial Services Commission of Ontario (FSCO) which reports on FSCO’s activities over the 12 months ending March 31, 2014.

The sectors regulated by FSCO are vital to Ontario’s economy. Insurance is a $43 billion a year business in Ontario, supporting families and businesses in managing risk. The province’s pension plans generate retirement income through assets valued at $474.2 billion and have 3.9 million members including retirees. Credit unions and caisses populaires hold assets totalling more than $39 billion and provide savings, loans and other financial services to almost 1.6 million Ontarians.

Environment

Throughout 2013, Ontario’s economy remained relatively stable and resilient. While a better year for pension plans, concerns for the security of the province’s retirement income system prompted the Ontario government to signal an intention to proceed with an alternative to enhancing the Canada Pension Plan for Ontario workers.

Tackling fraud and maintaining affordability in Ontario’s auto insurance system remains a government focus. FSCO continues to assist the government to implement changes designed to curb system abuse and reduce auto insurance rates for Ontario drivers.

Increasingly, Ontario financial services businesses are operating within large, interconnected networks. FSCO recognizes the trend and is well positioned to deal with marketplace activity and product development that is just as likely to be influenced by global events as by local realities.

Regulatory Framework

During the year, FSCO published its Regulatory Framework which details the core regulatory activities of the organization along with the principles that guide our work. The framework explains the roles and responsibilities of FSCO within the Canadian regulatory environment for financial services, our approach in fulfilling them, and articulates our expectations of those we regulate.

Risk-Based Supervision

FSCO uses a risk-based approach to regulating and focuses its resources on matters representing the greatest risk to consumers and pension plan members.

In 2013–14, FSCO continued to conduct organization-wide assessments of processes through the risk-based lens. For example, FSCO began a pilot project for an enhanced course of evaluation of pension plans. FSCO implemented an expanded Risk Indicator Tool that assesses a wider, integrated range of risk factors. Essentially a trigger mechanism, the tool will allow FSCO to perform continuous, progressive and pre-emptive reviews of pension plans.

Preparing to Regulate Service Providers

Part of the government’s strategy to achieve reductions in auto insurance rates and help to eliminate fraud is to license and regulate health care facilities that provide medical and rehabilitation services to injured auto accident benefit claimants.

In June 2013, the Prosperous and Fair Ontario Act (Budget Measures), 2013, assigned FSCO the responsibility to license health service providers that invoice automobile insurers through the Health Claims for Auto Insurance system, and to regulate their business and billing practices.

FSCO assisted the Ministry of Finance in laying the foundation for regulating the sector. FSCO also worked to build awareness in the health service provider community of the new licensing and regulatory requirements which will take effect in the fall of 2014.

Upgrading Relationship Management

To support and transform the way it delivers regulatory services, FSCO is developing a web-based information management system that will offer the regulated sectors a centralized, self-service platform for all of their dealings with FSCO. Under the auspices of the Enterprise Development Project, FSCO is implementing technological solutions that will modernize our entire service delivery model over the next several years.

FSCO devoted significant resources in 2013–14 to completing preparations for the licensing of health service providers—the first sector utilizing the new approach.

Auto Insurance

During the year, the Ontario government continued to focus on its Cost and Rate Reduction Strategy that is targeting a 15 percent average auto insurance rate reduction by August 2015.

Also in 2013, FSCO worked with auto insurers to authorize usage based plans, an innovative underwriting approach that can reduce auto insurance rates for safe drivers.

Fraud

In June 2013, FSCO launched the Auto Insurance Fraud Hotline and Web Portal, where Ontarians can report auto insurance fraud.

FSCO also partnered with the Toronto Police Service to launch a series of public service announcements to raise consumer awareness about auto insurance fraud.

High profile convictions and the largest monetary penalties to date against clinics involved in fraudulent billing and practices, and individuals involved in staged auto accidents, focussed public attention on fraud in the auto insurance system.

Dispute Resolution

FSCO worked with an external dispute resolution service provider to eliminate the mediation backlog for Statutory Accident Benefits Schedule cases by August 2013. FSCO also implemented changes to its internal process that substantially increased the volume of mediations conducted.

Cunningham Report

FSCO was consulted at length by the Honourable J. Douglas Cunningham and contributed to the research supporting his report, Ontario Automobile Insurance Dispute Resolution System Review, delivered to the Minister of Finance in February 2014.

The report included a recommendation to establish a new dispute resolution system as a public sector tribunal. In early March 2014, the government introduced Bill 171 which included legislative amendments to achieve the recommendations, including transferring FSCO’s dispute resolution services system to the Ministry of the Attorney General’s Licence Appeal Tribunal.

2011 Value-for-Money Audit

The Auditor General’s December 2013 Follow-up on the 2011 Value-for-Money Audit noted that FSCO is on track in addressing recommendations related to auto insurance regulatory oversight, with significant progress made on most. There were no further recommendations from the Auditor General.

Updating Pension Framework

FSCO released new instructions to facilitate asset transfers and the use of Letters of Credit—two substantive legislative changes that update the pension framework.

FSCO publications on Asset Transfers provide guidance on the new rules effective January 1, 2014, for the transfer of assets between pension plans due to the sale or other disposition of a business, or pension plan mergers.

FSCO also put into place processes and procedures for Letters of Credit, which employers may use in certain circumstances, to secure solvency payments due after January 1, 2013.

Access to Retirement Funds

In January 2014, FSCO and the Ministry of Finance completed the transition of the financial hardship unlocking program to financial institutions. The move fulfilled a government commitment to make it easier for people who need to access their locked-in retirement funds.

E-filing

Electronic filing through FSCO’s Pension Services Portal became mandatory on January 1, 2013. Pension plan administrators use the portal to submit prescribed filings, filing extension requests and re-filing requests to FSCO.

The first full year of data indicated that for most filings, compliance rates were above 90 percent. FSCO is committed to achieving 100 percent compliance as stakeholders become accustomed to using e-filing and as FSCO continues to upgrade the portal.

Statutory Reviews

During the year, FSCO initiated a three-year review of auto insurance, inviting consumers and stakeholders to make submissions on improving stability, sustainability and competition in the auto insurance system. A report on the review will be delivered to the minister in 2014–15.

FSCO also assisted the Ministry of Finance in supporting a review by the Parliamentary Assistant of the Mortgage Brokerages, Lenders and Administrators Act, 2006. The review included public consultations and stakeholder roundtables on proposals to strengthen the act.

Fostering National Regulatory Coordination

It is increasingly important for Canadian regulators to work together to address issues that are common to jurisdictions across Canada. To this end, FSCO promotes and plays an important part in coordinating regulatory efforts at a national level through membership in several national organizations of regulators.

During the year, FSCO played a leadership role in the implementation of the Canadian Insurance Regulators Disciplinary Actions database which provides centralized and up-to-date information about intermediaries and businesses that have been disciplined by Canadian insurance regulators. A joint initiative of the Canadian Insurance Services Regulatory Organizations and the Canadian Council of Insurance Regulators (CCIR), the database is a single, online point of access for consumers and industry participants to obtain information about enforcement decisions across jurisdictions.

In 2013–14, FSCO actively participated in multiple national regulatory organizations including the CCIR, the Canadian Association of Pension Supervisory Authorities, the Canadian Automobile Insurance Rate Regulators Association, the General Insurance Statistical Agency, the Mortgage Broker Regulators’ Council of Canada and the Joint Forum of Financial Market Regulators.

Continued support for effective national regulatory coordination will be a feature of FSCO’s regulatory efforts in coming years.

Partnership and Dialogue

Since its inception, FSCO has promoted and thrived on its partnership and dialogue with stakeholders—from the financial services industry participants to the consumers and pension plan beneficiaries who rely on it.

We thank the many individuals and organizations who contributed time and effort to FSCO’s initiatives during the last year. Their input was essential to helping us keep the system in step with marketplace changes and achieve our objectives.

We also thank FSCO’s employees. Their dedication and commitment to excellence in public service are our most valuable assets.


Signature of John M. Solursh, Chair, Financial Services Commission of Ontario, Financial Services Tribunal

John M. Solursh
Chair, Financial Services Commission of Ontario

Chair, Financial Services Tribunal


Signature of Philip Howell, Chief Executive Officer and Superintendent of Financial Services, Financial Services Commission of Ontario

Philip Howell
Chief Executive Officer and Superintendent of Financial Services


Financial Services Commission of Ontario

 

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About the Financial Services Commission of Ontario

The Financial Services Commission of Ontario (FSCO) is a regulatory agency accountable to the Minister of Finance, established by the Financial Services Commission of Ontario Act, 1997 (FSCO Act). FSCO oversees insurance, pension plans, mortgage brokering, credit unions and caisses populaires, co-operative corporations, and loan and trust companies in Ontario.

FSCO has a legislative mandate to provide regulatory services that protect the public interest and enhance public confidence in the sectors it regulates. As an organization, FSCO is committed to being a progressive and fair regulator, supporting a healthy and competitive financial services marketplace.

Who We Regulate

As of March 31, 2014, FSCO regulated or registered:

Relevant Statutes

Governance and Accountability

FSCO is comprised of a five-member commission, the Superintendent of Financial Services and staff, and the Financial Services Tribunal.

Commission Membership and Purposes

Appointments to the commission are made in accordance with the guidelines established by Ontario’s Public Appointments Secretariat.

Members of the Commission
Name Position Tenure
John M. Solursh Chair February 25, 2005 August 7, 2014
Elizabeth Shilton Vice Chair February 1, 2013 January 31, 2015
Florence A. Holden Vice Chair October 2, 2007 September 5, 2017
Tom Golfetto Director of Arbitrations May 4, 2009 May 3, 2014
Philip Howell CEO and Superintendent of Financial Services August 19, 2009 N/A

The commission meets quarterly and reviews and approves key planning, strategic and accountability documents, including FSCO’s Agency Business Plan, Results-based Plan, Risk Mitigation Plan, Statement of Priorities and Annual Report. Commission members are also invited to attend FSCO’s Audit and Risk Committee meetings.

FSCO has established a series of on-going internal committees on various policy and operational issues, which play a key role in FSCO’s day-to-day activities. Internal steering committees have also been created to guide key projects that involve different units or affect a number of areas within FSCO.

Superintendent and Staff

The Superintendent of Financial Services (Superintendent) administers and enforces the FSCO Act and all other acts that confer powers on or assign duties to the Superintendent. All FSCO staff report directly or indirectly to the Superintendent. FSCO staff, who are public servants under the Public Service of Ontario Act, 2006, perform FSCO’s day-to-day work.

Under the FSCO Act, the powers and duties of the Superint­en­dent include:

Financial Services Tribunal

The Financial Services Tribunal (FST) is an expert, independent adjudicative body. The chair and vice-chairs of the FST are also the chairs and vice-chairs of the commission. For more information on the FST, refer to page 21 of the Annual Report.

Governance and Management Processes

The foundation for FSCO’s corporate governance is provided by the Management Board of Cabinet’s Agency Establishment and Accountability Directive (AEAD) and the Memorandum of Understanding (MOU) between the Minister of Finance, the Chair of the Commission and the Superintendent of Financial Services/Chief Executive Officer.

The AEAD sets out the process for establishing a new agency classified under the directive, the accountability framework governing agencies and ministries in the operation of agencies, and uses a risk-based approach in managing agency accountability.

The MOU outlines the accountability framework between the minister and FSCO, establishes tools for governance and accountability and explains roles, relationships and mutual expectations. The MOU is updated every five years or more often if necessary.

Performance Management Framework

FSCO’s Performance Management Framework ensures greater transparency, accountability and value-for-money. It also ensures that FSCO measures performance, focuses on meaningful results, and reports on outcomes.

Financial Reporting

As an Ontario government agency, FSCO receives an annual spending authority through the government planning process, based on needs and government priorities. FSCO files quarterly reports on its spending. The Office of the Auditor General of Ontario audits FSCO’s annual financial statements.

Fiscal and Human Resources

In 2013–14, FSCO’s expenditures totalled $87.97 million, up $15.35 million, or 21 percent, from the previous year. The spending increase was due primarily to contracts for the provision of external dispute resolution services.

More information on FSCO’s 2013–14 expenditures is contained within the financial statements and notes which appear later in this report.

On March 31, 2014, FSCO had 452 full time staff. This total does not include legal services staff who are employees of the Ministry of the Attorney General.

Recovering FSCO’s Costs

Most of FSCO’s costs are recovered from the regulated sectors through a combination of assessments and fees. Under the FSCO Act, the Lieutenant Governor in Council may assess all businesses, individuals and pension plans that form part of a regulated sector with respect to expenditures incurred by the Ministry of Finance, the commission and the FST. The Minister of Finance is authorized to establish fees with respect to the regulated services provided by FSCO.

The government supports co-operative corporations by providing an allocation of $500,000 to help cover the costs of administering the sector.

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Financial Services Commission of Ontario Organizational Chart

Financial Services Commission of Ontario Organizational Chart

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The Regulated Sectors in Profile

TOGETHER, THE FINANCIAL SERVICES sectors regulated by FSCO represent a large, dynamic industry that underpins Ontario’s economy and quality of life. The industry delivers products and services that support the financial security of individuals and families and the financial stability of businesses and other organizations.

Pension Plans

FSCO regulates the following types of pension plans registered in Ontario:

Some defined benefit plans are hybrid plans combining defined benefit and defined contribution provisions, or providing the greater of a defined benefit or defined contribution provision.

Employment pension plans registered in Ontario must meet minimum standards for administration and funding under the Pension Benefits Act and regulations. FSCO monitors and enforces compliance with the legislation and regulations and advises the government on pension issues. As well, FSCO administers the Pension Benefits Guarantee Fund that protects a minimum level of benefits in most private single employer defined benefit plans if the employer is insolvent.

Ontario-Registered Active Pension Plans and Membership
Pension Plan Type As of March 31, 2014 As of March 31, 2013
Number Percentage
of Total
Number Percentage
of Total
Single Employer Plans* 7,188 98 7,396 98
Defined Benefit Plans* 4,097 56 4,241 56
Members** 1,344,000 34 1,343,000 35
– Active Members*** 676,000 31 684,000 32
– Retired Members, Deferred Members and Other Beneficiaries**** 668,000 38 659,000 39
Defined Contribution Plans* 3,091 42 3,155 42
Members** 435,000 11 403,000 11
– Active Members*** 368,000 16 345,000 16
– Retired Members, Deferred Members and Other Beneficiaries**** 67,000 4 58,000 3
Multi-Employer Plans* 118 2 118 2
Defined Benefit Plans* 78 1 77 1
Members** 860,000 22 836,000 22
– Active Members*** 382,000 17 367,000 17
– Retired Members, Deferred Members and Other Beneficiaries**** 478,000 27 469,000 28
Defined Contribution Plans* 40 1 41 1
Members** 80,000 2 62,000 0
– Active Members*** 53,000 2 38,000 2
– Retired Members, Deferred Members and Other Beneficiaries**** 27,000 2 24,000 1
Jointly Sponsored Plans* 10 0 10 0
Defined Benefit Plans* 10 0 10 0
Members** 1,223,000 31 1,199,000 32
– Active Members*** 706,000 32 701,000 33
– Retired Members, Deferred Members and Other Beneficiaries**** 517,000 29 498,000 29
Total Pension Plans* 7,316 100 7,524 100
Total Members** 3,942,000 100 3,843,000 100
– Active Members*** 2,185,000 100 2,133,000 100
– Retired Members, Deferred Members and Other Beneficiaries**** 1,757,000 100 1,709,000 100

* Percentages are expressed as a percentage of the total number of Plans.

** Percentages are expressed as a percentage of the total number of Members in all Plans.

*** Percentages are expressed as a percentage of the total number of Active Members in all Plans.

**** Percentages are expressed as a percentage of the total number of Retired Members, Deferred Members and Other Beneficiaries in all Plans.

Notes:

  1. Membership numbers rounded to the nearest thousand.
  2. Percentages may not add up due to rounding.
  3. Data on defined benefit plans includes hybrid/combination plans with both defined benefit and defined contribution components.
  4. Percentages for JSPPs are reported as zero as they represent less than 0.1%.

Total Number of Ontario Pension Plans, 2005–2014

Insurance Companies in Ontario, 2004–2013

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Ontario Pension Plan Membership (in 000s), 2005–2014

Insurance Companies in Ontario, 2004–2013

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Pension Plan Transactions Processed by FSCO

Under the Pension Benefits Act, the Superintendent of Financial Services makes regulatory decisions on various pension plan transactions, from initial registration to full wind-up. The following table lists key plan transactions dealt with by FSCO.

Transaction Type 2013–14 2012–13
New Plans Registered
Single Employer Plans    
Defined Benefit 93 113
Defined Contribution 41 55
Multi-Employer Plans    
Defined Benefit 1
Defined Contribution 2
Total 137 168
Plan Amendments Registered 2,928 2,184
Full Wind-Ups Processed
Single Employer Plans    
Defined Benefit 218 209
Defined Contribution 101 111
Multi-Employer Plans    
Defined Contribution 1
Total 319 320
Partial Wind-Ups Processed
Single Employer Plans    
Defined Benefit 7 26
Defined Contribution 2 17
Multi-Employer Plans    
Defined Benefit 4
Defined Contribution 8
Total 9 55
Plan Mergers/Asset Transfers Processed
Single Employer Plans    
Defined Benefit 15 24
Defined Contribution 31 43
Multi-Employer Plans    
Defined Benefit 1
Defined Contribution 6
Jointly Sponsored Plans    
Defined Benefit
Defined Contribution
Total 52 69
Surplus Refunds to Employers on Full Wind-Up Applications Processed
Single Employer Plans    
Defined Benefit 5 2
Defined Contribution
Total 5 2
Surplus Refunds to Employers on Partial Wind-Up Applications Processed
Single Employer Plans    
Defined Benefit 7 5
Total 7 5

On-site Examination Program

FSCO performs on-site examinations of pension plans which are selected through the risk-based funding and investment monitoring programs, as well as on the basis of risk profiles in FSCO's pension plans database.

In addition to identifying areas of non-compliance, FSCO commonly issues recommendations at the conclusion of an examination to strengthen the alignment of plans' administrative and governance practices with generally accepted industry best practices. This year, FSCO undertook examinations of 50 plans. The results are summarized in the tables below.

Pension Plans Examined 2013–14 2012–13
Single Employer Plans    
Defined Benefit 25 33
Defined Contribution 3 3
Defined Benefit/Defined Contribution Hybrid 20 11
Multi-Employer Plans    
Defined Benefit 2 1
Defined Contribution 1
Jointly Sponsored Plans    
Defined Benefit 1
Total 50 50

 

  2013–14 2012–13
Common Examination Compliance Findings Number of Plans Percentage of Plans Examined Number of Plans Percentage of Plans Examined
Disclosure on member benefit statements deficient 30 60 16 32
Statement of Investment Policies & Procedures out of date 23 46 12 24
Regulatory filing deadlines not met 16 32 17 34
Incorrect information reported in statutory filings 12 24 25 50
Statement of Investment Policies & Procedures not compliant 10 20 9 18
Member benefit statements issued late 8 16 12 24
Current trust agreement not registered with FSCO 6 12 7 14
Plan member information booklet out of date 5 10 9 18

Financial Hardship Unlocking

Funds transferred from a registered pension plan to a locked-in account can normally be used only for retirement income. Until January 1, 2014, the Superintendent of Financial Services granted consent to account holders of locked-in accounts in cases of financial hardship.

Financial Hardship Unlocking Applications Processed by FSCO
2013–14 2012–13
11,867 14,068

In 2013, the government made regulatory changes under the Pension Benefits Act to align FSCO's financial hardship unlocking program for pensions with other special provisions for access to locked-in accounts. As of January 1, 2014, applications to unlock money must be made to the financial institution that holds the locked-in account and sets out the criteria for making such an application. On March 31, 2014, FSCO's Financial Hardship Unlocking program was officially closed.

Pension Benefits Guarantee Fund

The Pension Benefits Guarantee Fund (PBGF) protects a minimum level of benefits for Ontario members and beneficiaries of most single employer defined benefit pension plans, should the plan sponsor become insolvent. The Superintendent of Financial Services is responsible for the administration of the PBGF, which is established under the Pension Benefits Act.

Pension plans with guaranteed benefits pay an assessment into the PBGF. The total liability of the PBGF is limited to the assets of the fund, including any loans or grants received from the province. The Office of the Auditor General of Ontario audits the PBGF's annual financial statements.

Pension Benefits Guarantee Fund Claims Paid by FSCO
  2013–14 2012–13
Number of Pension Plan Claims 9 19
Total Amount Paid $46,354,529 $42,599,200

 

Insurance

Most insurance business in Ontario is conducted by federally incorporated companies that are subject to prudential regulation by the federal Office of the Superintendent of Financial Institutions (OSFI).

Prudential regulation of provincially-incorporated insurance companies licensed to conduct business in Ontario is overseen by the regulators for the provinces in which they are incorporated. The number of Ontario-incorporated insurance companies has been steadily declining. Over the past few years, a number of Ontario-incorporated insurers have ceased operations or continued under federal or Quebec law for operational or strategic reasons. FSCO's focus in regulating insurance companies is on market conduct reviews.

Insurance Companies in Ontario, 2004–2014
Number as of March 31

Insurance Companies in Ontario, 2004–2014

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Note: includes reciprocal insurance exchanges.

Insurers Incorporated or Formed under Ontario Law 2005–2014
Number as of March 31

Insurers Incorporated or Formed under Ontario Law 2005–2014

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Direct Written Insurance Premiums in Ontario 2004–2013

Direct Written Insurance Premiums in Ontario 2004–2013

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Insurers Incorporated or Formed under Ontario Law Direct Written Insurance Premiums, 2004–2013

Insurers Incorporated or Formed under Ontario Law Direct Written Insurance Premiums, 2004–2013

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The Registered Insurance Brokers of Ontario

The Registered Insurance Brokers of Ontario (RIBO) is a self-governing, self-supporting organization of general insurance brokers in Ontario that administers the Registered Insurance Brokers Act. It regulates the licensing, professional competence, ethical conduct and insurance related financial obligations of all general insurance brokers in the province of Ontario. In Ontario, FSCO licenses general insurance agents while RIBO licenses persons employed by insurance brokers. The Superintendent has the responsibility to ensure that RIBO is fulfilling its regulatory responsibilities, and conducts an annual examination of its affairs and reports the results to the minister. For more information, visit RIBO’s website.

Auto Insurance

Automobile insurance is compulsory for drivers in Ontario. FSCO reviews and approves automobile insurance rates, risk classification systems and underwriting rules, as well as policy endorsements, forms and rate manuals. FSCO also advises the government on the need for changes to auto insurance legislation and regulations, and works with stakeholders to improve the system's operation.

Automobile Insurance Filings Processed
Type 2013–14 2012–13
Private Passenger Auto Rate Filings
Major 57 36
Simplified* 4 21
CLEAR** 55 45
Fees*** 10
Total 126 102
Non-Private Passenger Auto Rate Filings****
Underwriting Rule Filings 30 35
Endorsement Filings 39 36
Form Filings 51 20
Rate Manual Filings 129 140

* Insurers may submit a simplified filing where certain criteria, including a rate reduction proposal, are met. Only summary information is required in a simplified filing, whereas a major filing requires detailed actuarial information.

** The Canadian Loss Experience Automobile Rating (CLEAR) system groups vehicles according to their actual claims experience. Almost all companies that write PPA policies use CLEAR. FSCO approved the 2013 CLEAR tables and issued updated CLEAR filing guidelines in August, 2013. Insurers were required to submit CLEAR filings by September 13, 2013.

*** Fee Filings are submitted when the company is proposing to make changes to fees or add new ones.

**** 61 Non-Auto Reform Non-PPA rate filings for 2013–14 include 13 Fees filings.

Dispute Resolution Services Activities

FSCO's dispute resolution services are an integral part of Ontario's no-fault automobile insurance system. Mediation is compulsory where a claimant and insurer disagree about entitlement to statutory accident benefits or the amount of benefits. If mediation fails, the claimant can apply for arbitration at FSCO or either party may take the matter to court.

In addition to mediation and arbitration services, FSCO also offers neutral evaluation, appeal of arbitration orders on a point of law, and variation or revocation of an arbitration order under a defined set of circumstances.

Dispute Resolution Services Activity 2013–14 2012–13
Mediation
New Applications Received 23,366 25,317
Cases Closed 39,980 38,434
Settlement Rate – Full 41% 51%
Settlement Rate – Partial 8% 6%
Arbitration
New Applications Received 14,472 10,511
Cases Closed 8,976 4,961
Settled 8,469 4,670
Decisions Issued 225 187
Appeals
New Applications Received 41 49
Cases Closed 31 54
Settled 12 14
Decisions Issued 37 68

Mediation – Intake, Closed and Pending, 2008–2014

Mediation – Intake, Closed and Pending, 2008–2014

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Arbitration – Intake, Closed and Pending, 2008–2014

Arbitration – Intake, Closed and Pending, 2008–2014

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Between 2007 and 2012, an unprecedented increase in applications for mediation resulted in a major backlog of mediation files.

In order to address the backlog, FSCO implemented a number of initiatives including the use of a private dispute resolution service provider and improved internal efficiencies. As a result, the backlog was eliminated by August 2013. All new applications for mediation are assigned to FSCO mediators within two days of receipt and are handled within legislated timelines. For more information, refer to FSCO’s 2013 Statement of Priorities.

Applications for arbitration, which had already been on the rise for several years, increased substantially as a result of the rapid clearing of the mediation backlog and other external factors. In order to ensure that sufficient capacity exists to handle all arbitration files within published timelines, FSCO continues to use the services of a private dispute resolution service provider for arbitration files only.

Motor Vehicle Accident Claims Fund

FSCO administers the Motor Vehicle Accident Claims Fund for victims of accidents involving uninsured or unidentified vehicles.

Measure 2013–14 2012–13
New Claims Reported (#) 515 542
Total Cash Payouts $22.3 million $27.7 million
Total Statutory Accident Benefits Claims Paid (#) 400 408
Total Statutory Accident Benefits Payments $17 million $23.2 million
Total Third Party Liability Claims Paid (#) 87 81
Total Third-Party Liability Payments for Bodily Injury and Property Damage $5.3 million $4.5 million
Collection of Repayments $1.1 million $1.1 million
Suspended Driver’s Licences (#) 252 321
Reinstated Driver’s Licences (#) 252 219
Repayments Processed (#) 5,614 6,609
Debtors Making Payments (#) 707 749
Active Accounts Receivable (#) 1,040 1,083

 

Deposit-taking Institutions, Mortgage Brokering, Co-operative Corporations

Ontario Credit Unions and Caisses Populaires

As of March 31, 2014, Ontario's credit unions and caisses populaires held total assets of $39.4 billion. The sector is undergoing significant consolidation and transformation. Amalgamations continued in 2013–14, with the number of credit unions and caisses populaires decreasing by almost 10 percent.

Measure As of March 31, 2014 As of March 31, 2013
Institutions with Assets over $50 Million
Number 81 84
Assets $38.4 billion $35.7 billion
Membership 1,472,171 1,457,093
Institutions with Assets under $50 Million
Number 41 53
Assets $1 billion $1.2 billion
Membership 90,753 109,354
All Institutions
Number 122 137
Assets $39.4 billion $37.0 billion
Membership 1,562,924 1,566,447

The Deposit Insurance Corporation of Ontario

The Deposit Insurance Corporation of Ontario (DICO) is a provincial government agency that protects depositors of Ontario credit unions and caisses populaires from loss of their deposits.

FSCO and DICO share responsibility for regulating credit unions and caisses populaires under the provisions of the Credit Unions and Caisses Populaires Act, 1994, and ensuring compliance with its provisions. The statute establishes solvency requirements including rules relating to capital, liquidity and exposure to interest rate risk, and assigns responsibility to DICO for enforcing those provisions. FSCO is responsible for enforcing the market conduct provisions in the act, including those relating to consumer protection and governance.

For more information, visit DICO’s website.

Ontario Credit Unions, 2005–2014

Ontario Credit Unions, 2005–2014

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Ontario Credit Unions–Total Assets, 2005–2014

Ontario Credit Unions – Total Assets, 2004–2013

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Loan and Trust Companies

FSCO's role in the regulation of loan and trust companies is limited to registration of companies operating in Ontario and taking action against unlicensed deposit takers. Fifty-two loan and trust companies were registered to operate in Ontario as of March 31, 2014. All were federally incorporated, which is a requirement for registration.

Mortgage Brokering

All mortgage brokerages, administrators, brokers and agents conducting mortgage brokering business in Ontario are required to be licensed by FSCO. Mortgage broker and agent licences are issued for a two-year term. The number of licence renewals for brokers and agents was high in 2013–14 as they had a common expiry date of March 31, 2014.

Total Number of Ontario Mortgage Brokerages, 2009–2014

Total Number of Ontario Mortgage Brokerages, 2009–2014

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Total Number of Ontario Mortgage Brokers, 2009–2014

Total Number of Ontario Mortgage Brokers, 2009–2014

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Total Number of Ontario Mortgage Agents, 2009–2014

Total Number of Ontario Mortgage Agents, 2009–2014

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Total Number of Ontario Mortgage Administrators, 2009– 2014

Total Number of Ontario Mortgage Administrators, 2009– 2014

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Co-operative Corporations

FSCO registers organizations conducting business as co-operatives under the Co-operative Corporations Act. In 2013–14, there were 47 new co-operative incorporations.

Ontario Co-operatives – Number of New Incorporations, 2005–2014

Ontario Co-operatives – Number of New Incorporations, 2005–2014

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Licensing, Monitoring and Enforcement Activity Across the Sectors: Statistics

FSCO licenses or registers individuals and businesses to provide financial services in Ontario. It monitors compliance with legislation and regulations and follows up with enforcement action where necessary.

 

Licensing Activities

Activity 2013–14 2012–13
Individuals
New Licences Issued
Life Insurance Agents 4,996 4,973
General Insurance Agents 823 732
Accident and Sickness Insurance Agents 444 348
Insurance Adjusters 297 104
Mortgage Brokers 61 114
Mortgage Agents 2,408 3,010
 
Licences Renewed
Life Insurance Agents 13,592 18,565
General Insurance Agents 2,811 3,054
Accident and Sickness Insurance Agents 325 264
Insurance Adjusters 1,561 1,748
Mortgage Brokers* 2,415 2
Mortgage Agents* 8,053 14
Corporations
New Licences Issued
Life and General Insurance Agencies 457 488
Corporate Insurance Adjusters 8
Insurance Companies 6 3
Mortgage Brokerages 128 88
Mortgage Administrators 16 18
New Registrations Issued
Loan and Trust Companies
Licences Renewed
Life and General Insurance Agencies 1,738 2,457
Corporate Insurance Adjusters 15 131
Co-operatives
Offering Statements 23 20
Material Change Relating to Offering 5
New Incorporations 47 71
Amendments Relating to Incorporation 18 13
Dissolutions/Cancellations 6 10
Conversion to Corporation
Amalgamation 1
Credit Unions/Caisses Populaires
New Incorporations
Applications Required for Approval/Filing (including applications for articles of amendment, name changes, by-law amendments, offering statements, etc.) 58 56
Amalgamations 5 7

* All mortgage broker and agent licences had a common expiry date of March 31, 2014.

Regulatory Oversight and Enforcement Activities

Monitoring Activities

FSCO undertakes a number of monitoring activities as part of its regulatory functions. It conducts police background checks, compliance audits, and reviews complaints in the sectors it regulates.

Activity 2013–14 2012–13
Police Checks
Insurance Agent Licence Applications 10,453 8,163
Mortgage Broker and Agent Applications 2,085 2,804
Audits
Mortgage agent and broker relicensing education * 232
Insurance agent risk-based CE audit 50 10
Errors and Omissions Insurance
– Life Insurance Agents 330
– Mortgage Brokerages
Complaint Reviews
Insurance Companies 490 511
Insurance Agents

225

201
Mortgage Brokerages 101 131
Mortgage Brokers 69 72
Mortgage Agents 111 123
Credit Unions 35 36
Loan and Trust Companies 7 4
Health Care Providers 10 8
Pension Plans 243 258
Total 1,291 1,344

* FSCO no longer performs this audit. Course providers now advise FSCO directly of individuals who have completed their education requirements.

Enforcement Actions

To protect consumers and enhance public confidence, FSCO monitors, investigates and where there is non-compliance with legislation and regulations, takes appropriate enforcement action against the sectors it regulates.

Type 2013–14 2012–13
Insurance Agents
Licences Revoked 3 11
Licences Suspended 7 7
Letters of Caution 25 9
Automobile Insurance Companies
Letters of Caution 1 2
Mortgage Brokerages/Administrators
Licence Refusals
Licence Suspensions 1
Licence Revocations 1 1
Administrative Monetary Penalties
Annual Information Return
– Orders Issued 5 5
– Amount Ordered $5,000 $5,000
Errors & Omissions Insurance
– Orders Issued 3 13
– Amount Ordered $8,500 $27,500
Unlicensed Activity
– Orders Issued
– Amount Ordered ($)
Mortgage Brokers
Licence Suspensions 1
Letters of Caution 3 1
Mortgage Agents
Licence Refusals 4 3
Letters of Caution 12 1
Health Care Providers/Clinics
Letters of Caution
Dispute Resolution Penalties
Special Awards against Insurers 4
Expense Orders against representatives
Cease-and-Desist Orders 1 7
Prosecutions Completed 1 1

Advisory Board Activities

Advisory Boards under the Insurance Act make recommendations to the Superintendent of Financial Services on whether to grant, renew, revoke or suspend licences of agents or adjusters. Licensing issues are often resolved by minutes of settlement. Where they are not, the Superintendent appoints an Advisory Board including an agent or adjuster representative, an insurer representative and a Superintendent representative. The board holds a hearing and prepares a report to the Superintendent, who makes a decision and issues an order.

Activity 2013–14 2012–13
Cases Pending at Beginning of Year 5 9
New Cases Received 7 11
Files Closed 9 15
Cases Pending at End of Year 3 5

Public and Stakeholder Inquiries and Complaints Reporting

FSCO supplements its oversight activities with consumer inquiry and complaint processes which answer consumer and stakeholder questions. Inquiries and complaints also help FSCO to identify practices that may be harmful to consumers and the marketplace or may violate legislation, regulations or FSCO’s rules and procedures.

Inquiry and complaint data play a crucial role in alerting FSCO and the public to potential problems that may require consumer education efforts or other regulatory intervention. Providing accurate, up-to-date information to consumers to assist them in making informed choices about the many products and services that are available in the marketplace is important to FSCO.

The following data for fiscal year 2013–14, shows the number of inquiries and complaints handled by FSCO.

Public and Stakeholder Inquiries

Public and Stakeholder Inquiries

Description of this image

* Non-FSCO refers to inquiries that do not pertain to FSCO’s mandate and have to be redirected.

FSCO is a valuable point of contact for both the public and stakeholders. FSCO staff respond to telephone inquiries and correspondence, providing information about legislation and regulations administered by FSCO and also about FSCO’s processes.

Licensing Compliance Inquiries

Licensing Compliance Inquiries

Description of this image

Market Conduct Inquiries

Market Conduct Inquiries

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Pension Inquiries

Pension Inquiries

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Complaints

As evidence of consumer dissatisfaction, complaints represent a crucial market conduct signal for both the industry and regulators. Reviewing complaints is an important component of FSCO’s risk-based approach to market conduct oversight.

In Ontario, insurance companies are required to designate a complaints officer to receive consumer complaints about business practices, and to refer unresolved complaints to an independent third party for review. Most insurance companies are members of a national ombudservice established by the industry. Where this is not the case, FSCO generally acts as the independent third party.

All mortgage brokerages, mortgage administrators, credit unions and caisses populaires are required to designate an individual to receive and attempt to resolve complaints. They must also keep a record of written complaints and responses. Moreover, parties making a complaint must be advised to contact FSCO if they believe there has been a violation of the legislation or regulations.

FSCO inquires into complaints alleging non-compliance with legislation or regulations in any of the regulated sectors. Complaint procedures and contact information are posted on FSCO’s website.

Most complaints do not result in a finding of contravention of the law. However, access to a review process is important to maintain consumer confidence in the financial services marketplace. Where there has been a contravention, FSCO takes enforcement action.

Market Conduct Complaints

Market Conduct Complaints

Description of this image

Pension Complaints

Pension Complaints

Description of this image

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Report of the Financial Tribunal

ESTABLISHED BY THE FSCO ACT, the Financial Services Tribunal (FST) is an expert, independent adjudicative body. The FST conducts hearings and hears certain appeals on regulatory and disciplinary matters under statutes covering the regulated sectors including:

The FST has exclusive jurisdiction to exercise the powers conferred on it by legislation and to determine all questions of fact or law that arise in its hearings.

The FST is composed of nine to 15 members, including the Chair and two Vice-Chairs, all appointed by the Lieutenant Governor in Council. The Chair and Vice-Chairs of the FST are also the Chair and Vice-Chairs of the commission.

Appointments to the FST and the Financial Services Commission of Ontario are made in accordance with the guidelines established by Ontario’s Public Appointments Secretariat.

Financial Services Tribunal Board Members
Name Position Tenure
John M. Solursh Chair August 11, 2004 August 7, 2014
Elizabeth Shilton Vice-Chair May 18, 2005 January 31, 2015
Florence A. Holden Vice-Chair August 11, 2004 September 5, 2017
Heather Gavin Member January 13, 1999 June 24, 2013
Shiraz Y.M. Bharmal Member September 9, 2002 September 9, 2013
Denis W. Boivin Member November 3, 2004 June 2, 2014
Patrick William Longhurst Member August 9, 2009 August 7, 2014
Jeffrey Richardson Member August 12, 2008 August 9, 2014
David A. Short Member October 24, 2001 November 3, 2014
Jennifer Lynne Brown Member July 8, 2010 July 6, 2015

The FST is committed to providing an expert, impartial hearing process that is accessible, prompt and fair. It has established its own Rules of Practice and Procedure and issued Practice Directions to guide the conduct of its hearings. Proceedings are also governed by the Statutory Powers Procedure Act.

For the convenience of hearing participants, the FST’s hearing schedule, decisions, Rules of Practice and Procedure, and Practice Directions are posted on the FST website at www.fstontario.ca. sketches of current FST members may also be found on this site.

The FST has established service standards, which are published, and a tracking mechanism to facilitate public reporting on services.

A summary of the FST’s activities in 2103–14 appears in the Financial Services Tribunal Activities table.

Financial Services Tribunal Activities
Activity Pension Matters (Excluding Financial Hardship) Pension Matters (Financial Hardship) Mortgage Matters Insurance Matters Credit Union Matters Loan & Trust Matters Total 2013–14 Total 2012–13
Cases Pending at Beginning of Year 14 0 6 0 0 0 20 32
New Cases Received 9 0 9 1 0 0 19 22
Files Closed 13 0 6 1 0 0 20 34
Cases Pending at End of Year 10 0 9 0 0 0 19 20
Oral Hearing Days 10 0 1 0 0 0 11 14
Written Hearings 0 0 0 0 0 0 0 2
Other Activity Days – Including: Pre-Hearing Conferences, Telephone Conferences, Settlement Conferences and Motions 26 0 20 0 0 0 46 55
Total Hearing (Oral and Written) and Activity Days before FST 36 0 21 0 0 0 57 71

Notes:

1. Table does not include FST quarterly meetings, days for deliberation or decision writing.

2. Numbers may reflect activity in respect of files opened prior to 2013–14 fiscal year.

3. Written hearings may relate to financial hardship matters, motions, requests for costs or requests for a review of a decision.

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Financial Services Commission of Ontario Financial Statements

For the Year Ended March 31, 2014

 

Management’s Statement

 

Government of Ontario crest

Financial Services Commission of Ontario

Chief Executive Officer and Superintendent of Financial Services

5160 Yonge Street
Box 85, 17th Floor
Toronto ON M2N 6L9

Telephone: (416) 590-7000
Facsimile: (416) 590-7078

Commission des services financiers de l’Ontario

Directeur général et surintendant des services financiers

5160, rue Yonge
boîte 85, 17e étage
Toronto ON M2N 6L9

Téléphone : (416) 590-7000
Télécopieur : (416) 590-7078

October 15, 2014

Management’s Responsibility for Financial Information

The Financial Services Commission of Ontario (Commission) was established under the Financial Services Commission of Ontario Act, 1997. Under the Act the Superintendent is responsible for the financial and administrative affairs of the Commission.

Under the direction of the Superintendent, Management of the Commission is responsible for the integrity and fair presentation of all information in the financial statements and notes. The financial statements have been prepared by Management in accordance with Canadian Public Sector Accounting Standards for government not-for-profit organizations. The preparation of financial statements involves the use of management’s judgment and best estimates particularly when transactions affecting the current period cannot be determined with certainty until future periods.

Management of the Commission is dedicated to the highest standards of integrity in provision of its services. Management has developed and maintains financial controls, information systems and practices to provide reasonable assurances on the reliability of financial information and safeguarding of its assets.

The financial statements have been audited by the Office of the Auditor General. The Auditor General’s responsibility is to express an opinion on whether the financial statements are fairly presented in accordance with Canadian Public Sector Accounting Standards for government not-for-profit organizations. They have been approved by the Commission’s Audit and Risk Committee. The Auditor’s report follows.


Signature of Philip Howell, Chief Executive Officer and Superintendent of Financial Services, Financial Services Commission of Ontario

Philip Howell
Chief Executive Officer and Superintendent of Financial Services


Signature of Helmut Zisser, Chief Administrative Officer & Assistant Deputy Minister, Ministry of Finance


Helmut Zisser
Chief Administrative Officer & Assistant Deputy Minister, Ministry of Finance

 

Auditor’s Statement

 

Office of the Auditor General of Ontario logo

Office of the Auditor General of Ontario
Box 105, 15th Floor
20 Dundas Street West
Toronto, Ontario
M5G 2C2
416-327-2381
fax 416-326-3812

Bureau du vérificateur general de l’Ontario
B.P. 105, 15e étage
20, rue Dundas ouest
Toronto (Ontario)
M5G 2C2
416-327-2381
télécopieur 416-326-3812

www.auditor.on.ca

Independent Auditor’s Report

To the Financial Services Commission of Ontario and to the Minister of Finance I have audited the accompanying financial statements of the Financial Services Commission of Ontario, which comprises the statement of financial position as at March 31, 2014, and the statements of operations and cash flows for the year then ended, and a summary of significant accounting policies and other explanatory information.

Management’s Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with Canadian public sector accounting standards, and for such internal control as management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

Auditor’s Responsibility My responsibility is to express an opinion on these financial statements based on my audit. I conducted my audit in accordance with Canadian generally accepted auditing standards. Those standards require that I comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.

I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my opinion..

Opinion In my opinion, these financial statements present fairly, in all material respects, the financial position of the Financial Services Commission of Ontario as at March 31, 2014 and the results of its operations, and its cash flows for the year then ended in accordance with Canadian public sector accounting standards.

Toronto, Ontario
October 15, 2014


Signature of Gary Peall, CPA, CA, LPA, Deputy Auditor General

Gary Peall, CPA, CA, LPA
Deputy Auditor General

 

Statement of Financial Position
As at March 31, 2014

  March 31, 2014
($ 000)
March 31, 2013
($ 000)
ASSETS
Current    
Cash 1 5
Accounts receivable 895 106
Prepaid expenses 6 0
  902 111
Due from the Province (Note 7b) 40,248 34,947
Capital assets, net (Note 3) 12,642 10,401
  53,792 45,459
LIABILITIES AND NET ASSETS
Current    
Accounts payable and accrued liabilities 19,349 14,465
  19,349 14,465
Employee future benefits obligation (Note 7a) 8,810 9,260
Deferred revenue (Note 4) 12,680 10,490
Deferred lease inducements (Note 5) 311 843
Net assets    
Invested in capital assets 12,642 10,401
  53,792 45,459
Commitment, Significant Contract and Contingencies (Note 9)    

See accompanying notes to financial statements

Approved by:

Signature of Philip Howell, Chief Executive Officer and Superintendent of Financial Services, Financial Services Commission of Ontario

Chief Executive Officer and Superintendent of Financial Services

 

Statement of Operations
For the Year Ended March 31, 2014

  March 31, 2014
($ 000)
March 31, 2013
($ 000)
Revenue (Note 6)
Assessments 70,697 56,102
Fees, Licenses, registrations and other 12,608 10,475
  83,305 66,577
Expenses
Salaries and wages 36,095 37,960
Employee benefits (Note 7a) 8,060 8,509
Transportation and communication 815 812
Services 39,157 21,626
Supplies and equipment 535 453
Amortization 3,302 3,210
Bad debt expense 3 53
  87,967 72,623
Less: Recoveries (Note 8) 3,259 3,217
  84,708 69,406
Deficiency of revenue over expenses absorbed by the Province (Note 6) (1,403) (2,829)

See accompanying notes to financial statements

 

Statement of Cash Flows
For the Year Ended March 31, 2014

  March 31, 2014
($ 000)
March 31, 2013
($ 000)
Net inflow (outflow) of cash related to the
following activities
Cash flows from operating activities
Deficiency of revenue over expenses absorbed
by the Province
(1,403) (2,829)
Items not affecting cash
Amortization of capital assets 3,302 3,210
Employee future benefits (Note 7a) (450) 330
Bad debt expense 3 53
Changes in non-cash working capital
Accounts receivable (792) 271
Prepaid expenses (6) 37
Accounts payable and accrued liabilities 4,884 4,370
Due from the Province (1,657) (2,800)
Amortization of deferred lease inducements (532) (533)
Deferred Revenue 2,190 (1,396)
  5,539 713
Cash flows from capital activity
Purchase of capital assets (5,543) (715)
  (5,543) (715)
Net change in cash position (4) (2)
Cash position, beginning of year 5 7
Cash position, end of year 1 5

See accompanying notes to financial statements

 

Notes to Financial Statements
March 31, 2013

1. OPERATIONS OF THE COMMISSION

The Financial Services Commission of Ontario (Commission) was established under the Financial Services Commission of Ontario Act, 1997. The Commission’s mandate through its regulated activities is to protect the public interest and enhance public confidence in insurance, pensions, credit unions, trust companies, caisses populaires, co-operatives and mortgage brokers, and also to make recommendations to the Minister of Finance on matters affecting the regulated sectors. The Commission administers the following legislation: Insurance Act, Pension Benefits Act, Credit Unions and Caisses Populaires Act, Loan and Trust Corporations Act, Mortgage Brokerages, Lenders and Administrators Act and Co-operative Corporations Act. As a regulatory agency of the Province of Ontario, the Commission is exempt from income taxes.

2. SIGNIFICANT ACCOUNTING POLICIES

The financial statements have been prepared by the management of the Commission in accordance with Public Sector Accounting Standards for government not-for-profit organizations (PSA-GNFPO) as issued by the Public Sector Accounting Board (PSAB). The significant accounting policies used to prepare these statements are summarized below.

(a) Capital Assets:

Capital assets are recorded at cost less accumulated amortization. Amortization is calculated on a straight-line basis over their estimated useful life. The useful life of the Commission’s capital assets has been estimated as follows:

(b) Revenue Recognition

Assessment revenues from the insurance, pension, credit union, caisses populaires and the loan and trust sectors are recognized when the recoverable costs to administer the various Acts governing these sectors are incurred.

Revenues from fees, licenses and registrations are recognized in the year to which they pertain.

(c) Financial Instruments

The Commission follows PSA-GNFPO pertaining to financial instruments. Under these standards, all financial instruments are included on the statement of financial position and are measured either at fair value or at cost or amortized cost. The Commission’s Accounts receivable, and the Accounts payable and accrued liabilities are recorded at cost in the financial statements.

(d) Use of Estimates

The preparation of financial statements in accordance with PSA-GNFPO requires that management make estimates and assumptions that affect the reported amount of assets and liabilities as at the date of the financial statements and the reported amounts of revenues and expenses for the period. Actual amounts could differ from these estimates. Significant items subject to such estimates and assumptions include the amortization expense, accrued liabilities and employee future benefits.

3. CAPITAL ASSETS

  Cost Accumulated Amortization 20 14 Net Book Value 2013 Net Book Value
($’000)
Custom developed software 10,361 6,230 4,131 2,773
Custom software under development 4,918 0 4,918 2,209
Leasehold improvements 7,818 5,398 2,420 3,643
Computer hardware 2,377 1,724 653 802
Office furniture and equipment 2,209 1,689 520 974
  27,683 15,041 12,642 10,401

 

4. DEFERRED REVENUE RELATED TO LICENCES AND REGISTRATION

Deferred revenue represents payments received for fees, licences and registrations that cover more than the current fiscal year. The deferred portion is recognized as revenue when the applicable future licence year occurs. The changes in the deferred revenue balances during fiscal 2012–13 are summarized as follows:

  Balance, beginning of year Received during year Recognized during year Balance, end of year
($’000)
Insurance Agents 3,944 3,462 3,790 3,616
Insurance Adjusters 20 133 119 34
Mortgage Brokers 4,919 8,210 5,691 7,438
Insurance Corporations 1,047 921 1,031 937
Other 560 762 667 655
  10,490 13,488 11,298 12,680

 

5. DEFERRED LEASE INDUCEMENTS

The Commission’s office accommodation lease was extended from October 31, 2008 to October 31, 2015 with two further options to extend the term for five years each. The lease extension included a leasehold improvement allowance in the amount of $2.005 million for renovations in the first two years and no base rent payable in the amount of $0.64 million for the first ten months of the lease extension. The Commission has utilized the entire allowance.

The deferred lease inducement is made up of the portion of future lease payments attributed to the rent-free period and the leasehold improvements allowance and will be recognized as reduced rent expense over the term of the lease on a straight line basis.

  2014 2013
($’000)
Balance, beginning of year 1,375 1,908
Less: Lease Inducements Amortization (532) (533)
Deferred Lease Inducements 843 1,375
Less: current portion (532) (532)
Balance, end of year 311 843

 

6. REVENUE

Under The Financial Services Commission of Ontario Act, the Commission may recover all of its costs through revenue assessments and fees charged to all entities that form part of the regulated sectors. The Commission’s deficiency of $1.4 million (2013 - $2.8 million) resulted mostly from the Financial Hardship Program waiver of fees that continued in 2014 and the deficiency from the Co-operatives sector, offset by a surplus in the mortgage brokers sector. The deficiency has been absorbed by the Province and is reflected in the Due from the Province on the statement of financial position. For the fiscal year, revenue from the following Acts and regulations made under the Acts administered by the Commission are:

  2014 2013
($’000)
INSURANCE ACT
Insurer assessment 52,806 37,696
Fees, licenses and other 6,624 5,901
PENSION BENEFITS ACT
Pension plan assessment 17,268 17,663
Registration fees and other 53 52
Pension unlocking fees and other 0 0
CREDIT UNIONS AND CAISSES POPULAIRES ACT
Credit Union assessment 467 583
Fees and other 160 92
LOAN AND TRUST CORPORATIONS ACT
Loan and Trust assessment 156 160
Fees, licenses and registrations 4 2
MORTGAGE BROKERAGES, LENDERS AND ADMINISTRATORS ACT
Fees, Licenses, Registrations and other 5,749 4,393
CO-OPERATIVE CORPORATIONS ACT
Fees and other 18 35
  83,305 66,577

 

7. RELATED PARTY TRANSACTIONS

(a) Employee Benefits

The Commission’s employees are entitled to benefits that have been negotiated centrally for Ontario Public Service employees. The future liability for benefits earned by the Commission’s employees is recognized in the Province’s consolidated financial statements. These benefits are accounted for by the Commission as follows:

i. Pension Benefits

The Commission’s full-time employees participate in the Public Service Pension Fund (PSPF) and the Ontario Public Service Employees’ Union Pension Fund (OPSEU-PF), which are defined benefit pension plans for employees of the Province and many provincial agencies. The Province of Ontario, which is the sole sponsor of the PSPF and a joint sponsor of the OPSEU-PF, determines the Commission’s annual payments to the funds. Since the Commission is not a sponsor of these funds, gains and losses arising from statutory actuarial funding valuations are not assets or obligations of the Commission, as the sponsors are responsible for ensuring that the pension funds are financially viable. The Commission’s annual payments of $2.97 million (2013 – $3.08 million) are included in employee benefits in the Statement of Operations.

ii. Employee Future Benefits Obligation

Employee future benefits include accrued severance entitlements, unused vacation and other future compensation entitlements earned. Severance entitlements under the Public Service of Ontario Act (2006) were non-actuarially estimated based on one week pay for every year of service for those employees with a minimum of five years of service. These costs for the year amount to $0.518 million (2013 – $0.851 million) and are included in employee benefits and salaries and wages in the Statement of Operations. Amounts due within one year totaling $2.74 million (2013 – $2.66 million) are included in accounts payable and accrued liabilities.

iii. Other Non-Pension Post-Employment Benefits

The cost of other non-pension post-retirement benefits is determined and funded on an ongoing basis by the Ontario Ministry of Government Services and accordingly is not included in these financial statements.

(b) Amounts due from the Province

The due from the Province balance reflected in the financial statements is the difference between the cash receipts submitted to the Province and the Commission’s expenses paid, owing or absorbed by the Province.

(c) Other administrative expenses

The Ontario Ministry of Government Services absorbs the costs of certain administrative expenses. The Ministry of Finance has charged for other administrative costs including costs related to information technology and the Ministry of Attorney General has charged for legal staff provided to the Commission based on the Ministry’s actual costs.

8. RECOVERIES

The Commission provides administrative and other support services to a number of organizations and recovers the costs of providing these services from the organizations in accordance with the memorandum of understanding or agreement signed with the respective organizations. Details of these recoveries are as follows:

  2013
($ 000)
2012
($ 000)
($’000)
Motor Vehicle Accident Claims Fund (Related Party) 1,623 1,727
Pension Benefits Guarantee Fund (Related Party) 451 474
General Insurance Statistical Agency 516 314
Joint Forum of Financial Market Regulators 36 222
Canadian Association of Pension Supervisory Authorities 190 183
Canadian Council of Insurance Regulators 222 208
Mortgage Broker Regulators’ Council of Canada 220 78
Canada Revenue Agency   11
  3,259 3,217

 

9. COMMITMENTS SIGNIFICANT CONTRACT
AND CONTINGENCIES

(a) Office Accommodation Lease

In July 2014, the Commission’s office accommodation lease was extended from October 31, 2015 to October 31, 2020 with two further options to extend the term for five years each. As a result the Commission is committed to minimum lease payments for office space as follows:

  ($’000)
2014/2015 5,231
2015/2016 4,344
2016/2017 5,135
2017/2018 5,211
2018/2019 5,265
thereafter 8,456
  33,642

 

(b) Dispute Resolution Services Contract

In August 2012, the Commission entered into a contract with an outside service provider for mediation and arbitration services related to disputes over auto insurance claims. The expenditures for the year for this contract amount to $21.5 million (2013 – $4.4 million). In June 2014, another contract was signed for the service provider for arbitration services until May 2018, with provisions for an extension. It is anticipated that the annual costs to be incurred for these services during fiscal 2015 through fiscal 2019 will be $19 – $25 million. These costs are charged back to the insurance companies that utilize the services.

(c) Contingencies

The Commission is involved in various legal actions arising out of the ordinary course of business. Settlements paid by the Commission, if any, will be accounted for in the period in which the settlement occurs. The outcome and ultimate disposition of these actions are not determinable at this time.

10. FINANCIAL INSTRUMENTS

The Commission is exposed to low credit risk in its financial instruments from accounts receivable owing from industry, and is not exposed to any currency, interest rate or liquidity risk.

11. SECURITIES ON DEPOSIT

The Insurance Act authorizes the Commission to require insurance companies to deposit securities in any amount it considers necessary and on such conditions as it considers proper. Such amounts might be held to satisfy requirements of other jurisdictions with which the Province of Ontario has reciprocal agreements.

As at March 31, 2014, there was no securities held by the Commission under the Insurance Act (2013 – $0.052 million).

Income earned on the securities is paid directly to the insurance companies depositing the securities. These securities and the related income are not recorded in the financial statements.

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Pension Benefits Guarantee Fund Financial Statements

For the Year Ended March 31, 2014

 

Management’s Statement

 

Financial Services Commission of Ontario

Deputy Superintendent
Pension Division

5160 Yonge Street
Box 85, 8th Floor
Toronto ON M2N 6L9

Telephone: (416) 226-7795
Facsimile: (416) 226-7787

Commission des services financiers de l’Ontario

Surintendant adjoint
Division des régimes de retraite

5160, rue Yonge
boîte 85, 8e étage
Toronto ON M2N 6L9

Téléphone : (416) 226-7795
Télécopieur : (416) 226-7787

June 25, 2014

Pension Benefits Guarantee Fund
Management’s Responsibility for Financial Information

The CEO and Superintendent of Financial Services of the Financial Services Commission of Ontario (“FSCO”), pursuant to the Financial Services Commission of Ontario Act, 1997 and specifically, subsection 82(2) of the Pension Benefits Act, is responsible for the administration of the Pension Benefits Guarantee Fund (PBGF).

The PBGF Management Committee which comprises of senior management, professional actuarial, investment and accounting staff oversees the administration of the PBGF. The PBGF Management Committee meets quarterly to review and discuss issues related to the administration of the PBGF, and makes recommendations on these issues to the Superintendent of Financial Services.

In addition, Management maintains a system of internal controls, information systems and processes designed to provide reasonable assurance that the assets of the PBGF are safeguarded and that financial information is reliable and timely. The internal control systems include formal policies and procedures and an organizational structure which provides for appropriate Financial Delegation of Authority and the segregation of incompatible duties.

The Audit and Risk Committee, which includes the Superintendent of Financial Services, is responsible for ensuring Management fulfils its responsibilities for financial reporting and internal controls. The Audit and Risk Committee meets periodically with Management, internal and external auditors to address issues and to review the Financial Statements before recommending approval.

The accompanying Financial Statements of the PBGF have been prepared in accordance with the Canadian Public Sector Accounting Standards for Government Not-For-Profit Organizations (PSA-GNFPO). The preparation of the Financial Statements involves the use of Management’s professional judgment and best estimates particularly when transactions affecting the current accounting period that cannot be finalized with certainty until future periods.

The Financial Statements have been audited by the Auditor General of Ontario. The Auditor General’s responsibility is to express an opinion on whether the Financial Statements are presented fairly, in all material respects, in accordance with PSA-GNFPO. The Auditor’s Report, which follows, outlines the scope of the Auditor’s examination and the Auditor’s opinion on the financial statements.


Signature of Brian Mills, Deputy Superintendent, Pensions (Acting)

Brian Mills
Deputy Superintendent,
Pensions (Acting)


Signature of Leonard Lobo, Senior Manager, Finance and Planning

Leonard Lobo CGA; CPA
Senior Manager, Finance and Planning

 

Auditor’s Statement

 

Office of the Auditor General of Ontario logo

Office of the Auditor General of Ontario
Box 105, 15th Floor
20 Dundas Street West
Toronto, Ontario
M5G 2C2
416-327-2381
fax 416-326-3812

Bureau du vérificateur general de l’Ontario
B.P. 105, 15e étage
20, rue Dundas ouest
Toronto (Ontario)
M5G 2C2
416-327-2381
télécopieur 416-326-3812

www.auditor.on.ca

 

Independent Auditor’s Report

To the Financial Services Commission of Ontario and to the Minister of Finance
I have audited the accompanying financial statements of the Pension Benefits Guarantee Fund of the Financial Services Commission of Ontario, which comprise the statement of financial position as at March 31, 2014 and the statements of operations and fund surplus, cash flows and re-measurement gains and losses for the year then ended, and a summary of significant accounting policies and other explanatory information.

Management’s Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in accordance with Canadian public sector accounting standards, and for such internal control as management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

Auditor’s Responsibility
My responsibility is to express an opinion on these financial statements based on my audit. I conducted my audit in accordance with Canadian generally accepted auditing standards. Those standards require that I comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.

I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my opinion.

Opinion
In my opinion, the financial statements present fairly, in all material respects, the financial position of the Commission’s Pension Benefits Guarantee Fund as at March 31, 2014, and the results of its operations and fund surplus, its cash flows and its re-measurement gains and losses for the year then ended in accordance with Canadian public sector accounting standards.

Toronto, Ontario
June 25, 2014


Signature of Gary Peall, CPA, CA, LPA, Acting Auditor General

Gary Peall, CPA, CA, LPA
Acting Auditor General

 

Statement of Financial Position
As at March 31, 2014

  March 31, 2014
($ 000)
March 31, 2013
($ 000)
ASSETS
Current    
Cash 1 752
Accounts receivable 124,088 140,247
Investments (Note 4) 450,237 345,321
  574,326 486,320
LIABILITIES AND FUND DEFICIT
Current    
Accounts payable and accrued liabilities 11,044 10,834
Current portion of loan payable (Note 5) 11,000 11,000
Claims payable 50,916 78,739
  72,960 100,573
Loan payable (Note 5) 125,657 129,577
  198,617 230,150
Fund surplus from operation 375,717 256,165
Accumulated remeasurement gains (8) 5
Fund surplus 375,709 256,170
  574,326 486,320

See accompanying notes to financial statements

Approved by:

Signature of Philip Howell, Chief Executive Officer and Superintendent of Financial Services, Financial Services Commission of Ontario

Chief Executive Officer and Superintendent of Financial Services

 

Statement of Operations and Fund Surplus
For the Year Ended March 31, 2014

  March 31, 2014
($ 000)
March 31, 2013
($ 000)
Revenue
Premium revenue 138,819 145,295
Pension plan recoveries (Note 7) 9,424 52,770
Investment income (Note 4) 4,389 3,281
  152,632 201,346
Expenses
Claims 18,532 12,051
Amortization of loan discount (Note 5) 7,081 7,268
Pension consulting services (Note 8) 6,886 1,420
Administration fee (Note 9) 451 474
Investment management fees (Note 9) 130 96
  33,080 21,309
Excess of revenue over expenses 119,552 180,037
Fund surplus / (deficit), beginning of year 256,165 76,128
Fund surplus, end of year 375,717 256,165

See accompanying notes to financial statements

 

Statement of Cash Flows
For the Year Ended March 31, 2014

  March 31, 2014
($ 000)
March 31, 2013
($ 000)
Net inflow (outflow) of cash related to the
following activities
Cash flows from operating activities
Excess of revenue over expenses 119,552 180,037
Items not affecting cash:    
Amortization of loan discount (Note 5) 7,081 7,268
Loss on disposal of investments (Note 4) 116 (74)
  126,749 187,231
Changes in non cash working capital    
Accounts receivable 16,159 (35,559)
Claims payable (27,823) (30,548)
Accounts payable and accrued liabilities 210 2,897
  115,295 124,021
Cash flows from investing activities
Purchases of investments (3,633,576) (3,792,182)
Proceeds from sale of investments 3,528,530 3,679,912
  (105,046) (112,270)
Cash flows from financing activities
Loan repayments (11,000) (11,000)
  (11,000) (11,000)
Change in cash position (751) 751
Cash position, beginning of year 752 1
Cash position, end of year 1 752

 

Statement of Re-measurement Gains and Losses
For the Year Ended March 31, 2014

  March 31, 2014
($ 000)
March 31, 2013
($ 000)
Accumulated re-measurement gains, beginning of year 5 114
Unrealized gains (losses) attributed to portfolio investments 103 (183)
Realized gains (losses) reclassified to the statement of operations (116) 74
Accumulated re-measurement gains, end of year (8) 5

See accompanying notes to financial statements.

Notes to Financial Statements
March 31, 2014

1. STATUTORY AUTHORITY

The Pension Benefits Guarantee Fund (the “Fund”) is continued under the Pension Benefits Act, R.S.O. 1990, c. P.8 (the “Act”).

2. FUND OPERATIONS

The purpose of the Fund is to guarantee payment of pension benefits of certain defined benefit pension plans that are wound up under conditions specified in the Act and regulations thereto. The regulations also prescribe an assessment payable into the Fund by plan registrants.

The Act provides that if the assets of the Fund are insufficient to meet payments for claims, the Lieutenant Governor in Council may authorize the Minister of Finance of Ontario to make loans or grants on such terms and conditions as the Lieutenant Governor in Council directs. The total liability of the Fund to guarantee pension benefits is limited to the assets of the Fund including any loans or grants received from the Province.

The Superintendent of the Financial Services Commission of Ontario (“FSCO”) pursuant to the Financial Services Commission of Ontario Act, 1997 is responsible for the administration of the Fund, and the Fund reimburses FSCO for the costs of the services provided to the Fund. The investments of the Fund are managed by the Ontario Financing Authority, on a fee-for-service basis which is paid by the Fund.

3. SIGNIFICANT ACCOUNTING POLICIES

The financial statements of the Fund have been prepared by the management of FSCO in accordance with Public Sector Accounting Standards for Government Not-For-Profit organizations (PSA-GNFPO) as issued by the Public Sector Accounting Board (PSAB). Accordingly, management has used the following significant accounting policies in their preparation.

(a) Financial Instruments

The Fund follows PSA-GNFPO accounting standards relating to financial instruments. Under these standards, all financial instruments are included on the balance sheet and are measured either at fair value or at cost or amortized cost as follows:

(b) Claims Payable

Claims payable are estimates of the liabilities in respect of those defined benefit pension plans prescribed by the Act that are wound up or in the process of being ordered wound up under conditions specified in the Act, and the claim amounts can be reasonably estimated. Liabilities are also recognized when there is a high probability that a company will not emerge from creditor protection and the pension plan will be wound up on a specified date and the claim can be reasonably estimated. Claims payable are based on information provided by appointed pension plan administrators from estimates provided by actuarial consultants. These estimates represent the present value of future payments to settle claims for benefits and expenses by pension plans.

Differences in the liabilities, if any, between the amounts recognized based on estimates and the actual claims made, will be charged or credited to claims expense in the year when the actual amounts are determined.

(c) Premium Revenue

An estimate of the premium revenue due from defined benefit pension plans at rates prescribed by the Act is recorded until receipt of the annual assessment certificate nine months after the plan’s fiscal year end.

Differences in premium revenue, if any, between the estimated amounts recognized and the actual revenues due are charged or credited to premium revenue in the year.

(d) Use of Estimates

The preparation of financial statements in accordance with PSA-GNFPO accounting standards requires that FSCO’s management make estimates and assumptions that affect the reported amount of assets and liabilities and disclosure of contingent liabilities as at the date of the financial statements and the reported amounts of revenue and expenses for the period. Estimates and assumptions may change over time as new information is obtained or subsequent developments occur. Actual results could differ from these estimates and the differences could be material. Areas where significant estimates must be made include premium revenue and claims payable.

(e) Comparative Figures

Certain of the prior year’s comparative figures have been reclassified to conform to the current years’ financial presentation.

4. INVESTMENTS

As the administrator, investing the assets of the Fund, FSCO has established a Pension Benefits Guarantee Fund Management Committee. The Committee has developed a Statement of Investment Policies and Guidelines which is reviewed regularly and provides operational objectives, investment principles, policies and guidelines for the management of the investments.

Investments consist of:

  2014 2013
Fair Value Cost Fair Value Cost
($’000)
Discounted notes 443,819 443,819 252,205 252,204
Government bonds 6,418 6,426 93,116 93,111
  450,237 450,245 345,321 345,315

Investment income includes interest earned from interest bearing securities and realized gains and losses from the sale of securities.

The Fund's investment portfolio is exposed to various risks, which are mitigated by the type of investment and therefore risk is low.

The market value sensitivity of the portfolio at the end of the last quarter was $0.7M for a 1.00% change in rates.

Discounted notes with maturities between April 2014 and July 2014 have yields in the range of 0.880% to 1.130% (2013—maturities between April 2013 and July 2013 had yields in the range of 0.960% to 1.140%).

The Government bond matures in October 2014 and has yield of 1.515% (2013—maturities between June 2013 and December 2013 had yields of 1.275% to 1.294%).

5. LOAN PAYABLE

Non-interest Bearing Loan

On March 31, 2004, the Fund obtained a $330M loan from the Province, a related party. The loan is non-interest bearing and repayable to the Province in thirty equal annual installments of $11M. The loan agreement provides for the Minister of Finance to advance any installment payment date depending on the cash position of the Fund. Repayments over the next five years total $55M.

The face value of this non-interest bearing loan has been discounted at an effective interest rate of 5.0368% to reflect its amortized cost outstanding as of March 31, 2014 as follows:

  2014
($ 000)
2013
($ 000)
Face Value 220,000 231,000
Less: Discount (83,343) (90,423)
Fair Value 136,657 140,577
Classified as:
Current Portion 11,000 11,000
Long Term Portion 125,657 129,577
Balance 136,657 140,577

 

The discount of $83.3M is amortized to loan discount expense over the term of the loan, based on the effective interest rate method. The amortization schedule for the subsequent five fiscal years is as follows:

Fiscal Year ($ 000)
2015 6,883
2016 6,676
2017 6,458
2018 6,229
2019 5,989

6. FINANCIAL INSTRUMENTS

The main risks that the Fund's financial instruments are exposed to are credit risk, liquidity risk and market risk.

Credit risk

Credit risk is the risk that the counterparty to a financial instrument may fail to discharge an obligation or commitment that it has entered into. The Fund is exposed to credit risk relating to the collection of receivables. The Fund considers this risk to be low.

The Fund's accounts receivable consists of premium revenue receivable of $124M, investment income receivable of $0.28M and the HST receivable of $0.19M.

The premium revenue receivable recorded is based on an assessment formula set out in section 37 of Regulation 909 of the Act and is calculated as follows:

The probability for a pension plan to become insolvent and not pay the premium within a year is very low. In addition, in the event that a pension plan would become insolvent within a year, there are legal options for the Fund that can be exercised to collect the premiums. Historically, the Fund has been able to collect the amounts estimated as premium receivable.

The risk of not collecting the investment income and the HST receivable is considered to be minimal.

Liquidity Risk

Liquidity risk is the risk that the Fund will not be able to meet its cash flow obligations as they fall due. The Fund's exposure to liquidity risk is minimal as the Fund has sufficient funds in its investment portfolio to settle all current liabilities. As at March 31, 2014, the Fund has an investment balance of $450M (2013 – $345M) to settle current liabilities of $73M (2013 – $101M). In addition, the Fund has the ability to meet sudden and unexpected claims by converting the investment holdings to cash without delay or significant transaction costs.

Market risk

Market risk arises from the possibility that changes in market prices will affect the value of the financial instruments of the Fund. Short-term financial instruments (receivables, accounts payable) are not subject to significant market risk. The Fund manages its market risk by investing assets in low-risk and liquid securities. The Fund's market risk is considered to be low.

7. PENSION PLAN RECOVERIES

Following the settlement of all benefits, payment of expenses and the submission of the final wind up report, any remaining funds are recovered by the Fund. During fiscal 2014, the Fund had $9.4M (2013 – $52.8M) in recoveries. Approximately $1M in recoveries is expected in the fiscal year 2015.

8. PENSION CONSULTING SERVICES

The Fund periodically engages the services of external experts to represent the Fund's interests in insolvency proceedings respecting employers who are unable to meet their funding obligations under the Pension Benefits Act. For fiscal 2014, $6.9M was paid to such external experts (2013 – $1.4M paid).

9. RELATED PARTY TRANSACTIONS

For fiscal 2014, an administration fee of $0.5M (2013 - $0.5M) was incurred and has been paid to FSCO for management salaries and benefits, accounting, information technology, legal, pension and other services. The Fund and FSCO are related parties.

Investment Management fees consist mainly of fees paid to the Ontario Financing Authority, a related party.

The costs of processing premium revenue transactions are absorbed by FSCO without charge to the Fund.

Other related party transactions during the year have been disclosed in note 5.

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Motor Vehicle Accident Claims Fund
(Established under the Motor Vehicle Accident Claims Act)
Financial Statements

March 31, 2014

 

Management’s Statement

 

Government of Ontario crest

Financial Services
Commission
of Ontario

Commission des
services financiers
de l’Ontario

 

Motor Vehicle Accident Claims Fund

Management Responsibility for Financial Information

Management maintains a system of internal controls, information systems and processes designed to provide reasonable assurance that the assets of the Motor Vehicle Accident Claims Fund (MVACF) are safeguarded and that financial information is reliable and timely. The internal control systems include formal policies and procedures and an organizational structure which provides for appropriate Financial Delegation of Authority and the segregation of incompatible duties. An internal audit function independently evaluates the effectiveness of these internal controls, information systems and processes on an ongoing basis and reports its findings to Management and to the Audit and Risk Committee at Financial Services Commission of Ontario (FSCO).

The Audit and Risk Committee, which includes the Superintendent of Financial Services, is responsible for ensuring Management fulfils its responsibilities for financial reporting and internal controls. The Audit and Risk Committee meets periodically with Management, internal and external auditors to address issues and to review the Financial Statements before recommending approval.

The accompanying Financial Statements of the MVACF have been prepared in accordance with the Canadian Public Sector Accounting Standards for Government Not-For-Profit Organizations (PSA-GNFPO). The preparation of the Financial Statements involves the use of Management's professional judgment and best estimates particularly with respect to transactions affecting the current accounting period that cannot be finalized with certainty until future periods. Management relies on the work of specialists in evaluating the Unpaid Claims amount and has adequately considered the qualifications of the specialist in determining amounts and disclosures used in the notes to financial statements. Management does not give, nor cause any instructions to be given, to specialists with respect to values or amounts derived, in an attempt to bias their work, and are not aware of any matters that have impacted the independence or objectivity of the specialists.

The Financial Statements have been audited by Ernst and Young, Chartered Accountants who are engaged under the direction of the Auditor General. The auditor's responsibility is to express an opinion on whether the Financial Statements are presented fairly, in all material respects, in accordance with PSA-GNFPO. The Auditor's Report, which follows, outlines the scope of the Auditor's examination and the Auditor's opinion on the financial statements.

On behalf of management:


Signature of Izabel Scovino, Senior Manager (A), Motor Vehicle Accident Claims Fund

Izabel Scovino
Senior Manager (A) -MVACF


Signature of Leonard Lobo CGA; CPA, Senior Manager (A), Finance and Planning

Leonard Lobo CGA; CPA
Senior Manager (A), Finance and Planning

 

Auditor’s Statement

 

Auditor General of Ontario logo

 

Independent Auditor’s Report

To the Audit and Risk Committee of the Financial Services Commission of Ontario and the Auditor General of Ontario

Pursuant to our appointment as auditor of the Motor Vehicle Accident Claims Fund (the "Fund" or "MVACF"), which audit is under the direction of the Auditor General of Ontario, we have audited the accompanying financial statements of the Fund, which comprise the statements of financial position as at March 31, 2014 and the statements of operations and MVACF deficit and cash flows for the year then ended and a summary of significant accounting policies and other explanatory information.

Management’s responsibility for the financial statements
Management is responsible for the preparation and fair presentation of these financial statements in accordance with Canadian Public Sector Accounting Standards, and for such internal control as management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

Auditors’ responsibility
Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with Canadian generally accepted auditing standards. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditors' judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditors consider internal control relevant to the entity's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Opinion
In our opinion, the financial statements present fairly, in all material respects, the financial position of the Motor Vehicle Accident Claims Fund as at March 31, 2014 and its financial performance and its cash flows for the year ended March 31, 2014 in accordance with Canadian Public Sector Accounting Standards.

Kitchener, Canada
July 25, 2014


Signature of Gary Peall, CPA, CA, LPA, Deputy Auditor General

Chartered Accountants
Licensed Public Accountants


Logo of Ernst & Young Global Limited

A member firm of Ernst & Young Global Limited

 

 

Statement of Financial Position
As at March 31, 2014

MOTOR VEHICLE ACCIDENT CLAIMS FUND
(Established under the Motor Vehicle Accident Claims Act)

  2014 2013
ASSETS
Current
Funds on deposit with the Ministry of Finance $ 45,316,648 $ 41,863,307
Accounts receivable – driver’s licence fees 924,994 452,398
Accounts receivable – debtors (Note 3c) 51,556,928 51,336,556
Less: allowance for doubtful accounts 38,500,274 37,352,865
  13,056,654 13,983,691
Long-term
Capital assets (Note 4) 553,975 553,975
Less: accumulated amortization 550,737 541,700
  3,238 12,275
Unpaid claims recoverable (Note 5) 369,476 1,218,145
Total assets $ 59,671,010 $ 57,529,816
LIABILITIES AND MVACF DEFICIT
Accounts payable and accrued expenses $ 1,566,600 $ 778,687
Employee future benefits obligation (Note 3h) 471,859 614,005
Deferred revenue 70,897,241 69,917,246
Unpaid claims and adjustment expenses (Note 5) 142,136,047 143,256,585
Total liabilities 215,071,747 214,566,523
MVACF deficit (Note 2) (155,400,737) (157,036,707)
Total liabilities and MVACF deficit $ 59,671,010 $ 57,529,816

See accompanying notes.

Approved by:

Signature of Philip Howell, Chief Executive Officer and Superintendent of Financial Services, Financial Services Commission of Ontario

Chief Executive Officer and Superintendent of Financial Services

 

Statement of Operations and MVACF Deficit
For the Year Ended March 31, 2014

MOTOR VEHICLE ACCIDENT CLAIMS FUND
(Established under the Motor Vehicle Accident Claims Act)

  2014
2013
REVENUE
Fees on issue or renewal of driver’s licences $ 29,616,255 $ 28,473,324
Change in deferred revenue (979,995) (271,193)
Fees earned 28,636,260 28,202,131
Prior year recoveries 1,412,802 1,521,761
Other revenue 14 4,888
Total revenue 30,049,076 29,728,780
EXPENSES
Change in net unpaid claims and adjustment expenses (271,869) 4,828,340
Accident benefit claims payments 17,049,530 22,974,433
Administrative expenses
Salaries and wages 1,733,508 1,740,928
Employees’ benefits 128,918 277,925
Transportation and communication 51,388 26,878
Claims (solicitors’ fees, etc.) 1,736,864 2,249,325
Accident benefit claims expense 1,708,443 2,082,770
Other services 1,238,229 1,346,492
Bad debts expense 5,017,499 5,332,956
Supplies and equipment 11,558 15,707
Amortization expense 9,038 8,808
Total expenses 28,413,106 40,884,562
Excess (deficiency) of revenue over expenses 1,635,970 (11,155,782)
MVACF deficit, beginning of year (157,036,707) (145,880,925)
MVACF deficit, end of year $ (155,400,737) (157,036,707)

See accompanying notes.

Statement of Cash Flows
For the Year Ended March 31, 2014

MOTOR VEHICLE ACCIDENT CLAIMS FUND
(Established under the Motor Vehicle Accident Claims Act)

  2014 2013
OPERATING ACTIVITIES
Cash inflows
Fees on issue or renewal of driver’s licences $ 29,143,659 $ 28,509,570
Repayment by debtors 1,179,782 1,133,398
Prior year recoveries 1,412,802 1,521,761
Other revenue 14 4,888
  31,736,257 31,169,617
Cash outflows
Statutory payments (21,170,616)) (27,557,623)
Payments to employees (1,994,587) (2,128,737)
Administrative expenses (5,117,713) (5,636,444)
  (28,282,916) (35,322,804)
Net cash outflow from operating activities 3,453,341 (4,153,187)
INVESTING ACTIVITIES
Cash outflows
Acquisition of computer equipment (4,490)
Net cash outflow from investing activities (4,490)
Net decrease in funds on deposit with the Ministry of Finance 3,453,341 (4,157,677)
Funds on deposit with the Ministry of Finance, beginning of year 41,863,307 46,020,984
Funds on deposit with the Ministry of Finance, end of year $ 45,316,648 41,863,307

See accompanying notes.

Notes to Financial Statements
March 31, 2014

1. STATUTORY AUTHORITY

The Motor Vehicle Accident Claims Fund (MVACF) operates under the authority of the Motor Vehicle Accident Claims Act (the Act), R.S.O. 1990, Chapter M.41 as amended.

2. MVACF OPERATIONS

MVACF is a program that was created on July 1, 1947 as the Unsatisfied Judgment Fund. Initially, MVACF was required to respond to victims of uninsured motorists and hit-and-run drivers who could not recover damages awarded by the courts from an automobile insurance company. MVACF legislation was amended in the early 1960s, in 1979 with the Compulsory Automobile Insurance Act, and in 1990 by the Insurance Statute Law Amendment Act which required MVACF to include in its statutory payments, accident benefits on a no-fault basis for the first time. Currently, MVACF responds to claims in the same fashion and with the same exclusions as automobile insurers in Ontario, and provides for two types of coverage: third-party bodily injury and property damage liability (collectively referred to as TPL), and statutory accident benefits or SABS in accordance with legislated requirements.

The coverage provided by MVACF is analogous to the minimum required coverage under the standard automobile policy (OAP 1) approved by the provincial regulator. Unlike insurance companies, MVACF does not cover claims where the accidents occur outside of Ontario, except in the case of accident benefits where the Ontario insurer is insolvent. In the cases of insurance company insolvencies where MVACF pays claims for accident benefits, MVACF has powers to assess the industry to recover for claims and adjustment expenses and also has claimant rights against the estate of the insolvent insurer.

MVACF operates administratively under the direction of the Financial Services Commission of Ontario (FSCO) and reimburses FSCO for the costs of the services it provides to MVACF.

The Lieutenant Governor in Council, having regard to the condition of MVACF and the amount paid out of MVACF during any period, may direct payment out of the Province's Consolidated Revenue Fund of such an amount as may be considered necessary or advisable to subsidize and fund MVACF's operations.

3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The significant accounting policies used in the preparation of these financial statements in accordance with Canadian Public Sector Accounting Standards for government not-for-profit organizations (PSA-GNFPO) as issued by the Public Sector Accounting Board (PSAB) are summarized as follows:

a) Driver’s Licence Fees and Deferred Revenue

MVACF earns a fee of $15.00 on the issuance or renewal of each driver's five-year licence. The income is earned on a pro-rata basis over the five-year term of the licence and the unearned portion is reflected as deferred revenue.

b) Accounts Receivable — Driver's Licence Fees

Under the Act, MVACF receives from the Ministry of Transportation and Serco DES a monthly internal transfer and payment representing the driver's licence fee prescribed by Ontario Regulation 800. Accordingly, unremitted licence fees are reported as accounts receivable.

c) Accounts Receivable — Debtors

MVACF maintains an accounts receivable portfolio, accumulated over the years as a result of judgments and claims assigned to the Minister of Finance. MVACF will pay damages to injured, not-at- fault victims who have no recourse to liability insurance, on behalf of defendant uninsured motorists. In accordance with the Act, these amounts are recoverable from the uninsured motorists. Total repayments received from defendant/debtors are reflected in the statement of cash flows.

The allowance for doubtful accounts is determined through a process that considers: the age of defendant/debtor, the defendant/debtor's current monthly installment required under the regulations, the amount paid out of MVACF, the activity on the account since the date of the judgment, and the financial status of the defendant/debtor.

The write-off process depends on established criteria that parallel the criteria established by the Ministry of Finance. These criteria are used to select a block of accounts as at the beginning of April that is reviewed by the collections staff. The Ministry of Finance, Internal Audit Section audits the work of the collections staff and provides a certificate of assurance to verify that the established criteria for the write-off have been met. The write-off transaction is authorized by an Order-In–Council (OIC) under the authority set out in the Financial Administration Act.

For March 31, 2014, a write-off of $ 10.0 million was submitted to the Ministry of Finance but has not yet been approved. A write-off of $4.5 million for March 31, 2013 was approved during the year, through an OIC. This write-off is recorded in the current year's financial statements and represents a reduction of the account receivable debtors and allowance for doubtful accounts. There is no impact in the current year statement of operations.

Accounts receivables-debtors and the allowance for doubtful accounts are adjusted on receipt of the OIC approving the write off.

d) Accounting Adjustment

The Net Funds Balance for 2012–13 has been restated to correct for an overstatement of accounts receivable – debtors and an understatement of the bad debt expense originating in fiscal 2010–11. Because these errors are not material to the financial statement for prior years, but correcting them in the current year would have materially distorted the year's results, MVACF has corrected the errors by increasing the opening deficit by $948,484.

e) Prior Year Recoveries

Prior year recoveries are generated from three main sources: insurance recoveries, reversionary interest (Note 6) and recoveries of court costs. MVACF is required under the Statutory Accident Benefits Schedule (SABS) to satisfy the payment of accident benefits claims within specified periods. The timeframe does not allow for a complete investigation into available insurance coverage and in some instances information is withheld by police because of criminal investigations. Accordingly, when new information is available, MVACF may be required to pursue private insurers for recoveries.

From time to time MVACF may also be involved in the defense of uninsured motorists or the Superintendent of the FSCO, where the legal proceedings are deemed frivolous and MVACF is awarded costs by the courts.

Prior year recoveries are recorded in the period they are determined. In the current year $1.4 million (2013 - $1.5 million) recoveries were recorded but related to prior year claims.

f) Unpaid Claims and Adjustment Expenses

Unpaid claims and adjustment expenses represents the estimated amounts required to settle all unpaid claims, including an amount for unreported claims and claim expenses, and is gross of estimated recoveries and subrogation. Claim liabilities are established according to accepted actuarial practice in Canada as applied to public personal injury compensation plans. They do not reflect the time value of money, because MVACF reports no investment income.

The provision for unpaid claims and adjustment expenses consists of estimates that are necessarily subject to uncertainty, and the variability could be material in the near term. The estimates are selected from a range of possible outcomes and are adjusted up or down, as additional information becomes known during the course of loss settlement proceedings. The estimates are principally based on historical experience but variability can be caused by changes in judicial interpretations of contracts or significant changes in severity and frequency of claims from historical trends. All changes in estimates are recorded in the current period.

MVACF has obligations to pay certain fixed amounts to claimants on a recurring basis and has purchased annuities from life insurers to provide for those payments in the form of structured settlements. Note 6 contains additional analysis related to structured settlements.

Settlements occur when there is an irrevocable direction from MVACF to the life insurer to make all payments directly to the claimant. There are no rights under the non-commutable, non-assignable, non-transferable contract that would provide any current or future benefit to MVACF. MVACF remains liable to make payments only in the event that the life insurer fails and only to the extent that Assuris, the life insurance industry's insolvency compensation fund, will not cover payments due. The net risk to MVACF is any credit risk related to the life insurers. This credit risk is deemed nil at March 31, 2014 (2013 – nil) as all insurers are rated A+ or above. There exists the possibility of contingent gains based on the fact that MVACF has purchased insurance on some of the measured lives. Such amounts are described in Note 6 – Contingent Gains.

g) Use of Estimates

The preparation of financial statements in accordance with Canadian PSA-GNFPO requires that MVACF's management make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities as at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Estimates and assumptions may change over time as new information is obtained or subsequent developments occur. Actual results could differ from these estimates. The most significant estimates relate to the provision for unpaid claims and adjustment expenses, unpaid claims recoverable, contingent liabilities and employee future benefits.

h) Recognition of Contingent Assets and Liabilities

A contingent liability is disclosed where the existence of an obligation will only be confirmed by future events, or where the amount of the obligation cannot be measured with reasonable reliability. Contingent assets are not recognized, but are disclosed where an inflow of economic benefits is probable.

i) Employee Future Benefits Obligation

Prior to 2007, MVACF did not record the liabilities pertaining to the legislative severance and compensated absences components of its employee future benefits costs because these liabilities had been determined and recognized by the Province of Ontario (the Province) in its consolidated financial statements. While the Province continues to accrue for these costs each year and fund them annually when due, the Auditor General has requested and management has agreed that MVACF also recognize the liability for these costs in these financial statements.

ii) Employee Benefits

MVACF's employees are entitled to benefits that have been negotiated centrally for Ontario Public Service employees. The future liability for benefits earned by MVACF's employees is recognized in the Province's consolidated financial statements.

These benefits are accounted for by MVACF as follows:

Employee Future Benefits Obligation

The costs of any legislated severance and unused vacation entitlements earned by employees are recognized when earned by eligible employees. Legislated severance is non-actuarially estimated based on one week's pay for every year of service for those employees with a minimum of five years of service. Additionally when employees are transferred in or out of MVACF within the Ministry the amount of their cumulative obligation is transferred and recognized as an expense or income in the year that the transfer occurs. The net impact in the current year has been included in the statement of operations within employees' benefits and represents an expense of $11,600 (2013 – $12,739).

Other Non-Pension Post-Employment Benefits

The cost of other non-pension post-employment benefits is determined and funded on an ongoing basis by the Ontario Ministry of Government Services and accordingly is not included in these financial statements.

4. CAPITAL ASSETS

Leasehold improvements, computer equipment, furniture and fixtures, and office equipment are carried at cost less accumulated amortization. MVACF provides for amortization on a straight-line basis over the term of the lease (for leasehold improvements) or over the useful life of the asset. Accordingly, leasehold improvements and furniture and fixtures are amortized over 5 years, while computer equipment and office equipment are amortized over 3 years.

(in dollars) 2014
  Cost Accumulated Amortization Net Book Value
Computer equipment $ 30,153 $ 27,169 $ 2,984
Office equipment 7,406 7,152 254
Furniture and fixtures 16,416 16,416 -
Leasehold improvements 500,000 500,000 -
  $ 553,975 $ 550,737 $ 3,238
(in dollars) 2013
Computer equipment $ 30,153 $ 18,386 $ 11,767
Office equipment 7,406 6,898 508
Furniture and fixtures 16,416 16,416 -
Leasehold improvements 500,000 500,000 -
  $ 549,485 $ 541,700 $ 12,275

 

5. UNPAID CLAIMS AND ADJUSTMENT EXPENSES

a) MVACF's unpaid claims and adjustment expenses and unpaid claims recoverable consist of the following:

  2014 2013
(in thousands of dollars) Gross Recoverable Gross Recoverable
ACCIDENT BENEFITS
Statutory accident benefits $ 95,899 $ 92,291
THIRD-PARTY
LIABILITY (TPL)
Property damage 878 5 1,103 19
Bodily injury 45,359 364 49,862 1,199
Total TPL $ 46,237 369 50,965 1,218
Totals $ 142,136 369 143,256 1,218

 

b) The change in gross provision for unpaid claims and adjustment expenses is as follows:

(in thousands of dollars) 2014 2013
Balance, beginning of year $ 143,256 138,709
Increase (decrease) in provision for losses that occurred in prior years (2,003) 7,562
Amounts paid during the year on claims of prior years
Statutory payments (20,713) (27,214)
Claims expenses (6,228) (7,198)
Amounts paid during the year on claims of the current year
Statutory payments (256) (459)
Claims expenses (77) (121)
Provision for losses on claims that occurred in the current year 28,157 31,977
Balance, end of year $ 142,136 143,256

 

6. CONTINGENT GAINS AND LIABILITIES

a) Contingent Gains

Some payments out of MVACF are in the form of structured settlements for accident benefit claims. These claims have guarantee periods ranging from 10 to 30 years and during this period the reversionary interest will be payable to Her Majesty the Queen in right of Ontario, as represented by the Minister of Finance, should the claimant die.

Even though the range of probability that the claimant may die during the guarantee period is slight, MVACF nevertheless has calculated the approximate reversionary interest represented by insurance on the claimant lives as at March 31, 2014 for information purposes.

As at March 31, 2014, the amount paid out of MVACF for accident benefit claims in the form of structured settlements was approximately $50.1 million (2013 – $37.1 million) with applicable reversionary interest of approximately $37.3 million (2013 – $27.1 million).

b) Contingent Liabilities

In accordance with PSA-GNFPO, MVACF makes a provision for a liability when it's both probable that a liability has been incurred and the amount of the loss can be reasonably estimated. These provisions are reviewed annually and adjusted to reflect the impacts of negotiations, settlements, rulings, advice of legal counsel and other information and events pertaining to a particular case. Litigation is inherently unpredictable and it is possible that MVACF's financial position, cash flows or results of operations could be negatively affected by an unfavorable resolution to court decisions.

7. ROLE OF THE ACTUARY AND AUDITOR

The FSCO retains an independent actuary who acts as MVACF's actuary. The actuary's responsibility is to carry out an annual valuation of MVACF's liabilities, which include the provision for unpaid claims and adjustment expenses in accordance with accepted actuarial practice in Canada. In performing the valuation, the actuary makes assumptions as to the future rates of claims frequency and severity, inflation, recoveries, and expenses, taking into consideration the circumstances of MVACF. The actuary in his verification of the underlying data used in the valuation also makes use of the work of the external auditor. The actuary's report outlines the scope of his work and opinion.

The external auditors act under the direction of the Auditor General of Ontario pursuant to agreed terms of engagement. Their responsibility is to conduct an independent and objective audit of the financial statements in accordance with Canadian generally accepted auditing standards and report thereon to the Audit and Risk Committee of the FSCO. In carrying out their audit, the auditors also consider the work of the actuary and his report on the provision for unpaid claims and adjustment expenses. The auditors' report outlines the scope of their audit and their opinion.

8. COMPARATIVE FIGURES

The comparative financial statements have been reclassified from statements previously presented to conform to the presentation of the current year's financial statements.

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Superintendent's Report 2013

 

Table of Contents

Superintendent's Report on Insurance 2013

The following information was obtained from the annual filings and, in the case of federally registered insurers, from the Office of the Superintendent of Financial Institutions. While every effort has been made to ensure the accuracy of this report, decisions should not be made solely on the information contained in it. Other sources should also be consulted. Any material changes to this information will be reported to the Minister of Finance and published in The Ontario Gazette.

The information is organized by type of insurer, and insurers are listed alphabetically within each group.

 

Letter to Minister of Finance

The Honourable Charles Sousa
Minister of Finance
7 Queen’s Park Crescent
Toronto ON M7A 1Y7

Dear Minister:

I am pleased to present the 135th annual report under Section 36 of the Insurance Act for the year ended December 31, 2013. Prior to the creation of the Financial Services Commission of Ontario, this report was issued by the Superintendent of Insurance.

In addition to the information contained in this report, a listing of all licensed insurers is published each July in The Ontario Gazette. This list contains the names of the insurers, their addresses, telephone numbers, chief agents, and the classes for which they are licensed. During the year, information concerning newly licensed insurers and changes to existing licences is also published in Bulletins issued by the Financial Services Commission of Ontario. Any broker or member of the public can verify whether a particular insurer is licensed by calling our offices at 416-250-7250. This information is also available on the Commission's Internet site — www.fsco.gov.on.ca.

News releases and warning notices containing other information of public interest are made throughout the year. These announcements effectively reach a large number of Ontario residents. Information is also supplied to industry trade associations for inclusion in their publications to reach more specialized audiences. The Financial Services Commission of Ontario issues Bulletins as required to provide information to insurers and other individuals interested in the insurance industry.

Yours sincerely,

Approved by:

Signature of Philip Howell, Chief Executive Officer and Superintendent of Financial Services, Financial Services Commission of Ontario

Philip Howell
Chief Executive Officer and Superintendent of Financial Services

 

Summary Financial Information

SUMMARY OF COMPANIES LICENCED BY TYPE OF BUSINESS ACTIVITY
as of December 31, 2013, and December 31, 2012

Analysis of 2013 total  

Business Type Total 2012 Additions Withdrawals Total 2013 Ontario Extra Provincial Federal
Property & Casualty Companies 205 6 1 210 52 17 141
Life Insurance Companies 74 1 3 72 0 13 59
Reinsurance Companies 36 0 1 35 2 1 32
Reciprocal Exchanges 11 0 0 11 7 3 1
Fraternal Societies 15 0 0 15 2 0 13
Totals 341 7 5 343 63 34 246

Notes:

1. Companies writing both property & casualty and life business are listed under Life in the above summary. Their financial performance is shown separately by business type in the following report.

2. Branch operations are included in the Federal totals.

3. The Superintendent's Report 2013 records figures as of the end of the calendar year (December 31, 2013), based on the companies' annual filings. The Financial Services Commission of Ontario Annual Report 2013–2014 records figures as of the end of the fiscal year (March 31, 2014).

 

Insurer Statistics

TO GAUGE THE LEVEL OF COMPETITION, FSCO calculates how many companies represent 80 percent of the market for key products. These figures are based on individual companies rather than groups of affiliated companies.

2013 Property and Casualty Insurers
Number of Companies Representing 80% of Ontario market share

2013 Property and Casualty Insurers: Number of Companies Representing 80% of Ontario market share

Description of this image

 

2013 Life Insurers
Number of Companies Representing 80% of the Ontario market share

2013 Life Insurers: Number of Companies Representing 80% of Ontario market share

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Premium Statistics

INSURANCE IS A $43 BILLION BUSINESS in Ontario. In 2013, of the the total premium dollar volume, 51.2 percent went to the property and casualty (including automobile) insurance industry and 47.9 percent went to the life insurance industry.

2013 Direct Premium Volume in Ontario

2013 Direct Premium Volume in Ontario

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Property and casualty insurers received $22 billion in premiums in 2013. The split among automobile, property and liability insurance remained constant compared to 2012.

 

2013 Property & Casualty Companies
Direct Written Premiums in Ontario by Line

2013 Property & Casualty Companies Direct Written Premiums in Ontario By Line

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The broad pattern among life insurance companies likewise remained constant. Of the $20.5 billion spent on premiums to the life insurers, 15 percent went to buy annuities, 41 percent to purchase individual and group life coverage and 44 percent to obtain accident and sickness insurance.

 

2013 Life Insurance Companies
Direct Written Premiums in Ontario

2013 Life Insurance Companies Direct Written Premiums in Ontario

Description of this image

 

Property & Casualty Insurance Companies

  ONTARIO BUSINESS TOTAL COMPANY
FINANCIAL SUMMARY
Year ended
December 31, 2013

(in thousands)
Direct Written Premiums

$
Direct Claims Incurred

$
Total Assets

$
Total
Liabilities

$
Excess of Assets Over Liabilities

$
Claims Incurred to Earned premium

%
Net Income/ (Loss)

$
ONTARIO
ALGOMA MUTUAL INSURANCE COMPANY 10,375 6,742 23,932 17,602 6,330 60% 136
AMHERST ISLAND MUTUAL INSURANCE COMPANY 859 215 2,855 671 2,184 33% 125
AYR FARMERS’ MUTUAL INSURANCE COMPANY 24,110 8,291 73,225 31,946 41,279 43% 4,326
BAY OF QUINTE MUTUAL INSURANCE CO. 21,940 14,574 54,515 25,083 29,432 50% 2,322
BERTIE AND CLINTON MUTUAL INSURANCE COMPANY 12,669 5,995 65,830 30,059 35,771 49% 2,247
BRANT MUTUAL INSURANCE COMPANY 6,211 3,182 18,305 11,353 6,952 51% 239
CAA INSURANCE COMPANY (ONTARIO) 195,988 117,201 495,571 376,080 119,491 59% 22,435
CARADOC DELAWARE MUTUAL FIRE INSURANCE COMPANY 1,925 706 8,771 1,826 6,945 46% 313
CAYUGA MUTUAL INSURANCE COMPANY 8,010 3,065 28,567 13,377 15,190 31% 2,041
COACHMAN INSURANCE COMPANY 58,130 38,119 215,097 158,949 56,148 58% 12,730
DUFFERIN MUTUAL INSURANCE COMPANY 5,645 3,032 27,396 21,278 6,118 39% 632
DUMFRIES MUTUAL INSURANCE COMPANY 13,996 4,471 54,265 24,441 29,824 39% 3,535
ERIE MUTUAL FIRE INSURANCE COMPANY 5,957 2,688 23,324 6,635 16,689 54% 29
FARMERS’ MUTUAL INSURANCE COMPANY (LINDSAY) 95,353 56,536 279,997 171,519 108,478 59% 13,698
FENCHURCH GENERAL INSURANCE COMPANY 9,593 5,743 25,772 20,010 5,762 53% -960
GERMANIA MUTUAL INSURANCE COMPANY 17,522 9,154 42,143 22,106 20,037 44% 2,629
GLENGARRY MUTUAL INSURANCE COMPANY 10,758 4,642 27,337 13,386 13,951 44% 1,432
GRENVILLE MUTUAL INSURANCE COMPANY 21,838 12,533 67,625 30,975 36,650 61% 1,393
GREY & BRUCE MUTUAL INSURANCE COMPANY 3,105 1,613 4,790 2,470 2,320 66% -215
HALWELL MUTUAL INSURANCE COMPANY 17,107 10,737 59,309 32,668 26,641 62% 723
HAMILTON TOWNSHIP MUTUAL INSURANCE COMPANY 21,750 19,649 68,322 44,049 24,273 61% 763
HAY MUTUAL INSURANCE COMPANY 9,262 4,810 46,950 15,585 31,365 53% 1,483
HOWARD MUTUAL INSURANCE COMPANY 10,714 5,026 46,987 17,733 29,254 59% 1,784
HOWICK MUTUAL INSURANCE COMPANY 14,451 7,053 32,950 21,366 11,584 62% 1,062
KENT & ESSEX MUTUAL INSURANCE COMPANY 23,943 10,277 79,290 39,057 40,233 54% 3,281
L&A MUTUAL INSURANCE COMPANY 9,356 5,160 17,022 9,885 7,137 55% 816
LAMBTON MUTUAL INSURANCE COMPANY 19,036 14,592 64,992 36,109 28,883 71% 51
LANARK MUTUAL INSURANCE COMPANY 20,442 14,012 72,618 26,760 45,858 58% 1,614
LAWYERS’ PROFESSIONAL INDEMNITY COMPANY 113,266 99,057 645,436 455,561 189,875 91% 5,933
MARKHAM GENERAL INSURANCE COMPANY (IN LIQUIDATION)1 0 0 0 0 0 n/a 0
MAX CANADA INSURANCE COMPANY 5,324 2,390 22,630 15,628 7,002 54% -214
MCKILLOP MUTUAL INSURANCE COMPANY 8,634 6,805 22,775 10,794 11,981 81% -231
MIDDLESEX MUTUAL INSURANCE CO. 10,871 5,110 42,680 22,488 20,192 50% 2,147
NORFOLK MUTUAL INSURANCE COMPANY 6,769 2,887 19,963 8,975 10,988 44% 948
NORTH BLENHEIM MUTUAL INSURANCE COMPANY 9,347 3,709 27,672 9,815 17,857 44% 1,261
NORTH KENT MUTUAL FIRE INSURANCE COMPANY 7,911 3,122 36,938 16,161 20,777 41% 1,247
OXFORD MUTUAL INSURANCE COMPANY 11,293 3,782 30,913 15,012 15,901 44% 1,406
PEEL MARYBOROUGH MUTUAL INSURANCE COMPANY 20,511 12,051 61,496 39,472 22,024 54% 1,934
PEEL MUTUAL INSURANCE COMPANY 41,675 24,866 119,409 82,597 36,812 45% 6,740
PRO-DEMNITY INSURANCE COMPANY 19,772 7,860 85,829 59,402 26,427 67% 347
SOUTH EASTHOPE MUTUAL INSURANCE COMPANY 14,529 12,445 54,711 25,894 28,817 62% 1,912
THE WEST WAWANOSH MUTUAL INSURANCE COMPANY 16,070 7,587 50,772 26,196 24,576 43% 3,371
THE WESTMINSTER MUTUAL INSURANCE COMPANY 8,897 3,468 21,423 13,373 8,050 40% 1,053
THE YARMOUTH MUTUAL FIRE INSURANCE COMPANY 9,037 4,066 22,838 11,020 11,818 54% 640
TOWN & COUNTRY MUTUAL INSURANCE COMPANY 11,453 7,905 40,163 22,552 17,611 58% 1,266
TOWNSEND FARMERS’ MUTUAL FIRE INSURANCE COMPANY 7,381 1,860 20,081 10,413 9,668 61% 776
TRADITION MUTUAL INSURANCE COMPANY 13,294 6,209 39,143 20,074 19,069 57% 1,646
TRILLIUM MUTUAL INSURANCE COMPANY 38,502 17,538 99,232 51,272 47,960 49% 4,080
TTC INSURANCE COMPANY LIMITED2 0 0 144,866 144,766 100 n/a 0
USBORNE AND HIBBERT MUTUAL FIRE INSURANCE COMPANY 5,751 3,764 38,905 6,925 31,980 73% 852
WABISA MUTUAL INSURANCE COMPANY 7,580 3,595 23,560 15,153 8,407 54% 745
WEST ELGIN MUTUAL INSURANCE COMPANY 11,269 9,416 45,851 23,046 22,805 66% 1,275
  1,069,181 639,310 3,745,043 2,329,567 1,415,476   119,798
EXTRA PROVINCIAL
ALBERTA MOTOR ASSOCIATION INSURANCE COMPANY 75 0 592,227 450,277 141,950 86% 3,246
AXA INSURANCE INC. -1,276 -59,445 3,881,920 1,951,801 1,930,119 66% 111,631
BELAIR INSURANCE COMPANY INC. 61,785 29,964 867,614 703,369 164,245 62% 27,821
CANADIAN FARM INSURANCE CORP. 76 110 12,733 4,611 8,122 47% 1,715
CANASSURANCE INSURANCE COMPANY3 0 0 0 0 0 n.a 0
GMS INSURANCE INC. 7,764 2,999 24,070 12,624 11,446 51% 2,337
INDUSTRIAL ALLIANCE PACIFIC GENERAL INSURANCE CORPORATION 9,378 2,972 243,519 202,638 40,881 21% 6,177
LA MUTUELLE D’ÉGLISE DE L’INTER-OUEST 5 0 5,685 461 5,224 27% 32
L’UNIQUE GENERAL INSURANCE INC. 724 149 333,062 267,658 65,404 65% 3,579
MILLENNIUM INSURANCE CORPORATION 15,855 3,102 420,490 267,526 152,964 55% 27,088
OPTIMUM INSURANCE COMPANY INC. 47,706 26,952 201,895 150,074 51,821 50% 5,834
ORION TRAVEL INSURANCE COMPANY 0 0 23,060 6,949 16,111 51% -8,733
SGI CANADA INSURANCE SERVICES LTD. 132 191 252,236 129,763 122,473 76% 14,264
THE CANADIAN UNION INSURANCE COMPANY4 0 0 0 0 0 n/a 0
THE MUTUAL FIRE INSURANCE COMPANY OF BRITISH COLUMBIA 25 0 91,141 55,709 35,432 50% 4,717
TRANS GLOBAL INSURANCE COMPANY 3,246 82 9,396 3,623 5,773 4% 967
UNICA INSURANCE INC. 101,367 75,584 352,432 252,471 99,961 67% 4,992
  246,862 82,660 7,311,480 4,459,554 2,851,926   205,667
FEDERAL
ACE INA INSURANCE 150,014 77,578 1,454,344 1,129,013 325,331 92% 10,119
AIG INSURANCE COMPANY OF CANADA 336,994 173,661 4,608,844 3,329,633 1,279,211 59% 184,689
ALLSTATE INSURANCE COMPANY OF CANADA 632,713 523,033 2,869,100 2,157,291 711,809 64% 122,877
ALTA SURETY COMPANY5 0 0 0 0 0 n/a 0
ARCH INSURANCE CANADA LTD. 37,731 61,773 465,889 366,719 99,170 134% -37,686
ASCENTUS INSURANCE LTD. 326 -572 9,716 6,290 3,426 30% 117
ASSOCIATED ELECTRIC & GAS INSURANCE SERVICES LIMITED 7,007 4,941 177,346 106,329 71,017 88% 301
AVIVA INSURANCE COMPANY OF CANADA 1,495,834 1,036,834 6,571,523 5,512,993 1,058,530 64% 93,442
AXA INSURANCE (CANADA) AXA ASSURANCES (CANADA) -2,699 -50,566 1,390,030 833,208 556,822 67% 26,211
AXA PACIFIC INSURANCE COMPANY 1,421 -8,828 1,178,509 643,040 535,469 67% 26,619
CANADA GUARANTY MORTGAGE INSURANCE COMPANY 67,540 442 720,586 347,019 373,567 18% 28,375
CANADIAN NORTHERN SHIELD INSURANCE COMPANY 867 1,618 364,191 291,058 73,133 58% 5,093
CERTAS DIRECT INSURANCE COMPANY 307,920 201,795 1,127,892 924,068 203,824 62% 41,045
CERTAS HOME AND AUTO INSURANCE COMPANY 1,282 442 11,463 6,017 5,446 35% 392
CHUBB INSURANCE COMPANY OF CANADA 348,125 236,500 2,361,289 1,654,778 706,511 75% 2,915
CONSTITUTION INSURANCE COMPANY OF CANADA6 0 0 0 0 0 n/a 0
CO-OPERATORS GENERAL INSURANCE COMPANY 772,920 663,543 5,048,985 3,666,895 1,382,090 71% 88,912
COSECO INSURANCE COMPANY 157,956 149,654 593,145 462,056 131,089 88% -1,674
CUMIS GENERAL INSURANCE COMPANY 62,183 37,492 221,325 157,933 63,392 57% 15,492
DAS LEGAL PROTECTION INSURANCE COMPANY LIMITED 1,611 828 11,500 6,946 4,554 56% -3,971
ECHELON GENERAL INSURANCE COMPANY 102,408 73,825 455,370 353,067 102,303 68% 7,897
ECONOMICAL MUTUAL INSURANCE COMPANY 891,699 695,224 5,080,978 3,507,862 1,573,116 67% 87,747
ELITE INSURANCE COMPANY 74,276 21,679 889,386 772,225 117,161 60% 19,978
EVEREST INSURANCE COMPANY OF CANADA 13,432 10,417 117,106 61,750 55,356 123% -6,531
FCT INSURANCE COMPANY LTD. 58,140 14,648 235,913 155,536 80,377 21% 17,735
FEDERATED INSURANCE COMPANY OF CANADA 66,907 43,298 465,064 334,160 130,904 55% 13,923
FEDERATION INSURANCE COMPANY OF CANADA 1,356 2,891 497,193 367,535 129,658 67% 6,703
FIRST NORTH AMERICAN INSURANCE COMPANY 3,136 682 10,103 3,886 6,217 14% 801
GENWORTH FINANCIAL MORTGAGE INSURANCE COMPANY CANADA 195,874 24,961 5,605,981 2,221,116 3,384,865 25% 394,698
GORE MUTUAL INSURANCE COMPANY 279,958 188,553 842,661 607,509 235,152 64% 28,732
GRANITE INSURANCE COMPANY7 0 0 0 0 0 n/a 0
INTACT INSURANCE COMPANY 2,274,791 1,500,360 12,926,961 9,473,058 3,453,903 67% 172,282
INTERNATIONAL INSURANCE COMPANY OF HANNOVER PLC 8,349 3,513 52,802 38,489 14,313 85% 387
JEVCO INSURANCE COMPANY 93,070 85,316 1,083,745 865,450 218,295 67% 29,755
LEGACY GENERAL INSURANCE COMPANY 6,378 1,824 15,813 -1,192 17,005 48% 647
NORTHBRIDGE COMMERCIAL INSURANCE CORPORATION 74,346 57,826 588,380 436,074 152,306 70% -19,790
NORTHBRIDGE GENERAL INSURANCE CORPORATION 199,374 188,203 3,241,253 2,438,542 802,711 58% 33,607
NORTHBRIDGE INDEMNITY INSURANCE COMPANY 19,024 26,683 636,720 477,156 159,564 63% 8,654
NORTHBRIDGE PERSONAL INSURANCE CORPORATION 115,707 130,267 793,682 603,734 189,948 76% 2,008
NOVEX INSURANCE COMPANY 177,112 116,572 866,814 650,941 215,873 67% 15,360
OLD REPUBLIC INSURANCE COMPANY OF CANADA 58,183 46,934 233,289 179,834 53,455 73% 3,094
OMEGA GENERAL INSURANCE COMPANY 9,113 5,673 38,437 28,173 10,264 51% 345
PAFCO INSURANCE COMPANY 65,334 40,559 257,948 191,082 66,866 55% 18,592
PEMBRIDGE INSURANCE COMPANY 167,057 105,599 517,520 382,996 134,524 68% 13,990
PERTH INSURANCE COMPANY 90,539 42,637 440,275 364,958 75,317 67% 3,758
PILOT INSURANCE COMPANY -497 -58,274 641,072 580,449 60,623 -47% 18,070
PMI MORTGAGE INSURANCE COMPANY CANADA 0 -85 36,651 94 36,557 -1% 7,153
PRIMMUM INSURANCE COMPANY 302,221 284,651 1,951,449 1,684,381 267,068 95% 64,065
QUEBEC ASSURANCE COMPANY 0 0 115,233 90,949 24,284 70% 941
RBC GENERAL INSURANCE COMPANY 441,366 310,992 1,366,860 1,081,289 285,571 72% 27,067
RBC INSURANCE COMPANY OF CANADA 219,310 150,797 538,231 356,288 181,943 55% 40,205
ROYAL & SUN ALLIANCE INSURANCE COMPANY OF CANADA 590,494 518,633 4,481,429 3,697,272 784,157 70% 30,786
S & Y INSURANCE COMPANY -122 -10,666 222,537 200,110 22,427 45% 7,016
SAFETY NATIONAL CASUALTY CORPORATION 0 -1,679 48,735 27,084 21,651 n/a 4,690
SCOTIA GENERAL INSURANCE COMPANY 0 0 7,179 47 7,132 n/a -14
SCOTTISH & YORK INSURANCE CO. LIMITED 139,353 46,457 725,008 640,590 84,418 63% 11,911
SECURITY NATIONAL INSURANCE COMPANY 1,013,061 1,861,352 7,052,098 5,791,549 1,260,549 97% -368,151
TD DIRECT INSURANCE INC.8 0 0 15,680 59 15,621 n/a 296
TD GENERAL INSURANCE COMPANY 132,835 234,941 1,005,723 882,819 122,904 116% -33,121
TD HOME AND AUTO INSURANCE COMPANY 339,406 371,129 1,504,102 1,299,674 204,428 101% -51,151
TEMPLE INSURANCE COMPANY 68,435 87,120 867,097 735,842 131,255 67% 11,626
THE BOILER INSPECTION AND INSURANCE COMPANY OF CANADA 12,903 6,685 191,489 109,866 81,623 32% 16,218
THE DOMINION OF CANADA GENERAL INSURANCE COMPANY 970,079 754,963 3,527,031 2,711,250 815,781 76% 54,293
THE GUARANTEE COMPANY OF NORTH AMERICA 227,851 219,830 1,349,846 870,896 478,950 71% 17,240
THE MISSISQUOI INSURANCE COMPANY 59 2 509,160 377,685 131,475 67% 6,841
THE NORDIC INSURANCE COMPANY OF CANADA 332,864 214,508 1,288,583 1,064,670 223,913 67% 32,026
THE NORTH WATERLOO FARMERS MUTUAL INSURANCE COMPANY 87,939 41,245 180,311 122,389 57,922 55% 3,877
THE PERSONAL INSURANCE COMPANY 497,422 323,454 1,902,759 1,568,283 334,476 62% 73,766
THE PORTAGE LA PRAIRIE MUTUAL INSURANCE COMPANY 47,225 35,329 443,131 313,676 129,455 75% 1,643
THE SHIPOWNERS’ MUTUAL PROTECTION AND INDEMNITY ASSOCIATION (LUXEMBOUR 2,102 -418 43,422 20,570 22,852 52% 723
THE SOVEREIGN GENERAL INSURANCE COMPANY 79,353 55,724 746,705 530,493 216,212 63% 12,476
THE WAWANESA MUTUAL INSURANCE COMPANY 626,716 517,613 7,211,781 4,451,522 2,760,259 78% 84,384
TRADERS GENERAL INSURANCE COMPANY 282,526 168,018 1,399,557 1,233,711 165,846 64% 24,742
TRAFALGAR INSURANCE COMPANY OF CANADA 162,564 123,204 781,178 597,694 183,484 67% 17,885
TRAVELERS INSURANCE COMPANY OF CANADA 64,064 -13,449 872,530 434,106 438,424 -4% 61,090
TRISURA GUARANTEE INSURANCE COMPANY 32,625 5,069 161,344 107,027 54,317 23% 6,436
UNIFUND ASSURANCE COMPANY 533,546 437,936 2,001,643 1,682,222 319,421 79% -6,181
WATERLOO INSURANCE COMPANY 110,174 68,525 422,392 345,416 76,976 67% 3,841
WESTERN ASSURANCE COMPANY 167,879 98,288 839,293 728,084 111,209 70% 4,406
WESTERN FINANCIAL INSURANCE COMPANY 20,943 13,115 48,778 27,962 20,816 57% 1,787
WESTERN SURETY COMPANY 4,211 3,420 51,354 29,160 22,194 21% 959
WYNWARD INSURANCE GROUP 15,615 10,100 120,333 81,646 38,687 53% 5,253
ZENITH INSURANCE COMPANY 57,845 42,516 246,980 192,834 54,146 82% -3,913
  17,007,675 13,459,357 109,997,755 80,784,885 29,212,870   1,520,691
BRANCH
AFFILIATED FM INSURANCE COMPANY 36,893 58,170 304,949 178,166 126,783 113% -11,846
ALLIANZ GLOBAL RISKS US INSURANCE COMPANY 94,290 80,320 975,718 721,590 254,128 98% -17,305
ALLSTATE INSURANCE COMPANY 0 0 7,295 936 6,359 n/a -163
AMERICAN BANKERS INSURANCE COMPANY OF FLORIDA 166,884 36,026 537,909 391,413 146,496 38% 5,923
ARCH INSURANCE COMPANY9 0 0 0 0 0 n/a 0
ATRADIUS CREDIT INSURANCE N.V. 2,401 -50 20,380 12,787 7,593 51% -959
AXA ART INSURANCE CORPORATION10 0 0 0 0 0 n/a 0
BERKLEY INSURANCE COMPANY 22,420 16,270 198,479 130,932 67,547 81% -13,551
CHEROKEE INSURANCE COMPANY 3,802 3,366 18,597 8,091 10,506 91% 213
CHICAGO TITLE INSURANCE COMPANY 14,328 4,993 54,475 26,428 28,047 35% 2,999
COMPAGNIE FRANCAISE D’ASSURANCE POUR LE COMMERCE EXTERIEUR 7,872 2,210 79,862 30,312 49,550 23% 5,548
CONTINENTAL CASUALTY COMPANY 109,931 60,541 1,191,440 765,349 426,091 66% 33,283
COREPOINTE INSURANCE COMPANY 20 3,159 21,151 5,298 15,853 -741% 646
DARWIN NATIONAL ASSURANCE COMPANY 341 43 22,817 1,569 21,248 71% -1,303
ECCLESIASTICAL INSURANCE OFFICE PUBLIC LIMITED COMPANY 25,052 10,670 168,003 105,436 62,567 65% 135
ELECTRIC INSURANCE COMPANY 3,218 2,861 62,268 25,349 36,919 95% 174
EMPLOYERS INSURANCE COMPANY OF WAUSAU 0 -66 34,129 2,623 31,506 n/a 621
EULER HERMES NORTH AMERICA INSURANCE COMPANY 20,320 5,664 97,931 53,199 44,732 58% 1,633
FACTORY MUTUAL INSURANCE COMPANY 78,249 27,980 890,628 401,601 489,027 41% 110,966
FEDERAL INSURANCE COMPANY 622 453 164,839 78,639 86,200 24% 6,465
FIDELITY NATIONAL TITLE INSURANCE COMPANY11 0 0 0 0 0 n/a 0
FIRST AMERICAN TITLE INSURANCE COMPANY 17,209 1,187 77,404 31,672 45,732 15% 11,271
GENERAL REINSURANCE CORPORATION 0 0 514,427 342,412 172,015 50% 12,775
GREAT AMERICAN INSURANCE COMPANY 19,620 7,199 265,788 120,351 145,437 30% 11,562
GROUPAMA S.A. 0 -4 10,534 319 10,215 -2976% 1,219
HARTFORD FIRE INSURANCE COMPANY 4,616 878 167,882 33,177 134,705 27% 6,824
IRONSHORE INSURANCE LTD12 0 0 0 0 0 n/a 0
HDI-GERLING INDUSTRIE VERSICHERUNG AG 9,946 4,109 102,282 80,976 21,306 47% 388
JEWELERS MUTUAL INSURANCE COMPANY 3,793 1,127 14,105 5,551 8,554 48% 1,108
LIBERTY MUTUAL INSURANCE COMPANY 89,691 48,124 1,508,023 846,885 661,138 67% 35,932
LLOYD’S UNDERWRITERS 598,321 435,001 7,380,710 5,268,975 2,111,735 59% 485,301
MITSUI SUMITOMO INSURANCE COMPANY, LIMITED 11,848 13,908 98,112 56,950 41,162 74% 1,031
MOTORS INSURANCE CORPORATION 79,851 62,131 645,317 367,490 277,827 56% 31,237
MUNICH REINSURANCE AMERICA, INC. 0 -340 204,386 103,865 100,521 151% -2,057
NATIONAL LIABILITY & FIRE INSURANCE COMPANY 3,949 2,140 409,814 173,279 236,535 -13% 50,854
NIPPONKOA INSURANCE COMPANY, LIMITED 768 77 36,447 2,826 33,621 -1% 1,238
PROGRESSIVE CASUALTY INSURANCE COMPANY13 0 -413 11,003 3,223 7,780 1044% -17
PROTECTIVE INSURANCE COMPANY 1,463 2,270 20,743 7,680 13,063 139% -766
RELIANCE INSURANCE COMPANY14 0 0 0 0 0 n/a 0
SECURITY INSURANCE COMPANY OF HARTFORD 0 -1,054 53,350 12,291 41,059 n/a 1,250
SENTRY INSURANCE A MUTUAL COMPANY 932 93 38,693 6,210 32,483 14% 1,460
SOMPO JAPAN INSURANCE INC. 3,478 924 51,884 8,751 43,133 43% 1,575
ST. PAUL FIRE AND MARINE INSURANCE COMPANY 54,767 24,032 1,268,827 615,076 653,751 42% 40,338
STATE FARM FIRE AND CASUALTY COMPANY 441,833 246,485 1,455,759 701,604 754,155 58% 86,491
STATE FARM MUTUAL AUTOMOBILE INSURANCE COMPANY 1,121,789 881,856 6,920,652 5,246,143 1,674,509 81% 157,469
STEWART TITLE GUARANTY COMPANY 74,880 14,473 213,936 92,688 121,248 19% 18,625
SUNDERLAND MARINE MUTUAL INSURANCE COMPANY 544 73 52,931 39,391 13,540 59% -629
T.H.E. INSURANCE COMPANY 376 476 4,214 1,162 3,052 190% -598
THE AMERICAN ROAD INSURANCE COMPANY 1,934 1,002 21,009 457 20,552 92% 313
TIG INSURANCE COMPANY15 0 92 20,540 3,069 17,471 n/a -185
TOKIO MARINE & NICHIDO FIRE INSURANCE CO., LTD. 15,047 9,348 133,438 66,292 67,146 50% 5,122
TRITON INSURANCE COMPANY 14,584 2,686 163,794 80,048 83,746 20% 23,348
UTICA MUTUAL INSURANCE COMPANY16 0 6 3,507 56 3,451 n/a -194
VIRGINIA SURETY COMPANY, INC. 14,055 9,701 51,661 31,869 19,792 103% -2,659
WESTPORT INSURANCE CORPORATION 29,156 21,203 679,386 579,714 99,672 58% 2,494
XL INSURANCE COMPANY LIMITED 50,981 52,782 666,603 449,009 217,594 104% -16,247
XL REINSURANCE AMERICA INC. 10,684 921 405,485 258,937 146,548 63% 4,827
ZURICH INSURANCE COMPANY LTD 369,748 270,093 3,115,812 2,480,345 635,467 73% 38,697
  3,632,506 2,425,196 31,639,328 21,058,461 10,580,867   1,132,876
TOTAL 21,956,224 16,606,523 152,693,606 108,632,467 44,061,139   2,979,032

 

Life Insurance Companies

  ONTARIO BUSINESS TOTAL COMPANY
FINANCIAL SUMMARY
year ended
December 31, 2013

(in thousands)
Direct Written Premiums

$
Benefits and payments to policyholders

$
Total Assets

$
Total liabilities

$
Excess of assets over liabilities

$
Net Income / (loss)

$
EXTRA PROVINCIAL
ACADIA LIFE 25 8 106,828 68,362 38,466 2,875
ASSUMPTION MUTUAL LIFE INSURANCE COMPANY 21,027 6,179 1,329,674 1,233,530 96,144 6,589
CANASSURANCE INSURANCE COMPANY17 26,903 13,418 393,774 66,783 326,991 20,412
DESJARDINS FINANCIAL SECURITY LIFE ASSURANCE COMPANY 682,203 492,642 26,445,223 24,200,767 2,244,456  
FIRST CANADIAN INSURANCE CORPORATION 26,629 2,154 492,852 299,518 193,334 24,524
HUMANIA ASSURANCE INC. 1,762 937 399,924 348,471 51,453 3,984
INDUSTRIAL ALLIANCE INSURANCE AND FINANCIAL SERVICES INC. 1,118,864 815,484 41,504,322 37,847,168 3,657,154 385,500
LA CAPITALE INSURANCE AND FINANCIAL SERVICES INC. 112,610 60,337 906,662 773,847 132,815 8,232
LS-TRAVEL INSURANCE COMPANY 5,156 2,385 16,209 10,373 5,836 -128
NATIONAL BANK LIFE INSURANCE COMPANY 11,311 2,906 172,665 99,442 73,223 37,597
SSQ, LIFE INSURANCE COMPANY INC. 213,817 126,636 8,631,215 8,267,343 363,872 37,965
THE UNION LIFE MUTUAL ASSURANCE COMPANY (UNION LIFE)            
TRANS GLOBAL LIFE INSURANCE COMPANY 1,497 127 8,997 2,420 6,577 710
  2,221,804 1,523,213 80,408,345 73,218,024 7,190,321 528,260
FEDERAL
ACE INA LIFE INSURANCE 75,941 21,938 196,797 90,188 106,609 12,154
ALLSTATE LIFE INSURANCE COMPANY OF CANADA 0 0 3,743 16 3,727 -9
ASSURANT LIFE OF CANADA 110,563 43,676 1,323,881 1,232,861 91,020 10,765
BMO LIFE ASSURANCE COMPANY 454,577 228,799 6,945,880 6,162,016 783,864 91,111
BMO LIFE INSURANCE COMPANY 10,183 1,018 696,777 123,129 573,648 15,284
CANADIAN PREMIER LIFE INSURANCE COMPANY 81,219 19,418 206,967 123,742 83,225 15,237
CIBC LIFE INSURANCE COMPANY LIMITED 20,854 5,353 74,671 -95,618 170,289 18,189
CIGNA LIFE INSURANCE COMPANY OF CANADA 0 1,466 63,343 28,318 35,025 11,693
COMPCORP LIFE INSURANCE COMPANY 0 0 10,000 570 9,430 -59
CO-OPERATORS LIFE INSURANCE COMPANY 233,304 144,880 5,022,988 4,159,471 863,517 -10,582
CT FINANCIAL ASSURANCE COMPANY18 0 0 0 0 0 0
CUMIS LIFE INSURANCE COMPANY 60,666 31,018 1,186,344 928,192 258,152 9,916
FORESTERS LIFE INSURANCE COMPANY 82,855 70,152 1,406,072 1,260,949 145,123 3,363
GIRAFFE & FRIENDS LIFE INSURANCE COMPANY19 0 0 8,667 172 8,495 -859
LA CAPITALE FINANCIAL SECURITY INSURANCE COMPANY20 27,013 11,661 490,442 370,018 120,424 12,970
LONDON LIFE INSURANCE COMPANY 1,287,373 1,307,622 75,773,502 72,188,680 3,584,822 694,823
MANULIFE CANADA LTD. 0 0 0 0 0 0
MD LIFE INSURANCE COMPANY 0 0 3,301,113 3,287,787 13,326 3,048
PRIMERICA LIFE INSURANCE COMPANY OF CANADA 134,779 50,234 2,810,019 2,508,221 301,798 78,223
RBC LIFE INSURANCE COMPANY 538,838 333,951 9,242,535 7,738,278 1,504,257 -23,930
RELIABLE LIFE INSURANCE COMPANY 32,455 17,562 55,428 22,791 32,637 1,475
SCOTIA LIFE INSURANCE COMPANY 21,432 2,491 99,025 -56,873 155,898 36,820
SUN LIFE ASSURANCE COMPANY OF CANADA 4,113,255 3,367,133 166,055,847 153,214,776 12,841,071 1,269,401
SUN LIFE INSURANCE (CANADA) LIMITED 103,256 13,644 14,091,582 12,637,223 1,454,359 179,002
TD LIFE INSURANCE COMPANY 45,506 12,184 94,047 41,275 52,772 2,956
THE CANADA LIFE ASSURANCE COMPANY 1,906,552 1,507,172 41,738,659 33,633,242 8,105,417 1,153,620
THE EMPIRE LIFE INSURANCE COMPANY 434,321 308,114 11,797,842 10,841,744 956,098 111,347
THE EQUITABLE LIFE INSURANCE COMPANY OF CANADA 285,056 177,198 3,036,371 2,639,702 396,669 58,550
THE GREAT-WEST LIFE ASSURANCE COMPANY 2,569,269 2,051,940 47,765,168 31,152,726 16,612,442 2,243,886
THE MANUFACTURERS LIFE INSURANCE COMPANY 4,505,488 3,766,172 147,325,147 114,422,555 32,902,592 3,398,859
THE STANDARD LIFE ASSURANCE COMPANY OF CANADA 460,570 527,077 46,784,711 44,570,865 2,213,846 231,166
THE WAWANESA LIFE INSURANCE COMPANY 27,980 18,164 924,897 792,312 132,585 5,080
TRANSAMERICA LIFE CANADA 261,320 210,974 9,898,068 8,691,894 1,206,174 133,337
VSP CANADA VISION CARE INSURANCE 47 62 9,887 536 9,351 -704
WESTERN LIFE ASSURANCE COMPANY 44,856 8,570 170,434 123,150 47,284 8,113
  17,929,528 14,259,643 598,610,854 512,834,908 85,775,946 9,774,245
BRANCH
AETNA LIFE INSURANCE COMPANY 1,228 814 66,047 12,788 53,259 2,724
ALLIANZ LIFE INSURANCE COMPANY OF NORTH AMERICA 18 90 76,056 35,908 40,148 2,017
AMERICAN BANKERS LIFE ASSURANCE COMPANY OF FLORIDA 112,855 11,198 182,558 111,078 71,480 6,431
AMERICAN HEALTH AND LIFE INSURANCE COMPANY 4,173 1,002 33,826 15,524 18,302 7,006
AMERICAN INCOME LIFE INSURANCE COMPANY 28,872 5,555 224,955 116,831 108,124 44,396
AXA EQUITABLE LIFE INSURANCE COMPANY 27 35 87,497 25,904 61,593 9,980
CMFG LIFE INSURANCE COMPANY 94 263 1,910 50 1,860 -771
COMBINED INSURANCE COMPANY OF AMERICA 38,522 12,756 775,405 364,162 411,243 83,339
CONNECTICUT GENERAL LIFE INSURANCE COMPANY 2,792 1,180 126,719 93,112 33,607 17,313
GERBER LIFE INSURANCE COMPANY 1,628 289 35,900 22,276 13,624 291
HARTFORD LIFE INSURANCE COMPANY 0 0 9,964 4,165 5,799 186
LIBERTY LIFE ASSURANCE COMPANY OF BOSTON 332 211 14,908 2,081 12,827 502
LIFE INSURANCE COMPANY OF NORTH AMERICA 3,705 3,979 56,620 26,103 30,517 1,083
MASSACHUSETTS MUTUAL LIFE INSURANCE COMPANY 0 0 0 0 0 0
METROPOLITAN LIFE INSURANCE COMPANY21 0 0 102,606 297 102,309 4,704
NEW YORK LIFE INSURANCE COMPANY 32,481 32,367 403,702 127,315 276,387 20,223
PAVONIA LIFE INSURANCE COMPANY OF MICHIGAN22 6,318 1,997 83,337 38,978 44,359 -3,608
PHOENIX LIFE INSURANCE COMPANY23 0 0 0 0 0 0
PRINCIPAL LIFE INSURANCE COMPANY 157 283 10,263 7,323 2,940 93
REASSURE AMERICA LIFE INSURANCE COMPANY 3 27 8,806 6,388 2,418 -565
STANDARD LIFE ASSURANCE LIMITED 9,057 23,753 1,536,845 1,530,389 6,456 78
STATE FARM INTERNATIONAL LIFE INSURANCE COMPANY LTD 120,597 65,494 1,485,357 1,171,119 314,238 52,243
THE STANDARD LIFE ASSURANCE COMPANY 2006 0 0 2,630 1,297 1,333 9
UNITED AMERICAN INSURANCE COMPANY 178 193 13,090 4,087 9,003 326
  363,037 161,486 5,339,001 3,717,175 1,621,826 248,000
TOTAL 20,514,369 15,944,342 684,358,200 589,770,107 94,588,093 10,550,505

 

Reinsurance Companies

  ONTARIO BUSINESS TOTAL COMPANY
FINANCIAL SUMMARY
year ended December 31, 2013

(in thousands)
Premiums Assumed

$
Net Losses Incurred

$
Total Assets

$
Total Liabilities

$
Excess of assets over liabilities

$
Claims incurred to earned premium

%
Net Income/ (loss)

$
This table lists only those companies which are licensed solely for the business of reinsurance
ONTARIO
FARM MUTUAL REINSURANCE PLAN INC. 128,476 52,910 772,414 489,155 283,259 59% 39,065
GLOBAL REINSURANCE COMPANY 2 -146 45,588 33,820 11,768 -246% 697
  128,478 52,764 818,002 522,975 295,027   39,762
EXTRA PROVINCIAL
OPTIMUM REASSURANCE INC. 53,844 8,850 2,184,285 2,110,533 73,752 n/a 9,660
FEDERAL
ASPEN INSURANCE UK LIMITED 9,470 -40 418,186 288,043 130,143 15% 9,822
AURIGEN REINSURANCE COMPANY 40,850 14,773 193,422 131,477 61,945 n/a -7,809
MUNICH REINSURANCE COMPANY
OF CANADA
90,322 71,386 1,252,759 978,949 273,810 65% 39,112
PARTNER REINSURANCE COMPANY
OF THE U.S.
26,745 15,747 702,174 461,534 240,640 60% 10,434
RGA LIFE REINSURANCE COMPANY
OF CANADA
347,243 50,118 6,005,186 5,190,327 814,859 n/a 92,082
SCOR CANADA REINSURANCE COMPANY 46,811 20,862 686,048 535,646 150,402 68% 14,161
SUECIA REINSURANCE COMPANY 0 -40 9,322 3,656 5,666 n/a -223
THE CANADA LIFE INSURANCE COMPANY OF CANADA 598,493 403,319 10,529,513 9,672,349 857,164 n/a 81,151
THE MORTGAGE INSURANCE COMPANY OF CANADA 0 -29 18,192 4,162 14,030 -12% 3,583
  1,159,934 576,096 19,814,802 17,266,143 2,548,659   242,313
BRANCH
ALEA (BERMUDA) LTD. 53 25 24,146 12,861 11,285 -471 910
AMERICAN AGRICULTURAL INSURANCE COMPANY 9,809 7,957 85,773 39,631 46,142 137% -5,524
AXIS REINSURANCE COMPANY 4,890 12,527 259,069 212,970 46,099 80% -5,614
CAISSE CENTRALE DE RÉASSURANCE 15,702 10,874 240,293 180,769 59,524 75% 737
COLISEE RE. -36 -4,677 211,369 148,276 63,093 n/a 6,929
CONVERIUM REINSURANCE (NORTH AMERICA) INC. 0 0 0 0 0 n/a 0
EMPLOYERS REASSURANCE CORPORATION 0 0 0 0 0 n/a 0
EVEREST REINSURANCE COMPANY 88,133 13,659 1,079,506 728,377 351,129 35% 35,852
GENERAL AMERICAN LIFE INSURANCE COMPANY 102,754 79,698 1,929,332 948,159 981,173 n/a 30,082
GENERAL RE LIFE CORPORATION 371 -42 14,591 1,834 12,757 n/a 1,440
HANNOVER RÜCK SE 139,770 48,121 1,073,384 697,884 375,500 80% 14,119
MUNICH REINSURANCE COMPANY 4,898,819 3,670,990 4,991,456 2,221,401 2,770,055 n/a 244,728
NATIONWIDE MUTUAL INSURANCE COMPANY24 0 0 0 0 0 n/a 0
NRG VICTORY REINSURANCE LIMITED25 0 0 0 0 0 n/a 0
ODYSSEY REINSURANCE COMPANY 28,201 27,988 399,870 233,758 166,112 102% -5,066
PARTNER REINSURANCE COMPANY LTD. 7,176 4,298 186,715 113,480 73,235 n/a -584
PARTNER REINSURANCE EUROPE SE 14,350 8,600 329,540 271,320 58,220 n/a 3,135
RELIASTAR LIFE INSURANCE COMPANY 28 0 46,157 14,460 31,697 n/a 4,688
SCOR GLOBAL LIFE 32,780 22,278 488,378 274,392 213,986 n/a 51,563
SIRIUS AMERICA INSURANCE COMPANY 2,705 2,674 90,462 40,387 50,075 51% 2,328
SWISS REINSURANCE COMPANY LTD 557,507 37,323 8,717,337 6,343,681 2,373,656 46% 56,038
THE TOA REINSURANCE COMPANY
OF AMERICA
27,198 21,773 300,445 222,141 78,304 83% 2,718
TRANSATLANTIC REINSURANCE COMPANY 33,369 23,703 587,788 291,299 296,489 83% 9,955
  5,963,579 3,987,769 21,055,611 12,997,080 8,058,531   448,434
TOTAL 7,305,835 4,625,479 43,872,700 32,896,731 10,975,969   740,169

 

Reciprocal or Interinsurance Exchanges

  ONTARIO BUSINESS TOTAL BUSINESS
FINANCIAL SUMMARY
year ended December 31, 2013

(in thousands)
Direct Written Premiums

$
Direct Claims Incurred

$
Total Assets

$
Total Liabilities

$
Excess of assets over liabilities

$
Claims Incurred to earned premium

%
Net Income/ (Loss)

$
ONTARIO
CANADIAN UNIVERSITIES RECIPROCAL INSURANCE EXCHANGE 11,840 3,440 139,020 67,688 71,332 48% 12,338
COMMUNITY NEWSPAPERS RECIPROCAL INSURANCE EXCHANGE 89 38 628 180 448 30% -19
HEALTHCARE INSURANCE RECIPROCAL OF CANADA 133,240 120,890 1,075,664 704,684 370,980 89% 41,100
MUNICIPAL ELECTRIC ASSOCIATION RECIPROCAL INSURANCE EXCHANGE 11,646 8,924 87,286 30,192 57,094 46% 4,706
ONTARIO MUNICIPAL INSURANCE EXCHANGE 20,312 51,252 157,994 148,499 9,495 113% -4,744
ONTARIO SCHOOL BOARDS’ INSURANCE EXCHANGE 40,165 34,176 227,353 147,186 80,167 77% 11,169
POULTRY INSURANCE EXCHANGE RECIPROCAL OF CANADA 2,138 0 5,125 2,249 2,876 0% 313
  219,430 218,720 1,693,070 1,100,678 592,392   64,863
EXTRA PROVINCIAL
CANADIAN AIRPORTS RECIPROCAL INSURANCE EXCHANGE (CARIE) 241 11 5,742 2,355 3,387 66% 78
CANADIAN EGG INDUSTRY RECIPROCAL ALLIANCE27 0 0 10,345 1,912 8,433 27% 1,648
CANADIAN LAWYERS LIABILITY ASSURANCE SOCIETY28 8,531 2,681 95,037 81,852 13,185 -6% 1,401
  8,772 2,692 111,124 86,119 25,005   2,971
BRANCH
LUMBERMEN’S UNDERWRITING ALLIANCE 0 -1,081 13,067 320 12,747 n/a 1,447
TOTAL 228,202 220,331 1,817,261 1,187,117 630,144   69,281

 

Fraternal Societies

  ONTARIO BUSINESS TOTAL COMPANY
FINANCIAL SUMMARY
year ended December 31, 2013

(in thousands)
Direct Written Premiums

$
Benefits and payments to policyholders

$
Total Assets

$
Total Liabilities

$
Excess of assets over liabilities

$
Net Income / (loss)

$
ONTARIO
GUARANTEED FUNERAL DEPOSITS OF CANADA (FRATERNAL) 35,333 34,992 285,313 281,641 3,672 -1,282
TORONTO POLICE WIDOWS AND ORPHANS FUND 1,754 2,558 89,949 80,846 9,103 772
  37,087 37,550 375,262 362,487 12,775 -510
FEDERAL
ACTRA FRATERNAL BENEFIT SOCIETY 8,808 5,471 612,931 591,423 21,508 -381
FAITHLIFE FINANCIAL 11,621 14,730 451,729 412,984 38,745 -247
SONS OF SCOTLAND BENEVOLENT ASSOCIATION 1,160 725 14,578 11,493 3,085 -194
TEACHERS LIFE INSURANCE SOCIETY (FRATERNAL) 12,006 4,895 64,253 51,045 13,208 932
THE GRAND ORANGE LODGE OF BRITISH AMERICA 1,157 917 25,251 20,908 4,343 -243
THE INDEPENDENT ORDER OF FORESTERS 17,839 15,721 2,198,971 1,964,521 234,450 8,676
THE ORDER OF ITALO-CANADIANS 11 750 534 31 503 -87
UKRAINIAN FRATERNAL SOCIETY OF CANADA 12 40 10,066 8,492 1,574 -263
  52,614 43,249 3,378,313 3,060,897 317,416 8,193
BRANCH
CROATIAN FRATERNAL UNION OF AMERICA 380 322 13,672 11,755 1,917 -73
KNIGHTS OF COLUMBUS 68,828 40,706 3,019,301 2,180,881 838,420787 19,379
THE ROYAL ARCANUM, SUPREME COUNCIL OF 415 413 13,817 7,895 5,922 1,338
UKRAINIAN NATIONAL ASSOCIATION 35 79 8,568 5,637 2,931 487
UNITED COMMERCIAL TRAVELERS OF AMERICA, ORDER OF 62 62 4,858 3,076 1,782 248
  69,720 41,582 3,060,216 2,209,244 850,972 21,379
TOTAL 159,421 122,381 6,813,791 5,632,628 1,181,163 29,062

 

Financial Summary Notes

  1. No financial information was reported for Markham General Insurance Company in 2013. The company was ordered into liquidation effective July 24, 2002.
  2. The company's licence is limited to automobile risks of Toronto Transit Commission.
  3. No financial information regarding property & casualty insurance was received for Canassurance Insurance Company in 2013.
  4. No financial information was received for the Canadian Union Insurance Company in 2013. Company was in the process of winding down.
  5. No financial information was reported for Alta Surety Company in 2013. Company has been in liquidation since June 2002.
  6. The company has a licence condition not to undertake or renew insurance contracts in Ontario after October 25, 1993.
  7. No financial information was reported for Granite Insurance Company in 2013. Company has been inactive since November 1992.
  8. The company has a licence condition not to undertake or renew insurance contracts in Ontario after May 30, 1995.
  9. No financial information was reported for Arch Insurance Company in 2013. Company was in the process of winding down.
  10. No financial information was reported for AXA Art Insurance Corporation in 2013. Company became licenced in Ontario as of October 31st, 2013.
  11. No financial information was reported in 2013 for Fidelity National Title Insurance Company. Company is in process of winding down.
  12. No financial information was reported for Ironshore Insurance Ltd. in 2013. Company became licenced in Ontario as of December 6th, 2013.
  13. The company has a licence condition not to undertake or renew insurance contracts in Ontario after January 9, 2006.
  14. No financial information was reported for Reliance Insurance Company in 2013 Company has been in liquidation since August 2001.
  15. The company has a licence condition not to undertake or renew insurance contracts in Ontario after June 20, 2007.
  16. The company has a licence condition not to undertake or renew insurance contracts in Ontario after November 20, 2006.
  17. Company is licenced to write both life and property and casualty insurance.
  18. No financial information was reported for CT Financial Assurance Company in 2013.
  19. The former name of Giraffe & Friends Life Insurance Company was the Provenance Life Insurance Company.
  20. The former name of La Capitale Financial Security Insurance Company was Penncorp Life Insurance Company.
  21. The company has a licence condition not to undertake or renew insurance contracts in Ontario after March 9, 2006.
  22. The former name of Pavonia Life Insurance Company of Michigan was Household Life Insurance Company.
  23. No financial information was received in 2012 for Phoenix Life Insurance Company.
  24. The company has a licence condition not to undertake or renew insurance contracts in Ontario after March 27, 2006.
  25. No financial information was received for NRG Victory Reinsurance Ltd. in 2013. Company was in the process of winding down.

 

About the Financial Services Commission of Ontario

The Financial Services Commission of Ontario (FSCO) is a regulatory agency of the Ministry of Finance that regulates insurance, pension plans, loan and trust companies, credit unions, caissses populaires, mortgage brokering, and co-operative corporations in Ontario.

FSCO works with consumers, industry stakeholders and investors to enhance public confidence in, and access to, a fair and efficient financial services industry in Ontario.

For more information on any of these sectors, visit our website, www.fsco.gov.on.ca, or call our Contact Centre at (416) 250-7250, toll-free 1-800-668-0128, TTY toll-free 1-800-387-0584.

Financial Services Commission of Ontario
5160 Yonge Street, Box 85
Toronto ON M2N 6L9

Telephone: (416) 250-7250
Toll-free: 1-800-668-0128
TTY toll-free: 1-800-387-0584
Email: contactcentre@fsco.gov.on.ca
Website: www.fsco.gov.on.ca
Twitter: @FSCOTweets

© Queen’s Printer for Ontario, 2014
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