After having shed its group insurance activities early this year, Scotia Life is now selling its individual life insurance business to Chubb Life.
Scotia Life (SLIC) has applied to the federal Minister of Finance for a reinsurance agreement with Chubb Life that covers “substantially all of the risks undertaken by SLIC in respect of its policies.” Scotia Life requested that the agreement take effect on or after June 11.
“In particular SLIC proposes to transfer to Chubb Life the policy liabilities in respect of the individual Term 10, Term 20 and Term 100 contracts of life insurance and individual Guaranteed Life and individual Accidental Death insurance policies issued by SLIC,” the Canada Gazette states.
Scotia Life confirmed to Insurance Journal that it plans to sell its life insurance business to Chubb Life.
“As we continue to evolve our business and focus on areas where we can add the most value for our customers, Scotia Life Insurance Company has made the decision to restructure its life insurance operations. The assumption reinsurance notice was related to Scotia Life’s intention to sell its individual life, accident and sickness insurance business,” Scotia Life spokesperson Patricia Hsiung explains.
The agreement between Scotia Life and Chubb Life is still subject to approval by the Federal Finance Minister, she adds.
At press time, Chubb Life had not yet granted Insurance Journal an interview.
Hsiung declined to make additional comments, specifically regarding the date of the sale, the transaction amount and volume of insurance business remaining at Scotia Life.
She did mention that the company chose to partner with Chubb Life “because of their commitment to provide superior customer service and innovative solutions for customers.”