Montréal – The Autorité des marchés financiers (“AMF”) has been notified that Promutuel Dorchester, a general mutual insurance company, and Promutuel Lévisienne-Orléans, a mutual damage insurance company, both members of the Groupe Promutuel Fédération of general mutual insurance companies (“Federation”), plan to withdraw from the Federation. Special meetings of the members of the two companies were held on December 14 and 15, 2004 regarding this matter.
Under section 179 of An Act respecting insurance (“Act”), a mutual insurance association may, with the authorization of its federation and of the Minister, be converted into a mutual damage insurance company. As well, the Act stipulates that, before granting an authorization, the Minister will seek advice from the AMF. As of January 19, authorization had not been granted in this regard nor had the articles of association of the companies been amended.
The AMF has reminded the two companies concerned and their Federation of their respective responsibilities in this matter, as stipulated in the Act, so as to ensure that the interests of insureds are protected. Moreover, it has requested detailed information on the matter from both parties in order to conduct an analysis of the situation. The information received to date is incomplete.
The AMF will examine the implications involved in the conversion of the two companies and will advise the Minister once its analysis has been completed.
Established on February 1, 2004, the Autorité des marchés financiers is the regulatory and oversight body for Québec’s financial sector. The AMF consists of the Commission des valeurs mobilières du Québec, the Bureau des services financiers, the Régie de l’assurance-dépôts du Québec, the Fonds d’indemnisation des services financiers and the Inspector General of Financial Institutions.
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Philippe Roy (514) 940-2176
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