Canadian Reinsurance Regulatory Regime to be Significantly Strengthened in 2011-2012

[Editor's Note: Stuart S. Carruthers is a partner practicing in the corporate-commercial department of Stikeman Elliott's Toronto office. His practice is focused primarily on international private mergers and acquisitions transactions and commercial matters. He has particular expertise in insurance, reinsurance and related financial services transactions and regulatory matters.]

I. Introduction

Late last year, the Office of the Superintendent of Financial Institutions (Canada) (OSFI), the Canadian federal prudential insurance regulator, released final versions of administrative guidance which, once implemented in 2011 and 2012, will significantly strengthen the regulation of reinsurance business in Canada. The guidance is comprised of Guideline B-3 Sound …