Canadian insurer ordered to cease trading after IFRS 17 reporting delay
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Till Capital Corporation has been required to stop doing business due to delays in reporting under IFRS 17, which “has been more time-consuming” than anticipated.
The corporation that owns Omega Insurance Holdings, which owns property and casualty insurer Omega General, admitted to not filing its interim financial statements and other documents for the three months ended 31 March by the filing deadline 30 May.
The British Columbia and Ontario Securities Commissions said the documents required by legislation were:
1. interim financial report for the period ended 21 March;
2. interim management’s discussion and analysis for the period ended 31 March; and
3. certification of interim filings for the period ended 31 March.
Till’s chief executive Brian Lupien said the company was in the process of adopting IFRS 17, which affects the timing of earnings recognition for the insurance contracts and the carrying amount of insurance contract assets and liabilities for Omega General, as well as requiring changes in presentation and disclosure.
“IFRS 17 must be applied retrospectively to each group of insurance contracts as if IFRS 17 had always applied, and as a result, comparative information must be restated,” he said.
“Adopting IFRS 17 has been more time-consuming than Till had anticipated, and as a result, the Q1 filings were not filed by the 30 May 2023 deadline.”
Till anticipates the Q1 filings will be made before 30 June.
mallowstreet has contacted Till for more comment.
Incorporated in 2004, Toronto-based Omega General offers run-off services and earns premiums on run-off portfolio transfer transactions above the transferring company’s claim liabilities.
What impact has the introduction of IFRS 17 had on firms?
