Moved third reading of Bill S-1001, An Act to authorize Gore Mutual Insurance Company to apply to be continued as a body corporate under the laws of the Province of Quebec.

He said: Honourable senators, I rise today at third reading of Bill S-1001, An Act to authorize Gore Mutual Insurance Company to apply to be continued as a body corporate under the laws of the Province of Quebec.

I would like to thank my colleagues on the Committee on Banking, Trade, and the Economy, and our chair, Senator Gignac, for so kindly agreeing to study this bill as soon as we returned last week.

We had an excellent meeting during which our witnesses had to answer very relevant and pointed questions from our colleagues.

As you know, in January 2025, Gore Mutual, one of Canada’s oldest mutual insurance companies, and Beneva, Canada’s largest mutual insurance company, announced their intention to combine their operations in order to stimulate future growth.

I will not repeat what I said during my second reading speech. I will simply remind you that Bill S-1001 is a rare private bill from the Senate, unlike the many public bills on the Order Paper.

This bill would allow Gore Mutual to remain under Quebec law as part of its proposed merger with Beneva. Unlike public bills, private bills grant specific legal powers to a group or organization.

In this case, the aim is to facilitate the merger of two long-standing mutual insurers. Gore Mutual, originally incorporated under federal law in 1937, is seeking the repeal of the laws that govern it in order to allow this transition to take place.

Honourable colleagues, I have no doubt we all agree that interprovincial collaboration is essential for Canada’s long-term prosperity and competitiveness. The Beneva-Gore merger highlights how working together across provinces strengthens our economy and builds resilience. Given today’s trade environment, interprovincial trade and collaboration are a must for Canada’s continued success, and this is a good example of that.

During my remarks on June 10, I also stressed the urgency of passing the bill, as it is the first legal step in a tightly sequenced process involving both federal and Quebec legislation. Delays could postpone the merger until 2026, impact employee retention, raise operational costs and weaken market positioning. This message was heard loud and clear in committee last week, without bypassing any necessary scrutiny.

In fact, allow me to say a few words about the meeting of our Banking Committee held on September 25.

We were honoured to welcome Neil Parkinson, Chair of the Board, and Andy Taylor, President and CEO of Gore Mutual. They were joined by Jean-François Chalifoux, CEO of Beneva; and Pierre Marc Bellavance, Executive Vice-President and Leader of Legal and Corporate Affairs for Beneva. I’ve had the pleasure to collaborate with them since March when I first accepted to serve as the sponsor of Bill S-1001.

Mr. Parkinson reminded us that the Gore Mutual board unanimously supports the bill, describing it as fair and equitable for all policyholders. Both he and I pointed out that 94.6% of Gore Mutual members voted in favour of the merger at their annual meeting in April. He also highlighted that the merger would allow its members to join Beneva as full members, ensuring continued participation in governance.

For his part, Mr. Taylor, who’s been with Gore Mutual for two decades, reminded us that Gore Mutual, founded in 1839, is Canada’s oldest mutual property and casualty insurer. With over $1 billion in assets and a strong financial position, the company is poised for sustainable growth. In fact, in reply to a question posed by Senator Henkel, he explained that Gore specializes in SMEs and, as he put it:

The merger with Beneva will actually unlock additional ability for us to support small businesses nationally across the country.

Perhaps more importantly, Mr. Taylor stressed that the merger with Beneva will allow Gore Mutual to scale, diversify and remain competitive, while retaining its historic roots in Cambridge, Ontario, and commitments to the community it serves.

Together, Mr. Parkinson and Mr. Taylor confirmed that this merger represents a strategic opportunity to strengthen Canada’s mutual insurance sector while safeguarding the interests of policyholders, employees and communities. This decision, by two private companies, was not taken lightly.

As for Mr. Chalifoux and Mr. Bellavance, they were equally convincing. They painted an encouraging picture of the potential of this merger and the many benefits associated with it. Mr. Chalifoux explained that Beneva was created in 2020 through the merger of La Capitale and SSQ Insurance, forming the largest mutual insurance company in Canada, which now has more than 3.5 million members. As of December 31, 2024, Beneva had $27 billion in assets and $4.2 billion in equity, with consolidated net income of $589 million.

Mr. Chalifoux emphasized that the proposed merger with Gore Mutual demonstrates a strong commitment to interprovincial economic collaboration, in line with calls from governments across Canada to strengthen trade and cooperation within our borders. The merger will strengthen the growth, innovation and resilience of both organizations in an increasingly competitive and complex risk environment.

As for Mr. Bellavance, he described the legal structure of the merger, the first essential step of which is Bill S-1001. So this is the first essential step. Since there is no general legislative provision allowing a federally chartered insurance company to continue to operate under provincial law, private legislation is required.

The process involves four steps: first, the continuation of Gore Mutual under Quebec law; next, the restructuring of Gore into a mutual holding company and an operating insurer; next, the holding company must be merged with Beneva Mutual; and, finally, the process is completed by the combination of Gore’s insurance activities with Unica Insurance, Beneva’s Ontario subsidiary.

Mr. Bellavance assured the committee that this bill does not set a precedent, noting that eight similar cases have required private legislation since 1987, including the most recent in 2016. He also confirmed that the federal and provincial regulators — the Office of the Superintendent of Financial Institutions, or OSFI, and Quebec’s Autorité des marchés financiers, or AMF — have issued letters of non-objection and letters of support for the transaction. That is an important point.

As I mentioned at second reading, several industry players have also endorsed this merger, including the Canadian Association of Mutual Insurance Companies, the Insurance Brokers Association of Canada and the Insurance Bureau of Canada.

Competition Bureau Canada also weighed in on the matter and confirmed in March that the commissioner does not intend to make an application under section 92 of the Competition Act with respect to the merger. In other words, the bureau agrees that the deal does not raise serious competition concerns, and it sees no reason why the merger cannot proceed as planned.

In light of the fact that the bill was adopted unanimously in committee, and no major issues of concern were raised during our deliberations, I strongly feel we are well informed and ready to proceed with a final vote on the bill. I am confident that Senator Carignan, who also sees the value of this merger, will also encourage us to call the question.

As mentioned earlier, time is of the essence. This bill needs to receive Royal Assent as soon as possible for a similar process to begin at the National Assembly in Quebec before the holidays.

Honourable colleagues, I urge you to pass this bill today and send it to our colleagues in the other place for their review and swift passage. It is non-partisan, non-controversial and essential for ensuring the long-term viability of Canada’s mutual insurance sector. I hope senators will agree with me that this proposed merger will help strengthen the national insurance landscape through increased scale, competition and community reinvestment. This is a good merger. There is no reason to delay the passage of this bill.

Honourable colleagues, beyond its immediate impact on the mutual insurance sector, this bill also speaks to a larger imperative: Canada’s economic sovereignty. In an era of global uncertainty and competitive financial markets, strong domestic institutions are essential for safeguarding our long-term stability.

By enabling this merger, we are ensuring that mutual insurers, rooted in their communities and governed by their members, remain a viable, resilient force within Canada’s financial landscape. This is about more than insurance; it is about reinforcing the strength of Canada’s institutions that serve Canadians first.

By approving Bill S-1001, we are not only facilitating a merger, but we are also strengthening Canada’s tradition of cooperation, safeguarding jobs and reinforcing a vital mutual insurance sector for generations to come.

Thank you. Meegwetch.

Is it your pleasure, honourable senators, to adopt the motion?

Hon. Senators: Agreed.

(Motion agreed to and bill read third time and passed.)