Canadian branch of The Home Insurance Company ordered to be wound-up.

The Office of the Superintendent of Financial Institutions has announced that the Ontario Superior Court of Justice has ordered the Canadian branch of The Home Insurance Company (The Home (Canada)) to be wound-up under the Winding-up and Restructuring Act. In its wind-up order dated June 26, 2003, the Court has appointed Deloitte & Touche as provisional liquidator.

Alex Kennedy, President and Chief Executive Officer of the Property and Casualty Insurance Compensation Corporation (PACICC), which has been named as an Inspector in the liquidation, said that The Home (Canada) had been writing property, accident and sickness, aircraft, automobile, boiler and machinery, fidelity, liability and surety insurance.

Mr. Kennedy explained that PACICC is an industry-funded, not-for-profit corporation established by the property and casualty insurance companies in Canada to respond to the claims of policyholders under most policies written by insurers which have become insolvent. He noted, however, that aircraft, fidelity and surety insurance policies are not protected by PACICC.

"PACICC," said Mr. Kennedy, "will work closely with the liquidator to ensure that valid claims for loss or damage are paid within a reasonable time. As no new policies have been issued recently by The Home (Canada), PACICC appears unexposed to claims for unearned premiums."

The Home (Canada), which operated on a branch basis throughout Canada, provided mainly commercial business insurance and had been in "run-off" for some time.

For more information about PACICC, please visit www.pacicc.com