An insurance company applied for a winding-up order under the Winding-Up and Restructuring Act.
The central issue was the interpretation of insolvency in the context of a life insurance company whose liabilities consist primarily of long‑term policy obligations.
The court adopted a purposive interpretation and applied the definition of insolvency from the Bankruptcy and Insolvency Act, recognizing that contingent and future policy liabilities form part of the solvency analysis.
The court also accepted regulatory measures such as the Minimum Continuing Capital and Surplus Ratio as relevant indicators of financial distress.
Finding the company’s liabilities exceeded its assets and accepting the regulator’s assessment of insolvency, the court granted the winding‑up order.
