AMA takes legal action to recover money from reinsurance companies

The Alberta Motor Association Insurance Company (“AMA” or “the Association”) has filed a statement of claim with the Alberta Court of Queen’s Bench. The AMA is taking legal action to recover money owed to it by a number of companies who provided reinsurance coverage for the Fort McMurray wildfires.

This legal action will not affect AMA policy holders, employees or members. The AMA has settled over 90% of its claims in Fort McMurray and has secured reinsurance to meet its needs going forward. None of the reinsurers on the 2017/2018 treaty are involved in this legal dispute.

This is simply a commercial dispute which is not uncommon in business. The issue is a matter of interpretation of a contract. We have interpreted the contract differently than the reinsurers.

While the Association has been paid $200M in reinsurance, there is currently $165M owed to AMA by the reinsurers as a result of a contractual dispute and we are seeking a summary judgment. Based on legal opinions from a number of independent experts, we are confident we will recover the money we are owed. Regardless of the outcome, our organization is strong financially.

Reinsurance is a common practice used by insurance companies to lower their risk in case of a catastrophic event. The AMA spreads parts of its coverage to other insurance companies (reinsurers) to lessen its exposure to large events.

A summary judgment allows the Court to dispose of a civil case without a full trial if it believes the case qualifies. Qualification depends on the evidence providing enough information to fairly and justly adjudicate the dispute.

The AMA is taking this action in full accordance with its values and beliefs.


The 2016 wildfire in Fort McMurray devastated the community and the AMA was proud to be there, helping our members, our policy holders and our neighbours. This wildfire was the costliest event in history for Canadian insurers, with private property losses of close to $4 billion.

The Alberta Motor Association (AMA) is among the largest membership organizations in Alberta, representing more than 984,000 members. As a leading advocate for traffic safety, travel and consumer protection and crime prevention, AMA represents the interests of its members to industry and all levels of government and helps protect the things they care about most. Visit ama.ab.ca to learn more.

For additional information please contact:

The Alberta Motor Associationama.newsroom@ama.ab.ca