Over the last three years, KPMG International’s insurance-focused Deal Advisory team has published its predictions on the state of play for M&A in the insurance sector worldwide. At the end of each year we review the predictions and how they evolved. I am pleased to share with you this year's report, Insurance M&A Trends: A year in review and predictions for 2016, which looks back at the events of 2015, and provides insight into the unfolding year ahead.

The IASB has instructed the staff to begin the balloting process for the forthcoming insurance contracts standard, paving the way for the final standard to be issued around the end of 2016. Read more. (Subscription required.)

The Canadian Securities Administrators (CSA) have published the final form of the much-discussed amendments to Canada’s takeover bid regime (the “Takeover Amendments”). The Takeover Amendments are substantially similar to the draft published in March of last year, though they include some important changes. The main elements of the Takeover Amendments that will affect takeover bids for Canadian companies are: Minimum Tender Condition.

In its third issue of Insurance Sound Bytes, KPMG brings you an important update on the implications of the new rules for recognizing leases under IFRS 16. The new rules are effective for reporting periods starting on or after January 1, 2019. Read more. (Subscription required.)

Certain investment funds that are trusts may benefit from new proposed legislation that provides relief from potentially harsh tax consequences that extends the tax loss restriction rules to trusts. Finance’s proposals, which were released January 15, 2016, clarify the type of investment fund that may be excluded from the loss restriction events that would otherwise limit a trust’s use of certain tax attributes and other related changes. Although affected investment funds may find the proposed amendments offer relief, more clarification on certain proposals would be welcome.

A common feature of many convertible debenture indentures is the ability of the issuing company to repay the debentures at maturity by issuing shares. The financial challenges faced by many oil and gas companies in today’s markets are likely to result in an increase in repayments of convertible debentures in this fashion. This was the situation with Perpetual Energy Inc. (Perpetual).

This is an era of unprecedented change for the insurance sector. New technologies, new customer expectations, new regulations and new competitive pressures are rapidly disrupting the traditional insurance business model. In this environment, insurance organizations have no choice but to adapt. The good news is that the vast majority of insurance executives intuitively know they need to be more innovative.

Welcome to our December Insurance newsletter! Many of you will have joined us at our 24th Annual Insurance Issues Conference at the end of last month and this picks up some of the important themes that we presented there. We start off with two items focused on accounting change – firstly we are pleased to share Opening the black box – demystifying IFRS 4 Phase 2. We’ve been saying for some time that the new accounting standard for insurers will represent a significant change, both in terms of financial results and finance operating model.

PPSA Debtor Location Rules Change Effective December 31, 2015 By now you may have heard about the upcoming amendments to the Personal Property Security Act (Ontario) coming into force on December 31, 2015. The focus of the attached Osler Update is on the practical implications of those changes and how they are going to affect secured parties. Read more.

As 2015 comes to a close, we are pleased to share with you our Legal Year in Review. The Legal Year in Review provides our observations on 17 of the most significant legal developments affecting Canadian business over the past year and their implications for 2016 and beyond. Read more.