Gordian RunOff Limited, in the matter of Insurance Australia Limited (No 2) [2011] FCA 1116

Gordian RunOff Limited, in the matter of Insurance Australia Limited (No 2) [2011] FCA 1116

The scheme was confirmed because the actuarial and peer review evidence showed that the transfer would not materially adversely affect policy holders or third party claimants, Gordian would remain substantially above APRA minimum capital requirements after the transfer and capital reductions, the procedural requirements in s 17C(2) and Prudential Standard GPS 410 as modified by prior orders had been satisfied, and APRA did not object.

Jurisdiction
Australia
Judgment Date
05 September 2011
Procedural Posture
Application Under S 17 F of the Insurance Act 1973 (cth) for Confirmation of a Scheme Transferring Inwards Reinsurance Business / Final Orders Confirming Scheme
Outcome
Scheme confirmed.
Legal Topics
['transfer of Insurance Business' 'inwards Reinsurance Business' 'scheme Confirmation Under Insurance Act 1973 (cth)' 'policyholder Interests' 'apra Prudential Requirements']
['insurance Law' 'prudential Regulation'] ['transfer of Insurance Business' 'inwards Reinsurance Business' 'scheme Confirmation Under Insurance Act 1973 (cth)' 'policyholder Interests' 'apra Prudential Requirements']

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Procedural Posture

Application Under S 17 F of the Insurance Act 1973 (cth) for Confirmation of a Scheme Transferring Inwards Reinsurance Business / Final Orders Confirming Scheme

Legal Issues

  1. 1 ['Whether the Court should confirm under s 17F of the Insurance Act 1973 (Cth) the scheme transferring the inwards reinsurance business carried on by Insurance Australia Limited in Australia to Gordian RunOff Limited.' 'Whether policy holders of bodies corporate affected by the scheme would be materially adversely affected by implementation of the scheme.' 'Whether the procedural requirements in s 17C(2) of the Insurance Act 1973 (Cth) and Prudential Standard GPS 410, as modified by the dispensation orders, had been satisfied.']

Ratio Decidendi

The scheme was confirmed because the actuarial and peer review evidence showed that the transfer would not materially adversely affect policy holders or third party claimants, Gordian would remain substantially above APRA minimum capital requirements after the transfer and capital reductions, the procedural requirements in s 17C(2) and Prudential Standard GPS 410 as modified by prior orders had been satisfied, and APRA did not object.

Court Disposition

Scheme confirmed.

Orders

  • ["Pursuant to s 17F of the Insurance Act 1973 (Cth), the scheme for the transfer of the inwards reinsurance business carried on by Insurance Australia Limited in Australia to Gordian RunOff Limited, a copy of which appears at pages 73 to 80 of Exhibit SOS to the affidavit of Sandra O'Sullivan sworn on 30 August...