Zurich Australian Insurance Limited, in the matter of Zurich Australian Insurance Limited (No 2) [2018] FCA 2067

Zurich Australian Insurance Limited, in the matter of Zurich Australian Insurance Limited (No 2) [2018] FCA 2067

The scheme was confirmed because the statutory preconditions had been complied with or dispensed with, the dispensation orders had been complied with, the remaining contractual conditions precedent apart from Court approval had been satisfied, the actuarial evidence showed the interests of transferring policyholders and other affected policyholders would not be materially adversely affected, financial security was supported by the reinsurance and trust arrangements and Gordian's capital position, and neither APRA, SIRA nor any other person objected.

Jurisdiction
Australia
Judgment Date
18 December 2018
Procedural Posture
Application for Confirmation of a Scheme for Transfer of Insurance Business Under S 17 F of the Insurance Act 1973 (cth) / Confirmation Hearing and Final Orders
Outcome
Scheme confirmed without modification and ancillary transfer and costs orders made.
Legal Topics
['transfer of Insurance Business' 'compulsory Third Party Insurance' 'reinsurance Arrangements' 'security Agreement' 'statutory Preconditions for Confirmation of Scheme']
['insurance' 'commercial and Corporations'] ['transfer of Insurance Business' 'compulsory Third Party Insurance' 'reinsurance Arrangements' 'security Agreement' 'statutory Preconditions for Confirmation of Scheme']

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Procedural Posture

Application for Confirmation of a Scheme for Transfer of Insurance Business Under S 17 F of the Insurance Act 1973 (cth) / Confirmation Hearing and Final Orders

Legal Issues

  1. 1 ['Whether the statutory preconditions for an application to confirm the scheme under s 17F(1) of the Insurance Act 1973 (Cth) had been complied with or dispensed with.' "Whether the Court's dispensation orders made on 17 October 2018 had been complied with." 'Whether the scheme transferring the Zurich NSW CTP policies to Gordian should be confirmed.' "Whether Zurich's rights, benefits and obligations under the Specific Security Agreement with Cavello Bay should be transferred to Gordian under s 17F(2) of the Insurance Act 1973 (Cth)."]

Ratio Decidendi

The scheme was confirmed because the statutory preconditions had been complied with or dispensed with, the dispensation orders had been complied with, the remaining contractual conditions precedent apart from Court approval had been satisfied, the actuarial evidence showed the interests of transferring policyholders and other affected policyholders would not be materially adversely affected, financial security was supported by the reinsurance and trust arrangements and Gordian's capital position, and neither APRA, SIRA nor any other person objected.

Court Disposition

Scheme confirmed without modification and ancillary transfer and costs orders made.

Orders

  • ['Pursuant to s 17F of the Insurance Act 1973 (Cth), the scheme in relation to the transfer of the New South Wales motor vehicle compulsory third party insurance portfolio issued by the first applicant as insurer under the NSW motor accidents CTP insurance regime governed by the Motor Accidents Act 1988 (NSW), the...