Legal And General Assurance Society Ltd, Re [2020] EWHC 2299 (Ch) (20 August 2020)

Legal And General Assurance Society Ltd, Re [2020] EWHC 2299 (Ch) (20 August 2020)

The scheme is fair and does not materially adversely affect the interests of any class of policyholders. The independent expert, PRA, and FCA all support the scheme. The transfer will not result in a material reduction in policyholder security, expectations, or service standards. Objections do not disclose any material unfairness or adverse effect. The court is satisfied the statutory requirements are met and sanctions the scheme.

Citation
[2020] EWHC 2299 (Ch)
Parties
Transferor: Legal and General Assurance Society Limited; Transferee: ReAssure Limited; Regulator: Financial Conduct Authority; Regulator: Prudential Regulation Authority
Jurisdiction
England and Wales
Judgment Date
20 August 2020
Procedural Posture
Insurance Business Transfer Scheme Sanction Application / Final Sanction Hearing
Outcome
Scheme sanctioned
Legal Topics
Part VII Transfer, Insurance Business Transfer, Policyholder Protection, Court Sanction of Schemes, Regulatory Oversight
Insurance Law Financial Regulation Company Law Part VII Transfer Insurance Business Transfer Policyholder Protection Court Sanction of Schemes Regulatory Oversight

Case Brief

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Parties

Legal and General Assurance Society Limited

Transferor

ReAssure Limited

Transferee

Financial Conduct Authority

Regulator

Prudential Regulation Authority

Regulator

Procedural Posture

Insurance Business Transfer Scheme Sanction Application / Final Sanction Hearing

Legal Issues

  1. 1 Whether the proposed transfer scheme under Part VII FSMA is fair and does not materially adversely affect policyholders
  2. 2 Whether the court should sanction the transfer of insurance business from LGAS to ReAssure

Ratio Decidendi

The scheme is fair and does not materially adversely affect the interests of any class of policyholders. The independent expert, PRA, and FCA all support the scheme. The transfer will not result in a material reduction in policyholder security, expectations, or service standards. Objections do not disclose any material unfairness or adverse effect. The court is satisfied the statutory requirements are met and sanctions the scheme.

Court Disposition

Scheme sanctioned

Orders

  • The insurance business transfer scheme from Legal and General Assurance Society Limited to ReAssure Limited is sanctioned under Part VII of the Financial Services and Markets Act 2000.
  • All necessary ancillary orders to give effect to the scheme are granted.