RE FWD LIFE INSURANCE CO (BERMUDA) LTD AND ANOTHER

RE FWD LIFE INSURANCE CO (BERMUDA) LTD AND ANOTHER

The scheme was sanctioned because the statutory conditions under section 24 were satisfied, the Independent Actuary and appointed actuaries concluded there would be no material adverse effect on policyholders' reasonable benefit expectations or financial security, the Insurance Authority had no objection, regulatory approvals were in place and the scheme as a whole was fair between affected classes; accordingly ancillary relief under section 25 was appropriate to give full effect to the transfer.

Citation
[2020] HKCFI 3049
Parties
1st Petitioner / Transferor: FWD Life Insurance Company (Bermuda) Limited; 2nd Petitioner / Transferee: Sun Life Hong Kong Limited; Regulator / Interested Party: The Insurance Authority
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
14 December 2020
Case Number
HCMP1440/2020
Procedural Posture
Scheme Sanction Under the Insurance Ordinance (cap 41) / Hearing and Decision (sanction Granted)
Outcome
Scheme sanctioned by the Court; ancillary orders under section 25 granted
Legal Topics
Scheme of Transfer, Sanction Under Sections 24 and 25 of the Insurance Ordinance, Actuarial Assessment of Policyholder Impact, Policyholder Protection
Source Language
EN
Insurance Law Company Law Regulatory Law Civil Procedure Scheme of Transfer Sanction Under Sections 24 and 25 of the Insurance Ordinance Actuarial Assessment of Policyholder Impact Policyholder Protection

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Parties

FWD Life Insurance Company (Bermuda) Limited

1st Petitioner / Transferor

Sun Life Hong Kong Limited

2nd Petitioner / Transferee

The Insurance Authority

Regulator / Interested Party

Procedural Posture

Scheme Sanction Under the Insurance Ordinance (cap 41) / Hearing and Decision (sanction Granted)

Legal Issues

  1. 1 Whether statutory requirements of section 24 were satisfied
  2. 2 Whether the scheme is fair as between affected classes and should be sanctioned
  3. 3 Whether the scheme would materially adversely affect reasonable benefit expectations of transferring policyholders

Ratio Decidendi

The scheme was sanctioned because the statutory conditions under section 24 were satisfied, the Independent Actuary and appointed actuaries concluded there would be no material adverse effect on policyholders' reasonable benefit expectations or financial security, the Insurance Authority had no objection, regulatory approvals were in place and the scheme as a whole was fair between affected classes; accordingly ancillary relief under section 25 was appropriate to give full effect to the transfer.

Court Disposition

Scheme sanctioned by the Court; ancillary orders under section 25 granted

Orders

  • Order sanctioning the Scheme annexed as Schedule 1 pursuant to section 24 of the Insurance Ordinance (Cap 41)
  • Pursuant to section 25, all contracts, rights, obligations and commitments of FWD in respect of the Transferring Policies and Business to be transferred and vested in Sun Life on and from the Transfer Date