RE AXA CHINA REGION INSURANCE CO (BERMUDA) LTD AND ANOTHER

RE AXA CHINA REGION INSURANCE CO (BERMUDA) LTD AND ANOTHER

The Court sanctioned the Scheme because statutory requirements were met: the transferee (PIC) is authorized to carry on the transferred long-term business, the independent actuary concluded no adverse or no material adverse effects on policyholders, statutory notices and disclosures were properly made, the Insurance Authority had no objection, and the Scheme is fair between affected classes.

Citation
RE AXA CHINA REGION INSURANCE CO (BERMUDA) LTD AND ANOTHER
Parties
1st Petitioner: AXA China Region Insurance Company (Bermuda) Limited; 2nd Petitioner: Principal Insurance Company (Hong Kong) Limited; Regulatory Authority / Interested Party: Insurance Authority
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
13 August 2015
Case Number
HCMP1271/2015
Procedural Posture
Scheme for Transfer of Long Term Insurance Business Under Insurance Companies Ordinance (cap.41) / Sanction Hearing and Decision (reasons for Decision)
Outcome
Petition granted; Scheme sanction ordered
Legal Topics
Scheme of Transfer of Long Term Business, Section 24 and 25 Insurance Companies Ordinance, Policyholder Protection, Independent Actuary Report, Regulatory Approvals
Source Language
EN
Insurance Law Corporate Law Regulatory Law Trusts Law Scheme of Transfer of Long Term Business Section 24 and 25 Insurance Companies Ordinance Policyholder Protection Independent Actuary Report +1 more

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Parties

AXA China Region Insurance Company (Bermuda) Limited

1st Petitioner

Principal Insurance Company (Hong Kong) Limited

2nd Petitioner

Insurance Authority

Regulatory Authority / Interested Party

Procedural Posture

Scheme for Transfer of Long Term Insurance Business Under Insurance Companies Ordinance (cap.41) / Sanction Hearing and Decision (reasons for Decision)

Legal Issues

  1. 1 Whether the Court should sanction the transfer scheme under section 24 of the Insurance Companies Ordinance
  2. 2 Whether statutory requirements for notice and independent actuary report have been satisfied
  3. 3 Whether the transferee is authorized to carry on the long-term business to be transferred (s24(6))

Ratio Decidendi

The Court sanctioned the Scheme because statutory requirements were met: the transferee (PIC) is authorized to carry on the transferred long-term business, the independent actuary concluded no adverse or no material adverse effects on policyholders, statutory notices and disclosures were properly made, the Insurance Authority had no objection, and the Scheme is fair between affected classes.

Court Disposition

Petition granted; Scheme sanction ordered

Orders

  • Scheme sanctioning the transfer of class G and class H long-term business from AXA China Region Insurance Company (Bermuda) Limited to Principal Insurance Company (Hong Kong) Limited pursuant to section 24 of the Insurance Companies Ordinance (Cap.41)
  • Order pursuant to section 25 of the Ordinance to regulate and implement the transfer, including transfer of property and liabilities in respect of the Business