RE ZÜRICH LEBENSVERSICHERUNGS-GESELLSCHAFT AG (also known as ZURICH LIFE INSURANCE COMPANY LTD) AND ANOTHER

RE ZÜRICH LEBENSVERSICHERUNGS-GESELLSCHAFT AG (also known as ZURICH LIFE INSURANCE COMPANY LTD) AND ANOTHER

The Scheme was sanctioned because statutory requirements under s24 were satisfied, the Independent Actuary concluded there would be no material adverse effect on policyholders (including on reasonable expectations and financial security), the Insurance Authority raised no objection and the Scheme is fair between...

Source-derived case information.

Citation
[2021] HKCFI 2447
Parties
Petitioner: Zürich Lebensversicherungs-Gesellschaft AG (also known as Zurich Life Insurance Company Ltd); Petitioner: Zurich Life Insurance (Hong Kong) Limited; Respondent: Insurance Authority
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
20 August 2021
Case Number
HCMP460/2021
Procedural Posture
Petition Under Sections 24 and 25 of the Insurance Ordinance (cap.41) for Sanction of a Transfer Scheme / Sanction Hearing and Reasons for Judgment (order Made)
Outcome
Scheme sanctioned and Order made under sections 24 and 25 of the Insurance Ordinance (Cap.41)
Legal Topics
Scheme Transfer Under Insurance Ordinance, Portfolio/asset and Liability Transfer, Actuarial Opinion and Solvency, Regulatory Approvals (sfc, Insurance Authority), Disclosure of Transfer Agreements
Source Language
en
Insurance Law Financial Regulation Corporate Law Administrative Law Scheme Transfer Under Insurance Ordinance Portfolio/asset and Liability Transfer Actuarial Opinion and Solvency Regulatory Approvals (sfc, Insurance Authority) +1 more

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Parties

Zürich Lebensversicherungs-Gesellschaft AG (also known as Zurich Life Insurance Company Ltd)

Petitioner

Zurich Life Insurance (Hong Kong) Limited

Petitioner

Insurance Authority

Respondent

Procedural Posture

Petition Under Sections 24 and 25 of the Insurance Ordinance (cap.41) for Sanction of a Transfer Scheme / Sanction Hearing and Reasons for Judgment (order Made)

Legal Issues

  1. 1 Whether statutory requirements of s24(2) and s24(3) of the Insurance Ordinance were satisfied
  2. 2 Whether the court should exercise its discretion to sanction the intra-group transfer of long term business
  3. 3 Whether the transfer would materially adversely affect contractual rights or reasonable expectations of transferring and non-transferring policyholders

Ratio Decidendi

The Scheme was sanctioned because statutory requirements under s24 were satisfied, the Independent Actuary concluded there would be no material adverse effect on policyholders (including on reasonable expectations and financial security), the Insurance Authority raised no objection and the Scheme is fair between affected classes; accordingly the court exercised its discretion to sanction and made ancillary orders under s25.

Court Disposition

Scheme sanctioned and Order made under sections 24 and 25 of the Insurance Ordinance (Cap.41)

Orders

  • All contracts, rights, obligations and commitments of ZLIC with respect to the Transferring Policies and ZLIC HK Business shall, on and from the Transfer Date, be transferred to and vested in ZLIHK pursuant to s25 of the Ordinance
  • Petitioners to post the Order (with Annexures), the Petition, the Independent Actuary’s Report and Supplementary Report and this Order on their website and maintain posting until the Transfer Date