RE SUN LIFE FINANCIAL (HONG KONG) LTD

RE SUN LIFE FINANCIAL (HONG KONG) LTD

The scheme was sanctioned because the independent actuary concluded it would have no adverse effect on transferring or existing policy holders, statutory procedural and substantive requirements under section 24 were satisfied, the Insurance Authority's comments were addressed, solvency margins post-transfer remained well above the statutory minimum and the litigation risks identified were immaterial to policy holder security.

Citation
RE SUN LIFE FINANCIAL (HONG KONG) LTD
Parties
Petitioner: Sun Life Financial (Hong Kong) Limited; Petitioner: Sun Life Hong Kong Limited; Regulator: Insurance Authority of Hong Kong
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
4 October 2006
Case Number
HCMP1416/2006
Procedural Posture
Miscellaneous Proceedings (petition Under the Insurance Companies Ordinance) / Judgment on Petition to Sanction Transfer of Long Term Business
Outcome
Scheme sanctioned and order made in terms of the draft submitted
Legal Topics
Scheme of Transfer, Sanction Under Section 24, Independent Actuary Report, Solvency Margin, SFC Authorisation, Ancillary Relief Under Section 25
Source Language
EN
Insurance Law Company Law Regulatory Law Securities Law Cross Border Insolvency/regulation Scheme of Transfer Sanction Under Section 24 Independent Actuary Report +3 more

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Parties

Sun Life Financial (Hong Kong) Limited

Petitioner

Sun Life Hong Kong Limited

Petitioner

Insurance Authority of Hong Kong

Regulator

Procedural Posture

Miscellaneous Proceedings (petition Under the Insurance Companies Ordinance) / Judgment on Petition to Sanction Transfer of Long Term Business

Legal Issues

  1. 1 Whether the court should sanction the scheme of transfer under section 24 of the Insurance Companies Ordinance
  2. 2 Whether statutory procedural and substantive requirements under section 24 were complied with
  3. 3 Whether the transfer would have an adverse effect on reasonable benefit expectations or financial security of transferring or existing policy holders

Ratio Decidendi

The scheme was sanctioned because the independent actuary concluded it would have no adverse effect on transferring or existing policy holders, statutory procedural and substantive requirements under section 24 were satisfied, the Insurance Authority's comments were addressed, solvency margins post-transfer remained well above the statutory minimum and the litigation risks identified were immaterial to policy holder security.

Court Disposition

Scheme sanctioned and order made in terms of the draft submitted

Orders

  • Scheme for transfer of Original SLHK long term business to New SLHK sanctioned
  • Order made in terms of the draft petition and ancillary relief as sought under section 25