Allianz Australia General Insurance Limited, in the matter of Allianz Australia General Insurance Limited

Allianz Australia General Insurance Limited applied to the court for confirmation of a scheme to transfer its insurance business to Allianz Australia Insurance Limited. The application was made under section 17F of the Insurance Act 1973 (Cth). The primary concern was whether the implementation of the scheme would materially detrimentally affect the policyholders of the transferor. The Australian Prudential Regulation Authority opposed the application, arguing that the scheme could affect policyholders adversely, despite no changes to the policies or the management of claims.

The court had to determine if the proposed scheme would materially detrimentally affect policyholders. This involved assessing whether the transfer would lead to any changes in the terms and conditions of the policies, the management of claims, or the financial security of the policyholders. The court found that there would be no changes to the policies, the management of claims, or the financial security of the policyholders, and therefore the scheme would not materially detrimentally affect them.

The court confirmed the scheme in the form specified in Annexure ‘A’ attached to the orders. The effective date of the scheme was set as 1 September 2023. Additionally, all reinsurance contracts of the transferor that respond to any policy transferred under the scheme were required to be transferred to the transferee. The applicants were ordered to pay the costs of the proceedings of the Australian Prudential Regulation Authority as agreed or assessed.

The orders confirm the scheme for the transfer of the insurance business from Allianz Australia General Insurance Limited to Allianz Australia Insurance Limited, effective from 1 September 2023. They also require the transfer of all relevant reinsurance contracts and order the applicants to pay the costs of the proceedings.