Atradius Credit Insurance N.V., in the matter of Atradius Credit Insurance N.V. (No 2)

In the matter of Atradius Credit Insurance N.V. (No 2), Atradius Credit Insurance N.V. applied for confirmation of the transfer of its general insurance business to the Australian branch of Compañía Española de Seguros y Reaseguros de Crédito y Caución Sociedad Anonima ARBN 610 834 556 (CYC). The dispute arose because Atradius, an Australian branch of a foreign insurer, sought to transfer its business to CYC, another Australian branch of a foreign insurer. The Federal Court was required to determine whether the transfer scheme complied with the Insurance Act 1973 (Cth) and whether it would materially affect the policyholders' interests.

The court examined whether the transfer scheme complied with the procedural requirements and assessed the financial position of both Atradius and CYC. It was necessary to review the actuarial evidence to ensure the policyholders' interests would not be materially detrimentally affected by the transfer. The court also considered the pre- and post-transfer solvency positions of Atradius and CYC, including their capital adequacy multiples and excess capital. The court found that Atradius was diligent in fulfilling the procedural requirements and that the transfer scheme complied with the statutory provisions. The court was satisfied that the interests of the policyholders would not be materially adversely affected by the transfer, and the financial position of CYC was sufficiently robust to handle the transferred business.

The court confirmed the scheme for the transfer of Atradius' insurance business to CYC without modification, effective from 1 November 2016. The court ordered that Atradius pay the Australian Prudential Regulation Authority's costs of the proceedings as agreed or, if no agreement could be reached, as taxed. The orders were to be entered forthwith, and reasons for the decision were to be published.