MLC Lifetime Company Ltd & Anor (No. 2)

The case involved MLC Lifetime Company Limited, National Australia Financial Management Limited, and the Australian Prudential Regulation Authority. The primary dispute centred on the confirmation of two schemes: the Lifetime Scheme and the National Scheme, which aimed to amalgamate parts of the life insurance businesses of MLC Lifetime Company Limited and National Australia Financial Management Limited with that of MLC Limited. The Australian Prudential Regulation Authority did not oppose the schemes but was responsible for ensuring the protection of policyholders' interests.

The court had to determine whether the implementation of the Lifetime and National Schemes would adversely affect the reasonable expectations of policyholders regarding benefits payable. The appointed actuary provided evidence that the investment strategy, investments, investment earnings, and approach to determining bonus rates adopted by Lifetime would remain unaffected. Consequently, the court had to consider whether policyholders would be prejudiced by these schemes.

After evaluating the evidence presented, the court concluded that the terms of the policies issued to Lifetime, National, and MLC policyholders would remain unchanged. The actuary's evidence demonstrated that policyholders would not be adversely affected by the implementation of the schemes. Furthermore, APRA did not oppose the schemes, and policyholders would not bear the costs of their implementation. The court was satisfied that the interests of owners and prospective owners of life insurance policies were protected, leading to the confirmation of both the Lifetime and National Schemes.

The court ordered the confirmation of the amalgamation of the life insurance businesses in accordance with the respective schemes. Additionally, the applicants were directed to pay the costs of the proceedings as agreed or assessed by the Australian Prudential Regulation Authority. The orders were to be entered forthwith.