OnePath Life Limited, in the matter of OnePath Life Limited (No 2)

OnePath Life Limited, in the matter of OnePath Life Limited (No 2) concerned a confirmation of a scheme for the transfer of life insurance business from OnePath Life Limited to Zurich Australia Limited. The case was heard in the Federal Court of Australia, where the applicants sought confirmation of the scheme to ensure the continuity of their policyholders' rights and liabilities without any adverse effects.

The primary legal issues the court had to address were whether the proposed scheme complied with the notification requirements to policyholders and if it would adversely affect the benefit security of the policyholders. Additionally, the court needed to determine if the scheme was consistent with the statutory obligations of both OnePath Life and Zurich Australia, and if it maintained the contractual rights and benefits of the policyholders.

The court confirmed the scheme, emphasising that the scheme was designed to ensure the continuity of policyholders' rights and liabilities without any adverse effects. The appointed actuaries confirmed that the scheme would not result in any material adverse effects on the benefit security of policyholders. The court noted that both companies managed their reinsurance arrangements in accordance with regulatory frameworks, and the reinsurance treaties would continue with the same terms post-transfer. Furthermore, the court accepted the evidence that the remediation programs, supported by existing provisions, would not adversely impact the benefit security of the policyholders.

Pursuant to section 194 of the Life Insurance Act 1995 (Cth), the scheme for the transfer of all of the life insurance business of OnePath Life Limited to Zurich Australia Limited was confirmed without modification. The scheme was to take effect from 12:01am AEST on 1 August 2022. Zurich Financial Services Australia Limited was ordered to pay the costs of the proceeding of the Australian Prudential Regulation Authority as agreed or, if agreement could not be reached, as assessed.