PMI Indemnity Limited (No 2)

In the case of PMI Indemnity Limited (No 2), the primary dispute involved the transfer of the general insurance business of PMI Indemnity Limited to PMI Mortgage Insurance Limited. The matter was before the court to determine whether the proposed scheme for this transfer should be confirmed, subject to certain conditions. The case hinged on whether the interests of policyholders would be adequately protected post-transfer and whether the necessary capital injections would be made to meet regulatory requirements.

The court had to decide if the transfer of policies would maintain the integrity of the policyholders' rights, if the claims management procedures would remain unchanged, and if the new insurer, PMI Mortgage Insurance Limited, would hold sufficient capital to protect policyholders. Additionally, the court needed to consider the stance of APRA, the Australian Prudential Regulation Authority, on the confirmation of the scheme and the policyholders' right to object.

Upon evaluating the evidence, the court concluded that the policyholders' interests would indeed be adequately protected. The terms and conditions of the policies would remain unchanged, the claims management procedures would stay the same, and PMI Mortgage Insurance Limited would hold adequate capital. APRA expressed no objections to the confirmation of the scheme, and no policyholders had raised objections despite the opportunity to do so. The court confirmed the scheme but imposed conditions, including the approval by the High Court of New Zealand and the injection of capital as per the Capital Management Plan.

The final orders of the court confirmed the scheme for the transfer of the general insurance business with specific conditions, including the satisfaction of a condition in the Transfer Agreement and the injection of capital by a certain date. The applicants were also directed to file affidavit evidence regarding the satisfaction of these conditions and the capital injections. Additionally, the court set out provisions for costs, liberty to apply, and the handling of exhibits.