QBE Insurance (Australia) Ltd, in the matter of Division 3A of Part III of the Insurance Act 1973 (Cth) & QBE Insurance (Australia) Ltd (No 2)

QBE Insurance (Australia) Ltd sought confirmation of two schemes under Division 3A of Part III of the Insurance Act 1973 (Cth). The first scheme involved the transfer of the Norfolk Island insurance business of QBE Insurance (International) Limited (QII) to the Applicant. The second scheme concerned the transfer of the QBE Re and Sydney Re insurance business of QII to the Applicant, including the transfer of reinsurance contracts. The Australian Prudential Regulation Authority (APRA) was a party to the proceedings. The primary legal issues were whether the schemes were in the best interests of policyholders and whether the reinsurance orders under s 17F(2) should be made. The court examined the Applicant's efforts to inform retrocessionaires about the scheme and the minimal quantum of business in relation to the claims arising from the casualty reinsurance contracts. The court concluded that the schemes were appropriate and that the reinsurance orders should be made. The court was satisfied that the Applicant had taken the necessary steps to inform retrocessionaires and that there was no active opposition or specific concerns raised by the retrocessionaires. Additionally, the minimal quantum of business in relation to the claims arising from the casualty reinsurance contracts supported the decision to make the reinsurance orders. The court confirmed the schemes without modification and ordered the transfer of reinsurance contracts to the Applicant. The Applicant was also ordered to pay the costs of APRA in connection with the hearings.