Re Australian Branch of Great Lakes Insurance SE (trading as Great Lakes Australia) (No 2)

The case involved an application by the Australian Branch of Great Lakes Insurance SE, trading as Great Lakes Australia (GLA), to the Federal Court of Australia seeking confirmation of a scheme for the transfer of insurance business. The scheme involved the transfer of the entire Australia general insurance business of the Australian branch of HSB Engineering Insurance Limited (HSB) to Gordian RunOff Ltd (Gordian). The primary legal issue before the court was whether the scheme complied with the requirements of the Insurance Act 1973 (Cth) and the Prudential Standards. Specifically, the court had to consider whether the evidence provided by GLA demonstrated compliance with the procedural requirements, including the dispensation orders made by the Court on 12 May 2020.

The court found that while there were minor inadequacies in the evidence dealing with compliance with the dispensation orders, these did not prevent the confirmation of the scheme. The court accepted the evidence of Ms De Beus, the project manager for the scheme, who provided detailed evidence about GLA's compliance with the procedural requirements and the dispensation orders. The court noted that the inadequacies were not significant and did not affect the overall compliance with the requirements of the Act and the Prudential Standards. The court was satisfied that the scheme was fair and reasonable and in the best interests of policyholders, creditors, and the public.

The court confirmed the scheme for the transfer of the insurance business, setting the Transfer Time as 12:01am Australian Eastern Standard Time on 1 July 2020. The court also ordered that the costs of the proceedings be paid by the Applicant as agreed or assessed. The decision demonstrated the court's willingness to ensure that the scheme was in the best interests of all stakeholders while also recognising the practical challenges faced by insurers in complying with the procedural requirements.