Swiss Reinsurance Company Ltd, in the matter of an application by Swiss Reinsurance Company Ltd (No 2)

The matter before the court was an application by Swiss Reinsurance Company Ltd (SRZ) for confirmation of a proposed scheme for the transfer of its Australian reinsurance business to an Australian branch of Swiss Re Asia Pte Ltd (SRALAU). Both SRZ and SRAL are foreign corporations authorised to conduct a general insurance business in Australia under the Insurance Act. The proposed scheme was part of the internal reorganisation of the Asia-Pacific reinsurance operations of the Swiss Re group. The scheme involved the transfer of all rights, obligations, insurance liabilities, assets and insurance business of SRZ's Australian branch (SRAU) to SRALAU. The key issues before the court were whether the scheme complied with the Insurance Act and whether it was in the best interests of policyholders.

The court found that the scheme complied with the Insurance Act and was in the best interests of policyholders. The court considered actuarial evidence and concluded that the transfer would not adversely impact policyholders or claimants, and that there would be no disruption of current services. The court also found that the transfer would not impact the management, governance and operational structures or the policies and claims management practices of SRAU. The court further found that the financial strength of SRAU and SRALAU was supported by the broader Swiss Re group.

The court confirmed the scheme without modification and ordered that the scheme take effect on 1 January 2020. The applicant was ordered to pay the costs of the Australian Prudential Regulation Authority as agreed or assessed. The orders were entered forthwith.