W.R. Berkley Insurance (Europe) Limited, in the matter of Division 3A of Part Iii of the Insurance Act (1973) (No 3)

W.R. Berkley Insurance (Europe) Limited applied to the Federal Court of Australia to confirm a scheme for the transfer of all its Australian insurance business to Berkley Insurance Company, an Australian branch of a foreign insurer. The Federal Court was required to determine whether the transfer would be in the best interests of policyholders, as required by section 17F of the Insurance Act 1973 (Cth). The Court considered the financial stability and regulatory environment of both the transferor and transferee, and whether the policyholders would experience any material detriment as a result of the transfer. The Court was satisfied that the transfer would not result in any material detriment to policyholders, and confirmed the scheme without modification. The Court also ordered that all outward reinsurance responding to any contract transferred under the scheme, and all rights attaching to it, be transferred to Berkley Insurance Company. The scheme was ordered to take effect from 1 November 2016, and the applicant was ordered to pay the costs of the Australian Prudential Regulation Authority as agreed, or if agreement could not be reached, as taxed. The orders were to be entered forthwith, and reasons for the decision were to be published.