Insurance Acquisitions and Takeovers (Insurance Australia Limited) Instrument 2025
I, Jim Chalmers, Treasurer, being satisfied of the matters in subsection 41(1) of the Insurance Acquisitions and Takeovers Act 1991, make the following decision.
Dated 25 August 2025
Dr Jim Chalmers
Treasurer
Contents
Part 1—Preliminary
1 Name
2 Commencement
3 Authority
4 Definitions
Part 2—Go-ahead decision: trigger proposal relating to CGU Australia Pty Ltd and Insurance Australia Limited
5 Unconditional go-ahead decision
Part 1—Preliminary
1 Name
This instrument is the Insurance Acquisitions and Takeovers (Insurance Australia Limited) Instrument 2025.
2 Commencement
(1) Each provision of the instrument specified in column 1 of the table commences, or is taken to have commenced, in accordance with column 2 of the table. Any other statement in column 2 has effect according to its terms.
Commencement information |
Column 1 | Column 2 | Column 3 |
Provisions | Commencement | Date/Details |
1. The whole of this instrument. | The day after this instrument is registered. | |
Note: This table relates only to the provisions of this instrument as originally made. It will not be amended to deal with any later amendments of this instrument.
(2) Any information in column 3 of the table is not part of this instrument. Information may be inserted in this column, or information in it may be edited, in any published version of this instrument.
3 Authority
This instrument is made under the Insurance Acquisitions and Takeovers Act 1991.
4 Definitions
Note: Expressions have the same meaning in this instrument as in the Insurance Acquisitions and Takeovers Act 1991 as in force from time to time—see paragraph 13(1)(b) of the Legislation Act 2003.
In this instrument:
ABN has the meaning given by the A New Tax System (Australian Business Number) Act 1999.
the Act means the Insurance Acquisitions and Takeovers Act 1991.
Part 2—Go-ahead decision: trigger proposal relating to CGU Australia Pty Ltd and Insurance Australia Limited
5 Unconditional go-ahead decision
Under section 41 of the Act, the Minister has no objection, unconditionally, to the trigger proposal by CGU Australia Pty Ltd (ABN 62 004 478 960), for CGU Australia Pty Ltd to acquire the assets, interests, rights and benefits referable to the insurance business of Insurance Australia Limited (ABN 11 000 016 722) by way of a scheme to be confirmed by the Federal Court of Australia under Division 3A of Part III of the Insurance Act 1973.
Overview
The Insurance Acquisitions and Takeovers (Insurance Australia Limited) Instrument 2025 was enacted to provide an unconditional go-ahead for the acquisition of Insurance Australia Limited's insurance business by CGU Australia Pty Ltd. This notifiable instrument was introduced to address the need for regulatory oversight and approval of significant acquisitions within the insurance sector, ensuring that such transactions comply with existing legislative frameworks and protect stakeholders' interests. The decision was made by Dr. Jim Chalmers, the Treasurer, in accordance with subsection 41(1) of the Insurance Acquisitions and Takeovers Act 1991, reflecting the policy objective of facilitating orderly and transparent insurance acquisitions while safeguarding the financial stability and competitive integrity of the market.
Scope and Application
The Insurance Acquisitions and Takeovers (Insurance Australia Limited) Instrument 2025 applies to the acquisition of the assets, interests, rights, and benefits referable to the insurance business of Insurance Australia Limited by CGU Australia Pty Ltd. This instrument is made under the Insurance Acquisitions and Takeovers Act 1991 and provides an unconditional go-ahead decision for the proposed acquisition by CGU Australia Pty Ltd, which is subject to confirmation by the Federal Court of Australia. The instrument’s provisions commence the day after it is registered. Definitions used in this instrument have the same meaning as those in the Insurance Acquisitions and Takeovers Act 1991 and the A New Tax System (Australian Business Number) Act 1999. This instrument has national reach and applies to the specified entities and their respective businesses within the Commonwealth of Australia. There are no stated exclusions, exemptions, or thresholds in this particular instrument, although the Act itself may provide for these under its broader provisions.
Key Provisions
The main operative sections of this instrument are detailed in Part 2, specifically section 5. According to section 5, the Minister, Jim Chalmers, Treasurer, has made an unconditional go-ahead decision under section 41 of the Insurance Acquisitions and Takeovers Act 1991, indicating that there are no objections to CGU Australia Pty Ltd’s proposal to acquire the assets, interests, rights, and benefits of Insurance Australia Limited’s insurance business. This decision is to be implemented through a scheme that will be confirmed by the Federal Court of Australia under Division 3A of Part III of the Insurance Act 1973.
The Act imposes several obligations and requirements on the parties involved. Firstly, CGU Australia Pty Ltd must ensure that the scheme of acquisition is in compliance with the terms specified by the Federal Court. Secondly, Insurance Australia Limited must cooperate in the transfer of its insurance business assets, interests, rights, and benefits as outlined in the scheme. Both entities are also required to adhere to any additional conditions or directions set by the Minister or the Federal Court during the confirmation process.
Any breach of the requirements or conditions set forth in this instrument may lead to legal consequences. The Insurance Acquisitions and Takeovers Act 1991 provides for various offences and penalties, which may include civil penalties for non-compliance or criminal penalties for more serious breaches. The exact penalties depend on the nature and severity of the breach, but they can include fines or imprisonment as stipulated by the relevant provisions of the Act. The Minister retains the authority to enforce these penalties and ensure that the terms of the acquisition are strictly adhered to.