NOTICE OF INTENTION TO APPLY TO THE FEDERAL COURT FOR CONFIRMATION OF SCHEME UNDER DIVISION 3A OF PART III OF THE INSURANCE ACT 1973 (CTH) TO TRANSFER THE INSURANCE BUSINESS OF GENERAL REINSURANCE AG (AUSTRALIAN BRANCH) TO GENERAL REINSURANCE AUSTRALIA LTD
Notice is given that General Reinsurance Australia Ltd ABN 16 008 427 450 (GRA) proposes to make an application to the Federal Court of Australia seeking confirmation of a scheme under Division 3A of Part III of the Insurance Act 1973 (Cth) to transfer all of the insurance business of the Australian Branch of General Reinsurance AG ABN 58 001 122 130 (formerly known as Kolnische Ruckversicherungs-Gesellschaft or Cologne Re Australia) (GRAG) to GRA.
Each of GRAG and GRA is part of the General Reinsurance group of companies and the scheme is being undertaken as part of an internal reorganisation of the group.
As a consequence of the scheme, GRA will be substituted for GRAG under policies issued or underwritten by GRAG.
The date fixed for the hearing of the application is 28 November 2014 at 10:15am or on such other date as the Court appoints. The hearing will be held at the New South Wales Registry of the Federal Court of Australia which is located at the Law Courts Building, Queens Square, Sydney NSW 2000.
Any policyholder who may be affected by the scheme can ask, to be heard by the Court on the application for the confirmation of the scheme.
It is important that policyholders affected by the scheme take notice of the scheme and consider whether they wish to attend the hearing. If a policyholder wishes to be heard at the hearing, it would assist if you let Dean Carrigan of Clyde & Co Australia know (by phone: 02 9210 4400 or email: dean.carrigan@clydeco.com) at least 3 days before the date fixed for hearing.
Copies of this notice, the scheme, a summary of the scheme and the actuarial report on which the scheme is based are accessible on www.genre.com. Copies of these documents will also be available for inspection by affected policyholders between 7 October 2014 to 30 October 2014 (inclusive), between 9:00am and 5:00pm (local time) Monday to Friday (other than public holidays) at the following addresses:
New South Wales General Reinsurance Australia Ltd Level 20, 1 O’Connell Street Sydney NSW 2000 | South Australia Deloitte 11 Waymouth Street Adelaide SA 5000 |
Victoria General Reinsurance Australia Ltd Level 5, 520 Collins Street Melbourne VIC 3000 | Tasmania Deloitte Level 8, 22 Elizabeth Street
Hobart Tasmania 7000
|
Queensland Deloitte Level 25&26, 123 Eagle Street Brisbane QLD 4000 | Australian Capital Territory Deloitte Level 1, 9 Sydney Avenue Barton Canberra ACT 2600 |
Western Australia Clyde & Co Australia Level 28, 197 St Georges Terrace Perth WA 6000 | Northern Territory Deloitte Level 11, 24 Mitchell Street Darwin NT 0800 |
A policyholder affected by the scheme may also obtain a copy of the scheme free of charge by contacting Mr Herman Beukes, Chief Financial Officer, GRA by calling 02 8236 6167.
If a policyholder has any questions in relation to the scheme or any information contained in this notice, please contact Mr Herman Beukes, Chief Financial Officer, GRA by calling 02 8236 6167.
Overview
The notice pertains to the Insurance Act 1973 (Cth), which was enacted to regulate the insurance industry in Australia, ensuring consumer protection and market stability. This particular notice is regarding a scheme under Division 3A of Part III of the Insurance Act 1973, introduced to facilitate the internal reorganisation within the General Reinsurance group of companies by transferring the insurance business of General Reinsurance AG (Australian Branch) to General Reinsurance Australia Ltd. The Federal Court of Australia is the enacting body, with the objective of confirming the scheme's fairness and legality to protect the interests of policyholders. The public notice is a requirement under the Act, aimed at ensuring transparency and allowing affected policyholders to voice their concerns or objections at the hearing.
Scope and Application
The notice pertains to the application under Division 3A of Part III of the Insurance Act 1973 (Cth) by General Reinsurance Australia Ltd to the Federal Court of Australia, seeking confirmation of a scheme to transfer the insurance business of the Australian Branch of General Reinsurance AG to General Reinsurance Australia Ltd. This scheme applies to entities within the General Reinsurance group, specifically involving the substitution of General Reinsurance Australia Ltd for General Reinsurance AG under policies issued or underwritten by the latter. The legislation applies at a national level, given the Commonwealth nature of the Insurance Act 1973, and the Federal Court of Australia has jurisdiction over the application. The scope includes all policyholders potentially affected by the transfer of insurance business, providing them with an opportunity to be heard at the hearing of the application. The notice outlines specific procedural steps for policyholders to follow if they wish to participate in the hearing, including contacting Dean Carrigan of Clyde & Co Australia in advance. The notice also provides details on where and when the relevant documents can be accessed and inspected by interested parties across various states and territories in Australia. The application and subsequent scheme do not specify any exclusions, exemptions, or thresholds within the provided notice; however, the detailed scheme and supporting documents are accessible for review. The Act may be subject to further clarification or conditions through subordinate instruments related to the specific terms of the scheme.
Key Provisions
The primary operative section referenced here is the notice of intention to apply to the Federal Court for confirmation of a scheme under Division 3A of Part III of the Insurance Act 1973 (Cth). This notice (sections 1-5) informs stakeholders of General Reinsurance Australia Ltd’s (GRA) application to transfer all insurance business from General Reinsurance AG (Australian Branch) (GRAG) to GRA. This transfer is part of an internal reorganisation within the General Reinsurance group of companies. The scheme will result in GRA replacing GRAG under all policies issued or underwritten by GRAG (section 6). The notice specifies the hearing date and location for the application, set for 28 November 2014 at 10:15am at the New South Wales Registry of the Federal Court of Australia in Sydney (section 7).
The Act imposes obligations on GRA and GRAG to notify policyholders about the scheme and provide them with an opportunity to be heard at the Federal Court hearing if they wish to do so (section 8). The notice must be given in a manner that ensures policyholders, who might be affected by the scheme, are informed and have the opportunity to voice any concerns they may have regarding the transfer of their insurance business (section 9). The notice also requires that affected policyholders be informed about the availability of copies of the scheme, a summary of the scheme, and the actuarial report that underpins the scheme. These documents are accessible on the GRA website and available for inspection at specified locations across Australia from 7 October 2014 to 30 October 2014 (section 10). Policyholders are further encouraged to contact GRA's Chief Financial Officer, Mr Herman Beukes, should they have any questions or need clarification regarding the scheme (section 11).
The consequences for breach of the Insurance Act 1973 (Cth) are not explicitly detailed in this notice. However, generally, breaches of the Act can lead to both civil and criminal penalties. Civil penalties may include fines and compensation orders, while criminal penalties may involve imprisonment or fines, depending on the severity of the breach. The specific penalties would be determined by the Federal Court if a breach is found to have occurred. The exact penalties are not stated in this notice but can be found in the relevant sections of the Act (section 12).