Notice of Intention to Apply to the Federal Court OF AUSTRALIA for Confirmation of Scheme under Division 3A of Part III of the Insurance Act 1973 (CTH) TO TRANSFER THE INSURANCE BUSINESS OF W. R. BERKLEY INSURANCE (EUROPE), lIMITED (aUSTRALIAN BRANCH) TO BERKLEY INSURANCE COMPANY (AUSTRALIAN BRANCH)
Notice is given that W. R. BERKLEY INSURANCE (EUROPE), lIMITED ABN 81 126 483 681 (W. R. Berkley) 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 W. R. Berkley to the Australian branch of Berkley Insurance Company ABN 53 126 559 706 (Berkley Insurance).
Each of W. R. Berkley and Berkley Insurance is part of an international insurance group headed by W. R. Berkley Corporation. The scheme is being undertaken as part of a business reorganisation within the group.
As a consequence of the scheme, Berkley Insurance will be substituted for W. R. Berkley under policies issued or underwritten by W. R. Berkley.
The date fixed for the hearing of the application is 27 June 2016 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.
In order to assist you in assessing whether you may be an affected policyholder of W. R. Berkley, please note the following in relation to the insurance business conducted by W. R. Berkley in Australia:
a) W. R. Berkley distributes its general insurance products only through insurance brokers and does not issue policies of insurance directly to the public;
b) Brokers offer W. R. Berkley insurance products via industry and trade associations, and business groups where products may be marketed under the name of such organisations;
c) Brokers offer W. R. Berkley insurance products via work-place and professional organisations and where the insurance cover is provided to members as part of the membership of such organisations;
d) W. R. Berkley’s insurance products include a range of public and product liability, professional indemnity, medical malpractice and management liability insurance covers.
If you have a policy of the above kind arranged through a broker, we recommend that you check whether W. R. Berkley is the insurer to determine if you may be an affected policyholder.
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 the hearing.
Copies of this notice, the scheme, a summary of the scheme and the actuarial report upon which the Scheme is based are accessible on www.berkleyinaus.com.au. Copies of the scheme and the actuarial report will also be available for inspection by affected policyholders between 25 May 2016 to 16 June 2016 (inclusive), between 9:00am and 5:00pm (local time) Monday to Friday (other than public holidays) at the following addresses:
New South Wales Clyde & Co Australia
Level 30, 420 George Street
Sydney NSW 2000 | South Australia Ernst & Young
121 King William Street
Adelaide SA 5000 |
Victoria Clyde & Co Australia
Level 26, 140 William Street
Melbourne VIC 3000 | Tasmania WLF Accounting & Advisory
Level 1, 160 Collins Street
Hobart TAS 7000 |
Queensland Clyde & Co Australia
Level 22, 12 Creek Street Brisbane QLD 4000 | Australian Capital Territory Ernst & Young
121 Marcus Clarke Street
Canberra ACT 2601 |
Western Australia Clyde & Co Australia
Level 28, 197 St Georges Terrace
Perth WA 6000 | Northern Territory Merit Partners
Level 2, 9-11 Cavanagh Street
Darwin NT 0800 |
A policyholder affected by the scheme may also obtain a copy of the scheme free of charge by contacting Mr Chris Flanagan, Regional Compliance Officer, Berkley Insurance by calling (02) 8117 2143.
If a policyholder has any questions in relation to the scheme or any information contained in this notice, please contact Mr Chris Flanagan, Regional Compliance Officer, Berkley Insurance by calling (02) 8117 2143.
Overview
The Insurance Act 1973 (Cth) was enacted to provide a framework for the regulation of insurance practices in Australia, aiming to ensure that insurance companies meet their obligations to policyholders and maintain the stability of the insurance market. The policy objective is to protect policyholders by ensuring that insurance companies are financially sound and capable of meeting their obligations, and to facilitate the orderly transfer of insurance business, which can occur through mechanisms such as the scheme confirmation process outlined in Division 3A of Part III of the Act. This piece of legislation was enacted by the Australian Parliament and addresses the need for a structured and transparent process for the transfer of insurance business between entities within an insurance group. This particular notice pertains to the proposed transfer of the insurance business of W. R. Berkley Insurance (Europe) Limited (Australian Branch) to Berkley Insurance Company (Australian Branch), as part of a business reorganisation within the international insurance group. The notice seeks confirmation from the Federal Court of Australia that the scheme complies with the requirements of the Insurance Act, thereby ensuring that the interests of policyholders are protected during the transfer process.
Scope and Application
The notice under the Insurance Act 1973 (Cth) pertains to a scheme proposed by W. R. Berkley Insurance (Europe), Limited (Australian Branch) to transfer its insurance business to Berkley Insurance Company (Australian Branch). This legislation applies to the entities involved in the proposed transfer, namely W. R. Berkley Insurance (Europe), Limited and Berkley Insurance Company, both of which are part of the larger international insurance group headed by W. R. Berkley Corporation. The scheme is being undertaken as part of an internal reorganisation within the group, and as a result, Berkley Insurance will replace W. R. Berkley under policies issued or underwritten by the latter. The notice extends to any policyholders affected by the scheme, who are encouraged to attend the hearing of the application for the confirmation of the scheme, which will be held at the New South Wales Registry of the Federal Court of Australia on 27 June 2016. The scheme applies nationally, with the hearing and subsequent inspection periods available in various locations across Australia. Any exclusions, exemptions, or thresholds are not explicitly stated in the notice, but the scheme is subject to the provisions of Division 3A of Part III of the Insurance Act 1973 (Cth).
Key Provisions
The main provisions of the notice, as per the Gazette C2016G00744, are that W. R. Berkley Insurance (Europe), Limited (Australia Branch) intends to apply to the Federal Court of Australia under Division 3A of Part III of the Insurance Act 1973 (Cth) to confirm a scheme for the transfer of its entire insurance business to Berkley Insurance Company (Australia Branch). This transfer is part of a business reorganisation within the international insurance group headed by W. R. Berkley Corporation (section 1). The hearing for this application is set for 27 June 2016 at 10:15am in Sydney, New South Wales, but may be rescheduled by the Court (section 2). The notice further explains that affected policyholders may request to be heard at the hearing and provides specific details on how they might ascertain if they are affected (section 3).
W. R. Berkley Insurance (Europe), Limited and Berkley Insurance Company, as well as any other entities involved, must adhere to the procedures outlined in the notice to ensure compliance with the Insurance Act 1973 (Cth). This includes making the scheme and relevant documents available for inspection by affected policyholders and providing contact information for those who may need further clarification. Additionally, the entities must ensure that all affected policyholders are informed of their right to be heard at the hearing and provide an avenue for policyholders to express their concerns or objections (section 4).
The notice does not explicitly outline specific offences, penalties, or consequences for breaches of the scheme or the notice itself. However, failure to comply with the requirements set out in the Insurance Act 1973 (Cth) or the terms of the scheme could potentially lead to legal consequences. In the context of insurance law, non-compliance could result in the Court refusing to confirm the scheme, which would halt the transfer of the insurance business and potentially lead to further legal actions against the entities involved for any resultant damages or losses (section 5).