Notice of Intention to Apply to the Federal Court of Australia for Confirmation of a Scheme Under Division 3A of Part III of the Insurance Act 1973 (Cth) to Transfer the Insurance Business of FM Insurance Company Limited to Factory Mutual Insurance Company

INSURANCE ACT 1973 (CTH)

Notice of intention to apply to the Federal Court OF AUSTRALIA for confirmation of a scheme under Division 3A of Part III of the Insurance Act 1973 (Cth) to transfer the insurance business of FM INSURANCE COMPANY LIMITED TO FACTORY MUTUAL INSURANCE COMPANY.

Notice is given that FM Insurance Company Limited ARBN 007 502 829 (FMI) proposes to make an application to the Federal Court of Australia (the Court) seeking confirmation of a scheme under Division 3A of Part III of the Insurance Act 1973 (Cth) to transfer its run-off portfolio insurance business (Insurance Business) to Factory Mutual Insurance Company ARBN 163 108 861 (FMIC) (Scheme). FMI and FMIC are both part of the FMIC (US) global parent group of companies and the Scheme is being undertaken as part of an internal reorganisation of the FMIC (US) group.

Should the Scheme be confirmed by the Court, the Insurance Business of FMI will be transferred to FMIC and FMIC will be substituted for FMI under policies underwritten by FMI on or about 20 December 2021.

The hearing of the application has been fixed on 20 December 2021 or on such other date as the Court appoints.  The hearing will be held at the Federal Court of Australia, which is located at 184 Phillip Street, Sydney NSW 2000.

Any person holding a policy underwritten by FMI or who in the Court's opinion is otherwise affected by the Scheme (Affected Policyholders), has the right to attend the Court hearing and request to be heard by the Court on the application for confirmation of the Scheme. On request, each affected policyholder may obtain a full copy of the Scheme  Documents by contacting FMI on +61 2 8273 1488 or by email at lynette.schultheis@fmglobal.com.

Affected Policyholders are encouraged to take notice of the Scheme and consider whether they wish to attend and be heard at the hearing. In the event an Affected Policyholder wishes to be heard at the hearing, kindly inform our lawyer, Mr Jonathon Ellis of DLA Piper Australia at least three (3) days before the date fixed for hearing. Mr Ellis’ contact details are as follows:

Affected Policyholders are not required to take any action if they have no objection to the Scheme.

Copies of this Notice, the Scheme, a summary of the Scheme approved by the Australian Prudential Regulation Authority (Scheme Summary) and the Actuarial Report prepared by Daniel Smith of Taylor Fry dated 9 November 2021 upon which the Scheme is based (collectively the Scheme Documents) will be available on www.fmglobal.com.au from 15 November 2021 until the date of the hearing.

Please contact FMI’s dedicated Scheme hotline by calling +61 2 8273 1488 for any queries by Affected Policyholders in relation to the Scheme or any matter contained in this Notice.  An Affected Policyholder may additionally request a copy of the Scheme Documents (free of charge) by contacting the Scheme hotline referred to above.

It is recommended that each Affected Policyholder obtains and reviews the Scheme Documents for further information on the impact of the Scheme on their rights and interests.