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 St Andrew’s Insurance (Australia) Pty Ltd (ABN 89 075 044 656) to Hallmark General Insurance Company Ltd (ABN 82 008 477 647).
Notice is given that St Andrew’s Insurance (Australia) Pty Ltd (ABN 89 075 044 656) (St Andrew’s General) intends to apply to the Federal Court of Australia (the Court) for orders confirming a scheme under Division 3A of Part III of the Insurance Act 1973 (Cth) for the transfer of the insurance business carried on by St Andrew’s General in Australia (Insurance Business) to Hallmark General Insurance Company Ltd (ABN 82 008 477 647) (Hallmark General). Hallmark General and St Andrew’s General are both wholly owned by St Andrew’s Australia Services Pty Ltd (ABN 75 097 464 616).
If the Scheme is confirmed by the Court, the Insurance Business of St Andrew’s General will be transferred to Hallmark General and Hallmark General will be substituted for St Andrew’s General as the insurer under policies underwritten by St Andrew’s General. Any future claims made in respect of those policies will be handled by Hallmark General. The process to lodge a claim under a transferring policy will not change.
Persons affected by the Scheme may request to be heard by the Court.
The hearing of the application will be held on 30 July 2024 (or on such other date as the Court appoints) at the Federal Court of Australia, which is located at 184 Phillip Street, Sydney NSW 2000.
Any person who in the Court's opinion may be 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.
Affected Policyholders are encouraged to take notice of the Scheme and consider whether they wish to attend and be heard at the hearing. If you wish to be heard at the hearing on 30 July 2024, kindly inform our lawyer, Ms Natalie Caton of DLA Piper Australia at least three (3) days before that date. Ms Caton’s contact details are as follows:
DLA Piper Australia Level 22, 1 Martin Place Sydney, NSW 2000. Telephone No. : (07) 3246 4161 Email: natalie.caton@dlapiper.com | |
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 David Goodsall of Synge & Noble upon which the Scheme is based (collectively the Scheme Documents) will be available at www.standrews.com.au from 12 June 2024 until the date of the hearing.
On request, an Affected Policyholder may obtain a full copy of the Scheme Documents by contacting St Andrew’s Head office on 1300 737 211 during the hours of 8:30am to 7:00pm Monday to Friday AEST or by email at schemedocuments@standrews.com.au .
Affected Policyholders may also obtain copies (free of charge) or inspect the Scheme Documents between 12 June 2024 to 5 July 2024 (inclusive), between 9:00am and 5:00pm, Monday to Friday (other than weekends and public holidays) at the offices of DLA Piper Australia or Ernst & Young and HWL Ebsworth at the following addresses:
New South Wales DLA Piper Level 22 1 Martin Place Sydney NSW 2000 | Victoria DLA Piper Level 14 80 Collins Street Melbourne VIC 3000 |
Queensland DLA Piper Level 28 480 Queen Street Brisbane QLD 4000 | Western Australia DLA Piper Level 21 240 St Georges Terrace Perth WA 6000 |
South Australia Ernst & Young Level 12 EY Building 121 King William Street Adelaide SA 5000 | Tasmania HWL Ebsworth Level 9 85 Macquarie Street Hobart, TAS 7000 |
Australian Capital Territory Ernst & Young Level 11 121 Marcus Clarke Street Canberra ACT 2601 | Northern Territory HWL Ebsworth Level 9 Mitchell Centre 59 Mitchell Street Darwin NT 0800 |
Should you require any further information or have any concerns about the proposed Scheme, please contact St Andrew’s General Head Office on 1300 737 211 during the hours of 8:30am to 7:00pm Monday to Friday AEST (except public holidays).
Overview
The Insurance Act 1973, enacted by the Commonwealth Parliament, governs the regulation and operation of the insurance industry in Australia, addressing various issues such as solvency, consumer protection, and the transfer of insurance businesses. The Act provides a framework for ensuring that insurance companies maintain sufficient financial resources to meet their obligations to policyholders. This notice pertains to a proposed scheme under Division 3A of Part III of the Act, which facilitates the transfer of St Andrew’s Insurance (Australia) Pty Ltd’s insurance business to Hallmark General Insurance Company Ltd. The policy objective of this scheme is to ensure a smooth and orderly transfer of insurance policies and obligations, thereby protecting policyholders' interests and maintaining stability within the insurance market.
Scope and Application
The notice pertains to an application under the Insurance Act 1973 (Cth) for the Federal Court to confirm a scheme for the transfer of the insurance business of St Andrew’s Insurance (Australia) Pty Ltd to Hallmark General Insurance Company Ltd. This process involves the substitution of Hallmark General as the insurer for policies previously underwritten by St Andrew’s General, affecting all policyholders of St Andrew’s General. The scheme impacts any person or entity that holds a policy with St Andrew’s General, ensuring that claims processes remain unchanged while future claims will be managed by Hallmark General. The application is subject to the jurisdiction of the Commonwealth and will be heard by the Federal Court of Australia in Sydney, with the hearing scheduled for 30 July 2024, or another date as appointed by the Court. Affected policyholders have the right to request to be heard by the Court if they have concerns regarding the proposed scheme. The scheme documents, including the actuarial report, will be available for review at specified locations and online from 12 June 2024, allowing policyholders to obtain information and seek legal advice if necessary.
Key Provisions
The main operative sections of the notice (sections 1-4) outline St Andrew’s Insurance (Australia) Pty Ltd's intention to apply to the Federal Court for confirmation of a scheme under Division 3A of Part III of the Insurance Act 1973 (Cth). The notice informs that if the scheme is confirmed, the insurance business of St Andrew’s General will be transferred to Hallmark General Insurance Company Ltd, and Hallmark General will assume responsibility for any future claims on policies previously underwritten by St Andrew’s General. The notice also specifies the date and location of the hearing, and encourages affected policyholders to attend and be heard at the Federal Court. The Scheme Documents, including the Notice, the Scheme, a summary of the Scheme, and the Actuarial Report, will be made available for inspection and copying from 12 June 2024 onwards at various locations.
The Act imposes several obligations and requirements on the parties involved. St Andrew’s General must provide a notice of their intention to apply for the scheme, which must include detailed information about the proposed transfer and the process for affected policyholders to attend and be heard at the Court hearing (section 5). The Court is required to provide a venue and date for the hearing, and must consider the application in accordance with the provisions of Division 3A of Part III of the Insurance Act 1973 (Cth). Affected policyholders have the right to request to be heard by the Court and to obtain copies of the Scheme Documents (section 6). St Andrew’s General and Hallmark General must ensure that the Scheme is fair and equitable, and that it does not adversely affect the rights of policyholders.
Failure to comply with the provisions of the Insurance Act 1973 (Cth) and the requirements set out in the notice could result in legal consequences. While the notice does not specify maximum penalties for non-compliance, breaches of the Act could result in civil or criminal penalties as prescribed under the relevant sections of the Act. For example, under section 97A of the Act, a person who makes a false statement or representation in connection with a scheme may be subject to a penalty of up to five years imprisonment or a fine of up to $210,000, or both. Additionally, under section 97B of the Act, a person who fails to comply with a direction or order of the Court in relation to a scheme may be subject to a penalty of up to two years imprisonment or a fine of up to $105,000, or both. It is important for all parties involved to ensure that they comply with the requirements of the Act and the notice to avoid any potential legal consequences.