Notice of Intention to make an Application to the Federal Court of Australia for confirmation of a Scheme for the transfer of the intermediated insurance business of Insurance Australia Limited (ABN 11 000 016 722) to CGU Australia Pty Limited (ABN 62 004 478 960) under Division 3A of Part III of the Insurance Act 1973 (Cth)

Overview

The Insurance Act 1973 (Cth) was enacted to provide a legislative framework for the insurance industry in Australia, ensuring the proper conduct of insurers and the protection of policyholders. This Act was introduced to address the need for regulation and oversight of the insurance sector to maintain financial stability and consumer confidence. The Insurance Act 1973 (Cth) was passed by the Australian Parliament with the policy objective of safeguarding the interests of policyholders and promoting a fair and efficient insurance market. This particular notice, issued under the Act, pertains to a proposed scheme for the transfer of the intermediated insurance business of Insurance Australia Limited (IAL) to CGU Australia Pty Limited (CGUA), part of the Insurance Australia Group Limited (IAG). The notice informs affected policyholders of their rights and the opportunity to be heard at a Federal Court hearing regarding the scheme's confirmation.

Scope and Application

This notice informs the public that Insurance Australia Limited (IAL) and CGU Australia Pty Limited (CGUA), both part of the Insurance Australia Group, intend to apply to the Federal Court of Australia for confirmation of a scheme under Division 3A of Part III of the Insurance Act 1973 for the transfer of IAL's intermediated insurance business to CGUA as part of an internal reorganisation. The proposed scheme, if confirmed by the Court, will result in the transfer of certain insurance policies issued by IAL to CGUA, with CGUA becoming the insurer under these policies. Any future claims related to these policies will need to be made to CGUA. Affected policyholders have the right to attend the Court hearing on 1 September 2025, request to be heard on the application, and obtain free copies of the scheme documents. The scheme documents will be available on the specified IAG website from 1 July 2025 until the application is heard by the Court. Affected policyholders can also request or inspect copies of these documents at specified locations across Australia during a particular period. No action is required from affected policyholders who have no objections to the scheme, though it is recommended they review the scheme documents to understand its impact on their rights and interests.

Key Provisions

The key operative sections of this notice pertain to the 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) (sections 1-2). This scheme involves the transfer of the intermediated insurance business of Insurance Australia Limited (IAL) to CGU Australia Pty Limited (CGUA). The notice informs all relevant parties that such an application will be made and provides details on how affected policyholders can be heard in the proceedings and access the necessary documents. The hearing will take place at the Federal Court of Australia on 1 September 2025 (section 3). Affected policyholders, those whose insurance policies are subject to the transfer, have specific rights and obligations under this notice. They are entitled to attend the Court hearing and request to be heard on the application for confirmation of the scheme (section 4). They also have the right to inspect and obtain a copy of the scheme and related documents, such as the approved summary, actuarial reports, and peer reviews, free of charge (section 5). These documents will be available on the IAG website and at various King & Wood Mallesons offices and WL Ebsworth offices across Australia from 1 July 2025 until the hearing date (section 6). Policyholders should contact IAL's representative to request these documents if they wish to review them. Failure to comply with the obligations set out in this notice may result in adverse consequences for affected policyholders. Although no specific offences or penalties are outlined in this notice, policyholders who do not review the scheme documents or who fail to notify IAL and CGUA’s lawyers of their intention to be heard at the hearing may miss an opportunity to voice their concerns and potentially influence the outcome of the scheme confirmation process. This could lead to changes in their insurance coverage terms without their direct input, which might have unforeseen implications for their rights and interests. The notice also highlights that affected policyholders are not required to take any action if they have no objections to the proposed scheme. However, it is strongly recommended that they obtain and review a copy of the scheme documents to understand the impact on their rights and interests fully. This proactive step ensures that policyholders are well-informed and can make any necessary arrangements or decisions in light of the proposed changes. For further information or any concerns regarding the scheme, policyholders are encouraged to contact IAL’s representative during the specified dates and times provided in the notice.