Notice of Intention to make an Application to the Federal Court of Australia for confirmation of a Scheme for the transfer of the medical malpractice insurance business of Professional Insurance Australia Pty Ltd (ACN 050 266 307) to Avant Insurance Limited (ACN 003 707 471) under Division 3A of Part III of the Insurance Act 1973 (Cth)

Notice of Intention to make an Application to the Federal Court of Australia for confirmation of a Scheme for the transfer of the medical malpractice insurance business of Professional Insurance Australia Pty Ltd (ACN 050 266 307) to Avant Insurance Limited (ACN 003 707 471) under Division 3A of Part III of the Insurance Act 1973 (Cth)

TAKE NOTICE that Professional Insurance Australia Pty Ltd (ACN 050 266 307) (“PIA”) and Avant Insurance Limited (ACN 003 707 471) (“Avant”) intend to apply at 9:30am on 13 April 2022 in the Federal Court of Australia at Law Courts Building, Queens Square, Sydney for orders confirming a scheme for the transfer of the medical malpractice insurance business of PIA to Avant (“Scheme”). 

If the Scheme is confirmed, all medical malpractice insurance policies that were issued by PIA (“Transferring Policy”) will transfer to Avant.  At the same time, Avant will be substituted for PIA as the insurer under these policies.  Any future claims made in respect of a Transferring Policy after the Scheme is confirmed will need to be made to Avant.  

Persons affected by the Scheme may request to be heard by the Court on the Scheme (see below for further details).

A Scheme Summary is being sent to each holder of a Transferring Policy (“Affected Policyholders”).

The Scheme, the Scheme Summary, this Notice of Intention and the actuarial report on which the scheme is based will also be available for inspection from 21 March 2022.   The documents will be accessible online at the following web address https://www.avant.org.au/PIA-Scheme-of-Arrangement/ from 21 March 2022 up until the time the application is heard by the Court.

Affected Policyholders may also obtain a copy of the Scheme, a summary of the Scheme that has been approved by the Australian Prudential Regulation Authority (“Scheme Summary”), this Notice of Intention, the actuarial report of Jefferson Gibbs of KPMG Australia dated 4 March 2022 on the Scheme (the “actuarial report”), free of charge by contacting PIA’s representative on 0439 550 999 during the hours of 9:00 am to 5:00 pm AEST Monday to Friday during the period 21 March 2022 to 8 April 2022 (except public holidays in New South Wales).

Affected Policyholders wishing to inspect the Scheme, the Scheme Summary, this Notice of Intention or the actuarial report may do so at the places set out below during the hours of 9:00 am to 5:00 pm AEST Monday to Friday during the period 21 March 2022 to 8 April 2022 (except public holidays in the relevant State or Territory).

Any person who, in the Court’s opinion, may be affected by the Scheme can ask the Court, at the hearing, to be heard on the application.  It is important that Affected Policyholders take notice of the Scheme and consider whether they wish to attend the hearing.  If you wish to be heard at the hearing, you may contact PIA’s and Avant’s lawyers, King & Wood Mallesons (Attention: Mandy Tsang), Level 61, Governor Phillip Tower, 1 Farrer Place, Sydney NSW 2000 (telephone 02 9296 2000 and fax 02 9296 3999) before the hearing date.

Affected Policyholders (as described in this notice) are not required to take any action if they have no objection to the proposed Scheme.

Should you require further information or have any concerns about the proposed Scheme, please contact PIA’s representative on 0439 550 999, during the dates and at the times listed in this notice.

We recommend that each Affected Policyholder obtain a copy of, and review, the Scheme, the Scheme Summary and the actuarial report, which contain a discussion of the impact of the Scheme on policyholders.

Company Secretaries

Professional Insurance Australia Pty Ltd and

Avant Insurance Limited