Notice varying conditions on Authorisation to carry on insurance business

Insurance Act 1973

TO: Stewart Title Limited 59 101 720 101 (the general insurer)

Level 5, 54 Miller Street, NORTH SYDNEY NSW 2060 SINCE

1. APRA issued to the general insurer an Authorisation to carry on insurance business in Australia under subsection 12(1) of the Insurance Act 1973 (the Act), on 10th March 2003  (the Authorisation); and
2. the Authorisation is subject to conditions,

I, Brandon Kong Leong Khoo, a delegate of APRA, under paragraph 13(1)(b) of the Act, VARY those conditions imposed on the Authorisation in the manner specified in the attached Schedule.

When this Notice takes effect, the conditions which apply to the Authorisation are set out in the attached Schedule of consolidated conditions.

Dated: 25 February 2015

[Signed]

Brandon Kong Leong Khoo Executive General Manager Specialised Institutions Division

Interpretation Document ID: 216534

In this Notice

APRA means the Australian Prudential Regulation Authority. insurance business has the meaning given in section 3 of the Act. prudential standard has the meaning given in section 3 of the Act.

Note 1

Under subsection 13(1) of the Act, APRA may, at any time, by written notice to the general insurer

impose conditions or additional conditions or vary or revoke conditions imposed on the insurer's authorisation under section 12 of the Act. The conditions must relate to prudential matters.

Note 2

Under subsection 13(2) of the Act, a condition may be expressed to have effect despite anything in

the prudential standards.

Note 3

Under subsection 13(4) of the Act, if APRA imposes, varies or revokes the conditions on a general

insurer's authorisation, APRA must give written notice to the insurer and ensure that notice that the action has been taken is published in the Gazette.

Note 4

Under subsection 14(1) of the Act, a general insurer commits an offence if:

(a)  the insurer does an act or fails to do an act; and

(b)  doing the act or failing to do the act results in a contravention of a condition of the insurer's authorisation under section 12 of the Act; and

(c)  there is no determination in force under subsection 7(1) of the Act, that subsection 14(1) of the Act does not apply to the insurer.

The penalty is 300 penalty units. Under subsection 14(1A) of the Act, where an individual commits an offence against subsection 14(1) of the Act, because of Part 2.4 of the Criminal Code or commits an offence under Part

2.4 of the Criminal Code in relation to an offence against subsection 14(1) of the Act, the individual is punishable, on conviction, by a penalty not exceeding 60 penalty units. Under subsection 14(2) of the Act, an offence against section 14 of the Act, is an offence of strict liability.

Note 5

Under subsection 13(6) of the Act, a decision to impose conditions, or additional conditions, or to

vary the conditions on the Authorisation are reviewable decisions to which Part VI of the Act applies. If you are dissatisfied with a reviewable decision, you may seek reconsideration of the decision by APRA in accordance with subsection 63(2) of the Act. The request for reconsideration must be in writing, must state the reasons for the request, and must be given to APRA within 21 days after the decision first comes to your notice or within such further period as APRA allows. If dissatisfied with APRA’s reconsidered decision confirming or varying the first decision, you may, subject to the Administrative Appeals Act 1975, apply to the Administrative Appeals Tribunal for review of the reconsidered decision.

The address where written notice may be given to APRA is Level 26, 400 George Street, SYDNEY NSW 2000.

Schedule - the conditions which are being varied

The existing condition(s) which are to be varied:

The company shall not carry on insurance business other than the business of property title insurance business, being insurance that provides an indemnity to owners, purchasers, tenants and lenders against losses associated with title to, or conveyancing of, interests in real property.

The condition(s) as varied are:

The company shall not carry on insurance business other than the business of property title insurance business, being insurance that indemnifies an insured against losses associated with or arising from defects in the title to, or conveyancing of, interests in real property.

Schedule of consolidated conditions

The company shall not carry on insurance business other than the business of property title insurance business, being insurance that indemnifies an insured against losses associated with or arising from defects in the title to, or conveyancing of, interests in real property.