FEDERAL COURT OF AUSTRALIA Application of Royal & Sun Alliance Life Assurance Australia Ltd [2002] FCA 1392 INSURANCE – confirmation of scheme transferring life insurance business Life Insurance Act 1995 (Cth), ss 193, 194 APPLICATION OF ROYAL & SUN ALLIANCE LIFE ASSURANCE AUSTRALIA LIMITED and ROYAL SUN ALLIANCE FINANCIAL SERVICES LIMITED N 908 OF 2002 GYLES J SYDNEY 1 NOVEMBER 2002 IN THE FEDERAL COURT OF AUSTRALIA NEW SOUTH WALES DISTRICT REGISTRY N 908 OF 2002 APPLICATION OF: ROYAL & SUN ALLIANCE LIFE ASSURANCE AUSTRALIA LIMITED AND: FIRST APPLICANT ROYAL & SUN ALLIANCE FINANCIAL SERVICES LIMITED SECOND APPLICANT JUDGE: GYLES J DATE OF ORDER: 1 NOVEMBER 2002 WHERE MADE: SYDNEY THE COURT ORDERS THAT: The application stand down for short minutes of order to be brought in. Note: Settlement and entry of orders is dealt with in Order 36 of the Federal Court Rules. IN THE FEDERAL COURT OF AUSTRALIA NEW SOUTH WALES DISTRICT REGISTRY N 908 OF 2002 APPLICATION OF: ROYAL & SUN ALLIANCE LIFE ASSURANCE AUSTRALIA LIMITED FIRST APPLICANT AND: ROYAL & SUN ALLIANCE FINANCIAL SERVICES LIMITED SECOND APPLICANT JUDGE: GYLES J DATE: 1 NOVEMBER 2002 PLACE: SYDNEY REVISED EX TEMPORE REASONS FOR JUDGMENT 1 This is an application pursuant to ss 193 and 194 of the Life Insurance Act 1995 (Cth) ("the Act") for confirmation of a scheme for the transfer of life insurance business between related companies. I am satisfied that the requirements of the Act and the Life Insurance Regulations 1995 (Cth) have been met so far as procedure is concerned. 2 The principles applicable to the substance of confirmation of a scheme were discussed by Katz J in a previous application involving one of these applicants (Re Application of Royal & Sun Alliance Life Assurance Ltd [2000] FCA 1259), where his Honour particularly referred to s 3(1) of the Act setting out that the object of the Act is to protect the interests of the owners and prospective owners of life insurance policies in a manner consistent with the continued development of a viable competitive and innovative life insurance industry. Bearing those principles in mind, I am satisfied that the scheme as now proposed, with modifications, is appropriate for confirmation. I have particularly taken into account in coming to that conclusion, firstly, the attitude of the Australian Prudential Regulatory Authority; secondly, the evidence of the appointed actuary and thirdly, the evidence of Mr Glading who gave independent evidence about the matter. I am of the opinion that there should be some publicity attached to the confirmation of the scheme, even though there is no statutory requirement for this, as there is no proposal to advise policyholders individually. I certify that the preceding two (2) numbered paragraphs are a true copy of the Reasons for Judgment herein of the Honourable Justice Gyles. Associate: Dated: 13 November 2002 Counsel for the Applicant: Dr GA Flick SC Solicitor for the Applicant: Ebsworth & Ebsworth Solicitor for APRA: D Boyce, Australian Government Solicitor Date of Hearing: 1 November 2002 Date of Judgment: 1 November 2002