Munich Reinsurance America Inc, in the matter of Munich Reinsurance America Inc [2010] FCA 948

FEDERAL COURT OF AUSTRALIA

Munich Reinsurance America Inc, in the matter of Munich Reinsurance America Inc [2010] FCA 948 Citation: Munich Reinsurance America Inc, in the matter of Munich Reinsurance America Inc [2010] FCA 948

Parties: MUNICH REINSURANCE AMERICA, INC (ABN 20 000 857 698); GREAT LAKES REINSURANCES (UK) PLC (ARBN 127 740 532); AND MUNCHENER RUCKVERSICHERUNGS-GESELLSCHAFT (ABN 90 009 763 526)

File number(s): NSD 823 of 2010

Judge: EMMETT J

Date of judgment: 13 August 2010

Legislation: Insurance Act 1973 (Cth) ss 17B and 17C

Date of hearing: 13 August 2010

Place: Sydney

Division: GENERAL DIVISION

Category: No catchwords

Number of paragraphs: 36

Counsel for the Applicants: R.S. Hollo & R. Notley

Solicitor for the Applicants: Allens Arthur Robinson

IN THE FEDERAL COURT OF AUSTRALIA

NEW SOUTH WALES DISTRICT REGISTRY

GENERAL DIVISION NSD 823 of 2010

IN THE MATTER OF MUNICH REINSURANCE AMERICA INC (ABN 20 000 857 698) MUNICH REINSURANCE AMERICA, INC (ABN 20 000 857 698); GREAT LAKES REINSURANCES (UK) PLC (ARBN 127 740 532); AND MUNCHENER RUCKVERSICHERUNGS-GESELLSCHAFT (ABN 90 009 763 526)

JUDGE: EMMETT J

DATE OF ORDER: 13 AUGUST 2010

WHERE MADE: SYDNEY

THE COURT ORDERS THAT:

1. In relation to the proposed scheme for the transfer of the direct insurance business carried on by Munich Reinsurance America Inc (MRAm) in Australia to the Australian branch of Great Lakes Reinsurance (UK) plc (the Direct Insurance Scheme), the need for the applicant to comply with s 17C(2)(c) of the Insurance Act 1973 (Cth) (the Act) is, pursuant to s 17C(5) of the Act, dispensed with provided that the applicant complies with orders 2 and 3 below. 2. In relation to the Direct Insurance Scheme, the applicant cause a copy of the summary of the Direct Insurance Scheme approved by the Australian Prudential Regulation Authority (the Approved Insurance Summary) to be sent by pre-paid post to: (a) all policyholders of MRAm that have open claims relating to insurance policies issued by MRAm as identified by the searches referred to in the affidavit of Andrew Priest affirmed 11 August 2010 (the Affidavit), to the most recent address identified in those searches; (b) all policyholders of MRAm with a policy of insurance issued by or on behalf of MRAm through its agency arrangements with the following Managing General Agents (General agents). (i) Lawcover Pty Ltd; (ii) Sportscover Australia Pty Ltd; (iii) Triton Underwriting Insurance Agency Pty Limited; and (iv) Direct Underwriting Agency Pty Limited, for whom MRAm has been able to verify address details through the verification process referred to in the Affidavit and for whom the applicant has an address, to the most recent address identified in the verification process; (c) each MGA and Sportscover insurance broker identified in the Affidavit and for which MRAm has been able to confirm or verify address details through the searches and verification process referred to in the Affidavit, to the most recent address identified in those searches and verification process, together with a request that each such MGA and Sportscover insurance broker provide a copy of the Approved Insurance Summary to any policyholder of MRAm with whom the insurance intermediary has contact in the period until 1 October 2010. 3. In relation to the Direct Insurance Scheme, the applicant cause a copy of: (a) the Approved Insurance Summary; (b) the Scheme document; (c) the notice of intention to apply to the Court; and (d) the actuarial report, to be made available via a link on the Australian website of Great Lakes Reinsurance (UK) plc until 1 October 2010. 4. In relation to the proposed scheme for the transfer of the reinsurance business carried on by MRAm in Australia to the Australian branch of Munchener Ruckversicherungs-Gesellschaft (the Reinsurance Scheme), the need for the applicant to comply with s 17C(2)(c) of the Act is, pursuant to s 17C(5) of the Act, dispensed with provided that the applicant complies with order 5 below. 5. In relation to the Reinsurance Scheme the applicant cause a copy of the summary of the scheme approved by the Australian Prudential Regulation Authority to be sent by pre-paid post to: (a) all policyholders with reinsurance policies issued by MRAm as identified by the searches referred to in the Affidavit, and for whom the applicant has an address to the most recent address disclosed on the applicant's records; and (b) each general insurer authorised by the Australian Prudential Regulation Authority to conduct new or renewal insurance business in Australia or to conduct run-off business and listed in the 'Register of Authorised Insurers' maintained by the Australian Prudential Regulation Authority and made public on its website at http://www.apra.gov.au/ as at 13 August 2010 who is not a policyholder identified by the searches referred to in the Affidavit, and for whom the applicant has an address. 6. The applicant pay the costs of the Australian Prudential Regulatory Authority of this motion as taxed or agreed. 7. The proceeding be listed for hearing before Jacobson J on 24 September 2010 at 10:15 am. 8. These orders be entered forthwith.