American Home Assurance Company, in the matter of American Home Assurance Company (No 2) [2011] FCA 316

FEDERAL COURT OF AUSTRALIA

American Home Assurance Company, in the matter of American Home Assurance Company (No 2) [2011] FCA 316 Citation: American Home Assurance Company, in the matter of American Home Assurance Company (No 2) [2011] FCA 316

Parties: AMERICAN HOME ASSURANCE COMPANY

File number(s): NSD 1244 of 2010

Judges: EMMETT J

Date of judgment: 17 February 2011

Legislation: Corporations Act 2001 (Cth) Insurance Act 1973 (Cth) ss 17B, 17C, 17E, 17F, 62ZI

Date of hearing: 17 February 2011

Place: Sydney

Division: GENERAL DIVISION

Category: No catchwords

Number of paragraphs: 41

Counsel for the Applicant: Mr I M Jackman SC

Solicitor for the Applicant: Allens Arthur Robinson

Counsel for the Australian Prudential Regulation Authority: Mr D Sun

IN THE FEDERAL COURT OF AUSTRALIA NEW SOUTH WALES DISTRICT REGISTRY GENERAL DIVISION NSD 1244 of 2010

IN THE MATTER OF AMERICAN HOME ASSURANCE COMPANY AMERICAN HOME ASSURANCE COMPANY

JUDGE: EMMETT J DATE OF ORDER: 17 FEBRUARY 2011 WHERE MADE: SYDNEY

THE COURT ORDERS THAT:

1. Pursuant to s 17F(1) of the Insurance Act 1973 (Cth) (the Act), the scheme (the Scheme) for the transfer of the insurance business carried on by the Australian Branch of American Home Assurance Company (AHAC) to Chartis Australia Insurance Limited (CAIL), in the form of Annexure A to these orders as shown to the Court, be confirmed without modification. 2. Pursuant to s 17F(2) of the Act, and despite anything to the contrary in any reinsurance treaties or arrangements to which AHAC is a party: (a) on and from 1 March 2011, all reinsurance treaties or other reinsurance agreements responding to any policy transferred pursuant to the Scheme (Outwards Reinsurance Contracts), are valid, effective and continuing agreements between CAIL (in place of AHAC) and the parties other than AHAC to those Outward Reinsurance Contracts; (b) on and from 1 March 2011, CAIL will: (i) be bound by; (ii) perform the obligations, which prior to that date were the obligations of AHAC, under; (iii) be entitled to the benefits of and to take action under; and (iv) assume any obligations and liabilities in respect of, and relating to any matter arising out of, the Outward Reinsurance Contracts, as if it were a party, and at all times had been a party, to the Outward Reinsurance Contracts, in place of AHAC; and (c) on and from 1 March 2011, AHAC will be released from all obligations and liabilities under the Outward Reinsurance Contracts. 3. The applicant pay the costs of the Australian Prudential Regulatory Authority of this motion, as taxed or agreed. 4. These orders be entered forthwith. Note: Settlement and entry of orders is dealt with in Order 36 of the Federal Court Rules. The text of entered orders can be located using Federal Law Search on the Court's website.