TAL Life Insurance Services Limited, in the matter of TAL Life Insurance Services Limited [2025] FCA 130

Federal Court of Australia

TAL Life Insurance Services Limited, in the matter of TAL Life Insurance Services Limited [2025] FCA 130 File number(s): NSD 1223 of 2024

Judgment of: JACKMAN J

Date of judgment: 26 February 2025

Catchwords: INSURANCE – Application for confirmation of scheme of transfer – pursuant to section 194 of the Life Insurance Act 1995 (Cth) – Where proposed scheme is an intra-group transfer – Where proposed scheme will not adversely impact TLISL or TAL Life policy owners' interests – Where assets exceeding prudential requirements and target capital requirements are distributed to shareholder fund – Where TAL Life will remain in a sound financial position post-transfer – Where TLISL and TAL Life policy owners' reasonable benefit expectations, contractual rights, premium rates and benefit security will not be materially affected by the transfer – Where claims handling practices and administrative processes will not change as a result of transfer – Where TLISL's ongoing remediation programs will be assumed by TAL Life without changes – Where objections raised by policy owners – Whether an objection on the basis that the policy owner doesn't want their insurer changed is a valid objection – Change in insurer is inherent to the very nature of the scheme – Whether an objection on the basis that the Scheme will change policy terms or quality of service is a valid objection – Objection refuted by actuarial evidence – Whether an objection on the basis that business will be transferred to a non-Australian insurer is a valid objection – Transfer to non-Australian insurer will not prejudice policy owner interests – Scheme has been the subject of Government approval – Where APRA supports the confirmation – the Scheme should be confirmed