North of England Club plans to transfer the business, assets and liabilities of the Australian insurance business of Sunderland Marine Insurance Co Ltd (Australian branch) (SMI Australia) to North of England P&I Club (Australian branch) (North of England Australia).
SMI Australia made an application to the Federal Court of Australia in Sydney for orders confirming a scheme under Division 3A of Part III of the Insurance Act 1973 to transfer its Australian general insurance business to North of England Australia.
The application will be heard in Court in Sydney on November 2nd 2018.
North has applied to the Australian Prudential Regulation Authority (APRA) for authorization under section 12 of the Insurance Act to carry on insurance business in Australia. Subject to its authorization and confirmation of the Scheme, North will also carry on insurance business in Australia through a branch (North Australia). SMI and North have agreed to transfer the Business Assets and the Insurance Contracts from SMI Aus to North Aus, and North Aus has agreed to assume the Business Liabilities and the Insurance Liabilities, in accordance with the terms and conditions of the Transfer Agreement.
SMI is a wholly owned subsidiary of North P&I Club. Both companies are incorporated in the UK.
Subject to approval from APRA, North will be authorized to carry on insurance business in Australia through its branch, North Aus, prior to the Scheme being confirmed.
The Scheme is being undertaken as part of an internal group reorganisation for the purpose of adopting a simplified and more cost effective corporate and regulatory structure.
An actuarial report dated July 13th 2018 has been prepared by Geoff Atkins of Finity Consulting Pty Ltd.
Following the transfer, North Aus will indemnify SMI Aus against all future claims, losses, liabilities, costs and expenses that arise in connection with the Insurance Contracts.