Insurance Act 1973

APRA must comply with this section before giving a recapitalisation direction that directs a general insurer to issue shares, or rights to acquire shares, in the insurer, unless APRA is satisfied that compliance with this section would detrimentally affect:

the policyholders of the insurer; or

the stability of the financial system in Australia.

If the recapitalisation direction is a direction to a NOHC/NOHC subsidiary under subsection 103B(1B), treat the reference in paragraph (1)(a) to “the policyholders of the insurer” as being a reference to “the policyholders of the general insurer mentioned in subsection 103B(1A)”.

APRA must:

obtain a report on the fair value of the shares, or rights to acquire shares, in the insurer from an expert who is not an associate of the company under Division 2 of Part 1.2 of the Corporations Act 2001; and

consider the report.

The report must set out:

the amount that is, in the expert’s opinion, the fair value for each of those shares or rights; and

the reasons for forming the opinion; and

any relationship between the expert and:

the insurer; or

a person who is an associate of the insurer under Division 2 of Part 1.2 of the Corporations Act 2001;

any financial or other interest of the expert that could reasonably be regarded as being capable of affecting the expert’s ability to give an unbiased opinion in relation to the matter being reported on.

If the recapitalisation direction is a direction to a NOHC/NOHC subsidiary under subsection 103B(1B), treat the references in paragraph (3)(c) to “the insurer” as being a reference to “the NOHC/NOHC subsidiary mentioned in subsection 103B(1B)”.