APRA disqualifies former Zurich CFO
The Australian Prudential Regulation Authority (APRA) has signalled that it is continuing to investigate the actions of individuals involved in a transaction undertaken by Zurich Australia Insurance Limited in 2000 after disqualifying the company’s former chief financial officer.
APRA announced it had disqualified the former chief financial officer of Zurich Australia Insurance Limited, John Stanbridge, from being or acting as a director or senior manager of a general insurer, authorised non-operating holding company or agent of a foreign general insurer.
The disqualification of Stanbridge follows-on from an enforceable undertaking entered into by Zurich Australia Insurance Limited and Zurich Financial Services Australia Limited arising from two financial reinsurance transactions with General and Cologne Re Group Australia undertaken in 2000.
Stanbridge, who was chief financial officer at Zurich from 1999 to November, 2001, was disqualified by APRA after it was found that he had been involved in a transaction which was allegedly designed to give the false appearance that Zurich Australia Insurance had improved its financial position in 2000 by about $60 million through entry into a reinsurance agreement.
Stanbridge acknowledged that he had been involved in the preparation and presentation of accounts which did not reflect Zurich Australia’s true financial position and had deceived the company’s auditors, APRA and Standard and Poor’s, about the effect of the reinsurance agreement.
APRA said that it was continuing to assess the actions of other individuals involved in the transactions.
AUTHOR
Mike Taylor
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