APRA focuses on individuals in Zurich reinsurance issue
The Australian Prudential Regulation Authority (APRA) is continuing its investigations into individuals involved in the improper reinsurance transactions undertaken by Zurich Australia Insurance (ZAI) in 2000.
The regulator made the announcement at the same time it delivered the insurer a report of its investigation, which stated that no further action would be taken with respect to ZAI.
APRA said it was satisfied ZAI undertook all necessary remedial actions in relation to the transactions.
However, it is still finalising action against certain individuals involved in the Zurich transactions with General & Cologne Re Group Australia (GCRA), as well as its separate investigation into GCRA.
APRA added that no criminal actions would be pursued.
In May 2005, APRA accepted enforceable undertakings from ZAI and Zurich Financial Services Australia in relation to the transactions, which overstated company profits by $61 million.
This created the impression the company had made a substantial profit in 2000, when in fact it had made a loss.
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