The Australian Prudential Regulation Authority (APRA) today announced the disqualification of Mr Gregory Ernest Brown from being or acting as a director or senior manager of a general insurer under the Insurance Act 1973.
Mr Brown held various positions at HIH Insurance Limited group (HIH) and related companies from 1982 until 1999, including director of a number of HIH subsidiaries and, from 1999, Group General Manager, Corporate.
APRA found that Mr Brown in 1999 and 2000 improperly inflated or manipulated divisional results so as to present a misleading picture of the financial position. APRA also found that Mr Brown failed to provide data to HIH’s actuary which may have had a material effect on actuarial valuations.
APRA’s Deputy Chairman, Mr Ross Jones, said that APRA expects the senior management of authorised insurers to ensure that financial results are properly reported and that boards and actuaries are fully informed about any matters likely to materially affect an insurer’s financial position.
The Australian Prudential Regulation Authority (APRA) is the prudential regulator of the financial services industry. It oversees banks, credit unions, building societies, general insurance and reinsurance companies, life insurance, friendly societies, and most members of the superannuation industry.
APRA is funded largely by the industries that it supervises. It was established on 1 July 1998. APRA currently supervises institutions holding approximately $2.0 trillion in assets for 20 million Australian depositors, policyholders and superannuation fund members.