The Australian Prudential Regulation Authority (APRA) today confirmed that it has been investigating certain past and now unwound reinsurance transactions in Zurich Australia Limited’s (ZAIL) general insurance business.

APRA General Manager - Diversified Institutions Division, Mr Ramani SG Venkatramani, has been appointed as inspector under section 52 of the Insurance Act 1973 to investigate the history of the transactions.

The results of a recent independent liability valuation undertaken at APRA’s initiative confirm that ZAIL more than adequately meets minimum regulatory capital requirements. The Zurich Group has also given undertakings to maintain ZAIL’s capital strength.

APRA Member, Mr Steve Somogyi, said that APRA’s primary goal was the protection of policyholder interests.

“APRA is confident that ZAIL’s obligations to policyholders are adequately protected”, he said.

As the investigation is continuing, APRA will not make any further comment at this point.

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 $1.7 trillion in assets for 20 million Australian depositors, policyholders and superannuation fund members.