The Australian Prudential Regulation Authority said the Administrative Appeals Tribunal decided on July 31 to uphold APRA’s 2007 decision to disqualify former Zurich executives John Butler and Alan Parsonson.
Mr Butler held a number positions at Zurich Australia Insurance Limited (ZIAL) including Chief Financial Officer from March 1999 to December 1999, General Manager of General Insurance from December 1999 to October 2001, Chief Operating Officer from October 2001 to March 2002, Chief Executive Officer from March 2002 to July 2004 and a director from March 2002.
Mr Parsonson was Regional Manager of Australia/Pacific for Zurich Insurance Company (ZIC) and a director of Zurich Australian Insurance Limited (ZIAL) and Zurich Financial Services Australia Limited (ZFSA) during 2000 and 2001.
On 25 May 2005, APRA accepted an enforceable undertaking from ZIAL and Zurich Financial Services Limited arising from two financial reinsurance transactions with General & Cologne Re Group Australia that were undertaken in 2000. The transactions resulted in ZIAL’s profits in 2000 being overstated by $61 million with the effect that ZIAL appeared to meet the regulatory solvency requirement when it did not.
According to the APRA Press Release