Calliden consolidates licences
Calliden’s consolidation of its general insurance licences remains on track with the announcement that the Australian Prudential Regulation Authority (APRA) has revoked Calliden Group Limited’s (CGL) licence.
The regulator’s decision follows the Federal Court’s approval of the transfer of CGL’s entire insurance and reinsurance business to Calliden Limited.
CGL will now effectively become a non-operating holding company to which the previous minimum capital requirement of $24.7 million will no longer apply.
The group now intends to fold its two outstanding licences – Calliden Insurance Limited (CIL) and Australian Unity General Insurance – into one CIL licence.
CGL was formed in early 2005 when Reinsurance Australia Corporation (ReAC) shareholders voted in favour of the reinsurer’s rebirth as a general insurer.
The revocation of CGL’s licence marks the “closing chapter” of the ReAC run-off, says CEO Nick Kirk.
“Once the licence is handed back, the entity that wrote the reinsurance no longer has any function as an insurer,” he said. “The outstanding run-off liabilities, which stood at $3.7 million [at June 30], have continued to reduce. They are now an extremely small proportion of the overall liabilities of the group.”
Calliden liaised closely with past policyholders and APRA to ensure there was no disadvantage as a result of the transfer of liabilities.