Five years after losing $480 million, Reinsurance Australia Corporation (ReAC) is about to re-invent itself. The Australian Prudential Regulation Authority (APRA) has removed the inspector it appointed five years ago after the company recorded a loss of $480 million.

ReAC was closed to new business in February 2000, but is set to re-enter the market with a new name after a successful run-off period and an improved insurance market.

APRA has approved a capital injection of $40 million into the company’s proposed general insurance operations. ReAC CEO Nick Kirk told Sunrise Exchange News the reinsurer is very pleased with APRA’s move, and the next step is a general insurance licence.

“We’re in the process of organising a licence at the moment and have been working very closely with APRA on this,” he said.

ReAC will hold an extraordinary general meeting of shareholders on February 24 to vote on a proposed name change to Calliden Group and to discuss its 2004 financial results.

Mr Kirk says he can’t offer more details on the general insurance classes to be offered until the meeting has been held.

The top five insurers control 80% of the market, and consolidation has featured heavily in the past few years, but Mr Kirk is confident about the potential of the new business.

“In some ways consolidation will bring opportunities for a new player to look at things a little differently,” he said.