Another bunch of General & Cologne Re executives have been disqualified by the Australian Prudential Regulation Authority (APRA) over their involvement in reinsurance contracts that allowed FAI to claim a profit in 1998.

As we reported last week, General Re MD Geoffrey Barnum was disqualified by the regulator, but there have been reports he still enjoys the support of the group and may appeal the disqualification.

The financial reinsurance arrangements boosted FAI’s 1997/98 profit and have been linked to the later acquisition of the company by HIH, which collapsed in March 2001.

Now APRA has announced that General Re CFO Chris Byatt, underwriting manager John (Lindsay) Self, chief treaty underwriter Andrew Smith have also been disqualified from acting as a director or senior manager of a general insurer in Australia.

Rodney Aistrope, who was MD of HIH’s liability division in 2000, and FAI reinsurance manager Antony Boulden have also been disqualified.

APRA has also gone to the length of banning two General Re employees who are employed by the company in Ireland. Tore Ellingsen and John Houldsworth work in General Re’s alternative solutions group in Ireland.

General Re told APRA it has suspended and replaced Messrs Barnum, Byatt and Smith. The length of time the suspensions will be in place has not been revealed.

APRA Deputy Chairman Ross Jones says the regulator is still assessing a number of people involved with the collapse of HIH Insurance. “This is a large-scale and complex exercise that still has some considerable way to run.”