The Australian Prudential Regulation Authority (APRA) has disqualified former HIH Reinsurance Manager Ray Gosling from being or acting as a director or senior manager of a general insurer.

The regulator found that despite being aware of agreements and documentation changing the nature of a complex reinsurance arrangement entered into by HIH with Hannover Re in 1999, Mr Gosling failed to disclose the true nature of the overall transaction to the HIH reinsurance committee or board.

The transaction was subsequently improperly booked in HIH’s 1999 accounts overstating its financial position.

In July 1999, while responsible for the preparation and lodgement of reinsurance returns to APRA, Mr Gosling also incorrectly advised APRA that there were no changes to HIH’s reinsurance arrangements. He also failed to take reasonable steps to ensure that the Hannover Re arrangements and negotiations were fully disclosed to the regulator.