APRA to stay mum on AIG
Brokers and insurance clients waiting to hear an official word from the Australian Prudential Regulation Authority (APRA) on the prudential health of AIG Australia are advised to keep breathing.
Spokesman Stuart Snell says the regulator has no plans to divulge its dealings or analysis of the company, whose US parent received a $US85 billion ($101.6 billion) bailout from American taxpayers this month.
“We’re not a consumer advocate,” he told insuranceNEWS.com.au. “Rather, the regulator is asked to work with companies to ensure their liabilities are adequately provided for.”
“It is not officially charged with financial market stability [but] plays a support role with Treasury, the Reserve Bank of Australia and the Australian Securities and Investments Commission (ASIC),” Mr Snell said.
APRA’s governing legislation also includes a privacy clause for the organisations it regulates.
AIG Australia CEO Chris Townsend has confirmed the company is working closely with APRA. His statement to the industry last week assured all stakeholders the company’s assets were “ring-fenced” from its parent and well in excess of expected claims.
“AIG Australia’s operations have separate capital from AIG Inc in the US,” he said. “It is well provisioned to cover all current and future liabilities.
“We exceed APRA’s minimum capital adequacy requirements and are in regular communication with the regulators.”
APRA won’t confirm that publicly, but Mr Snell says there is precedent for a company releasing its own correspondence and dealings with the regulator. In 2004, the National Australia Bank released a critical APRA report into its foreign exchange dealings. The report is still available on the bank’s corporate website.
Spokesman Stuart Snell says the regulator has no plans to divulge its dealings or analysis of the company, whose US parent received a $US85 billion ($101.6 billion) bailout from American taxpayers this month.
“We’re not a consumer advocate,” he told insuranceNEWS.com.au. “Rather, the regulator is asked to work with companies to ensure their liabilities are adequately provided for.”
“It is not officially charged with financial market stability [but] plays a support role with Treasury, the Reserve Bank of Australia and the Australian Securities and Investments Commission (ASIC),” Mr Snell said.
APRA’s governing legislation also includes a privacy clause for the organisations it regulates.
AIG Australia CEO Chris Townsend has confirmed the company is working closely with APRA. His statement to the industry last week assured all stakeholders the company’s assets were “ring-fenced” from its parent and well in excess of expected claims.
“AIG Australia’s operations have separate capital from AIG Inc in the US,” he said. “It is well provisioned to cover all current and future liabilities.
“We exceed APRA’s minimum capital adequacy requirements and are in regular communication with the regulators.”
APRA won’t confirm that publicly, but Mr Snell says there is precedent for a company releasing its own correspondence and dealings with the regulator. In 2004, the National Australia Bank released a critical APRA report into its foreign exchange dealings. The report is still available on the bank’s corporate website.