Former Zurich executives John Butler and Alan Parsonson have failed in their bids to overturn bans imposed by the Australian Prudential Regulation Authority (APRA).

The Administrative Appeals Tribunal has upheld the disqualification of Mr Butler and Mr Parsonson in 2007 for their respective roles in Zurich Australia Insurance and Zurich Financial Services Australia relating to two financial reinsurance transactions in 2000 with General & Cologne Re Australia.

As a result of the transactions Zurich Australia’s profit for that year was overstated by $61 million and it appeared to meet its regulatory solvency requirement when it did not.

Mr Butler and Mr Parsonson each remain disqualified from being or acting as a director or senior manager of a general insurer, authorised non-operating holding company or agent of a foreign general insurer.

Tribunal President Justice Garry Downes says the otherwise distinguished careers and reputations of Mr Butler and Mr Parsonson do not sufficiently redeem them, “particularly in the circumstances that they continue to maintain the propriety of their conduct although accepting that, with hindsight, it might have been done differently”.

From 1999 to 2004 Mr Butler held a number of positions in Zurich’s Australian operations, including CFO, General Insurance GM, COO, CEO and director.

Mr Parsonson was regional manager Australia/Pacific for Zurich Insurance and a director of the two local companies during 2000 and 2001.