The Australian Prudential Regulation Authority (APRA) has disqualified former Zurich Australian Insurance CFO John Stanbridge from being or acting as a director or senior manager of a general insurer or authorised non-operating holding company, or as an agent of a foreign general insurer.

Last year APRA accepted an enforceable undertaking from Zurich regarding two questionable financial reinsurance transactions with General & Cologne Re Group Australia that were undertaken in 2000.

APRA alleges Mr Stanbridge, who was CFO of the insurer from 1999 to 2001, was involved in a transaction giving a false impression that the company had improved its financial position in 2000 by about $60 million through entry into a reinsurance agreement with General & Cologne Re.

Subsequently Mr Stanbridge admitted his involvement in the preparation and presentation of accounts and deceiving the insurer’s auditors, APRA and ratings agency Standard and Poor’s about the deal.

APRA says it is still considering what action, if any, it needs to take against the individuals involved.

“APRA is satisfied that Zurich more than adequately meets minimum regulatory capital requirements and that policyholders’ interests are adequately protected.”