The Australian Prudential Regulation Authority (APRA) has disqualified a former senior Zurich Australia director as it continues to punish managers who were involved in financial reinsurance deals.

Alan Parsonson, the Regional Manager of Australia/Pacific for Zurich Insurance Company (ZIC), has been barred from being a director or senior manager of a general insurer, authorised non-operating holding company or agent of a foreign general insurer.

Mr Parsonson was a director of Zurich Australian Insurance Limited (ZAIL) and Zurich Financial Services Australia Limited (ZFSA) during 2000 and 2001.

APRA says he “knowingly procured ZIC approval” of ZAIL’s entry into a reinsurance contract designed to give the false appearance that ZAIL had substantially improved its financial position and solvency in 2000.

The regulator says Mr Parsonson’s conduct enabled ZAIL to mislead APRA, the company’s auditors and ratings agencies.

In May 2005 APRA accepted an enforceable undertaking from both Zurich companies arising from two financial reinsurance transactions with General & Cologne Re Group Australia in 2000.

The transactions resulted in ZAIL’s profit for 2000 being overstated by $61 million, with the effect that ZAIL seemed to meet its regulatory solvency requirement when it did not.

APRA says it’s “continuing to consider the fitness and propriety” of other individuals involved with the transactions.