The Australian Prudential Regulation Authority (APRA) has given Australian insurers a clean bill of health in the wake of AIG's $US4.88 billion ($5.4 billion) subprime writedown.

The regulator has been checking the investment positions of locally registered insurers, APRA Executive Member John Trowbridge told last week's Insurance Council of Australia seminar.

"Over the past few months we've had a very close look at investment portfolios," he said. "We're not aware of any material problems on the asset side."

But he said APRA couldn't be as certain about the investment position of offshore insurers and reinsurers in relation to the subprime credit crunch.