APRA has denied Rural & General Insurance reauthorisation under the general insurance reforms. The Sydney-based insurer was originally placed on the list of authorised insurers issued by APRA on July 1, and had been expected to stay on it until an appeal is heard.

No reason has been given for the late move to deny R&G authorisation, but a statement from APRA said the action “follows Rural & General’s failure to satisfy APRA in relation to the reauthorisation requirements and to demonstrate to APRA’s satisfaction that it has adequate risk management systems and controls in place, or sufficient capital, to satisfy the new prudential standards”.

In March ASIC prevented R&G from raising $5 million through an offer information statement which offered 50 cent shares to clients. ASIC said the statement omitted important information and contained “potentially misleading or deceptive information”.

Pending the outcome of R&G’s appeal to the Administrative Appeals Tribunal, it is now not permitted to write any new business.