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APRA stays Zurich Australia executive ban

Posted On: Feb. 21, 2007 12:00 AM CST

SYDNEY, Australia—The Australian Prudential Regulation Authority has stayed a decision to disqualify a former Zurich Australia Insurance Ltd. executive.

APRA said that in February, it had banned John Butler for being or acting as a director or senior manager of a general insurer.

APRA said that Mr. Butler had applied to the Australian Administrative Appeals Tribunal for a stay of the decision to disqualify him for his role in two financial reinsurance transactions between Zurich Financial Services Ltd. and General & Cologne Re Group Australia in 2000, which resulted in Zurich's profits being overstated.

Mr. Butler held a number of positions at Zurich in Australia, including chief financial officer, general manager of general insurance, chief operating officer, chief executive officer and a director.

APRA said that last week, the AAT ordered that the regulator's decision to bar Mr. Butler be stayed until March 2 when a reconsideration must be completed.