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Australia disqualifies GenRe executive

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SYDNEY, Australia--The Australian Prudential Regulation Authority has disqualified Milan Vukelic from being a director or senior manager of a general insurer for his role in financial reinsurance transactions, which he knew would be used to present false or misleading information.

Mr. Vukelic was from 1997 to 2002 the London-based chief executive officer of the alternative solutions division of General Reinsurance Corp.

During his tenure, that division negotiated financial reinsurance deals with Australian insurers FAI Insurance Group, New Cap Reinsurance Corp. and Zurich Australian Insurance Ltd.

An investigation by APRA found that Mr. Vukelic authorized the transactions, despite being aware that they would be used to present "false or misleading information" in published financial statements and mislead authors and APRA.

APRA in 2004 disqualified Mr. Vukelic in relation to financial reinsurance deals. That ban, however, was overturned on the grounds that there was insufficient evidence of his involvement in the questionable transactions to support a disqualification.

But during a subsequent APRA investigation of General Reinsurance Australia, which began in 2005, the regulator found additional information about Mr. Vukelic's conduct that "demonstrated that he was not a fit and proper person" to hold a senior position within the insurance industry in Australia.

APRA has now disqualified several executives from Gen Re and other companies in connection with certain financial reinsurance transactions.