SYDNEY, April 8 -- Australian Prudential Regulation Authority issued the following media release:
The Australian Prudential Regulation Authority (APRA) has applied an additional $2 million capital requirement to Sovereign Insurance Australia Pty Ltd (SIA), reflecting SIA's heightened risk profile due to weaknesses in managing non-financial risk and regulatory reporting.
APRA has identified serious deficiencies in SIA's risk management framework and its management of operational risk. APRA's concerns are amplified by SIA's failure to comply with requirements of prudential standards, remediate issues in a timely and effective manner and lodge audited financial accounts with APRA.
APRA Member Suzanne Smith said: "Insurance underpins financi...