NobleOak reveals APRA breach issues

Mike Taylor

Managing Editor/Publisher, Financial Newswire

31 March 2023

Life insurer, NobleOak Life, has admitted to the Australian Securities Exchange that it has encountered issues with the Australian Prudential Regulation Authority (APRA) regarding the calculation of its reinsurance asset exposures.

NobleOak told the ASX that it had received a notification from APRA relating to the calculation and reporting of reinsurance asset exposures and that APRA had advised it that NobleOak’s approach was inconsistent with APRA’s interpretation and is in breach of the standards.

The life insurer said that its method of calculating and reporting reinsurance asset exposure was consistent with advice received from NobleOak’s independent appointed actuary from KPMG.

It said its financial statements had also been subject to external audit by Deloitte Australia.

The ASX announcement said that as disclosed in its half-year financial report lodged last month the company was already undertaking actions to manage the way it operates its reinsurance arrangements.

“APRA considers these actions constitute a credible plan,” it said. “NobleOak believes the combined impact of these actions will effectively mitigate the issues raised by APRA and satisfy its regulatory reporting obligations by 30 June, 2023.”

“NobleOak has longstanding relationships with its diversified panel of APRA-regulated reinsurers and is working collaboratively with these insurers and APRA,” the announcement said.