Catholic Church Insurance (CCI), a firm that describes itself as “Australia’s oldest insurer,” is to enter run off and wind down operations. The Australian Prudential Regulation Authority (APRA) confirmed CCI’s decision in a media release this morning.
“CCI will cease writing new insurance business and renewing policies except in limited circumstances,” said the APRA media release.
The decision by the insurer follows discussions with shareholders about closing new and renewal general insurance business unless there was a “significant injection of additional capital.”
“If CCI is unable to raise the required capital it will continue to operate for some years while current assets are used to fund operations, settle all known insurance claims, and any new claims that are made against existing policies which remain in-force,” said CCI’s chair Joan Fitzpatrick in a media statement early this month.
In that statement, Fitzpatrick said the insurer was solvent “at this time” and able to pay staff, suppliers and claims.
The Australian newspaper reported that shareholders were considering whether to provide another capital injection to CCI after previously providing $170 million to help cover sexual abuse claims costs.
APRA said it will “continue to closely supervise CCI.”
