The Australian Prudential Regulation Authority (APRA) has formally registered St Andrew’s Australia Services Pty Ltd as a non-operating holding company, in line with both the Life Insurance Act 1995 and the Insurance Act 1973.
This registration enables the company to manage one APRA-authorised life insurer and one general insurer under the regulatory framework.
St Andrew’s Insurance Group includes both Hallmark Life Insurance Company Ltd and Hallmark General Insurance Company Ltd, which have been serving clients across Australia and New Zealand for over 50 years.
The group is privately held by a consortium of Australian investors and offers various insurance solutions through its offices in Perth, Melbourne, and Sydney.
Operating as an independent Australian-owned company, St Andrew’s Australia Services focuses on leveraging its established history and regulatory compliance through APRA. The company is supported by a broad network of shareholders and is governed by an experienced board.
A complete register of APRA-authorised non-operating holding companies is accessible on the APRA website under its non-operating holding company listings.
In a separate development, APRA has mandated a $10 million capital increase for Pacific International Insurance Pty Ltd following its review of the insurer’s binder agreements.
Binder agreements allow external entities to issue policies on behalf of an insurer but require close supervision to manage associated risks effectively.
APRA’s assessment pointed to gaps in Pacific’s oversight and accountability measures concerning these binder agreements, indicating a need for stronger risk management practices.
Pacific has acknowledged APRA’s findings and committed to implementing corrective actions. However, APRA stated that additional steps are necessary to ensure that Pacific’s controls align with industry standards.
Commenting on the decision, APRA member Suzanne Smith emphasised the importance of insurer accountability within outsourced underwriting.
“Outsourcing can help with solutions for hard-to-place risks or reduce operational costs for insurers, but it is crucial to understand that the overall risk stays with the insurer, as insurance risk and accountability are the reason why insurers hold licences in the first place,” she said.
She said that APRA’s supervisory role is designed to protect policyholders by holding insurers accountable for their commitments.
“Insurance plays a critical role in the lives of Australians to minimise risk and provide financial stability. APRA protects policyholders through its prudential framework and active supervision, so they can have the confidence that insurers meet their obligations,” Smith said.
