APRA has found NobleOak Life is in breach of its prudential and reporting obligations concerning capital.
In a media release on Friday morning, the prudential regulator said NobleOak Life violated Prudential Standard LPS 117 Capital Adequacy: Asset Concentration Risk Charge (LPS 117) and Reporting Standard LRS 117.0 Asset Concentration Risk Charge (LRS 117.0).
The breaches relate to the measurement and reporting of NobleOak’s reinsurance exposures and the associated asset concentration risk, resulting in a violation of capital requirements.
APRA has written to the NobleOak board to formally advise it has breached its obligations. In response, NobleOak notified APRA of its plan to remediate the breach of LPS 117 requirements by 1 July 2023. APRA said it is satisfied with the plan and will closely monitor NobleOak’s execution of the plan over the coming months.
The NobleOak board has also launched a review of its control processes for complying with APRA’s prudential standards.
APRA will examine NobleOak’s processes for compliance with its prudential and reporting obligations in the context of its broader risk governance framework to establish the underlying causes of the breaches. APRA will also act as needed to hold those responsible for the breach to account.
NobleOak’s non-compliance poses no immediate risk to members and policyholders. It is not connected to any recent financial market movements or developments.
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