The Australian Prudential Regulation Authority (APRA) has cancelled Eric Insurance Limited’s (Eric) authorisation to operate as a general insurer in Australia, marking the end of the company’s years-long withdrawal from the market.
APRA revoked Eric Insurance Limited’s licence to carry on insurance business in Australia under the Insurance Act 1973 on Thursday, following a request by the company’s deed administrators, according to a statement published on APRA’s website.
The revocation formally concludes a process that began in July 2023, when Eric, a small general insurer providing add-on motor vehicle-related products, made a commercial decision to exit the general insurance market. The company completely ceased writing new insurance policies in June 2024.
Eric appointed voluntary administrators on 28 July 2025 and executed a deed of company arrangement (DOCA) on 19 September following a creditors’ meeting. APRA said that, after the DOCA took effect, Eric no longer had liabilities relating to its insurance business.
Before the administrators were appointed, APRA had sought a winding-up order against Eric in the Federal Court in August, according to reports. The court adjourned the application to allow creditors to vote on the deed, which they approved. Following the DOCA’s commencement on 19 September, the court approved the discontinuation of APRA’s application.
APRA said it had actively monitored Eric’s withdrawal from the general insurance market for an extended period. In a September 2025 statement, the regulator said it had “maintained heightened supervision of Eric for some time and explored various exit options with the insurer and the administrators”, with the aim of achieving “the most favourable outcome for policyholders”.
In February, APRA said McGrath Nicol, acting as deed administrator, had begun contacting policyholders to participate in a dividend distribution. The process was intended to provide eligible policyholders – those holding an active policy as at 18 October 2025 – with a partial refund of their unearned premium.
