The prudential regulator has revoked Eric Insurance’s licence following a request from its administrators.

Eric appointed voluntary administrators last July and creditors later voted to accept a deed of company arrangement as an alternative to the business being placed into liquidation.

“By virtue of the execution of the [deed], Eric has no remaining liabilities in respect of its insurance business,” the Australian Prudential Regulation Authority said today.

Eric – a small general insurer that sold add-on motor cover through vehicle dealers – decided to exit the market in July 2023 and ceased writing new policies in June 2024.

Voluntary administrators Kathy Sozou and Shaun Fraser from McGrathNicol were appointed on July 28 last year.

The administrators’ report to creditors, released in September, said the Hayne royal commission and subsequent reforms affected the company’s distribution model, and an overwhelming number of complaints led to its failure.

Directors had noted a high volume of complaints from paid representatives, plus escalating Australian Financial Complaints Authority fees and subscription costs.

APRA says it has monitored Eric’s exit from the general insurance market.