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Regulator probes KPMG audit
The Accountancy and Actuarial Discipline Board has begun probes into KPMG’s auditing of Lloyd’s of London car and motorcycles insurer Equity Red Star and actuaries who advised it. In 2010 the firm, a UK subsidiary of Insurance Australia Group that insures one in four motorcycles on UK roads, crashed to a £240m loss after failing to set aside enough cash to cover claims. The regulator is now investigating KPMG’s auditing of Equity Red Star for the three years to December 2009 “with particular reference to technical provisions”.