GEN RE ATTEMPTS TO FINALIZE ITS FINITE REINSURANCE EXPOSURE
General Re Corp. has agreed to a Consent Judgment with the SEC in settlement of allegations that it issued finite reinsurance to AIG and Prudential. The settlement requires that Gen Re disgorge $12.2 million in profits gained as a result of the transactions, with interest. As in prior similar agreements with other insurers, the SEC filed a Complaint in the Southern District of New York, issued a litigation release describing the agreement, and the Court entered a consent Final Judgment. In a twist, Liberty Mutual has filed a motion and memorandum of law seeking to intervene and claim a portion of the disgorged funds, alleging that the SEC rejected its request that it escrow the funds so that it could assert a claim against them. Liberty Mutual is concerned that the settlement with the government will preclude it from asserting a separate claim against Gen Re for what amounts to the same amounts. At the same time, at the request of Gen Re, another judge of the same court continues to seal a proposed class settlement with the Ohio Attorney General, acting on behalf of the Ohio Public Employees Retirement System in a claim relating to Gen Re’s transactions with AIG.
This post written by Rollie Goss.
