Chubb Gets Subpoena on Some Insurance
Wednesday May 11, 5:47 pm ET
Chubb Receives Subpoena Over Use of Finite-Risk Insurance and Related Products
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WASHINGTON (AP) -- Insurance holding company Chubb Corp. disclosed Wednesday that it received a subpoena from the U.S. Attorney for the Southern District of New York as part of an investigation into the use of finite-risk insurance and related products.
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Chubb, based in Warren, N.J., said in a regulatory filing with the Securities and Exchange Commission that it believes this investigation involves a number of industry participants and it hasn't been singled out by being asked to provide such information.
Finite-risk and other reinsurance products are often used by insurance companies to share risk, but regulators have charged that some deals were used simply to burnish company finances.
New York Attorney General Eliot Spitzer, the SEC and state insurance regulators have also been looking into these types of specialty insurance transactions.
ACE Ltd., Munich Re and General Electric Co. are among the list of companies that have recently received subpoenas from regulators in the wide-reaching probes.
Maurice "Hank" Greenberg was forced out as chairman and CEO of New York-base American International Group Inc. earlier this year in part because of questions about a reinsurance deal with Berkshire Hathaway Inc.'s General Re Corp.
Chubb plans to cooperate fully with the investigation, the filing said.
No further information was provided.
Chubb shares fell 22 cents to close at $82.87 on the New York Stock Exchange.
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