NU Online News Service, May 12, 5:00 p.m.EDT--Genworth Financial, Inc., said it has received asubpoena from the Securities and Exchange Commission requestingdocuments in the ongoing investigation of finite reinsuranceproducts.

The insurance company, with its U.S. office based in Richmond,Va., said it received the subpoena yesterday seeking documents"related to 'certain loss mitigation insurance products.'"

The company, which deals primarily in life, mortgage insurance,and employee benefits, said it conducted an "initial review" of itsreinsurance arrangements early in the fourth quarter of 2004 andfound no issues of concern.

The company said it would continue to review the arrangementsand cooperate with the SEC in the investigation.

The company has operations in 22 countries and is a subsidiaryof General Electric. The Fairfield, Conn.-based holding companybegan selling its stake in Genworth in March through a publicoffering after creating the insurer last year.

The investigation into finite reinsurance programs has swept upinsurance giants American International Group, Berkshire Hathaway,and a number of others as regulators, New York Attorney GeneralEliot Spitzer, the U.S. Justice Department and the SEC askquestions over the validity of some of the programs.

Finite reinsurance has come under scrutiny because ofrevelations concerning misuse of such transactions by insurers toprovide a false financial picture.

An issue arises when the business a company cedes to a reinsurerhas virtually no risk attached and amounts to a loan to thereinsurer, which is paid back through claims payments.

In the widely reported American International Group General Redeal AIG allegedly reinsured GenRe in such a risk-free deal in aneffort to bolster AIG's loss reserves. Without detailing what waswrong, AIG has admitted the transaction was documentedimproperly.

Chubb Corp. this week revealed it had been subpoenaed by federalprosecutors in New York regarding use of finite risk.