NU Online News Service, May 20, 3:50 p.m. EDT–ACE Limited reported that the legal costs sparked by investigations concerning its role in suspected contingency fee abuses have amounted to more than $40 million.

In its 10-Q filing, for the first quarter of 2005, the Hamilton, Bermuda-based insurer said it has "paid and accrued over $40 million," approximately $30 million of which was recorded in the first quarter.

In March, ACE's annual 10-K filing with the Securities and Exchange Commission reported it was being examined by prosecutors and regulators in 13 states, including New York's Attorney General Eliot Spitzer who sued Marsh & McLennan Companies in October 2004 over allegations of kickbacks and other misconduct related to the collection of insurers' incentive commissions.

Continue Reading for Free

Register and gain access to:

  • Breaking insurance news and analysis, on-site and via our newsletters and custom alerts
  • Weekly Insurance Speak podcast featuring exclusive interviews with industry leaders
  • Educational webcasts, white papers, and ebooks from industry thought leaders
  • Critical converage of the employee benefits and financial advisory markets on our other ALM sites, BenefitsPRO and ThinkAdvisor
NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.