Zurich Financial Services will book a $325 million first-quartercharge to cover the cost of settling allegations of bid-rigging andother broker compensation wrongdoing with 12 states.
The company last week announced additional settlement agreementswith New York, Connecticut and Illinois state officials that willsee it pay $153 million for restitution to excess casualtypolicyholders, as well as penalties.
The agreement prohibits Zurich from paying contingentcommissions on excess U.S. casualty business through 2008 andestablishes a mechanism whereby the company would stop payingcontingency fees on other lines of business if 65 percent of theU.S. market for a particular line of business is not paying suchcommissions.
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