Zurich Financial Services has paid $25 million to settle a securities fraud action by federal regulators over its use of phony reinsurance transactions to pump up its financial statements.

The Zurich, Switzerland based corporation, which admitted no guilt, said it had settled the civil case to "eliminate the burden, expense and uncertainty of potential enforcement proceedings."

SEC's action stemmed from company activity from 1999 through 2001 with a former Zurich subsidiary, Converium Holding AG (now known as SCOR Holding (Switzerland) AG). The company said, "None of the individuals responsible for these transactions has been employed by Zurich for several years."

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