Swiss Re Hit With SEC, N.Y. AG Subpoenas
NU Online News Service, Nov. 22, 1:58 p.m. EST?Swiss Re said it is the latest company to be hit with subpoenas in an expanding probe by federal and New York agencies into non-traditional insurance products used by some companies to distort financial statements.[@@]
The Zurich-based company said it received requests from both the U.S. Securities and Exchange Commission and New York Attorney General Eliot Spitzer to provide documentation relating to non-traditional insurance products.
Swiss Re said it may receive similar requests from other governmental or regulatory authorities. The reinsurer noted that at this point it has not been named or referred to in any lawsuit relating to this investigation.
The company said in a statement issued from Zurich that it will cooperate fully with all such requests.
The SEC and Mr. Spitzer's office are investigating whether the use of such income-smoothing devices–known as loss mitigation insurance products–improperly prop up the earnings reports of companies that take out the policies.
Other insurers that have acknowledged receiving similar subpoenas include MBIA Inc., St. Paul Travelers, ACE Ltd., Platinum Underwriters Holdings, and Zurich Financial Services.
The SEC is also examining the sale of some non-traditional products by American International Group.
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