Bermuda-based insurer ACE, Ltd.'s, chief financial officer said the company has turned over more than 100 contracts considered to be nontraditional for review by investigators.
Speaking yesterday at William Blair & Company's annual stock conference in Chicago, Phillip V. Bancroft said the company has turned the documents over to both the Securities & Exchange Commission and attorneys hired by ACE who are conducting an internal investigation for the carrier.
Mr. Bancroft's comments came in response to questions asked of him during the conference.
The investigation is in response to questions raised over finite risk insurance products which were allegedly used to improperly prop-up some corporations' financial positions.
Mr. Bancroft said ACE decided to "err on the conservative side and release anything that could be considered non-traditional for [investigators] review," which may not necessarily be finite risk agreements.
He said the company's own internal review would be concluded within the next two months.
In April, ACE Chief Executive Evan Greenberg said during an analysts conference call that the company's internal investigation would be completed in a month. At the time, he said the company's investigators had uncovered no improper use of the products.
Regarding general market conditions, Mr. Bancroft observed that there continues to be pricing deterioration but added: "There is discipline in the market–more discipline than in past cycles–but I would say that we are getting to the point in some lines where we will stop writing if deterioration continues."
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