Fairfax Financial Holdings Ltd. in Canada said its subsidiary has received a subpoena from the U.S. Securities and Exchange Commission over its dealings with Berkshire Hathaway's General Re.
The Toronto-based financial and insurance company said the SEC's subpoena is requesting documents related to "any non-traditional insurance product transactions" entered into by its Fairmont Specialty unit with General Re.
General Re has been one of the largest providers of non-traditional finite risk products in the past and is part of the widening regulatory probes. Fairfax said it is cooperating with the request.
Fairfax Financial is a financial-services holding company offering property-casualty insurance and reinsurance, investment management, and insurance claims management.
In recent months, dozens of insurance and reinsurance companies have been subpoenaed in a continuing investigation of suspected improper accounting of finite products to provide firms with a false financial picture.
This week, Bermuda-based ACE Ltd. Chief Financial Officer Phillip Bancroft revealed at an industry conference in Chicago that his company has turned over more than 100 contracts considered to be non-traditional for review by investigators.
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