The St. Paul Travelers Companies and ACE Limited revealed today they received subpoenas from federal prosecutors investigating the use of finite risk products.
Both St. Paul Travelers and ACE stated that they were subpoenaed by the United States Attorney for the Southern District of New York in Manhattan as part of an investigation into the use of finite risk insurance and related products.
Investigators have been looking into suspected improper accounting of the products by companies seeking to present a misleading financial picture.
The two carriers said they understand "that other industry participants have received similar subpoenas." St. Paul Travelers and ACE had previously disclosed that they had also received subpoenas from the SEC and New York Attorney General Eliot Spitzer regarding this issue.
Earlier this week, Bermuda-based reinsurers Platinum Underwriters Holdings and RenaissanceRe Holdings announced that they have received subpoenas from the United States Attorney for the Southern District of New York regarding finite risk products. Previously, both reinsurers had received similar subpoenas from the SEC as well as Mr. Spitzer's office.
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