Recently, a number of insurers and reinsurers, including CNA Financial and RenaissanceRe Holdings Ltd., have disclosed they have been the targets of regulatory scrutiny over the sale of non-traditional products.

In General Re's case, the regulators are primarily looking at whether the reinsurer may have played a role in helping the now-defunct Virginia-based medical/legal liability insurer Reciprocal of America to distort its financial picture by the sale of non-traditional products.

From the late 1970's through 2002, Berkshire Hathaway provided various reinsurance coverages to Reciprocal of America, according to the company.

In its 8-K filing with the Securities and Exchange Commission this week, Berkshire Hathaway revealed that in Dec. 2004 and "on several occasions since then," the U.S. Department of Justice requested information concerning Reciprocal of America and its related off-shore reinsurer, First Virginia Reinsurance, Ltd.

Berkshire Hathaway also said it has been asked for information concerning transactions between Berkshire or its business units and other insurers.

Berkshire Hathaway also stated in its filing: "In Dec. 2004, General Re Corporation received a request from the U.S. Securities and Exchange Commission for documents and information relating to non-traditional products."

And in Jan. 2005, the company added, "General Re also received a subpoena for the same documents and information from both the SEC and the New York State attorney general."

Berkshire's business relationship with Reciprocal of America first received regulatory scrutiny in Oct. 2003, when the U.S. Attorney for the Eastern District of Virginia subpoenaed General Re and four of its current and former employees, including a former president, as part of a probe into the failed insurer.