A second questionable reinsurance deal is involved in the Securities and Exchange Commission's consideration of civil charges against former American International Group Chairman Maurice Greenberg, it was reported.
According to a Wall Street Journal article, in addition to allegations regarding Mr. Greenberg's alleged involvement with a fraudulent 2001 reinsurance arrangement between AIG and General Reinsurance, the SEC is also looking into a deal between AIG and Capco Reinsurance Co, a reinsurer that was once controlled by AIG and is no longer in operation.
Citing the SEC, the newspaper reported that AIG used a deal with Capco to hide roughly $200 million in underwriting losses for AIG in order to make the insurer's losses "seem less embarrassing…."
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