Gen Re Settles Actions over Sham Reinsurance Deals with AIG

General Re Corp., (Gen Re) has agreed to pay more than $92 million to settle federal investigations and investor lawsuits over its role in two sham reinsurance deals that inflated the loss reserves of American International Group (AIG) by $500 million, the U.S. Securities and Exchange Commission (SEC) announced Wednesday. Gen Re agreed to pay $12.2 million to settle the SEC’s charges, $19.5 million to the U.S. Postal Inspect Service's Consumer Fraud Fund and $60.5 million to settle a class-action suit filed by AIG shareholders, the SEC said. Gen Re previously forfeited to the governm...