BestWeek: Dublin Connection Surfaces in Finite Reinsurance Probes.OLDWICK, N.J. -- The multinational nature of reinsurance The contract made between an insurance company and a third party to protect the insurance company from losses. The contract provides for the third party to pay for the loss sustained by the insurance company when the company makes a payment on the original contract. markets and the inherent difficulties that poses for regulators are being pushed into the spotlight by investigations into finite reinsurance Finite Reinsurance A type of reinsurance that transfers over only a finite or limited amount of risk. Risk is reduced through accounting or financial methods, along with the actual transfer of economic risk. contracts, which top the agendas of regulators in four countries. Regulators in Ireland have been drawn into investigations of deals involving American International Group
American International Group, Inc. (AIG) (NYSE: AIG; TYO: 8685 ) is a major American insurance corporation based in New York City. Inc. (AIG AIG addressee indicator group (US DoD) AIG American International Group, Inc AiG Answers in Genesis (religious group in defense of Scripture) AIG Artificial Intelligence Group AIG Australian Industry Group ) and Berkshire Hathaway's General Reinsurance Corp., particularly a $500 million deal AIG negotiated with General Re through a Dublin-based General (Cologne) Re affiliate, according to an exclusive report in the May 16 BestWeek. The International Association of Insurance Supervisors (IAIS IAIS International Association of Insurance Supervisors IAIS Irish American Information Service IAIS Improved Avionics Intermediate Shop IAIS I Am I Said (Neil Diamond) IAIS Iowa Interstate Railroad System ) issued a statement on finite reinsurance just two days after Maurice R. Greenberg Maurice R. "Hank" Greenberg (born May 4, 1925 in New York City) is an American businessman and former chairman and CEO of American International Group (AIG), the world's largest insurance and financial services corporation. He is currently chairman and CEO of C.V. resigned as CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. of AIG over the General Re deal. The IAIS said its reinsurance committee will draft regulatory guidelines on finite reinsurance "in response to concerns about the use and abuse of finite risk reinsurance." The proposed guidelines are expected yet this year. Other in-depth content found exclusively in the May 16 edition of BestWeek: --Why universal life insurance products are the hot ticket right now and how uncertainties over the fate of the federal estate tax and reserve levels for these products have the industry on watch. --How the reputation of finite reinsurance has been hurt by the ongoing investigations into these products, which cover a ceding company's risk. BestWeek is published by A.M. Best Co. for insurance professionals, including home office executives, agents and brokers. To subscribe to BestWeek, please call A.M. Best's customer service department at (908) 439-2200, ext. 5742, or e-mail your request to customer_service@ambest.com. A.M. Best Co., established in 1899, is the world's oldest and most authoritative insurance rating and information source. For more information, visit A.M. Best's Web site at http://www.ambest.com. |
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