STORY FROM: Reinsurance & Arbitration
Zurich Will Pay $25 Million to Settle SEC Charges
December 12, 2008
NEW YORK - Zurich Financial Services AG will pay $25 million to settle charges brought by the U.S. Securities and Exchange Commission relating to three finite reinsurance transactions involving its former subsidiary Converium Holding AG, according to an SEC press release issued Dec. 11. Securities and Exchange Commission v. Zurich Financial Services, No. 08-10760, S.D. N.Y.).
In a complaint filed the same day in the U.S. District Court for the Southern District of New York, the SEC accused ZFS of improperly accounting for the transactions as reinsurance when in fact no risk was transferred outside of the Zurich entities. This ...