Gen Re CEO under investigation

Officials investigating a finite reinsurance deal executed in 2000 by General Reinsurance Corp. and American International Group Inc. are examining whether Gen Reinsurance Corp’s current chief executive officer, Joseph P. Brandon, is being investigated regarding whether or not he had a role in the deal between General Re. and American International Group (AIG) according to insider information recently reported in the Wall Street Journal.Specifically, Brandon’s knowledge of the $500 million retrocessional loss-portfolio transfer deal Gen Re struck with AIG in 2000 is being looked into. The U.S. Securities and Exchange Commission and the Department of Justice are examining evidence, including notes and e-mails, to determine Brandon’s knowledge of the deal.If regulators determine that Brandon was aware of AIG’s purpose for the deal and knew how AIG accounted for it, he may face charges, according to the Wall Street Journal.AIG recently admitted it improperly accounted for the deal and restated its earnings accordingly.