Fairfax Financial Holdings Ltd. on Monday said it received a further subpoena from the Securities and Exchange Commission as part of the agency’s probe into certain insurance products used to hide losses. 

The Toronto-based property and casualty insurer said the SEC requested documents regarding any transactions in securities of Fairfax Financial, the compensation for such transactions and the trading volume or share price of such securities.

Fairfax said it is cooperating with the request.

Earlier this month, Fairfax said it received a subpoena for information on any reinsurance or non-traditional insurance products and deals the company has been involved in. In June, the insurer said its Fairmont Specialty Group subsidiary received a subpoena from regulators over its dealings with General Re Corp., a target in a widening probe over finite risk insurance products.

Dozens of insurance and reinsurance companies have become involved in the industry probe. Spurred by dealings between General Re and American International Group Inc., the SEC and other government regulators are investigating the use of finite risk insurance. The product is used by insurers to share risk, and regulators and government officials claim it can also be used to artificially inflate earnings.

General Re, a unit of billionaire investor Warren Buffett’s Berkshire Hathaway Inc., is accused of structuring a reinsurance transaction to allow AIG to add a total of $500 million in phony loss reserves to its balance sheet.



We're here to help!

We live by our creed of "helping those who need it most" and have helped thousands of clients get the justice they desperately needed and deserved. If you feel you have a case or just have questions please contact us for a free consultation. There is no risk and no fees unless we win for you.

Fields marked    may be required for submission.
  1. I'm an attorney

Louisiana Court says Insurer Acted in Bad Faith

A New Orleans home owner whose home was destroyed during Hurricane Katrina has won an appeal against the...

Ruling May Affect Alabama Lawsuits

A federal judge's ruling in Mississippi this week that an insurance company did not have to pay for...

Eufaula Pulpwood Gets Settlement

Eufaula Pulpwood has settled with Lexington Insurance Company for an undisclosed amount an a bad faith...

SEC May Sue General Re Officials

Berkshire Hathaway, the Omaha holding company controlled by Warren E. Buffett, said that regulators had...

AIG Inflated Claims, says Local Lawsuit

American International Group Inc., the New York insurance giant embroiled in a scandal over padded...

Expert Warns of Further Finite Risk Lawsuits

Auditors, actuaries, consultants and investment banks will be among the growing number of companies...

I never dreamed how much this would mean to me

I received another check today, much to my surprise. Thank you, thank you, thank you! I never dreamed how much this would mean to me in my golden years, as I have had hearing problems for years and needed to update my hearing aids, but with a limited income, found that was impossible. I now have the best hearing aids that I have ever had, thanks to you fighting so hard on my behalf.

—Gladys