General Reinsurance Corporation is an American multinational property/casualty and life/health reinsurance company offering a range of reinsurance products and services. The company is a primarily direct reinsurer and is represented in all major reinsurance markets worldwide through a network of more than 40 offices. Gen Re is a wholly owned subsidiary of Berkshire Hathaway Inc.

Financial strength ratings of Gen Re's reinsurance operations:

  • A.M. Best: A++ (Superior)
  • Standard & Poor's Claims Paying Ability Rating: AA+
  • Moody's Financial Strength Rating: Aa1

In 1923, American investors acquired the company and changed the name to General Reinsurance Corporation.

In 1928, the General Alliance Corporation was organized to acquire and hold the shares of General Reinsurance Corporation, as well as a half interest in the holdings of the Royal Exchange Assurance Group (London) in the United British Insurance Co., Ltd.

In 1929, the General Alliance Corporation owned all the stock of General Reinsurance Corporation, and jointly with the Royal Exchange Group, a controlling interest in the United British. The United British Insurance Co., Ltd. established a U.S. branch that transacted casualty reinsurance as a "running mate for the General, and has the same management as the General. The two companies transact practically all forms of casualty and surety reinsurance and constitute the first example of a 'Group' in the history of American casualty reinsurance." In 1954, the company created the first professional casualty facultative reinsurance department. Property facultative followed, beginning in 1956. North America branch offices were opened during this time. In the 1950s, General Reinsurance began writing reinsurance internationally, expanding in this area during the 1960s and 1970s. The company continued to grow through the next two decades, opening more U.S. and Canada branch offices and making various acquisitions. The company moved its headquarters from New York City to Greenwich, Connecticut in 1974, and then to Stamford, Connecticut in 1984. In 1980, General Re Corporation, the parent holding company, was formed and listed on the New York Stock Exchange as GRN. In 2009, General Reinsurance Corporation completed its purchase of Cologne Re, whose name was changed to General Reinsurance AG in 2010.

AIG Securities Fraud

In October 2000, some Wall Street analysts questioned the decline in American International Group (AIG) loss reserves.

In 2005, New York Attorney General Eliot Spitzer began an investigation into the two reinsurance transactions. Soon afterwards, AIG came under market pressure, and admitted it had undertaken what could be construed as securities fraud. The staff admitted that the two reinsurance transactions had inflated AIG’s balance sheet and propped up AIG’s stock price. In the resultant stock crash, investors lost $500 million in investments.

Resolution

"In June 2012, the U.S. government agreed to not pursue any further legal action against the former Gen Re executives pursuant to deferred prosecution agreements that have since expired and are no longer in effect. As a result, the government matter is fully and finally resolved. Civil litigation related to the AIG matter has also been fully and finally resolved. The lead plaintiffs and Gen Re reached a settlement agreement which the court approved pursuant to a final order entered on September 11, 2013."

Office locations

Gen Re's headquarters are in Stamford, Connecticut.

In North America, Gen Re also operates in Atlanta, Boston, Chicago, Columbus, Dallas, Hartford, Kansas City, Los Angeles, Montreal, New York, Philadelphia, San Francisco, Seattle, South Portland, St. Paul and Toronto.

Gen Re further operates in Latin America (Mexico City, São Paulo), Europe/Middle East (Cologne, Copenhagen, Dubai, London, Madrid, Milan, Moscow, Paris, Vienna), Africa (Cape Town, Johannesburg), Asia (Beijing, Hong Kong, Mumbai, Seoul, Shanghai, Singapore, Taipei, Tokyo) and Australasia (Auckland, Sydney).

References

  • Welcome to Gen Re

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