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{{Short description|American reinsurance company}}
{{Infobox company
{{Infobox company
| name = General Reinsurance Corporation
| name = General Reinsurance Corporation
| logo = Gen Re logo.svg
| parent = [[Berkshire Hathaway|Berkshire Hathaway Inc.]]
| type = [[Subsidiary]]
| type = [[Subsidiary]]
| foundation = {{Start date and age|1921}} <br/>(General Reinsurance Corp.)<br/>{{Start date and age|1846}} <br/>(Kölnische Rückversicherung)
| logo = [[File:Gen Re logo.svg|150px|logo]]
| location_city = [[Stamford, Connecticut]]
| foundation = 1846
| location = 120 Long Ridge Rd<br>[[Stamford, Connecticut]], United States
| location_country = United States
| area_served = Worldwide
| area_served = Worldwide
| key_people = Charlie Shamieh<br>([[Chairperson|chairman]])<br> Kara Raiguel<br>([[President (corporate title)|president]] and [[Chief executive officer|CEO]])<ref>{{cite web |title=Senior Management Team |url=http://www.genre.com/aboutus/senior-management-team |publisher=Gen Re |access-date=8 April 2022 |archive-date=17 April 2021 |archive-url=https://web.archive.org/web/20210417190648/https://www.genre.com/aboutus/senior-management-team/ |url-status=dead }}</ref>
| key_people = Kara Raiguel <small>(President and [[Chief executive officer|CEO]]<ref>
| industry = [[Financial services]]
{{cite web
| products = [[Reinsurance]]
|title=Senior Management Team
| owner =
|url=http://www.genre.com/aboutus/senior-management-team
| parent = [[Berkshire Hathaway]]
|publisher=Gen Re
| homepage = {{URL|http://genre.com}}
|accessdate=5 September 2014}}
</ref></small>
| industry = [[Financial services]]
| products = [[Reinsurance]]
| homepage = [http://www.genre.com/ www.genre.com]
}}
}}


'''General Reinsurance Corporation''' is a global property/casualty and life/health [[reinsurance]] company offering a range of reinsurance products and services. The company is a direct reinsurer and is represented in all major reinsurance markets worldwide through a network of more than 40 offices. Gen Re is a member of the [[Berkshire Hathaway|Berkshire Hathaway Inc]] group of companies.
'''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|Berkshire Hathaway Inc]].


Financial strength ratings of Gen Re's reinsurance operations:
Financial strength ratings of Gen Re's reinsurance operations:
* [[A.M. Best Company|A.M. Best]]: A++ (Superior)<ref name="AMBest">{{cite web |url=https://news.ambest.com/presscontent.aspx?altsrc=108&refnum=30527 |title=AM Best Affirms Credit Ratings of General Reinsurance Corp. and Its Subsidiaries; Withdraws Ratings of IdeaLife Insurance Co. (Press Release) |access-date=8 April 2022 |date=26 March 2021 |publisher= A.M. Best}}</ref>
* [[A.M. Best Company|A.M. Best]]: A++ (Superior)<ref>
* [[Standard & Poor's]] Claims Paying Ability Rating: AA+<ref name="Meet Gen Re">{{cite web |url=https://www.genre.com/aboutus/meet-genre |title=Meet Gen Re |access-date=8 April 2022 |publisher= Gen Re}}</ref>
{{cite web
* [[Moody's Corporation|Moody's]] Financial Strength Rating: Aa1<ref name="Meet Gen Re" />
| url = http://www3.ambest.com/ambv/bestnews/presscontent.aspx?altsrc=108&refnum=21307

| title = A.M. Best Affirms Ratings of General Reinsurance Corporation and Its Subsidiaries (Press Release)
''General Re Corporation'' is the holding company for Gen Re's global reinsurance and related operations. It owns ''General Reinsurance Corporation'', ''General Re Life Corporation'' and ''General Reinsurance AG'', the direct reinsurers which conduct business as Gen Re. In addition, the insurance, reinsurance and investment management companies in the General Re group include: ''Gen Re Intermediaries'', ''NEAM'', ''General Star'', ''Genesis'', ''USAU'' and ''Faraday''.<ref name="Meet Gen Re" />
| accessdate = 10 January 2015
| date = 17 June 2014
| publisher = A.M. Best
}}
</ref>
* [[Standard & Poor’s|Standard & Poor's Claims Paying Ability Rating]]: AA+<ref>
{{cite web
| url = http://www.genre.com/aboutus/meet-genre
| title = Meet Gen Re
| accessdate = 10 January 2015
| publisher = Gen Re
}}</ref>
''General Re Corporation'' is the holding company for Gen Re's global reinsurance and related operations. It owns ''General Reinsurance Corporation'', ''General Re Life Corporation'' and ''General Reinsurance AG'', the direct reinsurers which conduct business as Gen Re. In addition, the insurance, reinsurance and investment management companies in the General Re group include: ''Gen Re Intermediaries'', ''GR-NEAM'', ''General Star'', ''Genesis'', ''USAU'' and ''Faraday''.<ref>
{{cite web
| title=About Us
| url=http://www.genre.com/aboutus/meet-genre
| publisher=Gen Re
| accessdate=10 January 2015
}}</ref>


==History==
==History==
General Reinsurance Corporation’s history began in 1921 as the ''General Casualty and Surety Reinsurance Corporation'', before it took over the U.S. business of the Norwegian Globe Insurance Company of Christiania, Norway.<ref name="Casualty Actuarial Society">
General Reinsurance Corporation’s history began in 1921 as the ''General Casualty and Surety Reinsurance Corporation'', before it took over the U.S. business of the Norwegian Globe Insurance Company of Christiania, [[Norway]].<ref name="Casualty Actuarial Society">{{cite magazine |last=Kopf |first=Edwin W. |title=Notes on the Origin and Development of Reinsurance |url=https://www.casact.org/sites/default/files/database/proceed_proceed29_29022.pdf |magazine=1929-30 Proceedings of the Casualty Actuarial Society |publisher=Casualty Actuarial Society |volume=XVI |access-date=8 April 2022}}</ref>
{{cite web
| title=Proceedings of the Casualty Actuarial Society
| url=http://www.casact.org/pubs/proceed/proceed29/1929.pdf
| publisher=Casualty Actuarial Society
| pages=71
| format=PDF
| accessdate=10 January 2015
}}</ref>


In 1923, American investors acquired the company and changed the name to ''General Reinsurance Corporation''.<ref name="Company Histories">{{cite book |last1=Martin |first1=Jonathan |last2=Salamie |first2=David E. |editor-last=Pederson |editor-first=Jay P. |date=1999 |title=International Directory of Company Histories |volume=24 |chapter=General Re Corporation |location=St. James, MO |publisher=St. James Press |pages=176–178 |isbn=978-1558623651}}</ref>
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."<ref name="Casualty Actuarial Society"/>


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.''
Also in 1929, General Reinsurance affirmed that it would be only a direct reinsurer. In 1945, General Reinsurance merged with ''Mellon Indemnity Corporation''. 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 listed on the New York Stock Exchange.


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."<ref name="Casualty Actuarial Society" />
In 1994, General Reinsurance Corporation formed an alliance with what was then ''Cologne Re'' (Kölnische Rückversicherungs-Gesellschaft, which was founded in 1846), now ''General Reinsurance AG''. In 1998, General Re Corporation was acquired by ''Berkshire Hathaway Inc.'', and in 2003 General Reinsurance Corporation and Cologne Re began marketing under the brand name of ''Gen Re''.<ref>

{{cite web
Also in 1929, General Reinsurance affirmed that it would be only a direct reinsurer.{{Citation needed|date=January 2020}} In 1945, General Reinsurance merged with ''Mellon Indemnity Corporation''.<ref name="Mellon">{{Google books |pXYYOceo4OEC |Federal Register, Volume 11, Part 2, Wednesday, February 20, 1946 |page=1813 |keywords=General Reinsurance merged with Mellon Indemnity Corporation |text= |plainurl=}}</ref> In 1954, the company created the first professional casualty facultative reinsurance department.{{Citation needed|date=January 2020}} 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.<ref name="Company Histories" />
| title=History of Gen Re

| url=http://www.genre.com/aboutus/meet-genre#tab=1
In 1994, General Reinsurance Corporation formed an alliance with what was then ''Cologne Re'' (Kölnische Rückversicherungs-Gesellschaft, which was founded in 1846), now ''General Reinsurance AG''. In 1998, General Re Corporation was acquired by ''Berkshire Hathaway Inc.'', and in 2003 General Reinsurance Corporation and Cologne Re began marketing under the brand name of ''Gen Re''.<ref>{{cite web |title=History of Gen Re |url=http://www.genre.com/aboutus/meet-genre#tab=1 |publisher=Gen Re |access-date=8 April 2022}}</ref> In 2009, General Reinsurance Corporation completed its purchase of Cologne Re,<ref>{{cite web |title=Corporate Announcement: Entry of the transfer resolution pursuant to §§ 327a ff. German Stock Corporation Act |url=http://www.genre.com/aboutus/press-releases/corporate-announcement-entry-of-the-transfer-resolution-pursuant-to-327a-ff-german-stock-corporation-act.html |date=12 February 2009 |publisher=Gen Re |access-date=5 September 2014 |archive-url=https://web.archive.org/web/20140729235709/http://www.genre.com/aboutus/press-releases/corporate-announcement-entry-of-the-transfer-resolution-pursuant-to-327a-ff-german-stock-corporation-act.html |archive-date=29 July 2014 |url-status=dead}}</ref> whose name was changed to General Reinsurance AG in 2010.<ref>{{cite web |title=Press Release |url= http://www.genre.com/aboutus/press-releases/cologne-re-becomes-general-reinsurance-ag.html |publisher=Gen Re |access-date=10 January 2015 |url-status=dead |archive-url= https://web.archive.org/web/20150924021454/http://www.genre.com/aboutus/press-releases/cologne-re-becomes-general-reinsurance-ag.html |archive-date=24 September 2015}}</ref>
| publisher=Gen Re
| accessdate=10 January 2015
}}</ref> In 2009, General Reinsurance Corporation completed its purchase of Cologne Re,<ref>
{{cite web
| title=Corporate Announcement: Entry of the transfer resolution pursuant to §§ 327a ff. German Stock Corporation Act
| url=http://www.genre.com/aboutus/press-releases/corporate-announcement-entry-of-the-transfer-resolution-pursuant-to-327a-ff-german-stock-corporation-act.html
| date=12 February 2009
| publisher=Gen Re
}}</ref> whose name was changed to General Reinsurance AG in 2010.<ref>
{{cite web
| title=Press Release
| url=http://www.genre.com/aboutus/press-releases/cologne-re-becomes-general-reinsurance-ag.html
| publisher=Gen Re
| accessdate=10 January 2015
}}</ref> The company continues to market globally as Gen Re.


===AIG Securities Fraud===
===AIG Securities Fraud===
{{main article|American International Group}}
{{main|American International Group}}
In October 2000, some Wall Street analysts questioned the decline in [[American International Group|American International Group (AIG)]] loss reserves.<ref name=SECPressRelease/> In an effort to quell these concerns, AIG entered into two sham reinsurance transactions with Cologne Re Dublin, a subsidiary of General Reinsurance, that had no economic substance but were designed to add $500 million in phony loss reserves to AIG’s balance sheet in the fourth quarter of 2000 and first quarter of 2001.<ref name=SECPressRelease>{{cite web| url=http://www.sec.gov/litigation/litreleases/lr19560.htm| title=SEC Charges AIG with Securities Fraud| publisher=SEC Press Release| date=9 February 2006| accessdate=4 April 2012}}</ref><ref name=InsJour>{{cite web | url=http://www.insurancejournal.com/news/national/2009/06/18/101524.htm| title=Former General Re Executive Given Probation| author=Dave Collins| publisher=Insurance Journal| date=18 June 2009| accessdate=14 March 2012}}</ref>
In October 2000, some Wall Street analysts questioned the decline in [[American International Group|American International Group (AIG)]] loss reserves.<ref name=SECPressRelease/> In an effort to quell these concerns, AIG entered into two sham reinsurance transactions with Cologne Re Dublin, a subsidiary of General Reinsurance, that had no economic substance but were designed to add $500 million in phony loss reserves to AIG’s balance sheet in the fourth quarter of 2000 and first quarter of 2001.<ref name=SECPressRelease>{{cite web| url=https://www.sec.gov/litigation/litreleases/lr19560.htm| title=SEC Charges AIG with Securities Fraud| publisher=SEC Press Release| date=9 February 2006| access-date=4 April 2012}}</ref><ref name=InsJour>{{cite web | url=http://www.insurancejournal.com/news/national/2009/06/18/101524.htm| title=Former General Re Executive Given Probation| author=Dave Collins| publisher=Insurance Journal| date=18 June 2009| access-date=14 March 2012}}</ref>


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.<ref name=InsJour/>
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.<ref name=InsJour/>
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The DOJ subsequently undertook successful prosecutions against four former Gen Re executives and one former AIG executive: CEO Ronald Ferguson was sentenced to two years in prison and fined $200,000; CFO Elizabeth Monrad was sentenced to 18 months in prison and fined $250,000; Senior Vice President Christopher Garand was sentenced to a year and a day in prison and fined $150,000; Senior Vice President and Assistant General Counsel Robert Graham was sentenced to a year and a day in prison and fined $100,000; AIG's Vice President Christian Milton was sentenced to four years in prison and fined $200,000.<ref name=InsJour/>
The DOJ subsequently undertook successful prosecutions against four former Gen Re executives and one former AIG executive: CEO Ronald Ferguson was sentenced to two years in prison and fined $200,000; CFO Elizabeth Monrad was sentenced to 18 months in prison and fined $250,000; Senior Vice President Christopher Garand was sentenced to a year and a day in prison and fined $150,000; Senior Vice President and Assistant General Counsel Robert Graham was sentenced to a year and a day in prison and fined $100,000; AIG's Vice President Christian Milton was sentenced to four years in prison and fined $200,000.<ref name=InsJour/>


In 2009, in front of U.S. District Judge Christopher Droney in Hartford, Houldsworth apologized. He was resultantly fined $5,000 and ordered to perform 400 hours of community service during a two-year probation period.
In 2009, in front of U.S. District Judge Christopher Droney in Hartford, Houldsworth apologized. As a result, he was fined $5,000 and ordered to perform 400 hours of community service during a two-year probation period.


On August 1, 2011, the United States Court of Appeals for the Second Circuit vacated the five Gen Re and AIG defendants’ convictions and remanded the defendants for a new trial, holding that the reported drop in share prices could not be attributed to the two reinsurance deals.<ref name=NYTimesDealBook>
On August 1, 2011, the United States Court of Appeals for the Second Circuit vacated the five Gen Re and AIG defendants’ convictions and remanded the defendants for a new trial, holding that the reported drop in share prices could not be attributed to the two reinsurance deals.<ref name=NYTimesDealBook>
{{cite web
{{cite web
| url=http://dealbook.nytimes.com/2011/08/01/appeals-court-overturns-5-gen-re-and-a-i-g-convictions/
| url=https://dealbook.nytimes.com/2011/08/01/appeals-court-overturns-5-gen-re-and-a-i-g-convictions/
| title=Court Overturns 5 Gen Re and A.I.G. Fraud Convictions
| title=Court Overturns 5 Gen Re and A.I.G. Fraud Convictions
| author=Peter Lattman
| author=Peter Lattman
| publisher=New York Times Deal Book
| publisher=New York Times Deal Book
| date=1 August 2011
| date=1 August 2011
| accessdate=4 April 2012
| access-date=4 April 2012
}}</ref>
}}</ref><ref name=Reactions>
<ref name=Reactions>
{{cite web
{{cite web
| url=http://www.reactionsnet.com/Article/2876592/Tad-Montross-Exploding-soft-market-myths.html
| url=http://www.reactionsnet.com/Article/2876592/Tad-Montross-Exploding-soft-market-myths.html
| archive-url=https://web.archive.org/web/20160304062946/http://www.reactionsnet.com/Article/2876592/Tad-Montross-Exploding-soft-market-myths.html
| url-status=usurped
| archive-date=March 4, 2016
| title=Court quashes Gen Re-AIG convictions
| title=Court quashes Gen Re-AIG convictions
| publisher=Reactions
| publisher=Reactions
| date=1 August 2011
| date=1 August 2011
| accessdate=4 April 2012
| access-date=4 April 2012
}}</ref>
}}</ref>


===Resolution===
====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." <ref>
"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."<ref>
{{cite web
{{cite web
| title=Gen Re $72 Million Settlement Wins Final Approval
| title=Gen Re $72 Million Settlement Wins Final Approval
| url=http://www.bloomberg.com/news/2013-09-10/gen-re-72-million-settlement-wins-final-approval.html
| url=https://www.bloomberg.com/news/2013-09-10/gen-re-72-million-settlement-wins-final-approval.html
| author=Bob Van Voris
| author=Bob Van Voris
| publisher=Bloomberg
| publisher=Bloomberg
| date=11 September 2013
| date=11 September 2013
| accessdate=5 September 2014
| access-date=5 September 2014
}}</ref>
}}</ref>

==Business==
Reinsurers "insure insurance companies", i.e., they will pay a portion of an insurance company's claims in exchange for a portion of the premium received by the insurance company for policies that cover those claims.

As a [[Reinsurance#Markets|direct reinsurer]], Gen Re delivers reinsurance solutions to companies in all segments of the insurance industry on both a [[Reinsurance|Treaty]] and [[Reinsurance|Facultative]] basis. Gen Re's Property and Casualty reinsurance in North America is written through General Reinsurance Corporation and internationally through Germany-based General Reinsurance AG and other wholly owned affiliates. Gen Re's Life and Health reinsurance is written in North America through General Re Life Corporation and internationally through General Reinsurance AG.


==Office locations==
==Office locations==
Gen Re's headquarters are in [[Stamford, Connecticut]]. Branch and subsidiary offices are located all over the world:<ref>
Gen Re's headquarters are in [[Stamford, Connecticut]].<ref>{{cite web |title=Office Directory |url=http://www.genre.com/contactus/?c=n |publisher=Gen Re |access-date=8 April 2022}}</ref>
{{cite web
| title=Office Directory
| url=http://www.genre.com/contactus/?c=n
| accessdate=5 September 2014
}}</ref>


In North America, Gen Re also operates in [[Atlanta]], [[Boston]], [[Charlotte, North Carolina|Charlotte]], [[Chicago]], [[Columbus, Ohio|Columbus]], [[Dallas]], [[Hartford, Connecticut|Hartford]], [[Kansas City, Missouri|Kansas City]], [[Los Angeles]], [[Montreal]], [[New York City|New York]], [[Philadelphia]], [[San Francisco]], [[Seattle]], [[South Portland, Maine|South Portland]], [[Saint Paul, Minnesota|St. Paul]] and [[Toronto]].
In North America, Gen Re also operates in [[Atlanta]], [[Boston]], [[Chicago]], [[Columbus, Ohio|Columbus]], [[Dallas]], [[Hartford, Connecticut|Hartford]], [[Kansas City, Missouri|Kansas City]], [[Los Angeles]], [[Montreal]], [[New York City|New York]], [[Philadelphia]], [[San Francisco]], [[Seattle]], [[South Portland, Maine|South Portland]], [[Saint Paul, Minnesota|St. Paul]] and [[Toronto]].


Gen Re further operates in Latin America ([[Mexico City]], [[São Paulo]]), Europe/Middle East ([[Beirut]], [[Cologne]], [[Copenhagen]], [[London]], [[Madrid]], [[Milan]], [[Moscow]], [[Paris]], [[Riga]], [[Vienna]], [[Warsaw]]), Africa ([[Cape Town]], [[Johannesburg]]), Asia ([[Beijing]], [[Hong Kong]], [[Mumbai]], [[Seoul]], [[Shanghai]], [[Singapore]], [[Taipei]], [[Tokyo]]) and Australasia ([[Auckland]], [[Melbourne]], [[Sydney]]).
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==
==References==
Line 143: Line 92:


==External links==
==External links==
*[http://www.genre.com/ Welcome to Gen Re]
*[https://www.genre.com/ Welcome to Gen Re]
*{{PM20|FID=co/014266|TEXT=Documents and clippings about|NAME=Kölnische Rückversicherungs-Gesellschaft}}
*[http://media.genre.com/documents/ar14-en.pdf Gen Re 2014 Annual Review]


;Articles
;Articles
*{{cite news |author=<!--not stated--> |title=Gen Re traces its history back to the roots of reinsurance |url=https://www.theinsurer.com/analysis/gen-re-traces-its-history-back-to-the-roots-of-reinsurance/14933.article |work=Analysis |agency=The Insurer |date=October 2021 |access-date=8 April 2022}}
*[http://www.reactionsnet.com/Article/2698406/Tad-Montross-Exploding-soft-market-myths.html Tad Montross: Exploding soft market myths - ''Reactions'', 24 October 2010]
*{{cite news |author=<!--not stated--> |title=In Discussion with Charlie Shamieh, FIAA, Chairman, Gen Re |url=https://www.soa.org/sections/reinsurance/reinsurance-newsletter/2021/october/rsn-2021-10-shamieh/ |work=Reinsurance News |agency=[[Society of Actuaries]] |date=October 2021 |access-date=8 April 2022}}
*[http://www.reactionsnet.com/Article/2478786/CEO-FORUM-Gen-Res-Tad-Montross-on-model-dependency.html Gen Re's Tad Montross on model dependency - ''Reactions'', 3 May 2010]
*[http://www.reactionsnet.com/Article.aspx?StoryID=713911 Gen Re's Tad Montross - The quiet American - ''Reactions'', 3 November 2008]

;Data
*[http://biz.yahoo.com/ic/10/10643.html Yahoo! - General Re Corporation Company Profile]


{{Portal|Companies}}
{{Portal|Companies}}
{{Berkshire Hathaway}}
{{Berkshire Hathaway}}
{{Major_insurance_companies}}


[[Category:Berkshire Hathaway]]
[[Category:Berkshire Hathaway]]
[[Category:Financial services companies established in 1846]]
[[Category:Companies based in Stamford, Connecticut]]
[[Category:Insurance companies of the United States]]
[[Category:Insurance companies of the United States]]
[[Category:Reinsurance companies]]
[[Category:Reinsurance companies]]
[[Category:1998 mergers and acquisitions]]
[[Category:1846 establishments in Connecticut]]
[[Category:American companies established in 1846]]

Latest revision as of 16:57, 22 September 2024

General Reinsurance Corporation
Company typeSubsidiary
IndustryFinancial services
Founded1921; 103 years ago (1921)
(General Reinsurance Corp.)
1846; 178 years ago (1846)
(Kölnische Rückversicherung)
Headquarters
Stamford, Connecticut
,
United States
Area served
Worldwide
Key people
Charlie Shamieh
(chairman)
Kara Raiguel
(president and CEO)[1]
ProductsReinsurance
ParentBerkshire Hathaway
Websitegenre.com

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:

General Re Corporation is the holding company for Gen Re's global reinsurance and related operations. It owns General Reinsurance Corporation, General Re Life Corporation and General Reinsurance AG, the direct reinsurers which conduct business as Gen Re. In addition, the insurance, reinsurance and investment management companies in the General Re group include: Gen Re Intermediaries, NEAM, General Star, Genesis, USAU and Faraday.[3]

History

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General Reinsurance Corporation’s history began in 1921 as the General Casualty and Surety Reinsurance Corporation, before it took over the U.S. business of the Norwegian Globe Insurance Company of Christiania, Norway.[4]

In 1923, American investors acquired the company and changed the name to General Reinsurance Corporation.[5]

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."[4]

Also in 1929, General Reinsurance affirmed that it would be only a direct reinsurer.[citation needed] In 1945, General Reinsurance merged with Mellon Indemnity Corporation.[6] In 1954, the company created the first professional casualty facultative reinsurance department.[citation needed] 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.[5]

In 1994, General Reinsurance Corporation formed an alliance with what was then Cologne Re (Kölnische Rückversicherungs-Gesellschaft, which was founded in 1846), now General Reinsurance AG. In 1998, General Re Corporation was acquired by Berkshire Hathaway Inc., and in 2003 General Reinsurance Corporation and Cologne Re began marketing under the brand name of Gen Re.[7] In 2009, General Reinsurance Corporation completed its purchase of Cologne Re,[8] whose name was changed to General Reinsurance AG in 2010.[9]

AIG Securities Fraud

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Main article: American International Group

In October 2000, some Wall Street analysts questioned the decline in American International Group (AIG) loss reserves.[10] In an effort to quell these concerns, AIG entered into two sham reinsurance transactions with Cologne Re Dublin, a subsidiary of General Reinsurance, that had no economic substance but were designed to add $500 million in phony loss reserves to AIG’s balance sheet in the fourth quarter of 2000 and first quarter of 2001.[10][11]

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.[11]

Cologne Re Dublin's CEO, John Houldsworth, agreed to turn state's witness for the Department of Justice (DOJ) and Securities and Exchange Commission, in agreement for a plea bargain. Houldsworth then pleaded guilty to conspiring to commit securities fraud, resultantly facing a sentence of up to five years in prison and $250,000 in fines. The final sentencing was placed on hold, subject to consequential SEC prosecutions.[11]

The DOJ subsequently undertook successful prosecutions against four former Gen Re executives and one former AIG executive: CEO Ronald Ferguson was sentenced to two years in prison and fined $200,000; CFO Elizabeth Monrad was sentenced to 18 months in prison and fined $250,000; Senior Vice President Christopher Garand was sentenced to a year and a day in prison and fined $150,000; Senior Vice President and Assistant General Counsel Robert Graham was sentenced to a year and a day in prison and fined $100,000; AIG's Vice President Christian Milton was sentenced to four years in prison and fined $200,000.[11]

In 2009, in front of U.S. District Judge Christopher Droney in Hartford, Houldsworth apologized. As a result, he was fined $5,000 and ordered to perform 400 hours of community service during a two-year probation period.

On August 1, 2011, the United States Court of Appeals for the Second Circuit vacated the five Gen Re and AIG defendants’ convictions and remanded the defendants for a new trial, holding that the reported drop in share prices could not be attributed to the two reinsurance deals.[12][13]

Resolution

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"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."[14]

Office locations

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Gen Re's headquarters are in Stamford, Connecticut.[15]

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

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  1. ^ "Senior Management Team". Gen Re. Archived from the original on 17 April 2021. Retrieved 8 April 2022.
  2. ^ "AM Best Affirms Credit Ratings of General Reinsurance Corp. and Its Subsidiaries; Withdraws Ratings of IdeaLife Insurance Co. (Press Release)". A.M. Best. 26 March 2021. Retrieved 8 April 2022.
  3. ^ a b c "Meet Gen Re". Gen Re. Retrieved 8 April 2022.
  4. ^ a b Kopf, Edwin W. "Notes on the Origin and Development of Reinsurance" (PDF). 1929-30 Proceedings of the Casualty Actuarial Society. Vol. XVI. Casualty Actuarial Society. Retrieved 8 April 2022.
  5. ^ a b Martin, Jonathan; Salamie, David E. (1999). "General Re Corporation". In Pederson, Jay P. (ed.). International Directory of Company Histories. Vol. 24. St. James, MO: St. James Press. pp. 176–178. ISBN 978-1558623651.
  6. ^ Federal Register, Volume 11, Part 2, Wednesday, February 20, 1946 , p. 1813, at Google Books
  7. ^ "History of Gen Re". Gen Re. Retrieved 8 April 2022.
  8. ^ "Corporate Announcement: Entry of the transfer resolution pursuant to §§ 327a ff. German Stock Corporation Act". Gen Re. 12 February 2009. Archived from the original on 29 July 2014. Retrieved 5 September 2014.
  9. ^ "Press Release". Gen Re. Archived from the original on 24 September 2015. Retrieved 10 January 2015.
  10. ^ a b "SEC Charges AIG with Securities Fraud". SEC Press Release. 9 February 2006. Retrieved 4 April 2012.
  11. ^ a b c d Dave Collins (18 June 2009). "Former General Re Executive Given Probation". Insurance Journal. Retrieved 14 March 2012.
  12. ^ Peter Lattman (1 August 2011). "Court Overturns 5 Gen Re and A.I.G. Fraud Convictions". New York Times Deal Book. Retrieved 4 April 2012.
  13. ^ "Court quashes Gen Re-AIG convictions". Reactions. 1 August 2011. Archived from the original on March 4, 2016. Retrieved 4 April 2012.{{cite web}}: CS1 maint: unfit URL (link)
  14. ^ Bob Van Voris (11 September 2013). "Gen Re $72 Million Settlement Wins Final Approval". Bloomberg. Retrieved 5 September 2014.
  15. ^ "Office Directory". Gen Re. Retrieved 8 April 2022.
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