Chubb Hit with Subpoena Involving Investigation into Usage of Finite-Risk Insurance, Related Items

Chubb Corp. reported on Wednesday that it received a subpoena from the U.S. Attorney for the Southern District of New York as part of an ongoing investigation involving the use of finite-risk insurance and related products.

The company said in a regulatory filing with the Securities and Exchange Commission that it feels this investigation involves a number of industry participants and it hasn’t been isolated by being asked to offer such information.

Finite-risk and other reinsurance products are normally used by insurance companies to share risk, but regulators have alleged that some deals were used simply to burnish company finances.

New York Attorney General Eliot Spitzer, the SEC and state insurance regulators have also been investigating these types of specialty insurance transactions.

Chubb reported it plans to cooperate fully with the investigation, according to the filing.