Former General Re Execs Reportedly Targeted in SEC Probe

May 16, 2005

The Securities and Exchange Commission is planning to file civil fraud charges against a former executive of General Reinsurance Corp., one of Berkshire Hathaway Inc.’s insurance companies, according to a published report.

The New York Times quoted unnamed sources as saying Elizabeth Monrad, former executive at General Reinsurance Corp., may be charged in connection with a wide-ranging probe into insurance practices.

Monrad is now chief financial officer at TIAA-CREF, the pension fund.

General Re has been under a federal probe over some of its reinsurance transactions with Virginia-based Reciprocal of America, a former liability insurer of doctors, hospitals and lawyers, and New York-based insurance company American International Group. In one transaction, AIG admitted that its accounting for a General Re deal was improper.

On May 13, Berkshire Hathaway, which is controlled by billionaire investor Warren Buffett, announced that the SEC was considering civil penalties against a senior vice president at subsidiary General Re over alleged violations of securities laws, but did not name the executive who received the so-called Wells notice on May 2.

The Wall Street Journal and New York Times said Richard Napier, a current executive, received the notice.

Berkshire has maintained that officials at General Re and Berkshire have cooperated fully with investigators from the SEC, the Department of Justice and the attorneys general of New York and Virginia.

Copyright 2005 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

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