June 24, 2005 by Canadian Underwriter
Fairmont Specialty Group, a subsidiary of Toronto-based Fairfax Financial Holdings Ltd., recently received a subpoena from the U.S. Securities and Exchange Commission.
The subpoena, according to Fairfax Financial, seeks information on “any nontraditional insurance product transactions” with General Re and its affiliates.
Fairfax reports that Fairmont is cooperating with the request.
This recent legal summons follows a similar subpoena recently served to Philadelphia Consolidated Holdings Corp.
The SEC and other state and federal authorities have been filing subpoenas on numerous insurance industry companies that used finite risk products. These summons are meant to aid federal investigations regarding the improper use of finite risk products to illegally manipulate earnings.