Munich Re has become the first European reinsurance company to be involved in the US authorities' investigations into accounting irregularities at AIG, the world's largest insurance provider.
Senior management from the German company, which is the world’s largest reinsurer, have been interviewed by US regulators about its connection to and dealings with Bermuda-based Richmond Insurance, which is at the heart of the AIG accounting problems.
Munich Re holds an interest in the Bermuda company, as does AIG, and it is the nature of the American insurance company’s interest and how that relates to the way it records its accounts that is under scrutiny. AIG has a 19.9% stake in Richmond while Munich Re has a 49.9% share.
According to Reuters, a spokesperson from Munich Re stated that the company was not implicated in any wrongdoing by the US investigators and that it was simply supplying information.
Meanwhile, Bermudian authorities revealed this week that they have followed the lead of US agencies by initiating their own investigation into AIG’s accounting practices.