Irish branch of General Re faces probe

THE Irish branch of reinsurance firm General Re will come under intense scrutiny today when its owner Warren Buffett is interviewed by US investigators about transactions carried out from its Dublin operations.

Mr Buffett, the world’s second-richest man and chairman of Berkshire Hathaway (the parent of General Re), will be interviewed by the New York attorney general Elliot Spitzer and investigators from the Securities & Exchange Commissions about the activities of General Re and in particular links between its branch in Dublin’s IFSC and the insurance giant American International Group (AIG).

Last month, AIG - which is the subject of an inquiry by the SEC and Mr Spitzer - admitted that a $500 million transaction between the company and General Re was improper and may have boosted the company’s accounts. The deal was booked through General Re’s Dublin branch. A number of other transactions that may have inflated the company’s profits are also under review.