Gen Re fined for reinsurance deals

The Financial Services Authority (FSA) has fined Berkshire Hathaway’s UK reinsurance subsidiary, General Re £1.225m over its part in two finite reinsurance deals. The UK regulator said the fine related to two “improper” transactions “designed without legitimate commercial purpose and effect” where Gen Re breached two regulatory principles by failing to conduct is business with due skill, care and diligence and by failing to organise and control its affairs responsibly.