AIG used a sham reinsurance deal with Gen Re to inflate its loss reserves
American International Group (AIG) · Insurance (listed)
The case in brief
Visible before detection
Checks that could have surfaced it, on hindsight
Third-party confirmation
Would have confirmed whether the reinsurer bore real risk.
Can mislead when: Counterparties can collude or ignore requests. A non-response is logged as a gap, never as a pass.
Document authenticity / direct pull
Would have looked for side letters behind the contract.
Can mislead when: The company can refuse consent, and a refusal is itself a flag. Some banks and co-op banks are not on AA yet.
Governance signals
Would have flagged a dominant chairman's role in the deal.
Can mislead when: Private companies file late, so these signals are lagging. Kubr uses them to support other flags, not to prove anything alone.
Where Kubr services would have helped
Valuation context
Offered in India- C11 Would have flagged a dominant chairman's role in the deal.
IC note
Offered in India- C5 Would have looked for side letters behind the contract.
- C11 Would have flagged a dominant chairman's role in the deal.
Verified Snapshot
Offered in India- C11 Would have flagged a dominant chairman's role in the deal.
Financial diligence
Offered in India- C5 Would have looked for side letters behind the contract.
Mapped from the checks each service runs. A hindsight reading of public records, not a promise that the failure would have been found.
Same pattern
A summary of public documents. It reports what the sources say. It is not Kubr's finding and not a statement of guilt.