A US court has placed former Gen Re executive Richard Napier on two years’ probation and imposed a $US10,000 ($11,449) fine for helping AIG artificially inflate its financial position in 2000.

Mr Napier pleaded guilty in 2005 to a conspiracy charge and co-operated with the subsequent US Government investigation.

The charges relate to allegations that Gen Re and AIG set up a bogus finite reinsurance transaction that enhanced AIG’s loss reserves by $US500 million ($572 million). 

In June, John Houldsworth, a former CEO of Gen Re affiliate Cologne Re, received two years’ probation, a $US5000 ($5723) fine and 400 hours of community service for his role in the conspiracy.

Mr Houldsworth, who also pleaded guilty, gave evidence that helped prosecutors win convictions against five former AIG and Gen Re executives.

The five, including former Gen Re CEO Ronald Ferguson and AIG Reinsurance VP Christian Milton, were convicted last year after pleading not guilty to conspiracy charges regarding the deal.

They were later sentenced to prison terms of up to four years and fines of up to $US250,000 ($286,000).