Former General Re senior executive John Houldsworth has pleaded guilty in New York to charges relating to investigations into transactions between AIG and General Re.

Mr Houldsworth faces up to five years jail over a conspiracy charge in connection with a sham reinsurance deal conducted more than four years ago.

He still faces a civil charge lodged by the Securities and Exchange Commission, but has consented to the entry of a partial final judgement that resolves all issues of liability against him without admitting or denying those allegations.

Meanwhile, the New York Times has reported General Re Senior Vice President Richard Napier is also intending to plead guilty to criminal fraud charges.