NEW YORK—General Re Corp. has agreed to pay $92.2 million to end investigations into the reinsurer's role in transactions that allegedly defrauded investors of American International Group Inc. and Prudential Financial Inc., the U.S. Securities and Exchange Commission said Wednesday.

Gen Re, a subsidiary of Berkshire Hathaway Inc., agreed to pay $12.2 million to settle the SEC's charges. Additionally, the reinsurer agreed to pay the U.S. Postal Inspection Service Consumer Fraud Fund $19.5 million to settle a Justice Department investigation and $60.5 million through a civil class action lawsuit settlement with AIG's shareholders, the SEC said in a statement.

Gen Re previously forfeited to the government $5 million in fees it earned for its participation in the sham reinsurance scheme with AIG.

A call placed to Gen Re seeking comment was not immediately returned.

Wednesday's settlement concluded investigations of a finite reinsurance transaction initiated in 2000 that prosecutors said helped inflate the reserves of New York-based AIG. The case led to the convictions of four former Gen Re executives, including former CEO Ronald E. Ferguson, who was sentenced to two years in prison and fined $200,000.

Christian M. Milton, former AIG vp of reinsurance, was sentenced to four years in prison and fined $200,000. The three other former Gen Re executives—Christopher Garand, former senior vp in charge of U.S. finite underwriting; Robert Graham, former senior vp and assistant general counsel; and Elizabeth Monrad, former chief financial officer—also received prison sentences and fines. They are appealing their convictions.

The SEC previously charged AIG with securities fraud and improper accounting, which the insurer settled by paying more than $800 million. In its case against Gen Re, the SEC alleged that Gen Re entered into two sham reinsurance transactions with AIG in 2000 that allowed AIG to reverse declining loss reserves and written premiums.

Separately, the SEC charged that Gen Re from 1997 to 2002 entered into a series of sham reinsurance contracts with Prudential's property/casualty division, which allowed Prudential to improperly report more than $200 million in revenues in 2000, 2001 and 2002.

“Gen Re arranged to sell financial products to AIG and Prudential for the sole purpose of enabling those companies to manipulate their accounting results and mislead investors,” Andrew M. Calamari, associate director of the SEC's New York regional office, said in a statement.

The SEC said it took Gen Re's remediation efforts and cooperation into account in the cases, including “dissolving a subsidiary involved with the AIG transactions,” in the settlement that still needs court approval.