Rennaissance Re may face SEC charges

The Securities and Exchange Commission recently served RenaissanceRe Holdings Ltd. chairman and chief executive James N. Stanard a “Wells” notice, initiating a civil enforcement action against Stanard for allegedly violating U.S. securities laws.The Bermuda-based reinsurer’s accounting and use of finite risk products has been under SEC’s scrutiny. The Company’s has already announced that it is restating its earnings for 2001 through 2003 to correct improper accounting for business with Bermuda-based finite risk reinsurer Inter-Ocean Holdings Ltd.The restatement will increase RenaissanceRe’s 2001 and 2003 net income by $20.6 million and $1.3 million respectively, and decrease its 2002 net income by $21.9 million.In addition, the Company says the SEC separately issued a Wells notice to former RenaissanceRe executive Michael W. Cash. Cash had recently resigned upon refusing to comply with an SEC subpoena asking for his testimony in the probe into RenaissanceRe’s restatement.