RenaissanceRe Holdings Ltd. Chief Executive Officer James Stanard has received notice from the Securities and Exchange Commission that staff has recommended a civil enforcement action against him for violating securities laws.
The company announcement that Mr. Stanard and another official who has left the company were the subject of an SEC Wells Notice was made this morning.
The Bermuda-based primary and secondary insurance provider said in February it would restate financial statements for 2001-2003 to correct accounting errors that were uncovered during an internal review.
State and federal regulators are looking into accounting abuses surrounding the use of finite reinsurance products to create misleading financial statements.
RenaissanceRe also said in its press statement that it "understands that the SEC has separately sent a Wells Notice to Michael Cash, a former officer of the company."
Earlier this month, the company said it accepted the resignation of Mr. Cash following his refusal to voluntarily accept an SEC subpoena calling for his testimony in its investigation into the restatements. He is a citizen of Bermuda.
"As previously announced, the company is cooperating with the government authorities in their investigations, and Mr. Cash's action was inconsistent with that policy of cooperation," the company said.
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