Max Re Capital Ltd. may face delisting from the Nasdaq stock exchange for failing to file its first-quarter financial report on time.
The company said it was not able to file its quarterly Form 10-Q for the first quarter because its Audit Committee of the board of directors could not complete a review of three finite risk contracts written in 2001 and 2003.
As a result of the review, the company said it expects, but has not yet firmly decided, to restate its financial results for the years 2001 through 2005.
Max Re said that any restatement, however, would not result in a reduction of retained earnings greater than $25 million.
In a press statement Friday, the company said it expects to file its Form 10-Q in June of 2006 but was not providing any guarantees.
The company said it will request a Nasdaq hearing for continued listing.
Max Re is not the only carrier to run afoul of finite reinsurance accounting rules. Last year Renaissance Re Holdings Ltd. founder and chairman James Stanard resigned after receiving a notice from the Securities and Exchange Commission that he was under investigation for a possible civil action relating to the company's accounting.
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