RenaissanceRe CEO received SEC Wells notice
RenaissanceRe Holdings Ltd. (NYSE: RNR) announced today that James N. Stanard, the Company's Chairman and Chief Executive Officer, has received a "Wells Notice" from the staff of the U.S. Securities and Exchange Commission (the "SEC") in connection with the SEC's ongoing investigation into the restatement of the Company's financial statements. Under the SEC's procedures, the Wells Notice indicates that the staff of the SEC intends to recommend that the SEC bring a civil enforcement action against Mr. Stanard alleging violations of federal securities laws. Recipients of Wells Notices have the opportunity to respond to the SEC staff before any formal recommendation is made. The Company understands the SEC staff has separately sent a Wells Notice to Michael W. Cash, a former officer of the Company.
One might recall that ReaissanceRe restated its fianncial accounts earlier this year due in part to faulty accounting for its investment in Inter-Ocean Reinsurance Ltd and various finitie risk (re)insurnace transactions that it conducted with that special purpose resinsurer, which subsequently has announced that it no longer is writing any new business. The Board of Directors of RenaissanceRe subsequently repremanded several senior officers of RenRe including Misters Stanard and Cash. One might well then guess that the SEC has found something reasonable upon which to base its civil enforcement action. It shall be interesting to see how the stock price of this specialty reinsurer reacts in the coming days. Surely this is not the last bit of news on the RenaissanceRe brnach of the finite reinsurance accounting improprities.