ACE, a property and casualty insurer, has said it will restate more than five years of results to fix its accounting for eight finite risk reinsurance contracts.
The company said it will restate results from 2000 through 2004, and the first quarter of 2005 because the contracts "were accounted for in an incorrect manner".
The restatement will increase shareholder equity by $1m, and change net income for the affected periods.
ACE chief executive Evan Greenberg said in a statement that an independent company investigation has involved the review of more than 100 finite risk transactions.
He said: "We have found accounting problems on a number of transactions and we regret that. We are fixing those problems. We have also put in place strict procedures to assure that this does not happen again."
ACE said it has found no evidence of inappropriate conduct by current senior management or by members of its board of directors. It is still responding to federal and state regulatory inquiries, and will continue its own investigation.
