Robert Cooney has resigned as chief executive of Max Re following the announcement that the audit and risk management committee has re-opened its internal investigation into a series of finite transactions.
Marston Becker has been named chairman and acting chief executive.
The internal investigation, which had concluded in May 2006, was initiated to consider whether three finite risk retrocessional contracts were properly accounted for by the company.
As previously reported, the first review supported the company's original determination that the contracts contained sufficient risk transfer to be accounted for as reinsurance.
Recently, however, the committee received from the counter-party to these two contracts additional information that was unknown and unavailable at the conclusion of the initial internal investigation.
The new information has raised the possibility of the existence of an oral agreement that would negate risk transfer.
"After founding and leading Max Re for seven years, I have submitted my resignation because I believe it is in the best interests of the company to do so,” said Cooney. “I am confident that Max Re will continue to succeed and grow under the new management team put in place”.
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