Moody's Investors Service has said it is continuing its
review of Renaissance Reinsurance and RenaissanceRe Holdings (RNR) and its affiliates for possible downgrade.
Moody's placed RNR's ratings on review for possible downgrade on 27 July 2005 following the company's
announcement that chairman and chief executive James N Stanard had received a Wells Notice from the Securities and Exchange Commission (SEC).
The notice was in connection with the commission's ongoing investigations into the restatement of the company's financial statements.
Since that time, the company has estimated that the net
financial impact from Hurricanes Katrina and Rita will be approximately 1% of aggregate insurance industry losses.
In addition, RNR announced that the company had also received a Wells Notice from the SEC in connection with the commission's continuing investigations into the restatement of the company's financial statements.
Moody's stated that its continuing review for possible downgrade would focus on the ongoing regulatory investigations, as well as the magnitude of the actual losses reported from Hurricanes Katrina and Rita, and the company's risk management systems.
The ratings agency said the range of potential outcomes from the ongoing regulatory investigations, including the possible departure of key members of the current management team and the negative impact on RNR's business franchise and financial position, will continue to be key rating considerations.