On July 25, Mr. Stanard was notified by the Securities and Exchange Commission that he will in all likelihood be a target for a civil enforcement action stemming from the Bermuda-based company's recent restatement of earnings for 2001-2003.

RenaissanceRe had earlier announced that it would restate earnings as a result of an aggregate excess-of-loss reinsurance transaction with Inter-Ocean Holdings Ltd., a Bermuda carrier now in run-off.

Fitch Ratings and Standard & Poor's reacted to the news by changing their credit outlooks from stable to negative. Moody's had already had the primary and secondary insurer on a negative outlook.

As one of the key founders and moving forces behind RenaissanceRe, the possible targeting of Mr. Stanard by the SEC has raised concerns of varying degrees among analysts. Fitch analyst Keith Buckley said that given the generally small senior staffs of Bermuda companies, the departure of someone of Mr. Stanard's status could bode ill for the future of the company.

S&P analyst Thomas Upton made much the same point when he said that continued senior management instability could lead to a downgrade. Earlier this month, another RenaissanceRe executive, Michael Cash, was forced to resign after he refused a subpoena.

However, A.M Best said the company's "strong and seasoned senior management team" led the firm to conclude that no ratings action or outlook change was necessary at this time.

"What has to be even more worrisome for RenaissanceRe are potential civil and criminal charges resulting from subpoenas previously issued by the U.S. attorney and the ubiquitous [New York Attorney General] Eliot Spitzer," according to Celent senior analyst Donald Light.

He said a potentially fatal criminal or civil action against the entire company does not seem likely now since there is every indication RenaissanceRe is cooperating with the investigation.

Where any finite re investigation could become dangerous for a company is the discovery of any side agreements that would in essence negate the risk-transfer aspect of the deals, Mr. Light noted. "That is where there would be bright line," he said.

The pure accounting discrepancies would present less peril because there is a growing consensus the accounting guidelines are not as well defined as they could be, he added.

Analysts are concerned about legal woes forcing the troubled reinsurer's CEO to depart