The SEC has subpoenaed the Bermuda-based primary and reinsurance carrier in connection with its investigation of alleged improper use by some companies of non-traditional insurance products to inflate their earnings statements.

Last month, after it was disclosed that Mr. Stanard was given a "Wells" notice that he is a possible target of an SEC enforcement action, his company's shares fell 9 percent. The week before that announcement, Mr. Cash, a Bermuda citizen, resigned rather than accept subpoena service and the company stock fell 3 percent.

The plaintiff attorneys said the prospective class action seeks to represent investors who bought RenaissanceRe stock between January 2002 and last month.

Earlier this year, the company announced a restatement of 2001-2003 financial results that could stem from improperly accounted finite-risk transactions.

Fitch Ratings, in reaction to the SEC notices, commented that: "Although numerous companies have received subpoenas that Fitch believes are likely similar to those received by RenRe, and Fitch believes RenRe is cooperating with those subpoenas, it also believes that the company faces heightened exposure to these issues because of its restatement."

Callout:

Possible finite risk accounting misdeeds prompt class-action filing