Max Re Capital founder and chief executive officer Robert Cooney resigned yesterday as the carrier reopened an investigation into accounting wrongdoing stemming from three finite risk retrocession contracts.
The Bermuda-based company said new information regarding a previously closed internal investigation concluded there was an oral side agreement that cast doubt as to whether two finite risk contracts contained enough risk transfer to qualify for preferable accounting treatment.
Max Re will restate earnings from 2001 through the first half of this year, as a result of the new inquiry.
The carrier said the additional information did not relate to the third contract reviewed in the internal investigation, which was with a different counterparty.
W. Marston Becker will take over as chairman and acting chief executive, the company announced.
Mr. Cooney has also resigned from the board. “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. I am confident that Max Re will continue to succeed and grow under the new management team put in place,” he said.
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