Max Re Capital Ltd. Announces Audit and Risk Management Committee Internal Investigation
25 Mars 2006 - 12:31AM
PR Newswire (US)
HAMILTON, Bermuda, March 24 /PRNewswire-FirstCall/ -- Max Re
Capital Ltd. (NASDAQ:MXRE) (BSX:MXREBSX:BH) announced today that
the Audit and Risk Management Committee of its Board of Directors
has initiated, with the assistance of outside advisors, a review of
three finite risk retrocessional contracts written in 2001 and 2003
to determine whether the Company properly accounted for them,
principally with respect to whether they contain sufficient risk
transfer to meet the requirements of Financial Accounting Standard
No. 113. In connection with the internal review, the Audit and Risk
Management Committee has voluntarily contacted the Securities and
Exchange Commission. (Photo:
http://www.newscom.com/cgi-bin/prnh/20010918/MXRELOGO-b ) As a
result of the investigation of the contracts in question, the
Company may be, but has not yet determined whether it will be,
required to restate its financial statements for the years ending
December 31, 2001 through 2005. Although the allocation among the
periods would have to be determined, the Company believes that the
cumulative adjustment from these contracts would be a reduction to
retained earnings at December 31, 2005 of not more than
approximately $50 million, or approximately 4% of shareholders'
equity. Max Re Capital Ltd. through its principal operating
subsidiaries, Max Re Ltd., Max Insurance Europe Limited and Max Re
Europe Limited, offers customized insurance and reinsurance
solutions to property and casualty insurers, life and health
insurers and large corporations. The above remarks about future
expectations, plans and prospects from the Company are
forward-looking statements for purposes of the safe harbor
provisions of the Private Securities Litigation Reform Act of 1995.
Such statements are subject to certain risks and uncertainties that
could cause actual results to differ materially from those
suggested by such statements, including the risk that the final
conclusion of the Audit and Risk Management Committee's
investigation could result in a restatement of the Company's
financial statements for the years ending December 31, 2001 through
2005. For further information regarding cautionary statements and
factors affecting future results, please refer to the Company's
Annual Report on Form 10-K for the year ended December 31, 2005 and
other documents filed with the Securities and Exchange Commission.
The Company undertakes no obligation to publicly update or revise
any forward-looking statement whether as a result of new
information, future developments or otherwise. Contact Information:
Keith S. Hynes Executive Vice President & CFO +1-441-296-8800
N. James Tees Senior Vice President & Treasurer +1-441-296-8800
http://www.newscom.com/cgi-bin/prnh/20010918/MXRELOGO-b DATASOURCE:
Max Re Capital Ltd. CONTACT: Keith S. Hynes, Executive Vice
President & CFO, , or N. James Tees, Senior Vice President
& Treasurer, or , both of Max Re Capital, +1-441-296-8800 Web
site: http://www.maxre.bm/
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