RenaissanceRe Settles SEC Claims Over Bogus Deal

Law360, New York (February 6, 2007, 12:00 AM EST) -- RenaissanceRe Holdings Ltd., a property-catastrophe reinsurance company, plans to shell out $15 million to resolve U.S. Securities and Exchange Commission allegations that it used a sham reinsurance deal to defer $26 million of its earnings.

The reinsurance company settled the securities fraud claims without admitting or denying wrongdoing, the SEC said on Tuesday. The SEC alleged that RenRe made a bogus reinsurance deal that allowed the company to stash its excess revenue in a “cookie jar” for later use.

The SEC claimed that the transaction did...
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