SEC settles sham reinsurance allegations with Renaissance Re
The SEC has settled allegations that Renaissance Re entered into a sham reinsurance transaction that had no economic substance and no purpose other than to smooth and defer $26.2 million of Renaissance Re's earnings from 2001 to 2002 and 2003. To effectuate the settlement, the SEC filed a Complaint against Renaissance Re in US District Court and simultaneously announced a settlement of the allegations. The settlement required Rennaisance Re to pay a $15 million civil penalty, which Renaissance Re had offered to pay last summer, as reported in an August 25, 2006 posting in this blog.
