Bermuda-based reinsurer Everest Re has become the latest tick on the US Securities and Exchange Commission's list of insurance companies to subpoena about potentially illegal accounting activities.
Everest reported receiving the SEC documents on Wednesday and has responded by saying that it does not believe that it has engaged in any improper business practices. The company, which provides insurance to other insurance companies, added that it intends to co-operate with the US authority.
Everest is now part of what has become a long list of insurance companies with connections to the US insurance industry to come under the scrutiny of the SEC and New York Attorney General, Eliot Spitzer. Over the past couple of months GE, Axa, Munich Re, Converium and Hanover Re have all received legal requests for information regarding the possible use of finite or nontraditional reinsurance to distort financial results.
It is also believed that Everest is occupying the time of regulators in Delaware and Georgia, which would also like to ask the reinsurer some questions.