Michael Cash, the Bermudian head of RenaissanceRe Holdings' specialty reinsurance unit, has resigned after refusing to voluntarily accept service of a subpoena from the Securities and Exchange Commission calling for his testimony in its investigation into the restatement of the company's financial statements.

Mr. Cash's New York lawyer told yesterday that despite news stories to the contrary, Mr. Cash had not actually been served with a subpoena since the SEC does not have the jurisdiction to subpoena him in Bermuda.

"This issue relates to fact he is Bermudian, living in Bermuda, working in Bermuda, from Bermuda, born in Bermuda and the question of whether or not he will voluntarily agree to be subpoenaed which is a different question from whether or not he will ultimately voluntarily agree to provide information in connection with the investigation," said lawyer Marty Perschetz.

"Some of the news stories seem to suggest that somehow somebody attempted to serve him directly with subpoena and he refused to accept it. It really is not about that."

Mr. Perschetz would not comment on the ongoing investigation or say whether his client now planned to voluntarily agree to being served, however yesterday in a statement Renaissance Re said that it is co-operating with government authorities in their investigations and "Mr. Cash's action was inconsistent with its cooperation."

Shares declined as much as 3 percent or $1.43 to $46.17 in afternoon in trading on the New York Stock Exchange. More than 1.1 million shares moved which is more than double the ten-day average volume. Shares closed down 70 cents at $46.90.

Mr. Cash's resignation comes at a time when state and federal regulators are investigating the use of finite reinsurance, which is a blend of financing and reinsurance. The regulators are concerned that companies may be using finite reinsurance policies as disguised loans to smooth earnings.

In February, RenaissanceRe announced plans to restate financial results for 2001-2003 to correct how it accounted for reinsurance it had purchased from companies including Inter-Ocean Holdings Ltd., a finite reinsurer which it partly owned. Inter-Ocean stopped underwriting new business in April.

Correcting the faulty accounting moved profit from one year to another, with 2003 net income rising by $1.3 million, 2002 profit falling by $21.9 million and 2001 rising by $20.6 million. The restatement also saw RenRe's independent board of directors reprimand Mr. Cash, CEO James Stanard, president William I. Riker, chief financial and operating officer John M. Lummis and controller Martin J. Merritt because they "made mistakes and in some instances lacked due care in connection with the original accounting" for the four-year-old Inter-Ocean arrangement.

The SEC subpoenaed the company for information on its restatement and later, along with the Office of the Attorney General for the State of New York, issued a subpoena for information related to Channel Reinsurance Ltd., a reinsurance company in which RenaissanceRe is also an investor.

Last month another subpoena from the United States Attorney for the Southern District of New York requested information relating to the company's use of finite risk insurance and related products.

Mr. Cash, an actuary by training, joined RenaissanceRe in 2000 and was a senior vice president of speciality reinsurance. He resigned on July 8. Company cofounder Neill A. Currie ? who only rejoined the company on July 5 as an executive vice president responsible for firm-wide marketing and client relations activities ? will take on the additional responsibility of managing the 13-year-old company's Speciality Reinsurance business.

RenaissanceRe has recently experienced other losses at the executive level. Last month, David A. Eklund, RenaissanceRe executive vice president, and president and chief underwriting officer of Renaissance Reinsurance Ltd., resigned to spend more time with his family. He remains with the company as a consultant.

Mr. Riker remains on a reduced workload after announcing plans to cut back for a few months in April to receive treatment for a medical condition.