Max Re, a Bermuda reinsurer which delayed its first quarter earnings report until last week to finish an internal investigation, said yesterday it is no longer under the threat of a delisting from the Nasdaq.

The company, which filed the report with the US Securities and Exchange Commission on June 8, had weeks before been warned by the stock exchange that its shares could be delisted because it was late in lodging the report.

Days before the first quarter report, Max Re said it was to restate its earnings from 2001 through 2005 with the net effect of reducing income by $14.8 million.

The restatement corrects the accounting on three finite risk contracts. A number of other insurers and reinsurers, over the last year, have also restated income to correct their misaccounting of finite risk contracts.

Under US accounting rules, a policy can only be accounted for as reinsurance if there is sufficient risk transfer. Otherwise the policy must be recorded under the less favourable deposit accounting rules.

Max Re said its review concluded that there was sufficient risk transfer in its three contracts but its audit and risk management committee determined there were other accounting aspects to be fixed.

Shareholders? equity fell $18.3 million because of the restatement, Max Re said.