Bermuda-based reinsurer Platinum Underwriters Holdings has received a federal grand jury subpoena from US Attorney David Kelley to hand over documents related to the company?s finite reinsurance products.

Chief financial officer Joseph Fisher told yesterday that neither Platinum executives nor company representatives were required to make an appearance in connection with the subpoena, issued by the US Attorney?s office for the Southern District of New York.

Platinum is required by the subpoena to hand over documents by July 6, the company said.

The company previously received subpoenas requesting similar information from the American Securities and Exchange Commission (SEC) and from New York Attorney General Eliot Spitzer. Those were not federal grand jury subpoenas.

However, Platinum said in a statement that it has been informed that other companies in the industry have received similar subpoenas.

Platinum said it intends to fully cooperate with this subpoena as it did with the other information requests from the SEC and Mr. Spitzer?s office.

A regulatory probe of insurance industry practices has expanded from scrutiny of insurer/broker dealings to use and accounting of non-traditional loss mitigation products, or finite risk reinsurance policies.

The probe has been led by Mr. Spitzer but other regulators ? including Connecticut and Florida authorities as well as the SEC and the Department of Justice ? are also conducting their own investigations.

Numerous Bermuda companies have received subpoenas for information about the use or sale of finite risk reinsurance from one or more of the investigating authorities.

At question is whether finite risk transactions were used to genuinely transfer risk or more as a loan for income-smoothing purposes and disguised as reinsurance. Accounting rules for reinsurance are more favourable than for loans.

The finite probe has largely focused on commercial insurance giant American International Group (AIG) with the investigation leading the company to conduct an internal review resulting in its restatement of five years of earnings to the tune of $3.9 billion less in reported profits.

It was not known yesterday whether Platinum?s latest subpoena related to finite risk policies it has sold since in its three years in business or if it may relate to previous business. Platinum was established in 2002 after the St. Paul Group of Companies spun off its reinsurance arm St. Paul Re into the new Bermuda company.

Under Platinum?s initial terms, the company undertook to reinsure St. Paul Fire and Marine Insurance Company and St. Paul Reinsurance Company Limited for certain reinsurance contracts.

St. Paul Travelers has been subpoenaed by Mr. Spitzer?s office in relation to its finite risk business.

Platinum was set up on the Island in 2002 as a wave of reinsurance start-ups flocked to Bermuda as insurance market conditions improved after a void in capacity largely from the September 11 terrorist attacks.

After a few false starts, Platinum listed on the New York Stock Exchange in October, 2002 ? about six months after it first planned to go public. It delayed the IPO because of unfavourable market conditions as well as not having a chief financial officer immediately in place.

Platinum?s shares moved down seven cents in trading yesterday to close at $31.13 per share.