A.M. Best has placed the financial strength and debt ratings of the operating subsidiaries of Bermuda-based RenaissanceRe Holdings Ltd. under review with negative implications.

The ratings action against subsidiaries including Renaissance Reinsurance Ltd. , Glencoe Insurance Ltd., Lantana Insurance Ltd., Stonington Insurance Company and Stonington Lloyds follows the company?s announcement that it had received a ?Wells Notice? from the Securities and Exchange Commission in connection with its February restatement of its financial results 2001-2003.

A Wells Notice indicates the SEC may recommend civil enforcement action alleging violations of federal securities laws. Recipients have the opportunity to respond before any formal recommendation is made.

It is the third notice to be issued by the SEC in relation to its investigation with the first two directed at chief executive officer, James Stanard and Michael Cash, a former senior vice president in the company?s specialty reinsurance division.

?A.M. Best continues to monitor the situation and expects that the ratings will remain under review pending a resolution of this matter and A.M. Best?s evaluation of any financial or management impact that it might have on the RenaissanceRe,? the ratings firm said. DaVinci Reinsurance Ltd. (Bermuda), which is partially owned by RenaissanceRe and whose financial results are consolidated into RenaissanceRe, will also remain under review with negative implications pending the resolution of the ?Wells Notice? to RenaissanceRe.

DaVinci is currently under review with negative implications as A.M. Best?s evaluates its risk-adjusted capital position following Hurricane Katrina.

Best expects that any capital issues for DaVinci will be resolved in the short term.

RenaissanceRe slipped 1.87 percent in morning trading on the New York Stock Exchange to $44.08.