Max Re Receives Official De-listing Notice from NASDAQ

Bermuda-based Max Re Capital Ltd. announced that it received a NASDAQ Staff Determination on May 16, 2006 indicating that, “due to the Company’s failure to file its Form 10-Q for the period ended March 31, 2006 on a timely basis, the Company fails to comply with the filing requirements for continued listing set forth in Marketplace Rule 4320(e)(12), and its securities are, therefore, subject to delisting from the NASDAQ National Market.”

Max Re said it plans to “request a hearing before a NASDAQ Listing Qualifications Panel to review the Staff Determination,” but it cautioned there is no assurance that the Panel will grant the Company’s request. Earlier this month, the Company announced that it had not completed the audit procedures necessary for the filings (See IJ Website March 27 and May 2).

“The Audit and Risk Management Committee of Max Re’s Board of Directors has not yet completed its review of three finite risk retrocessional contracts written in 2001 and 2003,” the bulletin explained. This has also delayed, KPMG, the Company’s auditors, completion of the “Statement of Auditing Standards 100 review of financial information for the first three months of 2006.”

Max Re indicated that it does plan to file the “Form 10-Q as soon as reasonably practicable and, although there can be no assurances, expects that it will file the Form 10-Q in June 2006.”

The Company also indicated that it would probably “restate its financial statements for the years ended December 31, 2001 through 2005.” It added, however that the “cumulative effect to retained earnings at December 31, 2005 of any such restatement would be a reduction of not more than approximately $25 million.”

It also added that, “if the Company were to determine that a restatement of its financial statements is warranted, the previously published financial statements for the periods to be restated could not be relied upon.”