Bermudian Michael Cash has landed his first major role since being hit with a $130,000 fine by the US Securities and Exchange Commission (SEC) for allegedly taking part in a "sham transaction" to smooth earnings when senior executive of a subsidiary of Bermuda-based reinsurer RenaissanceRe.

Mr. Cash was appointed chief executive officer and chief underwriting officer of Juniperus Capital Ltd. (JCL), which was launched yesterday. JCL, based in Bermuda, will manage Benfield Group's $50 million cash investment in the Juniperus Insurance Opportunity Fund and other third-party funds focused on the collateralised re/insurance-linked securities markets, according to UK insurance publication The Post.

According to the SEC, Mr. Cash improperly accounted for a $50 million transaction and later settled with the Washington-based regulator without admitting or denying the allegations. The settlement barred him from working as a public company director or officer for five years.

In February last year, RenaissanceRe agreed to pay $15 million to settle SEC accusations it created an accounting "cookie jar" to hold profits that could be booked later, while RenaissanceRe neither admitted nor denied wrongdoing. The company agreed to hire an outside consultant and pledged to take any steps recommended to strengthen its auditing and compliance departments as part of the settlement.

Benfield holds a significant shareholding in JCL, having acquired shares at nominal value through a $6,588 investment. The company has also committed to provide up to $2 million of working capital to JCL. Other substantial investors in the fund include Transatlantic Re and JCL management.

Rob Bredahl, global head of BA: said, "The convergence of the reinsurance and capital markets is being driven by reinsurance companies seeking to access different forms of capital and innovative risk transfer techniques and investors increasingly attracted to the high yielding, non-correlated nature of catastrophe-type risk."

Mr. Cash has more than 17 years' experience in the re/insurance industry, including experience with structured reinsurance. He joined Renaissance Re in 2000, resigning in July 2005 as senior vice-president of specialty reinsurance.

Mr. Cash served as a principal at Stockton Reinsurance from 1998 until joining Renaissance Re. Prior to Stockton, he worked for Centre Reinsurance in Bermuda starting in April 1992, and he is an Associate of the Casualty Actuarial Society.

Alongside him will be executive chairman Philip Lotz. Mr Lotz has more than 27 years' experience of managing trading and client driven business across major asset classes for big international financial institutions.