Ratings agency Fitch has affirmed the financial strength ratings of Bermuda reinsurer Max Re Ltd. at A and has removed a rating watch negative. Fitch said Max Re?s franchise, reputation, competitive and financial position was not adversely impacted as a result of the company?s reopened internal finite-risk investigation and further restatement in November 2006.

As a result, said Fitch, there was ?a reduced level of uncertainty?. The rating outlook is stable.

Max Re restated five years of earnings, from 2001 to 2005, after a company investigation into finite-risk insurance. And the reinsurer then reopened its investigation, focussing on another finite-risk deal.

This came during an industry-wide probe into the use of finite insurance, which regulators believe is sometimes used to ?smooth earnings? and manipulate balance sheets.

The investigations led to the resignation of Max Re founder and former chief executive Robert Cooney last October.

Fitch expressed confidence in Mr. Cooney?s successor, W. Marston Becker and his management team.

And the agency said the company had a disciplined and flexible approach to underwriting risks, through the continued use of its sophisticated models and structuring of every contract with loss caps and aggregate limits.

Improved operating results posted in 2006 and favourable parent company financial flexibility were also reflected in the ratings action.

Fitch said the positives were partially offset by uncertainty related to how the Securities and Exchange Commission (SEC) might respond to the information provided by the company in relation to its restatements.