Reinsurer Platinum Underwriters Holdings says an internal review of its finite risk business unturned ?no improprieties?.

Chief executive Gregory Morrison told analysts at the Wachovia Securities Equity Conference taking place in Nantucket, Massachusetts yesterday that Platinum is ?open and honest? about its finite risk transactions and initiated its own internal investigation to be sure the policies were being properly sold. The Bermuda-based last week received a federal grand jury subpoena from US attorney David Kelley seeking documents about its finite risk business.

This nontraditional form of reinsurance is being probed by regulators because of concerns that insurers might use it to hide losses. Law firm Dewey, Valentine led Platinum?s review. Mr. Morrison said was now concluded after finding no wrong.

He said finite risk had attracted a lot of negative press but Platinum followed careful ?don?t do? rules when selling the controversial policies.

He said this included not selling retroactive contracts for prior-year losses, not having side agreements with clients to secretly reduce the risk transfer in the contract, not seeking to sell finite risk to clients in financial distress and that it did not give clients accounting advice.

Platinum was one of several Bermuda-based insurance companies in the last two weeks to receive federal subpoenas related to finite risk.

Platinum previously received subpoenas requesting similar information from the US Securities and Exchange Commission (SEC) and from New York Attorney General Eliot Spitzer.

Mr. Spitzer has led a wide investigation of insurance industry practices, including a focus on how reinsurers and insurers use finite risk policies.

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 that resulted in its reducing five years of earnings by $3.9 billion.

Other state and federal regulators have been conducting parallel investigations.

Platinum said it fully intends to comply with the terms of its federal subpoena by a July 6 deadline. The focus on finite risk won?t deter it from selling the business, Mr. Morrison said. Demand for the product could slow in the short term because of increased accounting and regulatory scrutiny, he said.

Platinum is primarily a property and casualty reinsurer. It was set-up in 2002 as a result of the St. Paul Group of Companies spinning off its reinsurance arm, St. Paul Re. Mr. Morrison said Platinum is strictly a reinsurer. It does not sell insurance in a bid to avoid any conflicts of interest with its clients.

?The finite market will continue to be difficult. Long term demand will persist after accounting rules are clarified and regulatory risk has receded.

?Overall we expect the reinsurance market to remain attractive. The market is still a good one. Profitability is declining but it is still good profitability. We don?t expect anything to fall of a cliff,? he said.