Bermuda reinsurer Everest Re says its US subsidiary has been subpoenaed by securities watchdog, the US Securities and Exchange Commission (SEC), for information related to finite risk reinsurance.

The subpoena, sent to Everest Reinsurance Holdings, was said to relate to ?certain loss mitigation insurance products? or finite risk, the use of which regulators are probing after some companies were found to be misusing this non-traditional form of insurance for income smoothing purposes.

Everest is just one of several Bermuda companies that have been subpoenaed as regulators investigate how finite risk policies may have been used more as a loan product to disguise losses, while being accounted for as reinsurance.

Everest said it ?will fully cooperate with this and any future inquiries and that Everest Holdings does not believe that it has engaged in any improper business practices with respect to loss mitigation insurance products,? in a Press statement.

Shares of Everest Re fell 69 cents to $88.53 in New York Stock Exchange composite trading. The stock has risen 9.6 percent in the past year. The filing was made after the close of regular trading.