The public interest in SAC Re's position as a unit of hedge fund SAC Capital has raised questions generally about the exposure an insurance entity may have to the fortunes of another financial institution. At a time when SAC Capital faces insider dealing charges in the U.S., some are considering the future of SAC Re, including if A.M. Best, the rating agency, should decide to cut its rating on the Bermuda-based reinsurer. Jeremy Cox, CEO at the Bermuda Monetary Authority, which regulates SAC Re, told Compliance Complete: "The Bermuda Monetary Authority is aware of the SAC Capital investigation and has been monitoring developments. It should be noted however that SAC Re is a completely separate entity from SAC Capital. SAC Re remains classified as a Class 4 reinsurer." Inevitably, the relationship between an insurance company and a parent financial institution, or a bank in which it invests, may vary. One lawyer has suggested hypothetically that if a financial institution facing a
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