Odyssey Re, which is controlled by Canada's Fairfax Financial Holdings Ltd., had previously said it was restating earnings for the years 2001 through 2005, as well as results for the first quarter of 2006, mainly to correct accounting for convertible bond investments.
The Stamford, Connecticut-based reinsurer said that it expects to have to restate accounting for investments with embedded derivatives beyond those it had previously identified but the changes would not affect shareholders' equity.
Odyssey Re earlier this year said it as well as Fairfax was under investigation by U.S. prosecutors. V. Prem Watsa, who is Odyssey Re's chairman and Fairfax's chairman and chief executive, also received a subpoena from the U.S. Securities and Exchange Commission earlier this year.
Fairfax separately announced late last month that it was restating prior earnings.
Both companies have been in the sights of short-sellers this year, causing Fairfax to file a $6 billion lawsuit against various investment funds.